By Jacqueline Arroyo / Jambar Contributor
In 2024, 50 student-athletes from Youngstown State University’s men’s and women’s basketball, football and softball teams signed name, image and likeness deals.
These partnerships were through the Penguin Collective, which accumulated a combined $515,000 for student-athletes.
Although the Penguin Collective is considered a third-party organization and only has a sponsorship partnership with YSU, it still provides enhanced NIL opportunities for student-athletes.
This comes four years after the NCAA adopted rules allowing student-athletes to profit from their personal brands.
Tyler Burk, director of compliance and NIL at YSU, oversees recruiting hours and student-athlete eligibility. In his role as director, he helps student-athletes navigate the NIL environment, secure endorsement deals and maximize their earning potential.
“Getting across the point, you don’t need to … have 50,000 followers or be a star player to be able to really have success in the NIL space,” Burk said.
He educates student-athletes on what to avoid, how to act on opportunities and the resources available to support them.
Regarding NIL deals, there are two points to consider — the internal process and external process.
The internal process focuses on Ohio laws, ensuring NIL deals are disclosed to student-athletes’ schools.
In addition to the state-mandated disclosures, Burk said the YSU Athletics Department reviews contracts to ensure compliance with NCAA regulations and university policies.
The external process centers on student-athletes securing brand deals. They may be approached with offers involving their NIL or can seek opportunities on their own.
“The other part is finding your niche,” Burk said. “It’s easier to reach out to companies and brands and things like that you’re interested in.”
Burk said when a student-athlete finds a deal they are genuinely interested in, it becomes easier for them to promote their brand or product.
However, there are additional elements student-athletes must consider after securing a deal and earning money, such as taxes.
“One of the perks of the Penguin Collective, when student-athletes sign deals with them, [is] they help them with their taxes,” Burk said. “We’re worried that they’re not going to do their taxes and they’re going to get audited, and we’re going to have all kinds of problems.”
Ty Petrey, business development coordinator at Youngstown’s HD Growth Partners, manages the daily operations of the Penguin Collective. His responsibilities include coordinating with YSU, engaging with student-athletes and staying updated on NIL news and regulations.
“With the start of every year, like right now, we reach out to all the athletes that we’ve worked with from the year prior,” Petrey said. “We set up tax meetings with them — with some of our tax professionals — and we go over how to handle their taxes.”
The primary service the collective offers YSU athletics is accounting. In addition to advising on tax management, the collective provides guidance to athletes on filing their taxes.
For athletes earning substantial income, the collective files their taxes at no charge. For those with lower earnings, they assist in organizing the necessary paperwork to share with parents or tax consultants.
Meetings typically last 30 minutes to an hour. Some athletes come prepared with questions, while others request receipts and documentation for their earnings.
Petrey said since student-athletes are essentially running a business, it qualifies them for business-related write-offs.
These deductions include expenses such as social media subscriptions, gym memberships, clothing and beauty products.
Apart from managing taxes, the Penguin Collective also provides enhanced NIL opportunities by collaborating with businesses and connecting them to student-athletes.
Petrey said although the collective never anticipated generating $515,000 through NIL deals, it strives in serving YSU and its athletes.