The evolving landscape of Name, Image, and Likeness (NIL) deals is creating a significant challenge for college athletics, prompting leaders of the Power Four conferences within the NCAA to seek intervention.
Commissioners Greg Sankey (SEC), Jim Phillips (ACC), Tony Petitti (Big Ten), and Brett Yormark (Big 12) have recently engaged with members of Congress, outlining their concerns regarding the current state of NIL regulations and the increasingly utilized transfer portal. The portal, which allows athletes to more easily switch schools, has become particularly popular among college basketball players—over 1,000 Division I basketball players entered the portal since it opened on March 24th.
Yormark was candid in an interview with Bret Baier, stating plainly, “We need help from Congress.” He emphasized the need for a standardized national framework, noting that the current patchwork of 34 different state laws is creating chaos.
“From where I sit today, federal preemption, having a standardized platform that oversees and governs NIL is critically important. Today, 34 states see it very differently, and it’s relatively unruly.” – Brett Yormark, Big 12 Commissioner
Petitti echoed this sentiment, explaining the constant legal battles stemming from NCAA rulings: “Every single time someone doesn’t like a ruling, or something comes from the NCAA, we end up in litigation. Those rules then get aggregated, and we’re back to the start.”
To address some of these issues, a recent settlement agreement was reached allowing schools to directly compensate athletes with 22% of revenue generated from media rights, ticket sales, and sponsorships. While payments from outside sources would remain permissible, this agreement is expected to distribute over $2.5 billion to athletes who previously couldn’t benefit from NIL opportunities before the NCAA’s rule changes in 2021, with a significant portion going to former football and men’s basketball players at powerhouse conference schools.
The settlement also proposes a clearinghouse system to ensure that any NIL deal exceeding $600 is fairly valued, aiming to prevent potential “pay-for-play” arrangements.
Jim Phillips, ACC Commissioner, underscored the importance of these student athletes: “Five hundred thousand student athletes have benefited $4 billion annually for scholarships. This is the heartbeat of Americana, the Olympic movement and the Olympic team.” He expressed optimism for future stability but reiterated the need for congressional support.
Sankey reinforced this point, stating that national standards are essential to maintain the integrity of major collegiate competitions: “To have a College World Series, to have a College Football Playoff, to have national championships, you have to have national standards.”
Beyond financial concerns, commissioners also expressed worry about academic consequences. Phillips noted that data suggests a decline in grade point averages among transferring athletes, potentially impacting the quality of their education due to lost credits and difficulties selecting optimal academic programs.
- Over 1,000 Division I basketball players entered the transfer portal since March 24th.
- The recent settlement allows schools to directly compensate athletes with 22% of revenue from media rights, ticket sales and sponsorships.
- A clearinghouse system is proposed to ensure fair market value for NIL deals exceeding $600.
The leaders believe that a combination of the settlement agreement and legislative action is necessary to create a sustainable and regulated future for college athletics.
