NCAA Makes a Splash: Is Change Coming to NIL Soon?

Written By: Jonathan Merlin

Since its birth in 2021, the NIL industry has grown to nearly $1.2 Billion. However, that money isn’t shared equally. It is estimated that deals for athletes in College Football and Men’s College Basketball make up about 75% of the total NIL market.

While College Football and Men’s College Basketball are the largest revenue generators for athletic departments, there is an argument to be made that NIL money should be shared equally across all student-athletes. While certain sports bring in more revenue, that shouldn’t be a barrier preventing other athletes from profiting off their NIL. 

So, what is the NCAA going to do to address this issue?

In early December, the NCAA announced a new plan to allow schools to set up “NIL Trusts,” that brands, schools and alumni would put money towards that would go directly to student-athletes. While setting up a trust would be voluntary for each school, after the plan was released, several athletic directors, including Trev Alberts of Nebraska, and Gene Smith of Ohio State, expressed their support for the new plan. With the support of big Power 5 schools like Ohio State and Nebraska, the plan could become widely accepted across the country within 2024 and we can begin to bridge the gap in NIL across conferences, universities, sports and even genders. 

This plan comes right as many were thinking the NCAA would take a different direction. Many were expecting the NCAA to allow student-athletes to become employees of their school, authorizing them to receive a salary. This new plan provides us with a clearer vision of where the NCAA wants to take NIL in the future. 

So what will the effects of this new plan be? 

The primary beneficiary of this new plan are female student-athletes. Currently, there are no rules ensuring the equality of NIL deals for men and women. However, one new aspect of this plan is that each trust would be subject to Title IX regulations, meaning that the money must be shared evenly between male and female athletes. So, with Ohio State’s trust estimated to be about $15 Million, female student-athletes in Columbus are due for a payday.

Ohio State is just one example of how female student-athletes could be in for an NIL windfall. 

With change coming around the corner, having someone in your corner is as important as ever. The NIL space is constantly changing and this is yet another twist that we at MKHustle are here to help you navigate. For both male and female athletes alike, MKH is here to help you build meaningful connections with valuable brands and maximize your NIL.