The Impact of NIL in College Athletics

By: Michael McAllister

College athletics has seen a significant shake-up since the arrival of Name, Image, and Likeness. While my previous discussions focused on the immediate effects of NIL such as player recruitment and team dynamics, this paper will provide an understanding of these effects on a deeper level. Beyond redefining the relationship between athletes and their universities, NIL has created a new era plagued with psychological, performance, and ethical complexities. By examining aspects of NIL’s influence, such as its psychological impact on player performance, the shifting dynamics within teams, and the broader societal perceptions of money in college sports, we will better understand college athletics in the NIL era. We aim to shed light on the effects of NIL and propose recommendations to navigate these complexities.

The psychological effects of NIL are something no one talks about but have severe implications. One cannot ignore the major impact that financial incentives may have on the psyche of these young student-athletes. Where once the pursuit of success on the field was fueled by passion, dedication, and the goal of going to the NFL, NIL introduces a new variable which is immediate financial gratification.

This raises questions about the motivations that drive athletes now, including the pressures they face, and the potential consequences on their mental health. For many student-athletes, the idea of monetizing their talents not only means financial gains but also may serve as validation of their value as an athlete. However, this may introduce unforeseen pressures and problems. Athletes may have to tackle questions of self-worth, as their value is increasingly measured not only by their athletic performance but also by their marketability and ability to secure sponsors.

I can speak on this matter with my own experiences being on a team where most guys received sums of money and I didn’t get anything. Now I’m not saying I thought differently of myself as a whole but, there were certainly times when I had gotten jealous of teammates and the money they got. I would credit myself for having a strong mental state and fully understanding that college sports is a business and the best guys are the most marketable. But I would say with confidence there are hundreds of players across the country who don’t receive money and may look down on themselves because of it.

Even for the athletes receiving all this money and endorsement deals, it’s not all sunshine and rainbows for them either. They sign strict contracts where they have to promote things, make appearances, and put themselves out there more than they might want to. In a recent interview, former University of Texas star running back Bijan Robinson who was drafted in the first round of the NFL draft spoke out on the dark side of NIL. Robinson earned $1.8 million while playing for Texas but yet was suffering severe mental health issues. Being a student-athlete is already very difficult, having to constantly juggle friendships, family time, all the time for your sport, and just basic life enjoyment. But when you add in having to juggle multiple sponsorships it adds even more pressure. Robinson opened up and said “ It became like really stressful for me to live with the brand news… There was a point where like, I wasn’t talking to my mom. I was going to talk to her like, once every, like three weeks. And it was because I was not trying to ask my mom, like, I felt I was just too tired, mentally and physically. And, you know, for me, there was a point in time when you know that stuff really, you start thinking like, Why? Why am I doing all this stuff?” (Bridge, K.) Here is one of the largest earners of NIL expressing all of the negative effects it can have on a player leading him to question why he is even doing it. We will slowly start to see more players speak out on this issue.

The pursuit of NIL opportunities may inadvertently derail athletes from focusing on their craft and reaching their goals in the NFL. These psychological effects of NIL will also affect team dynamics and their overall performance. Student-athletes now must navigate between their intrinsic love for the game and the extrinsic incentives offered by NIL opportunities.

Traditionally, college sports teams have operated with a standard of shared goals, collective responsibility, and camaraderie among teammates. However, introducing NIL adds new dynamics that challenge these values. A significant consequence of NIL is the emergence of a hierarchy within teams based on financial status. Athletes who can secure endorsement deals or capitalize on their brand may find themselves elevated to a position of power within the team, regardless of their on-field performance or leadership ability. This shift in hierarchy may lead to tension and resentment among teammates, as individuals seek recognition and status based on financial success rather than athletics.

The pursuit of NIL may also affect traditional leadership structures within teams. Whereas leadership roles used to be based on a combination of seniority, performance, and character, the emphasis on individual marketing may lead to a reevaluation of leadership qualities. With this new era of the transfer portal, coaches bring in top-rated transfers for thousands of dollars and force them into a leadership role right away. In a sense, coaches are now taking a massive gamble on players and hoping they can improve their team and its culture while risking it doing the opposite. Athletes who excel in self-promotion and off-field endorsements may find themselves in leadership roles, while those who prioritize team success may now be overlooked. So how might this change on-field performance?

With young 18–21-year-olds being assured financial security, they may become complacent, feeling as though they have already achieved success and there’s no need for further effort and dedication. This complacency may turn into a diminished focus during training sessions, film sessions, or even on the field. When athletes are “up and coming” they tend to make sacrifices and put their heart and soul into every little thing to ensure they can reach their professional dreams. But again, this added instant gratification and wealth may lead athletes to prioritize short-term gains over long-term success. Instead of perfecting their skills and putting in the extra work, athletes may fall into the trap of immediate rewards. They may abandon the path of development towards their goals in favor of financial gain.

Additionally, all of this money may distort athletes’ perception of their own abilities and potential. They may start to falsely believe that they have already “made it” in the world of athletics, leading them to stop trying on the field but also in the classroom. This inflated sense of ego and entitlement may lead to a lack of humility, and the ability to learn and grow with the challenges of college sports. Most importantly with this comes student athletes caring less about school. I think it’s a known fact by now that some top athletes don’t care about school and only do the bare minimum to stay eligible. But I strongly believe that we will see an even greater fall off of athlete care for school with NIL. Student-athletes receiving large amounts of money may feel they don’t even need school anymore since in their heads they are already successful. Now I admit I am hypothesizing here, but having been in a college football locker room the last four years this is where I see things going. High School athletes will begin to view college as a place for financial gains rather than academic enrichment.

One might ask what is the NCAA doing about this to try and control NIL and the massive influence it has on college sports today. Well, they have been running in circles for months trying to create rules but have also been losing landmark court cases. In February a court case took place surrounding the University of Tennessee over a “football recruiting violation” due to the school’s donor collective having secured an 8 million dollar endorsement deal for an incoming freshman QB while he was still a senior in high school. Yes, an 8 million dollar fully guaranteed deal for an 18-year-old who hasn’t played a snap of college ball! The NCAA deemed this as a violation of their NIL rules since you are not allowed to use money as an “ inducement” for an athlete to pick a school.

However, once this case made it to Tennessee court, the attorney general ruled that this specific NIL rule was a violation of antitrust law. So, the very few rules that the NCAA had in place surrounding the NIL and the procedures in which schools could offer athletes money were instantly thrown out the window. The NCAA released a statement following the hearing expressing their frustrations “ Turning upside down rules overwhelmingly supported by member schools will aggravate an already chaotic collegiate environment, further diminishing protections for student-athletes from exploitation.” (Dougherty, J.) We now have the NCAA and Congress battling against each other over NIL laws which makes this entire situation a good ole fashion “Shit Show.”

There are several immediate consequences this ruling will have with the biggest being the creation of an even greater separation between top programs and the rest of the field. Your top athletic programs with large donors such as USC, Alabama, Texas, Ohio State, Florida, and several others now have a significant advantage in recruiting top players. Coaches at these programs know they have the upper hand and use it to their advantage. Recently USC head coach Lincoln Riley commented on NIL and its importance, “ NIL has taken some monster leaps in the last several months, which has been positive. I think for everybody, our fanbase and supporters, it’s just been gaining an understanding of what it is and how it’s not important, it’s imperative. You have to have it. Being in LA, our guys probably get more outside deals than anybody in the country, which is awesome. But we need the support to be right there with that too with our donors and our collectives. That has taken some massive, massive jumps here in the last several months.” (Papke, G) It’s important to note Riley expressing you “have to have it” in regards to NIL and donor-backed collectives which further proves the point that schools not at the top will begin to miss out on top recruits even more.

With this giant circus of NIL and all the changes being made to college athletics, are people actually in favor of what’s going on? To find out I polled 9 people in total with 3 of them being current college athletes, 3 athletic staffers, and 3 individuals who are fans of college sports. I asked them all two yes or no questions and then gave them a chance to explain themselves. The first question was “Do you support college athletes being able to profit from their Name Image Likeness?” and the second being “Do you think the current structure of NIL that is being used by players and universities is ruining college athletics?” For both questions 9 out of 9 people voted yes. So here we have 100% of the people being in favor of athletes being able to earn money while at the same time believing how it’s currently being done is ruining the sports they love.

I think this is very eye-opening and further shows the mess that NIL has created. One of the individuals I interviewed stated, “ NIL was supposed to be a bonus for athletes to capitalize off their hard work and their performances. But that’s not how it’s being used at all… it’s not about the game anymore, it’s now trying to earn the most money at all costs. With the transfer portal, it’s like a 24/7 NFL free agency but with zero rules, players are just chasing a quick bag and some clout.” This response perfectly highlights the current landscape of college athletics with it being a free agency but having absolutely zero rules. Everyone wants college athletes to have the opportunity to earn money but not like this.

Throughout my papers, I have made it explicitly clear I fully support student-athletes being able to receive compensation. But with the groundwork I’ve laid out and the evidence I’ve provided, it’s evident that the current structure and mindset behind NIL is flawed. From the most respected college football coach of all time, Nick Saban, to my fellow teammates, we all share the belief that the current state of NIL does not align with its original intentions.

So what’s next? To some, it seems like this is an impossible task to handle but to me it’s simple. The NCAA and members of Congress must come up with an action plan and a set of guidelines that each school must follow. What’s currently going on in places like Tennessee with the two battling is wrong and is only adding more chaos. The problem right now is simple, there are almost zero rules in place for NIL resulting in universities and players taking advantage of this. Some things I propose are universities can’t guarantee high school athletes money, if a current college athlete transfers to another school they must sit multiple games unless they have an exemption, and universities can’t get involved with NIL which leaves the player having to build their own brand. I believe these rules would take the power out of the university’s hands and make NIL what it was supposed to be. Which was an opportunity for athletes to use their Name, Image, and Likeness to build a brand and profit from their on-field success. It was never supposed to be a thing that allows rich universities to funnel endless money directly into the pockets of players. The trajectory of college athletics is going towards an irreversible path, leading to a future that may become unrecognizable if action is not taken promptly.

Citations

Bridge, K. (2024a, March 13). Why are nil deals bad? A question of athlete mental health. Kindbridge Behavioral Health. https://kindbridge.com/athletes/are-nil-deals-proving-to-be-bad-for-athlete-mental-health/

Dougherty, J. (2024, Feb. 24 .). Tenn. judge tells the NCAA it can’t enforce its own Nil Rules — The Washington Post https://www.washingtonpost.com/sports/2024/02/23/ncaa-nil-policy-tennessee-court/

Papke, G. (2024, March 27). USC HC Lincoln Riley makes revealing comments about nil. Yardbarker. https://www.yardbarker.com/college_football/articles/usc_hc_lincoln_riley_makes_revealing_comments_about_nil/s1_127_40164526

Conducted Survey — 9 anonymous participants