Each year, the NCAA has revenue of several billion dollars from well-known tournaments in various college sports. This is a gold rush not only for residents of the Association but also for many other participants.

Here are some of them:

• Sports channels conduct online broadcasts and sell various advertisements. Their profit may exceed $1 billion.
• Bettors who place bets on a variety of events. Bookmakers can earn about $3.5 billion.
• Gamblers who want to stir up interest in the match.

It is important to note that every year a key group of people stayed away from this jackpot. Of course, we are talking about players; however, all the income depends on them. But this year, everything has changed.

Legislative basis

The decision of the U.S. Supreme Court directly affected the earnings of players from marketing contracts and deals. This amount can reach $1 million. College sports tournaments can now compete with professional leagues not only in terms of match views but also in the context of contract amounts. Although these transactions are allowed by the Supreme Court, they often differ from the local regulations of schools and colleges. The NCAA has banned schools from paying funds to their student-athletes.

Nevertheless, third parties can make deals with students and pay them. Athletes can provide marketing services; for example, they have to appear in an advertisement or go to a match in the attributes of some company.

Transactions with third parties

The athlete gets the opportunity to sell his “face and name” to a large audience with the help of a “NIL deal.” Such a contract usually has two main purposes. Firstly, companies are luring athletes from one state to another. Secondly, a brand or company wants to sign a contract with a promising student-athlete for promotion. For example, a shoe brand signs a NIL deal with a promising athlete for a couple of years. The athlete takes part in matches in their sneakers and advertises them on social networks.

Still college or big business?

The amount of the NIL transaction depends on many factors, but one of the most important is the focus of the college on sports. The average NIL deal for outstanding athletes of the first divisions is $500. However, there are exceptions. Football students at some Texas and Ohio colleges receive $13,000 a year if they have a scholarship. Another crazy example of a big NIL deal is payments to Texas College football hitters. They will receive approximately $50,000 a year if they have a scholarship.

Laws restricting NIL

With the introduction of NIL deals, more and more money will go to support student sports. Players will continue to receive insane multimillion-dollar contracts, and the broadcasts will still attract hundreds of thousands of viewers.  

Several bills have already tried to limit the influence of NIL on college sports, but none have been successful. The NCAA chairman has already appealed to Congress to regulate the NIL. There are no results yet, but in the future, the adjustment will become more stringent.