Will We Soon See the NCAA Paying Athletes Directly?

Over the last decade, college sports have undergone significant transformations, particularly concerning the payment of student-athletes. These changes are driven by intense legal battles and evolving public opinions on whether college athletes should be recognized as employees and receive direct compensation. 

The concept of the NCAA paying athletes directly could come sooner than we think. A game-changing new NCAA proposal aims to tackle the fairness issues within the billion-dollar industry of college sports, challenging the long-standing notion of amateurism. It marks a pivotal moment, promising to change how college athletes are compensated and challenge the traditional model of college athletics.

Historic Settlement and Its Effects

On May 24, 2024, the NCAA and Power 5 conferences agreed to a major legal settlement in the House v. NCAA class-action lawsuit. This deal, if approved by a federal court, could change the amateur status of college athletes by allowing schools to pay them directly. The settlement includes two key points: distributing $2.75B to athletes who played before July 2021 and enacting a revenue-sharing model that permits schools to grant nearly $20M a year to athletes.

However, not all athletes will benefit equally from NCAA paying athletes directly. Football and men’s basketball players at NCAA Division I schools with large athletic programs are the main winners because their sports bring in the most revenue. While women’s basketball players may also get a payday, athletes in less popular sports may not see any money. This could potentially widen the gap between wealthy, high-revenue schools and smaller institutions.

ncaa paying athletes directly

The Employee Status Debate

A key component of this changing landscape is whether or not college athletes should be recognized as employees. On July 11, 2024, the U.S. Court of Appeals for the Third Circuit ruled against the NCAA’s motion to dismiss Johnson v. NCAA, a case where athletes argue they are employees under the Fair Labor Standards Act. The ruling requires a new test to determine if athletes are employees, which could have big financial impacts on colleges and the NCAA.

If athletes are considered employees, they would be entitled to minimum wage and overtime pay, challenging the NCAA’s long-standing amateurism model. The case, led by former Villanova football player Ralph “Trey” Johnson, highlights the extensive control schools have over athletes’ time and labor and strengthens the argument for their recognition as employees.

ncaa paying athletes directly

Broader Legal and Financial Implications

The new test introduced by the Third Circuit’s ruling is designed to distinguish between students who play sports for fun and those whose efforts resemble work. The test would analyze three factors: whether the athletes’ services primarily benefit the schools, the level of control exerted by the institutions, and whether the athletes receive compensation. 

These legal battles are part of a broader scrutiny of the NCAA’s practices. Just three years ago, the Supreme Court ruled in NCAA v. Alston that the NCAA’s restrictions on education-related benefits violated antitrust laws. This decision paved the way for athletes to earn money from their name, image, and likeness, adding pressure on the NCAA to adapt to a rapidly changing environment.

ncaa paying athletes directly

Future Directions and Ongoing Challenges

As these legal cases progress, unforeseen challenges are sure to arise for athletes, conferences, and schools alike. Schools will need to navigate the complexities of Title IX, ensuring gender equity in payments, and addressing the financial disparities between different sports and institutions. The potential designation of athletes as employees could lead to extensive changes in how college sports are managed and funded.

Moreover, the NCAA’s appeal to Congress for a federal antitrust exemption underscores the challenges it faces in maintaining its current model. The evolving legal landscape suggests that college sports are on the brink of significant transformation, with far-reaching consequences for athletes, schools, and the NCAA itself.

Sources:

  1. https://www.npr.org/2024/05/24/nx-s1-4978680/house-ncaa-settlement-pay-college-athletes
    https://www.espn.com/college-sports/story/_/id/40541501/court-ruling-seeks-test-decide-athletes-employees
  2. https://www.sportico.com/law/analysis/2024/third-circuit-johnson-ncaa-flsa-case-1234780117/
  3. https://www.vox.com/policy/352083/ncaa-college-athletes-pay-settlement-winners-losers
  4. https://www.nytimes.com/2024/05/25/business/ncaa-settlement-paying-athletes-unionizing.html
  5. https://www.nbcnews.com/news/sports/ncaa-signs-deal-change-landscape-college-sports-paying-student-athlete-rcna153852
  6. https://www.pbs.org/newshour/show/what-the-historic-2-8-billion-settlement-to-pay-ncaa-players-means-for-college-sports

Big East Inks New Media Rights Deal

The Big East has signed a new media rights deal with broadcasting giants Fox, NBC, and TNT. Fox will serve as the lead network in this six-year agreement, which will begin at the start of the 2025-26 academic year and run through 2031. This new deal represents a significant financial boost for the Big East. By the end of the current 12-year deal, the conference will have collected $500M in rights fees, averaging just under $41.7M per year. The new agreement is estimated to nearly double the annual rights payments. This increased revenue is set to create new opportunities not only for men’s basketball, but also for women’s basketball and niche women’s sports.

the big east

Big East Gains NBC, TNT as CBS Exits

CBS, a longtime media partner with the Big East, has decided not to renew its contract with the conference. However, the addition of NBC and Warner Bros. Discovery-owned TNT compensates for the loss, ensuring that over 150 men’s basketball regular-season games will be broadcast across various platforms. This coverage includes all league games and Big East tournament matchups. To maintain its position as the lead partner, Fox will air at least 80 men’s and women’s basketball games each season and will continue broadcasting the iconic men’s Big East Tournament final.

Peacock, a subsidiary of NBC, will expand its live sports portfolio by covering 25 regular-season games and 5 tournament games for the league’s men’s basketball this season. In the 2025-26 season, Peacock will take on an even bigger role, airing over 60 games, including both men’s and women’s basketball. TNT Sports will broadcast around 65 regular-season games per year once the new deal begins. These changes ensure extensive and diverse media coverage for Big East basketball, including streaming to enhance visibility and accessibility for fans.

Boost in Recruitment and Financial Stability 

The conference expects that this new media rights deal will attract top transfer portal talent due to the financial flexibility it provides to Big East universities. Creighton University President Daniel Hendrickson stated, “The arrangement will provide enhanced revenue and long-term stability for the conference, create benefits for our student-athletes, and allow us to remain nationally competitive in our marquee sport: basketball.”

Women’s basketball talent, in particular, will feel the impact of this deal due to the combination of financial flexibility and tripling of TV coverage. Many female athletes want to play on the big stage, and the Big East can now facilitate that. Attracting new transfer talent has already begun with Jada Blagrove moving to St. John’s, Kaitlyn Chen to UConn, and Faith Masonius to Seton Hall.

A New Era for Women’s Sports Visibility

The new media rights deal significantly boosts coverage for women’s sports, tripling the visibility of women’s basketball and ensuring the annual broadcast of women’s championship matches in soccer, lacrosse, volleyball, and softball. With major networks like Fox, NBC, and TNT now airing these events, niche women’s sports will reach a larger audience and gain greater recognition.

This increased exposure can attract more sponsorships and support for women’s athletic programs, improving facilities and resources for female athletes. It also marks a pivotal shift towards equality in sports media coverage, driven by standout performances from athletes like Caitlin Clark. Showcasing women’s sports on major networks gives these athletes the recognition they deserve and provides young girls with role models. This can inspire a new generation of female athletes, fostering broader acceptance and fandom of women’s sports, and promoting a more inclusive and diverse athletic landscape.

More NIL Deals for Women

With the rise of Name, Image, and Likeness (NIL) deals, female athletes can capitalize on their growing popularity. During the latest March Madness basketball season, four of the top five NIL earners were women, such as Caitlin Clark, Angel Reese, Flau’jae Johnson, and Paige Bueckers. The expanded media coverage ensures that NIL opportunities extend beyond men’s basketball and football, enabling female athletes in niche sports to secure endorsements and build personal brands. This holistic boost drives equality and expands the overall landscape of collegiate athletics.

the big east

Looking ahead for the Big East, it’s clear the conference’s storied history is poised for even greater heights. The new influx of cash will attract top talent and keep the conference competitive. The expanded coverage, especially for women’s sports, is a major win, giving these athletes the visibility they deserve. With the rise of NIL deals, female athletes in niche sports can now secure endorsements and grow their personal brands. This deal not only strengthens the Big East’s legacy but also promotes equality and growth in college sports, setting the stage for an exciting future.

Sources:

  1. https://www.sportspromedia.com/news/big-east-conference-fox-nbc-tnt-sports-media-rights-deals/#:~:text=Fox%20to%20continue%20as%20league’s,2031%2C%20while%20CBS%20exits%20partnership.&text=The%20Big%20East%20Conference%20has,TNT%20Sports%20as%20new%20partners.
  2. https://www.sportsbusinessjournal.com/Articles/2024/06/24/big-east-fox-nbc-tnt-sports-media-rights-deal
  3. https://www.sportico.com/business/media/2024/big-east-media-rights-deal-fox-sports-nbc-tnt-1234785885/
  4. https://247sports.com/college/xavier/article/big-east-new-tv-deal-media-streaming-fox-nbc-warner-brothers-tnt–233293363/
  5. https://www.nbcsports.com/pressbox/press-releases/big-east-announces-new-media-rights-agreement
  6. https://www.thenexthoops.com/ncaaw/big-east/big-east-notebook-media-rights-deal-top-transfer-talent/
  7. https://iconsource.com/blog/empowering-women-in-college-sports/

NCAA Conference Realignment: How College Football Is Changing

Viewers should prepare for college football to look a little different this year. Recent changes in college sports have shifted power dynamics among the previously-known Power Five conferences: the ACC, Big Ten, Big 12, Pac-12, and SEC. This transformation is largely due to different payment structures and value disparity in TV rights deals. As a result, many teams left their original conferences to join others.

The Pac-12 has now dwindled to just two teams, and the Big 12 lost Texas and Oklahoma to the SEC. While the ACC hasn’t lost teams yet, their top schools are frustrated with revenue discrepancies and have filed lawsuits. Although there is talk of a super league in college sports, no significant progress has been made toward this concept. The SEC and Big Ten will continue to dominate for now, while the other conferences scramble to rebuild and resolve their issues amidst NCAA conference realignment.

ncaa conference realignment

Pac-12 Topples to Pac-2

The Pac-12 has experienced the most tragic downfall of all the conferences, now reduced to just Oregon State University and Washington State University. The decline began two years ago when USC and UCLA agreed to join the Big Ten, setting off a chain reaction. Oregon and Washington also moved to the Big Ten, while Arizona, Arizona State, Colorado, and Utah joined the Big 12, and California and Stanford went to the ACC. Losing the Los Angeles schools and that major media market stalled the Pac-12’s media rights negotiations, leading to a wait-and-see approach that pushed out multiple schools and drastically lowered the value of the deals offered to the conference.

Now, with two schools that have not been relevant in football or basketball for years, the Pac-12 is working with the Mountain West conference on a football scheduling alliance for this season and is considering a future merger. OSU and WSU will pay the Mountain West to play their teams this year but won’t be eligible for any conference championship. The next step likely involves OSU and WSU joining the Mountain West, signaling the end of the Pac-12.

Big 12 Gets Bigger

The Big 12 conference took a step back when it lost its two most-followed teams, Oklahoma and Texas, to the SEC due to NCAA conference realignment. Despite this setback, the Big 12 added Arizona, Arizona State, Colorado, Utah, BYU, UCF, Cincinnati, and Houston to form a 16-team conference. These additions came from the Pac-12 and Group of 5 conferences.

In the past year, the Big 12 successfully renegotiated its TV rights contract with ESPN and Fox, securing $2.6B over the next 13 years. This deal allows the conference to surpass the ACC and Pac-12 in yearly team revenue, with each team receiving nearly $32M. By 2026, all the new teams are set to evenly share revenue with the rest of the conference, a process that typically takes much longer.

Looking ahead, Big 12 leaders are considering private equity investment by a Luxembourg-based firm of up to $1B for a 15-20% stake. Although losing their top teams was a significant blow, the new TV deal and potential investment positions the Big 12 to remain competitive. They are now the clear third conference in per-team revenue after the Big Ten and SEC.

ncaa conference realignment

ACC Shake-up

The ACC faces an uncertain future despite recent additions of California, Stanford, and SMU. These new teams won’t receive full revenue sharing until their 10th season. To integrate them, the ACC has removed divisions, increased in-conference games, and introduced provisions for West Coast travel. Over the next seven years, each team will play home and away games against every conference team, with the top two teams competing for the football championship. 

The conference’s biggest weaknesses remain its TV rights deal and revenue sharing. Since signing a 20-year deal with ESPN in 2016, the ACC has lagged behind other conferences in revenue, earning only $17M per team annually. This has frustrated top football programs like Clemson and FSU, who argue it hinders their competitiveness. Tensions escalated when FSU missed the College Football Playoff, prompting the school to seek an exit from their grant of rights agreement and sue the ACC, which countersued. Clemson followed with legal action three months later.

If either FSU or Clemson breaks their grant of rights, it could trigger a mass exodus and weaken the ACC significantly. These schools have dominated ACC football, and losing them would cripple the conference’s future, especially in securing new media rights deals once the current ESPN contract expires.

ncaa conference realignment

So What’s Next? 

With all the political chaos of NCAA conference realignment, new powerhouse schools may emerge and lower conferences could gain some spotlight. Schools like UCF and SMU, which moved into power conferences, can benefit from more national TV coverage. Conferences like the Mountain West can gain exposure by having OSU and WSU face their schools. With the downfall of the Pac-12 and the rapid movement of its schools, we may see schools becoming more comfortable swapping conferences. Since the ACC reworked its schedule to accommodate new West Coast schools, other conferences might do the same to add new members. Although talks of a super league have occurred, many officials have dismissed the possibility. But for now, as we have seen, anything can happen.

Sources:

  1. https://herosports.com/fbs-college-football-realignment-pac-12-mountain-west-merger-stanford-cal-heading-to-aac-cpcp/
  2. https://www.espn.com/college-football/story/_/id/40119917/acc-spring-meetings-2024-clemson-florida-state-lawsuits
  3. https://www.cbssports.com/college-basketball/news/college-football-playoff-finalizes-tv-deal-beginning-in-2026-as-fbs-leaders-settle-on-revenue-distribution/#:~:text=The%20new%20contract%20is%20expected,(%2412%20million%20per%20school).
  4. https://www.nbcbayarea.com/news/sports/acc-stanford-cal-2/3308750/
  5. https://businessofcollegesports.com/current-college-sports-television-contracts/
  6. https://www.si.com/college/oregon/football/oregon-football-big-ten-conference-sec-conference-college-football-super-league-greg-sanky-rejects 
  7. https://www.sportingnews.com/us/ncaa-football/news/pac-12-teams-landing-spots-oregon-washington-football-2024/a12390637a0a4d3cd81fb1a0 
  8. https://www.freep.com/story/sports/college/university-michigan/2024/01/08/what-happened-pac-12-washington-oregon-usc-ucla-joining-big-ten/72088532007/ 
  9. https://www.tennessean.com/story/sports/college/SEC/2023/12/19/alabama-georgia-most-viewed-teams-college-football-season-2023-nielsen-ratings/71975148007/ 
  10. https://www.espn.com/college-football/story/_/id/38794541/big-12-unveils-16-team-conference-football-matchups-2027 
  11. https://www.cbssports.com/college-football/news/big-12-considering-private-equity-investment-of-up-to-1-billion-for-as-much-as-20-of-conference/ 
  12. https://theacc.com/news/2023/10/30/acc-announces-future-conference-football-schedule-model.aspx 

March Madness Commercialization: Fans vs Brand Marketing

March Madness is undoubtedly the epitome of college basketball. Consuming an entire month with its unforeseen heartache, improbable Cinderella stories, and gut wrenching battles between powerhouse teams, this NCAA basketball tournament might even be the epitome of college sports. Sixty-eight teams, three weeks, and a war to be the best. Despite such perfection at hand, it appears certain stakeholders are seeking to change the March Madness we all know and love.  

ncaa basketball tournament

Potential Expansion

For the first time ever, there is an internal push for an expansion of the tournament. SEC Commissioner Greg Sankey recently voiced his opinion, promoting expansion alongside awarding more bids to power conferences and less to weaker ones. The surprisingly popular model poses greater opportunities for brands and viewership money. It could also prevent witnessing another No. 16 seed defeat a No. 1 seed like with Farleigh Dickinson and Purdue—something that brings the “madness” to the March tournament. This expansion tradeoff will likely diminish overall fan interest in the tournament while opening the cash floodgates, leaving many to wonder if March Madness is just another money grab.

The Bigger the Better?

There is no universally decided final bracket. However, some expansion predictions would increase the size of March Madness to an astounding 96 teams, adding almost an additional 30 teams to the tournament. While adding more teams makes the tournament more inclusive, it also poses huge implications.

Many fans already dismiss the first four games in the current bracket. Expanding it could worsen this issue without offering significant financial incentives. TV providers may even resist expansion, fearing it would dilute the NCAA basketball tournament’s appeal and reduce overall popularity. After all, what excites viewers most about March Madness is that it is reserved for the elite. However, one factor could sway opinions: bids. Power conference commissioners often advocate for more bids, making expansion seem more practical. With more prestigious teams, there’s potential for more exciting matchups and increased viewership, something the networks could get behind.

ncaa basketball tournament

The College Football Problem

While money is essential to any successful product, college basketball faces an even greater challenge: college football.  A larger tournament would need to start earlier, forcing the regular season to follow. Games would be thrown deeper into a period where football is already getting almost everyone’s undivided attention. This challenge arises as the College Football Playoff gains momentum, having recently secured a lucrative 6-year media rights deal with ESPN worth $7.8 billion. It’s difficult to envision any positive outcome resulting from this clash of schedules.

Final Considerations

There will always be those for and those against an expansion, and for good reason. Sports would not be where they are today without evolution. Those for the expansion are all about inclusivity: bigger has always worked for the NCAA. If the tournament is at its best now after so much expansion from an initial 8 teams, then why stop? College football is also used as an argument–  over half of the teams find their way to bowl games, making it unfitting for just 20% of college basketball teams to make their tournament. Those against the expansion contrast the early days of March Madness and its recurring expansions with the reluctance to make changes in recent years, signaling perfection has been found. Whether in favor or against the potential expansion, the elephant in the room remains: is March Madness just another money grab?

Sources:

  1. https://www.sportingnews.com/us/ncaa-basketball/news/march-madness-expansion-adding-teams-ncaa-tournament/ac81f6b376fcc921a8993fe2
  2. https://www.washingtonpost.com/sports/2024/03/25/ncaa-tournament-expansion/
  3. https://apnews.com/article/march-madness-expansion-8e7a9c029bf12f6261538750cab4c9a5
  4. https://www.si.com/college/gonzaga/basketball/should-the-ncaa-tournament-expand-its-field
  5. https://blog.opensponsorship.com/leveraging-athlete-partnerships-in-march-madness-for-brand-exposure
  6. https://talksport.com/sport/1775517/ncaa-march-madness-college-football-playoff/

The Caitlin Clark Effect: Can the WNBA Sustain the Momentum?

Just last week, Iowa’s Caitlin Clark announced her commitment to enter the 2024 WNBA draft once this season comes to a close. Days later, Clark broke the record for most career points in NCCA history. After an absolutely scorching season and college career, the WNBA has the opportunity to capitalize and turn this momentum into a movement for women’s basketball – but can they sustain it?

The WNBA has struggled since its inception to garner support from fans, paling in comparison to its NBA counterpart. The NBA is a multi-billion dollar business while the WNBA remains in the low millions to this day. Viewership has massive disparities between the leagues. In 2023, the WNBA drew an average of 728K viewers during finals – an impressive stat considering its 36% increase over the previous year and 20-year-high record viewership overall. In contrast however, the NBA witnessed an average of 11.64M viewers. Despite incredible growth in recent years, the metrics simply do not come close.

But there is growth – an exponential shift taking place that could set the league on a path to greater success.

How the Caitlin Clark Effect Has Re-energized the WNBA

Leveraging the wave of support fans have built for star players like Clark and LSU’s Angel Reese (a duo that, together, blew records off the door with an astonishing 9.9M viewers tuning into their rival championship game) is the key to the future of the WNBA. Many talented women’s basketball players have similar stories – the rise up through their college teams, taking March Madness by storm, and winning NCAA Championships. Diana Taurasi, Sheryl Swoopes, Sue Bird, Lisa Leslie… the list could go on and on. The level of skill and ability to get a crowd off their feet is unmatched, but something different is happening with the latest generation. 

caitlin clark

Breaking Viewership Records and Brand Opportunities in Women’s Basketball

The excitement for these young women has blossomed in a way that we haven’t quite seen before. The 2024 Big Ten Tournament has sold out completely for the first time, ever, in anticipation of Caitlin Clark’s appearance in the tournament. This comes after a completely sold out 2023-2024 season for Iowa women’s basketball – another first of its kind stat for the school. Not only are they selling out, but the average prices for seats at one of Clark’s games skyrocketed, setting sales records all season. There is an evident shift in the appetite of fans to show up and show out for their star players – something that must be harnessed by the WNBA to sustain its success and continue to flourish.

Leveraging unique viewing opportunities and spotlighting exciting players through social media is certainly a piece of the puzzle. In anticipation of Clark’s recent game against Maryland, Fox tapped into its TikTok audience with the Caitlin Clark Cam – providing an experience for viewers unlike the typical game feed that resulted in viewership of over 800K people alone. Cross-collaboration is another: the recent NBA All-Star Weekend first of its kind 3-Point Challenge with Sabrina Ionescu vs. Stephen Curry put these fan favorites in a toe-to-toe match that eclipsed the dunk contest by a mile, causing a storm of media excitement.

caitlin clark

What Teams, Sponsors & Agencies Must Do to Maintain the Momentum

In just six weeks the WNBA draft will prove a solid indicator of what’s ahead. With Caitlin Clark projected as the No. 1 pick by the Indiana Fever, ticket sales have already soared. Ticket website Vivid Seats estimates prices to double year-on-year with Clark on the squad. As for the WNBA, the league has a ways to go to catch up with NBA’s massive fan base and revenue. But armed with Clark and the next generation of female basketball stars, they’re definitely headed in the right direction.

Sources:

  1. https://frontofficesports.com/big-ten-womens-tournament-sells-out-for-first-time/?utm_source=Athelo+Group&utm_campaign=1c1992aadb-EMAIL_CAMPAIGN_2020_08_20_10_53_COPY_01&utm_medium=email&utm_term=0_9477e18c65-1c1992aadb-
  2. https://www.wsn.com/nba/nba-vs-wnba/
  3. https://www.statista.com/statistics/240377/nba-finals-tv-viewership-in-the-united-states/#:~:text=The%202023%20NBA%20Finals%20were,the%20Boston%20Celtics%204%2D2.
  4. https://www.usatoday.com/story/sports/ncaaw/2024/02/28/caitlin-clark-tickets-final-home-game-most-expensive/72776115007/
  5. https://www.nba.com/news/2024-stephen-vs-sabrina-3-point-challenge
  6. https://twitter.com/caitlinclark22/status/1763313652277412179?s=42&t=BC9_zv0yoQ3gzEhZIjkJAw
  7. https://www.nytimes.com/2023/04/03/sports/ncaabasketball/lsu-iowa-womens-tournament-ratings-record.html
  8. https://www.thegazette.com/iowa-basketball/iowa-womens-basketball-sells-out-2023-24-season-tickets-for-first-time-in-program-history/ 

What NCAA Conference Realignment Means for Student Athletes

Ever since major shifts in 2021, college football conference realignment has triggered a domino effect. The landscape of college football as we know it continues to transform as conferences look to boost profits, expand media rights deals, and diversify match-ups. Fans shouldn’t be so surprised, as the seismic shift in the NCAA has been in motion for the past decade. The last two years have drastically altered college football’s future as Texas and Oklahoma are set to join the SEC; USC, UCLA, Oregon and Washington will be joining the Big 10; Colorado, Arizona, Arizona State and Utah are the newest members of the Big 12, and Cal, Stanford and SMU are joining the Atlantic Coast Conference. With the rise of name, image, and likeness, college athletes are taking advantage of the realignment to help benefit their own personal brands, but new challenges may be on the horizon.

By 2024, the Big 10 will consist of eighteen teams. The Big 12 will have sixteen teams, and the ACC will make its expansion into the west coast. Meanwhile, the Pac-12 could face dissolution: the conference has dwindled down to two teams as colleges begin to favor coast-to-coast competition over regional rivalries. Many are wondering what impact this has on college athletes and their respective conferences. 

college football conference realignment

Conferences stand the most to gain here, as the driving force behind college football realignment is sheer revenue. Media rights are quickly growing in value and realignment sweetens the deal. In 2020, the SEC signed a $3B television deal with Disney, and the Big Ten followed up by signing a $7B deal with Fox, NBC, and CBS just last summer. According to U.S.A. Today, the Power 5 conferences combined raked in over $3.3B of total revenue in 2022. Colleges received their fair share as well, with the Big Ten distributing close to $60M per school. The SEC came in close second, giving nearly $50M per school. 

The realignment has benefits that reach beyond just the schools. Passed in 2021, the NIL rule change has allowed college athletes to monetize their name, image and likeness through endorsement deals and sponsorships. In the first year of the ruling, NIL netted an estimated $917M for student athletes. Players in dominant conferences like former University of Alabama quarterback Bryce Young had NIL valuations easily exceeding $2M. The potential earnings involved for the players have changed the way schools recruit as well as how the transfer portal may look going forward. Just as schools are joining conferences to help generate new revenue, athletes are looking for schools that will give their personal brand the most recognition. Thanks to expansive media rights deals, players in major conferences and universities can receive attention and exposure, ultimately leading to larger brand deals. 

In fact, athletes in recent years have deferred from entering the draft as they can make more money from collegiate NIL than signing a rookie deal. Players who leave school early for financial reasons now have the opportunity to remain in school, improve on their draft stock, and bring in a lucrative income. Talented Michigan running back Blake Corum chose to return to school for his senior year rather than go pro, and he now possesses an NIL evaluation of over $1.2M. Notre Dame transfer quarterback Sam Hartman, who was projected to be a late-round pick in last year’s NFL draft, boasts an NIL evaluation of $1.1M after signing a deal with Beats by Dre. 

college football conference realignment

As great of an impact NCAA conference realignment has on athletes and their personal brands, it does raise some concerns. Many worry how student athletes will be able to juggle the explosive NIL business with their mental health, training, and coursework. Considering NIL success largely relies on an influencer marketing business model, psychologists fear social media stressors could exacerbate an athlete’s mental health. Athletes in dominant conferences may become hyper-focused on social media performance as they look to hit it big financially. In reality, only a select few will hit the jackpot, and others may suffer from the stress of social media. 

Other issues of realignment and its impact on NIL include fairness and equity for those who do not play in large-scale sports such as basketball and football. With the majority of the realignment discussion focusing on football, other sports such as swimming, diving, volleyball and soccer won’t see the same benefits. While football players may receive greater exposure, the same cannot be said for more niche college sports. The students’ potential NIL earnings lessen as a result.

In addition, student-athletes will be required to travel much longer distances.  When an athlete commits to a university, they understand both the academic standards and travel requirements that come with their commitment. But now, new ACC members like student athletes from Stanford will find themselves traveling cross-country for away games. Depending on the sport, the percentage of these athletes going on to play at the professional level is less than 10%. This means that for the majority of college athletes looking to build a future career, classroom performance trumps on-field performance. The stress of constant long distance travel may divert and disorient these efforts.

No matter how divisive NCAA conference realignment seems, only time will tell if the benefits outweigh the drawbacks. Student athletes in dominant conferences will take advantage of the greater media exposure to boost their personal brands. Colleges will benefit from the profits in growing media value. Die-hard fans will eventually come to terms with the new match-ups and rivalries. And of course, the future is still unfolding. In the coming years, we are likely to see even more changes to the NCAA conferences fans know and love.

Sources:

  1. https://www.sportico.com/leagues/college-sports/2022/does-conference-realignment-travel-benefit-college-athletes-1234682570/
  2. https://www.ncaa.org/sports/2015/3/6/estimated-probability-of-competing-in-professional-athletics.aspx
  3. https://frontofficesports.com/tv-money-built-power-5-then-destroyed-it/#:~:text=Last%20summer%2C%20the%20Big%20Ten,conference%20has%20been%20relatively%20stable.
  4. https://www.cbssports.com/college-football/news/big-ten-leads-power-five-conferences-with-845-6-million-in-revenue-in-2022-fiscal-year-per-report/
  5. https://iconsource.com/blog/nil-changing-the-landscape/#:~:text=The%20NIL%20rule%20change%20passed,even%20start%20their%20own%20businesses.
  6. https://www.cbssports.com/college-football/news/big-ten-leads-power-five-conferences-with-845-6-million-in-revenue-in-2022-fiscal-year-per-report/
  7. https://www.blackenterprise.com/no-1-nfl-draft-pick-bryce-young-reached-3-5m-in-nil-valuation-before-turning-pro/
  8. https://www.usatoday.com/story/sports/ncaaf/2022/08/25/college-media-rights-what-has-happened-and-whats-next/50640697/

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.