The next evolution of NIL collectives and the battles that await: 'This is a big inflection point'
The NCAA’s landmark settlement has been billed by some as a move to bring stability to an unruly recruiting landscape. While offering solutions for some problems, the new model creates others.
sports.yahoo.com
I think this is the most interesting part of the new deal. What will happen with collectives?
There is only so much money to go around. Schools will take a $22 million hit likely starting in 2025. A decent portion of that will have be recovered for ADs to stay alive. Whether it is the school paying more money to the AD to replenish some of the lost funds and/or they continue to go to donors for the payments. The last few years the donors have funded NIL. Now, ADs will look to donors for the same type of involvement, but it will go directly back to the schools fund to stay afloat.
One key difference with the new system coming is donors will get bonuses and points for tickets and seating, which they don't under the new system. Universities can be creative in that way.
One other thing I have heard several times is how schools believe the $22 million is not tied to Title 9. The money is about ticket sales/TV revenue and that is solely on the shoulders in most all cases of football and men's basketball. One person I spoke with said Title 9 will definitely try to see what they can get financially. It will be interesting.
I think collectives will morph into agencies that still help athletes find NIL deals but it will be more along the lines of what NIL was really meant for in the beginning. KU would have trouble surviving by paying out the $22 million and then have a collective trying to operate the same way they are. I also think you will see a lot of collectives go inside the schools and become an inside department.
