Twitter Enters NIL Space

The NIL arena features several different brand name companies, but now major players are beginning to enter the bidding wars.

While collegiate athletics earned substantial revenue during the 2021 calendar year, major corporations showed hesitancy when leaping into the market.

Brand deals tether companies to athletes, a financial risk that some businesses would prefer to avoid. For example, Dr. Pepper signed an endorsement deal with Clemson quarterback DJ Uiagelelei ahead of the 2021 season; Uiagelelei suffered with inconsistencies and didn't live up to the pre-season hype.

However, as we learn more about the world of NIL, large companies are starting to test the waters. Twitter announced they would allow Pac-12 athletes to monetize highlight films posted on their platform, though the revenue splits remain unclear.

Twitter is entering the NIL space. PAC-12 football players can share their highlights on the app. Twitter will embed ads, allowing college athletes to make money off the ad revenue. Twitter didn't disclose what rev split will be, but players can monetize their highlights.

— Mike Vorkunov (@MikeVorkunov) August 4, 2022

While this move doesn't directly impact Georgia athletes yet, it causes a ripple effect that could eventually reach the Bulldogs. Twitter paying athletes in bulk may cause school-affiliated partners like Nike and Under Armour to begin negotiating contracts with players.

Currently, schools and coaching staffs rely on collectives founded by student-athletes to ensure that companies maintain integrity, protecting student-athletes in the process. Large businesses have models intact that help guarantee integrity and promises, providing a new wrinkle to NIL.

NIL continues to evolve daily. While coaches and boosters work to help all athletes find ways to profit, large businesses could eventually stand to negotiate with top-level recruits. For example, Nike is concerned with furthering their business endeavors, and signing a top-flight player does more for them than partnering with a school-wide collective.

Expect more top names to follow Twitter's lead in the coming months. No regulations currently sanction this new era of college football, meaning things could become very interesting with big names entering the game.