How NIL is Failing College Sports

Editor’s Note (September 2025): This article was first published in May 2025. Since then, NIL controversies have only grown—lawsuits over transfers, new collective rules, and court rulings are fueling even more debate. The problems outlined below remain at the heart of the chaos.

When the NCAA implemented its interim policy on Name, Image, and Likeness (NIL) in July 2021, it was heralded as a long-overdue victory for student-athletes. Finally, college athletes could monetize their personal brands while maintaining eligibility. But three years in, the reality of NIL has exposed deep, structural problems that threaten the very foundation of college sports.

Far from the fair, equitable system its proponents envisioned, NIL has morphed into a thinly veiled pay-for-play scheme dominated by wealthy donors, corporate interests, and an increasingly professionalized amateur sports landscape that’s leaving many athletes and institutions behind.

NIL Is Bad in Its Current Form, But the Concept Isn’t

Let’s be clear: this is not to say NIL is all bad. The core principle—that athletes deserve compensation for the use of their name, image, and likeness—remains valid and important. Student-athletes absolutely deserve to get paid. But this implementation ain’t it.

The problem is the execution. NIL went from zero to 200 MPH overnight with no guardrails. It’s like giving someone a supercar capable of high speeds and letting them drive it through downtown at rush hour. Just because a car can go that fast doesn’t mean it should outside of a sanctioned and governed NASCAR race. Similarly, NIL needed careful implementation with proper rules and oversight—not the free-for-all we’re currently witnessing.

NIL Is Bad for Creating the Collective Problem: Pay-for-Play in Disguise

The most troubling development in the NIL era has been the rise of “collectives” – donor-organized groups that pool money to facilitate NIL deals for athletes at specific schools. These collectives have quickly evolved from their original purpose into recruitment vehicles that effectively function as booster-funded payrolls.

College football’s biggest donors have orchestrated business ventures distributing five-, six- and seven-figure payments to athletes under the guise of endorsement opportunities and appearance fees. While technically legal within vague NCAA guidelines, these arrangements clearly violate the spirit of what NIL was supposed to be.

Consider the case of quarterback Nico Iamaleava, whose story perfectly illustrates the chaos. After signing with Tennessee on a lucrative NIL deal, he later tried to renegotiate his contract during the 2025 offseason. When Tennessee refused both because his performance didn’t warrant the increase and the amount was too high, Iamaleava explored other options. After other schools balked at his demands, he eventually landed at UCLA for significantly less money than he was seeking. Meanwhile, Texas will spend an astounding $40 million on its football roster in 2025-26. But that’s not the issue—why wouldn’t they if they can? The problem is that if another team wants to compete, there’s only one way forward: pay up.

This isn’t about athletes receiving fair compensation for actual marketing value – it’s about wealthy boosters creating slush funds to buy talent. And as long as deals include some nominal “deliverable” from the athlete and are signed after their national letter of intent, there’s little the NCAA can do to stop it. (SportsEpreneur Update as of September 2025: read more about the NIL Clearinghouse and the first NIL deal report.)

NIL Is Bad for Boosting Egos Instead of Programs

A particularly troubling aspect that’s emerged is how NIL has become an ego-driven playground for wealthy boosters. For many donors, it’s no longer about supporting their alma mater—it’s about directly influencing outcomes and claiming credit for wins.

These boosters are essentially treating college teams like fantasy sports with real money. They get a dopamine hit from watching “their” players succeed, knowing their financial contribution made it possible. It’s an addiction—the thrill of buying talent and then basking in reflected glory when that talent performs well.

This creates a dangerous dynamic where the interests of boosters, rather than educational or developmental goals, drive decisions. Coaches find themselves answering not just to athletic directors, but to the whims of deep-pocketed collectives who can control the talent pipeline.

[ed. ...and much more:]

NIL Is Bad for Widening the Gap: Competitive Balance Destroyed

NIL Is Bad for Creating Transfer Portal Chaos: The Free Agency Problem

NIL Is Bad for Athletes Making Short-Term Decisions

NIL Is Bad for the Athlete-Fan Relationship

NIL Is Bad for Corruption and Exploitation: The Dark Side

NIL Is Bad for College Sports’ Identity Crisis

NIL Is Bad for International Student-Athletes

NIL Is Bad, But Reform Is Possible

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Image: Tyler Kaufman/Getty
[ed. Money is killing sports (and most everything else), and nobody pays even lip service to educational opportunities anymore. See also: Limbo Field (HCB); and,  The college football spending cap is brand new, and here’s how schools already are ignoring it (The Athletic).]