The landscape of college sports has changed drastically with the arrival of Name, Image, and Likeness (NIL) rights. This shift is shaking up universities everywhere, including Virginia Commonwealth University (VCU) and James Madison University (JMU).
Recently, Ed McLaughlin, VCU’s athletics director, and Matt Roan, JMU’s athletics director, sat down to talk about how their schools are handling NIL and revenue sharing. The Richmonder hosted their conversation, which dug into the strategies and headaches mid-major schools are dealing with right now.
Understanding the Impact of NIL on College Athletics
NIL rights have turned the college sports industry upside down. Student-athletes aren’t stuck with the old amateur model anymore—they can cash in on their personal brand.
This has changed the way athletic departments run and where they put their money. Ed McLaughlin from VCU talked about how chatting with agents is now just part of his daily grind.
He pointed out that NIL creates new opportunities, but there are limits. “There is a cap on what can be directly shared with student-athletes within the athletic department,” McLaughlin said.
The Role of Revenue Sharing
Matt Roan at JMU talked about how fast things are moving, and how schools have to stay nimble. He called revenue sharing “a fancy way to say in-house NIL.”
This lets schools handle and distribute money from their own sources. Roan broke down how they fund revenue sharing and NIL payments:
- Ticket sales
- Donor contributions
- Corporate partnerships
He made it clear that these are internal funds, recycled back to student-athletes to keep things sustainable.
Innovative Revenue Streams
To cover athlete compensation, schools like VCU are looking for income in unexpected places. McLaughlin mentioned renting out the Siegel Center for concerts and events to bring in extra cash.
This kind of thinking helps with the costs that come with NIL and revenue sharing. It’s not traditional, but maybe that’s the point.
Addressing Cultural Shifts
It’s not just about money, though. Both departments are wrestling with cultural changes, too.
McLaughlin talked about the challenge of managing a new kind of athlete experience. “We have a subset of 25 to 30 student-athletes who are being compensated in revenue-sharing, and we have 300 student-athletes who are not,” he said.
That gap raises tough questions about fairness and how to make sure everyone still feels like they matter. Roan agreed, saying regulation—especially around agents and transfers—is overdue. He’s convinced it’s needed to keep things fair for everyone.
Strategic Advantages for Mid-Major Institutions
With all this change, mid-major schools like VCU and JMU are focusing on their strengths instead of just spending more money. Roan said JMU wants to be “best in class” among similar schools by controlling what they can and keeping an eye on what’s next.
McLaughlin sees this as a chance for VCU to climb higher in college basketball. If there’s ever been a moment to make a move, this might be it.
Building Sustainable Models
The conversation really highlighted just how crucial it is to build sustainable models for compensation, regulatory change, and an institution’s mission. For college administrations in Virginia and elsewhere, the real challenge isn’t just about what they pay athletes—it’s about how they set up and keep these systems running.
Guidelines for NIL and revenue sharing are always shifting. Institutions have to stay flexible and think ahead, even when that’s easier said than done.
If you’re curious about the full discussion, check out the entire article on the Commonwealth Times.
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