The New Era of College Sports: NIL and Profit Sharing

By Cap Puckhaber, Reno, Nevada

The most visible change in college sports came with the introduction of NIL rights in July 2021. Before this shift, college athletes were prohibited from profiting from their name, image, and likeness while playing. Now, student-athletes can sign endorsement deals, work with companies on social media promotions, host camps, and profit from their personal brands in ways that were previously off-limits. This has provided athletes with an unprecedented opportunity to earn money while still competing at the highest level of college sports.

The NIL landscape is diverse, with athletes landing endorsement deals with major brands like Nike, Coca-Cola, and Gatorade, while others sign local deals with businesses in their college towns. For instance, college football and basketball players have been able to secure lucrative contracts, thanks to their high visibility and strong fan followings. This has been especially beneficial for athletes who may not have otherwise had the financial resources to support their education or families. Women’s sports, too, have seen an uptick in NIL deals, with athletes from women’s basketball, soccer, and gymnastics earning sponsorships.

However, the NIL era has also created new challenges. There’s concern that the deals are disproportionately benefiting athletes in high-profile sports like football and basketball, leaving athletes in less-visible sports with fewer opportunities. Additionally, NIL has led to a new level of “recruitment,” with schools offering athletes lucrative deals to transfer, further complicating the recruiting process.

Profit Sharing with Universities and Conferences

Another significant shift in college sports has been the increasing financial involvement of universities and conferences. Schools and athletic programs have long reaped substantial financial rewards from college sports—especially in football and basketball—but with the rise of NIL and the massive TV contracts driving conference realignment, some schools are now sharing a greater portion of these profits with athletes.

Conferences, such as the SEC and Big Ten, have negotiated large media rights deals that bring in billions of dollars. As a result, some of these conferences and universities have begun discussing or implementing ways to share this wealth with athletes, such as offering additional scholarships or funding for name, image, and likeness endeavors. For example, some schools are creating NIL collectives that pool resources from boosters and alumni to facilitate deals with athletes.

While this profit-sharing model is still in its early stages, it suggests that college sports could be moving closer to a “pay-for-play” structure, where athletes receive compensation more directly tied to the revenue they help generate. However, the specifics are still evolving, with challenges around the equitable distribution of funds and the question of whether athletes should be paid on top of their scholarships.

The Transfer Portal: Empowering Student-Athletes

The introduction of the transfer portal has been another game-changer for college sports. The transfer portal, which allows student-athletes to declare their intent to transfer from one school to another, has increased athlete mobility and given players more control over their careers. This change has shifted the power dynamic in college sports, as athletes are now able to explore other options for playing time, coaching staff, and NIL opportunities.

Previously, transferring could result in a loss of eligibility or lengthy waiting periods, but the transfer portal has made it easier for athletes to move between programs and continue their careers without major setbacks. This has been particularly impactful in sports like football, basketball, and even baseball, where roster turnover and recruiting battles are frequent. Athletes can now move schools more freely, sometimes leading to a “free agent” type of environment.

On the other hand, this increased player movement has caused some disruption, particularly in team dynamics and coaching strategies. Schools now have to deal with the uncertainty of losing key players at the end of each season, while also needing to build competitive teams in a more fluid recruiting environment. The transfer portal has led to an arms race in recruiting, where programs aggressively recruit players from other schools, sometimes creating imbalances and making it harder for smaller programs to compete.

The Future of College Sports

Looking ahead, college sports are likely to continue evolving in response to NIL, profit-sharing, and the transfer portal. The future may see a greater push for direct payment to athletes, especially as universities continue to benefit from multi-billion-dollar media rights deals and ticket sales. There may also be further regulation and oversight of NIL deals to ensure fairness, as concerns about “pay-to-play” practices and recruiting violations grow.

Additionally, we may see more emphasis on creating a more balanced playing field, where athletes in non-revenue sports can also capitalize on NIL opportunities and where schools are incentivized to focus on the welfare of all student-athletes, not just the stars. With the increasing commercialization of college sports, one of the main challenges will be finding ways to maintain the amateur spirit of college athletics while ensuring that athletes are compensated for their contributions.

Ultimately, college sports are entering a new era—one that prioritizes athlete empowerment, but also comes with new complexities and challenges. The next few years will likely determine how these changes are balanced, and whether the student-athlete experience can still coexist with the demands of big-money sports.

Frequently Asked Questions

What exactly is the difference between “NIL” and “Revenue Sharing”?

NIL refers to money earned from third parties (brands like Nike, local car dealerships, or social media sponsorships) for an athlete’s personal brand. Revenue sharing is a newer model, stemming from the House v. NCAA settlement, where universities directly pay athletes a portion of the revenue generated by the athletic department (from TV deals, ticket sales, etc.). Under the new rules effective July 2025, schools can distribute up to approximately $20.5 million annually to their athletes.

Do “NIL Collectives” still matter now that schools can pay athletes directly?

Yes, but their role is shifting. Previously, collectives were the primary way for boosters to “pay” athletes through third-party deals. Moving forward, collectives are becoming more regulated and will likely focus on high-value branding and marketing services, while the “base pay” for many top athletes will transition to direct revenue sharing from the school.

Can an athlete transfer multiple times and still be eligible to play?

As of 2024–2025, the rules have significantly loosened. Following legal challenges to NCAA restrictions, student-athletes who remain academically eligible can now transfer multiple times without being required to “sit out” a season. This has effectively turned the transfer portal into a “free agency” system where athletes can move to programs that offer better playing time or more lucrative NIL/revenue-sharing opportunities.

Are NIL opportunities only for football and men’s basketball players?

While high-profile sports command the largest contracts—with some top quarterbacks seeing valuations over $5 million—women’s sports and “non-revenue” sports are seeing massive growth. In fact, reports from 2024 show that the number of NIL deals is becoming more evenly distributed, with women’s basketball, gymnastics, and volleyball leading the way in terms of social media engagement and brand partnerships.

Key Stat: While the average NIL payment for a Power 5 men’s basketball player was estimated at $171,272 in 2024, top women’s basketball stars often outpace their male counterparts in the total number of endorsement deals due to higher social media engagement rates.

How are NIL deals monitored to ensure they aren’t just “pay-for-play”?

The newly established College Sports Commission (CSC) now oversees a centralized clearinghouse called NIL Go. Athletes are required to report any third-party NIL deal exceeding $600. The commission reviews these deals to ensure they reflect “fair market value”—meaning the athlete is actually providing a service (like a post or appearance) and isn’t just being paid a “signing bonus” to join a school.

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