House vs. NCAA: The Legal Battle Changing College Football

College football is at a crossroads. The ongoing House vs. NCAA lawsuit could reshape college sports as we know it.

The case challenges how athletes are compensated, with potential consequences for football programs, recruitment, and even smaller sports. This lawsuit could lead to massive changes in how college athletics are funded and how athletes are treated across all sports.

Quick Highlights

  • The House vs. NCAA lawsuit could lead to $2.78 billion in athlete compensation, with $1.2 billion allocated over the next decade.
  • Division I football programs will increase scholarships from 85 to 105 starting in 2025, with some teams splitting them into partial awards to manage costs.
  • Top programs like the University of Texas secured $50,000 annual NIL deals for each offensive lineman in 2023, initiating a competitive recruitment advantage.
  • Recruitment could be dominated by wealthier programs, with schools in Power Five conferences already outspending smaller schools by millions in NIL deals. 
  • Non-revenue sports, including women’s soccer, could face funding cuts as schools prioritize football and basketball, with smaller programs operating on budgets under $40 million annually—far less than the $250 million-plus budgets of top-tier schools.

What is the House vs. NCAA Case?

The House vs. NCAA lawsuit revolves around the rights of college athletes to receive compensation beyond their scholarships. The plaintiffs argue that the NCAA’s restrictions on education-related benefits and Name, Image, and Likeness (NIL) opportunities violate antitrust laws.

This legal battle follows the landmark Alston decision in 2021, which allowed schools to provide athletes with unlimited education-related benefits and paved the way for the current NIL era. 

The House case pushes the boundary even further, seeking direct revenue sharing with players. If the ruling favors the athletes, it could open the door for broader financial compensation, impacting how programs fund their football teams and athletic departments at large.

This lawsuit is not just about football; it could create a power imbalance across collegiate sports. Revenue-dominant programs like football and men’s basketball stand to benefit the most, while athletes in non-revenue and niche sports–such as fencing, rowing, and gymnastics–could be left fighting for scraps. Critics argue that Olympic and niche sports athletes, who often rely on scholarship support, may see their funding reduced as schools prioritize revenue-generating programs.

Athletes like Dani Speegle, who transitioned from collegiate sports to become a top-tier CrossFit competitor, underscore the importance of investing in athletes beyond the major sports. Her success highlights the untapped potential of athletes in non-revenue sports, a group that could face increased challenges if funding shifts away from them.

Impact on Football Scholarships and Team Budgets

Football programs, particularly those in Division I, could face major budgetary shifts. Schools may have to reallocate funds to compensate athletes, potentially reducing the number of scholarships or cutting costs in other areas like facilities or coaching staff. Smaller programs with limited budgets might struggle to keep up with powerhouse schools, deepening the divide between major conferences and smaller institutions. 

According to industry reports, Ohio State’s athletic budget exceeded $251 million in 2023, while smaller programs like those in the Mid-American Conference (MAC) often operate on less than $40 million annually. Revenue sharing could stretch these lower-budget schools to their financial breaking point. 

Additionally, non-revenue sports could be at risk. Take the case of women’s soccer–while the sport has grown rapidly, it still relies heavily on institutional funding. A shift toward revenue sharing could result in fewer resources for those teams.

Recruitment and Competitive Balance

If players can earn more through NIL deals and direct compensation, recruitment strategies will shift significantly. High-profile football programs with bigger media markets and sponsorship opportunities could dominate recruitment, leaving smaller schools at a disadvantage. This could lead to a “pay-to-play” atmosphere, where the richest programs attract the best talent, challenging the NCAA’s commitment to maintaining competitive balance.

For example, the University of Texas reportedly secured a $50,000 annual NIL deal for each offensive lineman on scholarship in 2023. This level of compensation is far beyond what most Group of Five or FCS programs can offer, creating an uneven playing field. 

Beyond football, elite gymnasts like Olivia Dunne have built multi-million dollar NIL brands. While this is a win for top-tier athletes, it further illustrates how marketable stars benefit most, while less-known athletes struggle to attract deals. 

Opting Out of the Settlement: What Does It Mean?

While the proposed settlement represents a significant step toward athlete compensation, both individual athletes and Ivy League schools like Harvard, Yale, and Princeton have chosen to opt out. Some athletes are pursuing individual lawsuits for potentially higher payouts, though it comes with risks like prolonged legal battles.

Meanwhile, schools like those in the Ivy League have opted out entirely, choosing to forgo direct payments to athletes to preserve their academic-focused athletic model. These opt-outs could fragment the college sports landscape further, creating disparities in how athletes are compensated and shaping future legal challenges for both institutions and players.

The Future of College Football: Professionalization or Preservation? 

Critics argue that this case could push college football closer to a professional model, blurring the lines between amateur and professional sports. While some see this as a necessary evolution to fairly compensate athletes for their contributions, others worry it will erode the traditional college sports experience. 

The NCAA’s long-standing model of “amateurism” has defined college sports for over a century, but legal experts argue that clinging to this ideal is no longer sustainable in a billion-dollar industry. In 2022, the SEC alone generated $802 million in revenue. With these figures in mind, the argument for player compensation becomes increasingly difficult to ignore. 

For niche sports, however, professionalization may pose a risk. Athletes in sports like swimming or track and field often rely on the collegiate system as a stepping stone to the Olympics. If funding shifts disproportionately toward football and basketball, these athletes could lose critical development opportunities.

We Think It’s About Time

At Athelo Group, we believe it’s time to fully embrace the future and turn all of college athletics into a full-blow professional system. Salaries, trades, free agency, the works. Let boosters operate like team owners, let athletes sign multi-year contracts out of high school, and turn the transfer portal into a televised draft event with ESPN-grade coverage.

Want to see Stanford trade its top swimmer to Florida for cash and future recruiting considerations? Why not. If college sports are a business, let’s lean all the way in and let the chaos reign.

Regardless of the outcome, House vs. NCAA will set a precedent for how college football operates in the future. 

As the legal battle unfolds, fans, athletes, and institutions alike will need to adapt to the new reality of college sports. While college football has always been more than just a game, this ruling could accelerate its transformation, pushing the sport further toward treating players as employees rather than student-athletes. 

NIL Rules in College Sports: What You Need to Know

In the four years since NIL rules were introduced, college sports—especially football—have been completely transformed. What was once a strictly college-level pursuit now mirrors the high-stakes world of the NFL, with athletes landing major sponsorships, promoting products, and building their own brands.

On top of that, schools are now able to directly pay players, thanks to new agreements from major conferences. This shake-up has turned college athletics into a thriving business and sparked debates about fairness, competition, and where the sport is headed.

nil rules

What Is NIL, and Why Is It Important?

NIL became official on July 1, 2021, when the NCAA allowed athletes to profit from their name, image, and likeness. For years, NCAA rules banned athletes from making money, despite college sports like football and basketball generating millions for schools. The new NIL rules permit athletes to make money in a variety of ways, including through social media, endorsement deals, and even personal merchandise.

Since then, athletes have seized the opportunity to become more than just players—they’ve started building powerful personal brands. This shift has been especially impactful in high-profile sports like football and basketball. Take Bryce Young, former Alabama quarterback and Heisman Trophy winner, who reportedly earned over $1M in NIL deals during his college career.

Athletes Are Now Brand Ambassadors

Colorado head coach Deion Sanders signed with Nike in the ’90s as their premier NFL athlete, releasing his own signature shoe for five consecutive years. Thanks to NIL, his son now has the chance to follow in his footsteps while still in college. Just like his dad, Colorado QB Shedeur Sanders will partner with Nike on a line of apparel and footwear, all before even landing an NFL contract.

This new era of NIL has many athletes, including Shedeur, thinking strategically about how to build their brands while still in school. “Athletes are empowered to make money, and many of them are embracing the chance to build their brands while still in college,” said SEC Commissioner Greg Sankey. But creating a personal brand isn’t always straightforward—it requires significant effort, and some athletes may need guidance when it comes to contracts, social media, and sponsorships.

nil rules

Social Media: A Big Part of NIL Success

One of the major ways athletes are making money today is through social media. Platforms like Instagram, TikTok, and YouTube allow athletes to connect with fans and brands, giving them a powerful tool to promote products or build their personal brands.

Athletes like gymnast Olivia Dunne (LSU) and basketball players Haley and Hanna Cavinder (Miami) have turned their massive social media followings into profitable deals with brands like Vuori, American Eagle, and Stanley. Now, many are teaming up with agents and marketing experts to manage their social media, negotiate deals, and grow their brands—essentially becoming their own businesses.

How NIL Is Changing College Sports

One of the biggest changes is the rise of the “transfer portal.” With athletes now able to make money, some are switching schools to secure better NIL deals, choosing colleges based on financial incentives rather than just sports programs or academic reputation.

This shift has created noticeable tension in college sports. Coaches and universities are adjusting to a new reality where NIL deals play a key role in recruitment. Former Alabama coach Nick Saban summed up the change, saying, “All the things that I believed in for all these years… no longer exist in college athletics.” 

Some worry athletes may prioritize money over academics or team goals, while others see it as a chance for fair compensation and a more equitable approach to college athletics.

nil rules

What’s Next for NIL?

Critics argue that NIL has stripped college sports of its traditional values, like academic focus and team loyalty. They believe the emphasis on money is shifting athletes’ priorities and could erode the foundation of college athletics.

On the other hand, supporters see NIL as a long-overdue change that finally allows athletes to profit from their own name, image, and likeness. In the future, we might see a system where athletes are fairly compensated without losing sight of their educational and athletic goals. The challenge will be striking a balance that keeps both the athletes and the spirit of college sports in check.

Sources:

  1. https://www.sportsbusinessjournal.com/Articles/2024/12/11/sbj-iaf-nil-panel
  2. https://www.si.com/fannation/name-image-likeness/nil-news/college-football-free-agency-transfer-portal-trends-and-nil-impact
  3. https://www.espn.com/college-sports/story/_/id/41040485/what-nil-college-sports-how-do-athlete-deals-work
  4. https://www.espn.com/college-sports/story/_/id/40206364/ncaa-power-conferences-agree-allow-schools-pay-players
  5. https://1819news.com/news/item/nick-saban-on-nil-all-the-things-that-i-believed-in-for-all-these-years-no-longer-exist-in-college-athletics

College Football Playoff Expansion: 12-Team Format Explained

In the rapidly evolving landscape of college football, the upcoming 12-team College Football Playoff (CFP) expansion promises to be a game-changer. This shift from a 4-team to a 12-team format is poised to transform the competition, offering new opportunities and challenges for teams, players, and fans alike. As the 2024 season approaches, key questions arise: Will this expansion dilute the importance of the regular season, or will it enhance the excitement and competitiveness of the sport? And how will it impact the financial and recruiting dynamics across college football programs?

college football playoff

Increased Opportunities for Underdogs

One team to watch in the 2024 College Football Playoff expansion is Cincinnati. While they narrowly missed the playoff in 2022, experts project that they could return as Big 12 champions in 2024, potentially securing a top-four seed. However, not everyone is excited about the 12-team format. Critics argue that expanding to 12 teams may dilute the exclusivity of the playoff, similar to concerns raised during the expansion of March Madness. They fear that adding more teams could lessen the significance of regular-season success and lead to a less prestigious postseason.

Maintaining the Integrity of the Regular Season

While some critics argue that expanding the playoff field might devalue the regular season, proponents believe it will add significance to more games across the board. With more spots available, even late-season matchups that previously had no bearing on the playoff race will now carry weight, keeping fans engaged throughout the entire season. This change could lead to increased viewership and revenue as more games have playoff implications.

Revenue Growth

The financial impact of the 12-team playoff is expected to be substantial. More games mean more television contracts, ticket sales, and sponsorship opportunities, benefiting conferences, schools, and the NCAA. ESPN recently signed a six-year, $7.8B deal to retain exclusive media rights through the 2031-32 season, which includes coverage of all rounds of the new 12-team playoff format. This massive agreement not only adds four first-round games to ESPN’s existing coverage but also secures exclusive rights to programming like the CFP Selection Show and Top 25 rankings. These expanded rights, coupled with the influx of games, will open up new opportunities for brand sponsorships, giving companies increased visibility during high-stakes playoff matchups. Mega-brands like VBRO, Chick-fil-A, and Modelo have signed on as sponsors, hoping to take advantage of the heightened attention and excitement surrounding college football’s marquee event.

Balancing the Benefits Across Conferences

However, this financial windfall may not be evenly distributed. Power 5 conferences, which already command significant resources, are poised to gain the most. Meanwhile, Group of 5 conferences could see only marginal increases in revenue, perpetuating the existing inequalities within college football. The challenge will be finding ways to ensure that the benefits of the expanded playoff are shared more equitably, so that all programs can compete on a level playing field.

college football playoff

Impact on Player Workload and Development

With more games on the schedule, concerns about player workload and potential injuries are bound to grow. SEC chief medical officer Catherine O’Neal told the press that with the playoff extension, the SEC plans to adjust its injury management protocols. Coaches and trainers will need to balance the demands of a longer season with the physical and mental health of their players. On the plus side, the added exposure from more playoff games could speed up player development as athletes gain experience in high-pressure situations earlier in their careers.

2024 Projections

As anticipation builds for the 2024 College Football Playoff, experts are already weighing in on which teams are likely to secure a spot in the new 12-team format. According to The Athletic, teams such as Georgia, Ohio State, and Texas are among the favorites to make deep runs this season. The model also predicts underdogs like Boise State and Ole Miss could break into the playoff conversation, creating the potential for thrilling matchups. With powerhouse programs and mid-major teams vying for a national title, the expanded CFP promises to deliver even more excitement and unpredictability in the coming season.

Sources:

  1. https://www.espn.com/college-football/story/_/id/39766079/college-football-playoff-espn-agree-deal-2031-32
  2. https://www.nytimes.com/athletic/5701128/2024/09/05/college-football-playoff-projections-odds/
  3. https://www.usatoday.com/story/sports/college/2024/09/07/nonconference-games-college-football-playoff-12-team-cfp/75076654007/

The Evolution of NIL Deals: Is There a Dark Side?

On July 1, 2021 the NCAA officially gave student athletes the NIL green light, allowing them to monetize their name, image, and likeness. Fast-forward to 2023, and student-athletes like Livvy Dunne and Bronny James are signing million dollar deals with mega brands like Nike, Under Armour, and Adidas. When NIL was first introduced, not many people could have predicted this high of an earning potential. While the evolution of NIL deals is a great financial opportunity for student athletes, the ruling also poses negative effects with athletes transferring for bigger deals and the increased risk of student-athlete exploitation. 

Student Athletes Get Their Payday

The NCAA and member schools have financially benefited from student athletes for decades, and NIL finally gives student athletes a piece of the pie. Some of the deals that these student athletes are securing has the ability to change their families’ lives. Anthony Leal, a basketball player on the Indiana Hoosiers, was able to help his sister pay off her student loans because of the money earned from NIL deals. Athletes like Leal are finally getting a chance to capitalize on their personal brand’s popularity.  

We’ve also seen college athletes profit from commercial appearances as part of their NIL deals. Caleb Williams, for example, appeared in a series of Wendy’s commercials where he stood on a podium and announced that he was “transferring to Wendy’s.” While Williams would not disclose the compensation amount, he did admit that payouts from NIL opportunities have “changed his life.” Iowa women’s basketball star, Caitlin Clark, has also benefited from these brand commercial opportunities. Clark was the first college athlete to sign with State Farm and has appeared in a series of commercials quipping their signature line: “like a good neighbor State Farm is there.” Clark said that her deal opens up other opportunities for female athletes and helps to grow the women’s game.

The Transfer Portal Problem

While NIL gives student-athletes more financial opportunities, not everyone is a beneficiary. Since NIL is now a factor in college recruitment, larger teams are using its appeal to lure elite level players in ways smaller schools can’t. We are seeing this most prevalent in college football as more and more players decide to transfer schools with more favorable NIL deals. When the transfer portal opened up this year, a total of 538 scholarship players entered the portal, which is an 18% increase from last year’s opening day. Top players in the portal attract interest from SEC, Big Ten, and ACC schools, which, due to their size and brand appeal, can provide more lucrative NIL deals. The evolution of NIL has favored major schools, giving them an edge in recruiting top talent and adversely affecting smaller schools that struggle to compete financially for players.

We are currently seeing this play out in real time with Cameron Ward’s transfer out of Washington State. The sought-after quarterback is predominately considering ACC, Big Ten, or SEC schools. During meetings with these schools, they’ve all emphasized the potential NIL earnings he could make by joining the squad. Miami is currently leading the race, but regardless of his choice, Ward is expected to secure a seven-figure NIL deal with his chosen school. While moves like these financially boost players and top football programs, they limit opportunities for smaller programs and emphasize money over the spirit of the game. 

nil deals

Risk of Exploitation

With newfound opportunities to profit from their name, image, and likeness, student athletes face a risk of exploitation due to their limited business knowledge. Given their youth and lack of expertise in contracts, caution is essential when dealing with brands or player representation groups. It’s disheartening to see college students potentially exploited, emphasizing the need for genuine concern for their well-being in these engagements.

This exact situation transpired last year when former Florida Gator Gervon Dexter signed an NIL deal with Big League Advance Fund II, agreeing to a payment of over $400K. The deal required him to pay 15% of his pre-taxed NFL earnings for the next 25 years. Dexter, drafted by the Chicago Bears, is now suing to void the agreement. His legal team cites violations of Florida’s NIL laws, lack of licensing in the state, and failure to notify the University of Florida within 72 hours. This case underscores the importance for all student athletes to be aware of potential negative situations that could impact their future. 

While NIL is an undeniable financial asset for student athletes, the rule book is still being written. As we dive into the new year, we’ll see the structure of NIL continue to evolve. New regulations may come into play with NCAA’s recent proposal to allow schools to pay athletes in ways not directly tied to educational resources. The NCAA claims these new rules can help create a model for greater governance over NIL in the future. The proposed changes seem like good news for student athletes, but only time will tell if this developing structure works in their favor.

Sources:

  1. https://iconsource.com/everything-about-nil/
  2. https://www.businessinsider.com/olivia-dunne-nil-earnings-brand-deals-collective
  3. https://sports.yahoo.com/top-nil-earners-ncaa-153252893.html
  4. https://www.alligator.org/article/2023/09/former-gator-gervon-dexter-files-lawsuit-over-nil-deal#:~:text=Dexter%20signed%20with%20the%20group,NFL%20earnings%20for%2025%20years.
  5. https://www.theshorthorn.com/sports/nil-symposium-offers-student-athletes-glimpse-into-their-future-after-college/article_90bda846-8f3e-11ee-b14b-535034a937c0.html
  6. https://theathletic.com/5113559/2023/12/05/college-football-transfer-portal-entries-players/
  7. https://caneswarning.com/posts/miami-football-reports-on-staggering-cam-ward-nil-numbers-01hhta63kz1r
  8. https://www.usatoday.com/story/sports/ncaaw/2023/10/10/caitlin-clark-sign-nil-deal-with-state-farm/71131146007/#
  9. https://firstroundmock.com/2023/10/caleb-williams-partners-with-wendys-for-yet-another-nil-deal/
  10. https://www.espn.com/college-sports/story/_/id/39047353/ncaa-proposes-rule-let-schools-athletes-enter-nil-deals

The Uncertain Future of College Football Realignment

By Devin Kelley

A University or college football team is essentially a business. With the sheer amount of money and profitability within college football, it is obvious that schools are looking to put themselves in the best position to grow and ensure long-term success. One way to ensure this vision is to be in the conference with the most publicity, viewership, and sponsorship deals available. Each conference is marketable in its own ways, but there are a certain few that rank much higher than others in terms of value. This is what college football teams are currently taking into consideration when deciding what conference to remain in or transfer to, if given that option.

Why Realignment Is Reshaping College Football’s Power Structure

Keeping all of the factors above in mind, we can see why schools are considering conference realignment. This is uncharted territory for college football as rule changes from the NCAA have allowed athletes to profit off their name, image, and likeness. This landmark decision, in turn, has completely upended the business of college sports for athletes, schools, and agents. This makes it difficult for most to define what a modern day partnership looks like. Schools are trying to keep up with the changing times and this is probably why teams like Texas and Oklahoma have decided to leave the Big 12 conference and transfer to the Southeastern Conference (SEC) because the conference will pay its schools more money. We have also seen USC and UCLA decide to jump ship on the PAC-12 and join the Big Ten conference, leaving fans wondering what’s next for their school.

Media Rights, Money and the Race for Conference Supremacy

Recently, the SEC announced that ESPN and ABC will be taking over the Saturday afternoon football broadcast package. Beginning with the 2024-25 season, ESPN and ABC will pay the SEC in the low $300 million range annually. At this point, any team offered to join the SEC conference would surely be interested in joining. If the SEC is backed by an ESPN and ABC duo deal, it is almost guaranteed that teams and the conference will grow immensely throughout the coming seasons. This adds much more leverage to schools when recruiting high school players because they can afford to give athletes more – incentivizing a player to commit.

According to USA Today, the gross revenue for the Power 5 of college football goes as follows: the Big Ten: $768.9 million, SEC: $728.8, Pac-12: $533.8 million, ACC: $496.7 million, and Big 12: $409.2 million. The Big Ten and the SEC have a huge advantage over the next 3 Power Five Conferences. If these conferences continue to grow at the rate they are, some experts believe there will be the possibility of seeing the emergence of a new ‘super conference’ with the Big Ten and the SEC being a part of that.

Similar to how the SEC is recruiting more schools that they think will bring more profitability and growth to their conference, the Big Ten is also doing the same. In a major win for the Big Ten, they were able to secure USC and UCLA to join the Big Ten effectively with the 2024 season. With the addition of these two schools, the bidding war has begun for streaming rights with the Big Ten. Apple is reportedly among the number of companies that are interested. This list includes Fox, CBS, ESPN, NBC and Amazon Prime Video. With that many companies interested in buying the streaming rights for the Big Ten, it is safe to say that the Big Ten should not be worried about its future.

The Institutions Losing Ground: Are the Pac-12, ACC and Others on the Brink?

On the other hand, other conferences within the Power 5 should be concerned. The Pac-12, ACC and Big 12 are now in survival mode and each move they make from here on out can have drastic effects on the success or failure of their conferences. According to Sports Illustrated, there are talks between the ACC and Pac-12 forming some sort of alliance between the two that would help both leagues remain intact. As realignment begins again, powerhouse teams within the ACC like the Clemson football team and UNC basketball team will weigh all options on what the best is for the future of their programs. With the SEC and the Big Ten poised to grow immensely within the coming years, schools want to be a part of that success. Keeping this in mind and seeing the rise of these conferences, any team who gets offered to join the SEC or the Big Ten would be hard to turn down. 

Now that players have to be compensated for their talent and skill on the field, it makes sense that these players playing in the SEC or Big Ten will be paid more generously versus another conference. Players broadcasted on the SEC and the Big Ten networks will likely be playing in front of a much larger audience resulting in more opportunities for these athletes to make deals with companies and agencies, alike. The better players are given a bigger stage to showcase their talents and have a better ability to profit in the better paid conferences. If the better players continue to choose to play in the conference with more money available to them, this will most likely result in a drastic difference in skill level over time when comparing the SEC and the Big Ten to the rest of the teams within Division 1 college football.

What the Next Wave of Moves Means for Student-Athletes, Fans & Brands

Soon more sponsors, partners and agencies will be looking to get involved with the teams and players within the SEC and Big Ten knowing the power, profitability and success within these conferences. With these uncertainties looming in the future within the college football world, schools and teams will weigh out what options are the best for growth and success in the long run. Over the next few months, decisions will be made that will affect the college football landscape for decades to come. Schools are already considering what the best options are for long term growth and success of their athletic programs. It is almost certain that we will see schools engaging in conference realignment in hopes of fulfilling that vision for their respective programs. The only question is: Who will come out on top?

Sources:

  1. www.forbes.com/sites/derekbaine/2022/07/01/big-ten-swipes-usc-and-ucla-from-pac-12-in-big-financial-coup/?sh=6f609bfd19d8
  2. www.wruf.com/headlines/2022/02/11/sec-announces-revenue-distribution/
  3. www.usatoday.com/story/sports/ncaaf/2021/07/26/college-football-if-sec-expands-could-match-ncaa-1-3-billion-revenue/5377990001/
  4. www.newsobserver.com/sports/college/acc/unc/article263209858.html
  5. www.saturdaydownsouth.com/sec-football/wall-street-journal-reveals-value-sec-football-program/
  6. www.usatoday.com/story/sports/ncaaf/2022/05/20/pac-12-big-ten-big-12-revenue-fell-pandemic/9855686002/

Become a Sponsor.

Join us in making a difference. Tell us a bit about yourself and we’ll be in touch with sponsorship details.

By submitting this form, you agree to be contacted by the Athelo Group team regarding sponsorship opportunities.