NIL in College Sports 2024: Impact, Changes, and Future Outlook

NIL forever changed the college sports landscape, but questions remain about how the current cycle will affect college athletics long after we have passed 2024. This sweeping review offers the latest on where we are in college sports with NIL, how it has come to be, and what this sea change might mean down the road.

How NIL Will Affect College Sports in 2024

Money Consequences For College Athletes

NIL has led to unprecedented financial benefits for student-athletes. In 2024, we have so many college athletes with endorsement deals, sponsors, and ways to make back money. 

They have brought both windfall and turbulence to this financial city. However, they have also prevented athletes from earning money while playing the game, a preventative measure put in place with many good intentions. They have also directly increased the financial gap within teams and amongst different sports and, to some extent, directed envy or bias between teammates themselves.

Competitive Landscape Shifts

The landscape of college sports recruitment and retention is fundamentally different from NIL. It is now a part of many high school athletes' shopping lists, akin to an athletic program and academic fit for the highest-earning stars. Consequently, it has changed the balance of power, with smaller programs finding themselves at a competitive disadvantage against bigger schools that can provide their athletes with more lucrative NIL deals.

The NCAA Transfer Portal, combined with NIL, has essentially created a free agency for College Athletics. An increase in athlete transfers weakens team continuity and elevates demands on roster stability. It also makes it easier for athletes to jump ship from one school to another, often citing improved opportunities or financial incentives.

Regulatory Challenges

NIL policies are now being enforced college-wide, across states, and by athletics governing bodies. In 2024, there will be continued steps towards national standards for NIL, dealing with the current patchwork of state laws and institutional policies that present confusion and opportunity to those unscrupulous few.

The NCAA and others have been struggling with pulling off what they say are major changes while still keeping the spirit of amateurism intact. Some say it's a balance that has proven difficult as the account swells with cash and threatens lines between amateur and professional sports.

How College Sports Have Evolved and Adapted to NIL

NIL Policies

In 2024, we see a growing call for nationwide uniform NIL legislation. Early in 2024, new draft legislation was introduced to impose national NIL rules and establish a non-governmental organization (NGO) overseeing all the various individual player-related activities. The ban on using athletic boosters and third parties to pay players to attend specific colleges, a potential dilemma that has emerged as the biggest issue with NIL moving forward, is part of this legislation.

Some universities have drafted their NIL policies and created infrastructure to help student-athletes operate in the changed environment. These may be educational programs on financial literacy, brand management, or entrepreneurship that help students make the most of their NIL rights while keeping them compliant with regulations.

Adaptation Strategy

NIL opportunities have also pushed colleges to quickly adjust their athletic programs. Most have relied on third-party platforms to match athletes with sponsors and handle the business of NIL deals. In fact, a few have built offices solely to help their athletes navigate this new era.

They explained that student-athletes have learned to craft and commercialize their own personal brands. Influencers are using platforms such as TikTok and Instagram to build relationships with their audience while monetizing branded content. Players also look at various revenue possibilities, from sponsorships to starting their clothing brand or selling private fan experiences.

Challenges and Controversies

As with all new rules, NIL has faced tremendous challenges. One major problem has been the emergence of NIL collectives, third-party groups of boosters, and businesses that come together to finance deals for athletes at specific schools. While the formations of these collectives have opened up significant opportunities for some athletes, there are also concerns about nefarious activities such as pay-for-play and bid-rigging around recruitment.

Another hot-button issue is whether NIL will further stratify an already imbalanced college sports economy. Within the realm of high-profile athletes, revenue-generating sports such as football and basketball generally see better NIL deals than other disciplines/schools that provide less visibility for these.

The Future Look of NIL in College Sports

The Lasting Effects on College Sports

It seems NIL is here to stay in college sports for the foreseeable future. A more lasting effect could be a change in the balance of power between athletes and schools. Athletes, by virtue of their financial independence and personal brand value that generates them revenue from endorsement deals, etc., may have more influence in negotiating with their schools or the direction they'd like to see collegiate athletics go.

NIL could even impact the competitive landscape, not just the athletes. Others suggest we could see the division of collegiate athletics go even deeper, with a select handful of sports making that money-making programs in those select few team disciplines and schools separating themselves from everyone else.

Recruitment and Retention

NIL is likely here to stay in recruiting and student-athlete retention. Schools that can provide high-quality NIL support and opportunities might be more attractive to top talent. More money is being funneled into NIL infrastructure and support ecosystem by schools trying to stay competitive.

There's a sliding risk of free-market ideology and entitlement creeping back in as college athletes see the option to put short-term earnings over their actual education and future college life.

Upside Risk to Policy Shifts

We can only hope that as NIL unfolds, policy will be further enhanced and refined. The push for federal NIL legislation to provide a national standard across the country is gaining steam, which could go a long way toward remedying some misalignments.

We may also see a sea change in how NIL earnings are formally organized and split. For example, NCAA President Charlie Baker is advocating for a rule that would allow Division I schools to directly pay athletes from other sources, such as NIL deals not related to academic resources, which could be a fundamental change in the existing landscape.

Impact on Professional Sports

NIL in college sports could trigger a domino effect on professional leagues. There are already instances of college athletes making more in NIL deals than they would have as young professionals. Not even her projected WNBA salary can touch the NIL money being made by Caitlin Clark, for instance. That argument also has the potential to affect when athletes decide to go pro and even force professional leagues into reevaluating how much they pay young players.

Ethical and educational issues

As NIL embeds itself further in the fabric of college sports, that question will likely endure going forward: what does it mean for the education laws – and student-athletes? NIL contributes to economic and entrepreneurial learning but raises worries that it might detract from studies or put weight on students at a young age.

Both these rules allow sports institutions to regulate players even more with the hope that future policies and practices will be similar. Hence, there is sufficient space for student-athletes to enjoy their rights commercially while funding students continues unchecked.

Its policies have transformed college sports in many ways, creating a different range of opportunities and challenges for student-athletes, institutions, and governing bodies. NIL will be front and center throughout 2024, with the end not in sight for its impact on college sports.

Though the full long-term chapter of NIL remains ahead, it has brought a sense that things have changed and that we can never completely go back to an old system with its amateurism bedrock regarding college athletes. Given the rapidly changing NIL landscape, creative and adaptable approaches by all stakeholders will be important to ensure that its benefits are maximized and unintended negative consequences can be minimized.

The next few years will likely involve additional adjustments to NIL policies, possibly even the enactment of federal legislation and greater commonality among institutions. We do not know what shape those changes will take, but we are certain NIL has altered the college sports landscape forever and likely for a long time.