One of the most puzzling things about college sports is the swift emergence and dominance of “collectives.” Think of them like powerful startups — they’re newcomers to the space, yet they’re driving 80% of the money in the $1 billion name, image, and likeness industry.
Almost every college or university has at least one collective that facilitates NIL activity for its student-athletes. They aren’t officially part of the schools, but coaches are now allowed to point to a collective and encourage fans to support it.
During the first year of NIL, collectives were viewed as “hush-hush” by many in the industry, Opendorse marketplace’s Braly Keller previously told Insider. But Keller said there’s been a large “mindset shift among schools” since, and collectives have come to dominate the industry.
In the past year, collectives have amassed large power and influence, especially in the recruiting landscape. Even though they can’t directly talk to recruits, athletes considering a school can learn what NIL work current athletes have done with the collective. Fans also give money to collectives, hoping to attract and keep top talent.
But it’s not well understood in the industry how these organizations are run.
Insider spoke with leaders of two collectives backing schools in the Big Ten Conference — Happy Valley United, which supports students-athletes at Pennsylvania State University, and Dinkytown Athletes, which does the same at the University of Minnesota — to learn how these businesses operate, fundraise, make deals and content, market themselves, and more.
Happy Valley United, deriving from the nickname for the State College, Pennsylvania region, is run like a business with a staff of nine and a parent company overseeing contracts, partner companies, and charities. It recently raised nearly $140,000 in three weeks from fans. The company in June emerged from two existing Penn State collectives.
Dinkytown Athletes, named after the neighborhood surrounding the University of Minnesota, is a “passion project” run by former Minnesota football player Derek Burns and his business partner, a lifelong Golden Gophers fan, with the help of a few students who work part-time. The collective was formed in September 2022, accepting memberships for fans who get exclusive content, merch, and events.
How collectives are set up and make money
No rule book dictates how to set up or run a collective, and some have scaled up while others have failed.
Many collectives are operated by larger entities like Student Athlete NIL, commonly known as SANIL, or Blueprint Sports, the parent of Happy Valley United that powers collectives at 19 colleges and universities nationally.
Others, like Dinkytown Athletes, are leaner. At least 85% of the money coming into Dinkytown Athletes goes to student-athletes, Burns said, while the remaining funds go toward running the business, including paying the collective’s staff of mostly students who work part-time in areas like graphic design, social media, and event coordination. He said the collective doesn’t currently turn a profit.
Both collectives make money in three main ways:
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partnerships with businesses and organizations or corporate sponsorships
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memberships from fans who pay monthly or annual fees ranging from $10 per month to $5,500 per year
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donations directly to the collective or to a partner nonprofit
“It’s very similar to a lot of fundraising arms within the athletic department or your corporate sponsorship arm within the athletic department,” said Happy Valley United’s executive director for football Brandon McCladdie, who is not a Penn State alum.
Dinkytown Athletes has landed deals for student-athletes with both local and national businesses in the Minneapolis area. It also said it has upcoming partnerships in the works with an apparel vendor and an adult beverage company that the collective said would generate passive income without any involvement from student-athletes. The collective works with the university’s licensed apparel vendor to sell merchandise with official trademarks and logos, as well.
Happy Valley United, meanwhile, is mainly focused on corporate partnerships and working with companies to get deals for athletes, McCladdie said, but it’s growing its work with individual philanthropists who could help back the fund.
Membership is the lifeblood of both collectives since their fandom helps attract partners. The collectives offer members exclusive content, merchandise, special events with athletes, and more. Minnesota fans can watch a video series about student-athletes and their mothers called, “Dinkytown Moms,” attend barbecues and tailgates, and play online games with an athlete. Penn State fans can get exclusive merchandise marketed to the football team’s annual White Out game, and attend events with athletes like a fall festival with pony rides and pumpkin decorating.
“That’s been pretty rewarding being able to provide fans with an inside look at the student-athlete experience and get some extra coverage and exposure for the athletes to the fan base,” Burns said.
Dinkytown Athletes and Happy Valley United declined to share how many members they have.
Both collectives can accept money directly from fans who aren’t members, as well. Happy Valley United also directs donations to the Blueprint Sports Foundation, which partners with local nonprofits to get athletes out in the community. Still, its leaders understand that a few checks from wealthy donors will not keep the collective afloat, and are looking for a more sustainable model with commercial partners and memberships.
How collectives work with college athletes
The main goal of collectives is to create NIL opportunities for college athletes.
Most of the NIL deals Dinkytown Athletes has arranged for the school’s student-athletes pay them to engage with fans through video shoutouts, interviews, live appearances, and other ways, Burns said. He estimates athletes earn $600 on average for a few hours of fan-engagement work through the collective.
About a quarter of Dinkytown Athletes’ NIL deals have been business partnerships between Minnesota athletes and companies like Dove, Northwestern Mutual, and PNC Bank. Those can pay more but tend to be less frequent.
Happy Valley United’s NIL work also involves engaging with the local community, including the collective’s partner charities, said McCladdie. The collective has connected student-athletes with companies and charities they can promote on social media (or on billboards in State College), organizes autograph sessions and paid appearances, and helps put on camps and clinics.
It negotiates the deals with the companies and organizations and generally keeps student-athletes out of those meetings, McCladdie said.
Both Burns and McCladdie said NIL can help student-athletes develop business skills and plan for life after sports. Burns said some athletes have expressed interest in getting a job or internship at a brand after working with them on an NIL deal.
“There is definitely an entrepreneurial and a professional development aspect of this that I don’t think is talked about enough,” Burns said.
How collectives attract donors and brands
Fundraising keeps collectives afloat — and requires lots of outreach and marketing.
Both collectives are active on social media, and seek ways to engage both the “die-hard” and more casual fans at their respective schools and convince local businesses to work with them.
Dinkytown Athletes built relationships with rights holder Gopher Sports Properties, allowing the collective to use trademarks and logos and advertise officially at games and to season-ticket holders. Companies that had already been advertising with Gopher Sports Properties are now also working with the collective to include and compensate athletes for campaigns.
Happy Valley United is building its brand through media attention and community-based “grassroots” efforts, McCladdie said. He said it’s key to be visible at everything related to Penn State athletics in State College, especially events for season ticket holders and existing booster groups.
“I’ll be attending there and shaking as many hands as possible,” McCladdie said about an upcoming booster-group happy hour. “We’re developing those relationships as we go.”
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