Monday, July 05, 2021

Changes to the NCAA

Yesterday we Americans celebrated our Independence Day but for many in college athletics that day actually came a few days earlier as on July 1st NIL (Name, Image and Likeness) became allowable nation wide by the NCAA. Many are saying this may be the end of college athletics. I think it will be a boon to college sports.

College sports (especially basketball and hockey) have been suffering to a degree (no pun intended) from "student athletes" leaving early to make money in pro leagues. Now they won't have to leave because if you're good enough to be drafted - you're also good enough to make bank from local boosters. And the longer you stay - the more familiar you'll be to the fans and thus the more your NIL will be worth. As a side note - this greater familiarity should also lead to greater TV contracts for the schools and conferences. A true "win-win!" 

Of course the money will be there for recruiting enticements. Lots of money. There will also be more inducements for any solid athletes with a 5th year of eligibility to do another year of college instead of going pro or entering the real world. And the transfer portal - well it may as well be sponsored by eBay since many students would enter just to go with the highest bidder. It will be fascinating to watch.

The NIL freedom comes on the heels of another NCAA legal defeat at the Supreme Court (this one a 9-0 shutout) that basically said it is OK to pay student athletes. The example I saw most frequently was a $6,000 stipend for remaining academically eligible. You could probably also do another $6,000 for making honors and $6,000 for graduating (which would also be a minor inducement for team continuity). 

But wouldn't paying the student-athletes on top of providing full scholarships create a financial burden on some already strapped athletic departments? Not necessarily. Revenue creating sports should be able hold their own but also sponsor money becomes more above board. Why wouldn't Nike sponsor Phil Knight's alma mater Oregon in all sports? Same for the University of Maryland which the founder of Under Armor attended. Can't you see Apple sponsoring the athletes at Stanford and Harvard? That would be very on-brand for Apple. So many possibilities.  

The downside is the potential for many schools to drop non-revenue sports. Maybe drop them to "club" status. Is that such a bad thing though? Who really needs varsity squash?

Perhaps the best thing is the NCAA will be almost powerless to stop any of this. Try penalizing an athlete when they can sue the pants off the NCAA for restraint of trade. What will be the role of the NCAA in future years? What will be the purpose and reason for being of the NCAA in future years? Perhaps there will be none and the NCAA will become a historical oddity.

It will be fascinating to watch.

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