The advent of Name, Image, and Likeness (NIL) rights in college sports has shaken up the whole scene. A new industry of third-party NIL service companies has popped up almost overnight.
But it hasn’t all been smooth sailing. Recent collapses and controversies have exposed some cracks in the system.
The Birth of NIL and Its Immediate Impact
In July 2021, the NCAA finally let college athletes make money off their name, image, and likeness. This was huge—star players could now cash in, sometimes even by transferring schools for better deals.
The House v. NCAA settlement added another twist. Schools could now share up to $20.5 million in revenue per year with players, and that’s on top of whatever NIL deals athletes landed for themselves.
Initial Reliance on Collectives
At first, schools leaned hard on collectives—basically, groups of wealthy boosters—to help pay players. These collectives were essential in those early days, making sure athletes got paid and teams stayed competitive.
The Shift Towards Third-Party Platforms
With the House settlement on the horizon, a lot of Power 4 programs started pulling back from collectives. The thinking was that revenue-sharing would soon be the main way to pay athletes.
But it didn’t really play out that way. Top players kept chasing bigger and bigger NIL payments, and these deals were often totally separate from the schools’ official revenue-sharing plans.
Emergence of NIL Marketplaces
This surprising turn led to a boom in third-party platforms that connect athletes with NIL offers. Companies like Opendorse suddenly became central players, working with more than 100 Division I programs to handle NIL payments.
On June 30, right before new rules kicked in, collectives pushed nearly $20 million to college athletes through Opendorse. That was the company’s biggest day ever.
Challenges Facing Third-Party NIL Companies
Even with all this growth, third-party NIL companies have hit some serious bumps. Student Athlete NIL (SANIL) shut down out of nowhere, leaving clients scrambling for help.
Blueprint Sports has also faced tough questions about its revenue-sharing agreements. Some of their contracts have drawn criticism for taking a big percentage cut from athletes’ deals.
Blueprint’s Controversies
Blueprint Sports has seen its client list drop from 25 universities or collectives to just 10. Still, the company seems upbeat, saying new deals are close.
CEO Rob Sine thinks whether to use collectives will come down to each school’s unique situation. It’s a bit of a “dealer’s choice,” as he puts it.
The Role of Established Companies
While all this chaos is happening, established companies like Learfield are stepping into NIL. They’re using their existing relationships with schools to create new NIL divisions inside athletic departments.
Learfield has teamed up with big-name programs like Georgia, Ohio State, and Texas to help manage their NIL operations.
Advantages of Established Presence
Learfield’s long-standing presence at these schools gives them a real edge. There’s a level of accountability and stability here that some of the newer companies just can’t match.
Solly Fulp, Learfield’s EVP of NIL growth and development, says their focus is always on what’s best for student-athletes—not just chasing transactions.
Future of NIL and Revenue-Sharing
The NIL landscape is still shifting. The revenue-sharing cap will likely rise from the current $20.5 million over time.
The College Sports Commission is also working on new governance strategies, which could mean more changes ahead. There’s even talk about a hard salary cap for college football and basketball, though that would need tricky collective bargaining between athletic departments and athletes.
Implications for Athletic Departments
Coaching buyouts have already topped $100 million this season. So, making the most of NIL dollars is absolutely critical for building a winning roster.
Experts predict $25 million football rosters—mixing revenue-sharing and NIL money—will soon be the norm for top programs. The biggest spenders might go even higher. Companies like Learfield are feeling the heat to help schools recruit and keep talent, showing just how vital commercial opportunities have become in this wild new era.
Conclusion
The NIL era has shaken up college sports in ways nobody really saw coming. It’s opened doors for athletes, sure, but it’s also thrown a few wrenches into the works.
Third-party NIL companies are everywhere now. They’re changing the game, but not always in ways that make sense or feel fair.
Honestly, the whole landscape is a bit of a moving target. People in college athletics are holding their breath, hoping for some real rules to help make sense of it all.
If you want to get into the nitty-gritty of this wild NIL world, check out the full article on Front Office Sports.
- Schools Covered
- College Football Articles
- Men's College Basketball Articles
- Men's College Soccer Articles
- Women's College Basketball Articles
- Olympic Athlete Articles
- Men's College Baseball Articles
- College Sports Media Professionals Articles
- Hall of Fame Member Articles
- Former College Player Articles
- Game Previews
