Student Athletes Now Have an Option to Cash In on NIL Money After Leaving the Program or Getting Injured

When the league allowed collegiate players to profit off their name, image, and likeness in 2021, student-athletes could start earning early and significantly. Not only does this give them a head start in their football careers, but it also helps establish financial security. However, there are certain scenarios where an athlete can lose their NIL valuation altogether.

While NIL valuation figures look enticing, colleges may take a slice of their earnings in some cases. If a player gets injured, there is no rule barring a program from nullifying the deal either.

At times like these, more often than not, the young athletes don’t have a backup plan. However, one former college player named Tyrre Burk plans to change this norm.

His company, Players Health, aims to help collegiate players with insurance, compensating them for injuries sustained during games or practice. Having played football at Winona State and professionally in the Canadian National League, the former athlete’s journey was halted by a series of injuries.

Realizing the need for coverage for student-athletes, Burks founded the organization in 2016. Initially aimed at providing a platform for managing coach training, injury reports, and abuse inquiries, Players Health has raised over $30 million. After the legalization of NIL deals by the NFL, the company provided insurance worth $7 million.

Based in Minneapolis, Burks’ firm offers insurance of $25,000, which would cover an athlete if they miss 25% of the season during a field injury.

That said, it’s not just the players who are showing interest in getting insured, but also colleges.

NIL Insurance to the rescue

Sometimes, after signing a deal, a player may wish to transfer early in the season, in which case they get to keep the money. Well, collectives can purchase policies ranging from 4% to 10% of the NIL deal amount to cover scenarios where the athlete under contract transfers or is injured.

As of today, Players Health has reached over 50,000 teams across the continent and is expected to sell insurance policies worth $40 million this year.

However, while the policies are helping athletes put up a safeguard against financial loss, there exists considerable uncertainty regarding the NIL rules, as was pointed out by the NCAA president, Charlie Baker.

He made a social media post regarding Matthew Sluka’s exit from UNLV over NIL deal grievances. Baker wrote how there is “evidence of dysfunction” in the NIL landscape, even quoting how the quarterback was denied his earnings after an initial promise. He further urged Congress and advocated for the creation of national NIL guidelines to shelter the athletes from exploitation.

While the collegiate players hope Baker’s proposal reaches fruition, for the time being, they’ll have to rely on existing insurance plans to secure their NIL earnings.