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YF Explains: March Madness NIL Deals

Spring is in the air and you know that means - get your bracket ready because it’s March Madness time. This year, after the game of his life, Jack Gohlke of Hillsdale College capitalized on his growing spotlight to thank not only his coach and his team, but also TurboTax? Gohlke had secured a name, image, and likeness deal (otherwise known as an NIL). You have probably heard the term NIL thrown around during the past few years, but what does it mean really? And is it truly a good thing for college sports? College sports is a multibillion dollar industry, bringing in big bucks for universities. The Ohio State University athletic program, for example, raked in more than $250 million in revenue in just the fiscal year 2022. But what about the players? In recent years they have refused to sit on the sidelines in silence. In 2021 the Supreme Court ruled on the side of the players in NCAA v. Alston stating that universities are not exempt from anti trust laws. College athletes are now free to lend their name, image, and likeness (what is otherwise known as NIL) in order to monetize their personal brand. “Now It’s Legal” is another way to understand NIL. It is now legal for college athletes to monetize their rising star power, and the spotlight is never bigger than during March Madness. These student athletes are now bringing in more money than ever before: USC freshman basketball player Bronny James (son of LeBron James) worth an estimated $5.9 million. Iowa University’s Caitlin Clark and LSU’s Angel Reese earn $3.1 million and $1.8 million respectively. NIL has two separate markets. The first is largely brand deals: athletes are paid to promote content or products on their social media channels. The second market involved in this new NIL system are donor-funded groups called Collectives. Many of these collectives are 501(c)(3) non profits, meaning donations are tax-deductible. These Collectives allow athletes to take in defacto salaries. College athletes can now shop around for the best deal and are less likely to remained tightly bound to their original school. Although this allows players more agency, many fans feel like it is ruining what makes college sports and turning it into a mini NBA. Players are no longer fighting for their school & community but rather are focused on chasing higher salaries. Has NIL made the NCAA a victim of its own success? We will be on the look out for the domino effect NIL has throughout the landscape of college sports. Editor's note: This article was written by Noah Chadwick


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Amazon history: Beyond the Ticker

From its start as an online bookstore to its rise in e-commerce and cloud computing, Amazon (AMZN) has become one of the world's most iconic brands. In 2023, the tech juggernaut generated over $575 billion in revenue, boasting more than 200 million Amazon Prime members worldwide. Beyond the Ticker takes a deep dive into some of the company's biggest moments. 1994 Amazon was founded in 1994 by Jeff Bezos from his garage in Bellevue, Washington. It was originally an online bookstore designed to compete with Barnes & Noble (BNED). 1997 On May 15, 1997, Amazon went public via IPO at $18 per share, giving it a valuation of $300 million. 1998 Amazon began selling CDs, marking the start of its effort to become a shopping Goliath. 2005 The company launched Amazon Prime, a $79 per year membership with free two-day shipping on eligible orders. 2006 Amazon launched Amazon Web Services (AWS). The platform would go on to become the top cloud computing platform, ahead of rivals Microsoft (MSFT) and Google (GOOG, GOOGL), and one of Amazon’s most successful businesses. 2011 The company rebranded its video service as Amazon Instant Video with access to 5,000 movies and TV shows for Prime members. 2014 Amazon acquired the video game streaming website Twitch for $970 million. 2017 Amazon acquired high-end supermarket chain Whole Foods in 2017 for $13.7 billion. It has since integrated the two companies, offering discounts to Prime members. 2018 On September 4, 2018, Amazon became just the second US company ever to reach a $1 trillion market cap, after Apple (AAPL) reached it earlier in the year. 2020 Amazon's sales and profits surged during the Covid-19 pandemic in 2020, as consumers turned to online shopping. Its total sales increased 38% year-over-year to $386.1 billion, and net income increased 83% to $21.3 billion. 2021 Founder Jeff Bezos announced that he would step down from his role as CEO and be succeeded by AWS CEO Andy Jassy. 2024 Amazon was added to the Dow Jones Industrial Average, replacing drugstore giant Walgreens (WBA). The company continues to evolve, investing billions in AI startup Anthropic, developing more smart home products, and launching an AI shopping assistant named Rufus. It’s safe to say Amazon is a staple of the digital age. From tech giants to retail titans, Beyond the Ticker is a historical series that takes a deep dive into some of Wall Street's trending companies and how they transformed into the financial icons they are today. Check out more of our Beyond the Ticker series, and be sure to tune in to Yahoo Finance. Editor's note: This video was produced by Zach Faulds.


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