While it’s still too early to say for sure how well or woeful Name, Image and Likeness (NIL) deals are working for Historically Black Colleges and Universities (HBCUs), the impact of such deals on HBCUs will continue to expand.  The agreements, sanctioned by the NCAA in 2021, allows athletes to profit from the use of their personal brands in commercial endeavors like marketing and advertising.

But here’s food for thought: This year’s NCAA Men’s and Women’s Basketball Tournament pairings were a reminder that HBCUs have much ground to make up when it comes to being more competitive with predominantly white institutions (PWIs).

Of the four HBCU teams in the NCAA basketball tournament (Howard University and Texas Southern for the men’s tournament; Southern and Norfolk State for the women’s tournament), all came in as the lowest seed possible (16th) with each losing in the play-in round (Texas Southern and Southern) or first round of play (Howard).

The competitive gap between HBCUs and PWIs is undeniably wide. But many will argue that’s because HBCUs have to compete for talent among an army of better funded and larger Division I athletic programs.

But if nothing else, Black colleges are resilient and have always found ways to compete academically with larger schools. So in that regard,  here are four reasons why NIL deals may be just what’s needed in order to create a more competitive balance between the two.

Now, Do We Have Your Attention?

For years, HBCU schools had little to offer top-tier recruits in their own backyard besides a quality education and a shot to play in front of family and friends. Far too often, those players would venture off into the more competitive terrain of SEC, ACC, Big 10 and Big 12 country.

NIL deals have, at a minimum, given the best players reason to pause before signing on with athletic powers such as the University of Alabama, University of Georgia or Clemson University.

The easiest way to recognize this shift is how some head coaches from Power-5 Conferences are looking at HBCUs now as legit competition for players, a trend that will only increase as the power and purpose behind N.I.L. deals among HBCUs continue to expand.  One example is Ky’Wuan Dukes, a Johnson C. Smith University wide receiver, who in 2021 was the first HBCU athlete to sign a NIL deal with Charlotte-based fast-food chain Bojangles. Since that time then-Jackson State star wideout Travis Hunter signed a deal with former NY Giants superstar defenseman MIchael Strahan’s business brand; and his teammate quarterback Shadeur Sanders also signing deals with Gatorade, Beats and NFL legend Tom Brady’s apparel brand.

One of the first Power-5 coaches to acknowledge HBCUs as a legit threat to the Good ol’ boy process of procuring prodigy-like talent, was Alabama football coach Nick Saban who accused Jackson State of paying Hunter $1 million to play for the Tigers, providing no proof other than a throwaway reference to “it being in the paper.”

If NIL is provoking this kind of reaction in its infancy stage, just imagine how messy it’ll get in the coming years when the NIL imprint on HBCUs becomes more sophisticated and nuanced with more options and factors for players to consider beyond what has been the traditional means of compensation.

TV Deal Provides Higher Profile For HBCUs

One of the biggest knocks against HBCUs has been the lack of national exposure athletes receive. But efforts to change that narrative are well underway, and will manifest themselves this college football season with Byron Allen’s free streaming service HBCU Go coming to terms on a nationwide licensing deal with CBS stations in major markets.

The Allen Media Group-owned digital platform will be carried in several CBS-owned-and-operated duopoly stations in major markets such as New York; Los Angeles; Philadelphia; Dallas; Atlanta; San Francisco; Boston, Seattle; Tampa; Detroit; Miami and Pittsburgh.

This will allow HBCU Go to be available in 60 percent of U.S. television households and 70 percent of African American households, according to NBC News. 

Having that kind of digital footprint accomplishes two things: For potential NIL sponsors, it allows them to have their products and services in front of a wider audience which can in turn result in greater profits. This can also enhance both the value and volume of NIL deals going forward for athletes.

High Profile HBCU Alums Get To Step Up

The impact of celebrities in the NIL game can not be overstated. One of the challenges HBCUs have had early on in this NIL.-centric world, is getting their most famous alums with deep followings - and even deeper pockets - to see the value that comes about with the utilization of NIL deals in attracting talent.

So going forward, efforts should continue to engage the likes of Oprah Winfrey (Tennessee State), Spike Lee (Morehouse College) as well as Sean “Diddy” Combs (Howard), who verbally committed to donate $1 million to Howard University and another $1 million to Jackson State and then-head coach Deion Sanders because, said Combs, “We should play for us.”

Changing Economics Make HBCU NIL Deals More Attractive

One of the seldom talked-about dynamics driving the NIL surge toward HBCUs, is the unquestioned increase in Black spending power. According to NielsenIQ.com, Black buying power is set to reach $1.8 trillion by 2024.

The increase is fueled in part by, according to the publication, “the Black population is on track to grow by 22 percent between 2020-2060, compared to a 27 percent decrease in the non-Hispanic White population during that same time. With this in mind, retailers and manufacturers need to pay close attention to what is driving this very powerful and rapidly growing segment to make a purchase.”

And within that framework, there will be closer attention paid by companies big and small to partner with individuals - HBCU athletes, for example - whose influence can move the economic need and in doing so, enhance those financial realities of the future.