Written By: Grant Jackson
Until June of 2021, College athletes were not able to profit from their name, image or likeness (NIL). This change happened when the U.S. Supreme Court Justice ruled in NCAA v. Alston, which upheld a district court ruling that the National Collegiate Athletic Association (NCAA) rules limiting education-related compensation violated section 1 of the Sherman Act. Shortly after, the NCAA allowed student athlete compensation by opening name, image and likeness opportunities to student-athletes, the policy in all three divisions preserves the commitment to avoid pay-for-play and improper inducements tied to choosing to attend a particular school. For all college athletes this was a big step forward, because although the NCAA generates roughly $1 billion in revenues each year, NCAA rules restrict student-athlete compensation.
Before NIL rules, it was prohibited for college athletes to have endorsements, promote products, or even autograph items for any amount of money. Now in college sports, student athletes even receive a small percentage of their jersey sales and some athletes can make well over six figures or even millions from their own name, image, and likeness. In 2024, some college athletes will have the opportunity to get paid even more through their schools, but is that going too far? The initial NIL implications were put in place to avoid ‘pay-for-play’, but after a huge NCAA settlement, it is likely that schools will be obligated to compensate athletes for play.
On May 23, 2024 the proposed $2.8 billion House vs. NCAA settlement for a group of antitrust laws may allow schools to directly pay students athletes as soon as 2025. This $2.8 billion would be split up amongst athletes who played during the 2016-2021 stint, where signing endorsements were forbidden. The NCAA will pay 40% of the settlement and leave the rest to the universities of all power five conferences ( ACC,Big Ten, Big 12, PAC-12, and SEC). The settlement raises a bunch of questions for former and current athletes. Why are players prior to the 2016 season not eligible for back pay? How much could student athletes get paid in the future? When will it be approved? And most importantly, how will this affect lower revenue sports? The future of college athletics is uncertain and constantly changing.
The settlement’s re-model will further change the landscape of collegiate sports forever. There will be a revenue sharing agreement similar to professional sports and there will also be an unlimited amount of scholarships granted. The percentage, starting at 22 percent, may increase over time and would allow schools to distribute up to $20 million a year to power five athletes.
The splitting of the revenue among athletes poses many more questions. Who gets paid? What sports, or all sports? The bigger problem is how likely it is that all sports may not receive compensation, and some sports programs may be cut. Low revenue sports could be in danger because of the added expenses of paying athletes from high revenue sports such as, football and men’s and women’s basketball. Schools will have options to pay for sports that generally don’t create revenue. For example, rowing, soccer, tennis, track and field and more- It will be up to institutions on how to proceed. For many schools, decisions regarding what to do with low revenue sports will be a tough decision in years to come. The cutting of programs will affect hundreds, if not thousands of college athletes.
Other concerns include the implication of Title IX and the equal pay of athletes based on the federal law that prohibits sex discrimination in any school or education program that receives federal funds. The implications of the settlement could mean further legal battles for years to come. Rightfully so, lawsuits will be found everywhere if the NCAA fails to protect or find loopholes to work around Title IX rules. They should not aim to compensate separately in sports where there are both men’s and women’s teams at universities. Settlements such as the recent $2.8 billion don’t happen if the institutions in place continuously makes efforts to ensure that policies and laws constitute fairness.
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Such fairness should continually be in discussion when it comes to settlements, lawsuits, policy and rules regarding collegiate athletics. For too long college athletes and their talents have been exploited by the NCAA. If there had been a better system put in place, there would be no need for $2.8 billion dollar payouts. The NIL rules and policies are simply a foot in the door that is leading to a much more beneficial college experience for many athletes. If institutions are not careful about their policies, rules, and regulations, we may see many sports leave the college landscape. On top of this, lawsuits will pile up and questions about the structure of the NCAA and their integrity will rise.