Cash Starts Flowing to College Athletes. NewsWire

NewsWire: 7/29/21

• As new NCAA rules go into effect, they’re creating chaos on college campuses. How will allowing college athletes to get paid for their name and image change campus life? (Sports Illustrated)
• NH: By now, we've all heard the news that college athletes will now be allowed to earn money from their fame for the first time.
• The NCAA based its longstanding “no compensation” policy on the claim that athletes are students who are good at sports, not professionals who power a multibillion-dollar industry. Many college athletes attend school on full scholarships, which the NCAA deemed sufficient compensation for their labor. They also argued that compensation would undermine the foundation of college athletics: getting an education.
• But now elite athletes have the potential to earn seven figures. Since the NCAA’s new interim policy went into effect on July 1, elite athletes have begun cashing in on their "name, image, and likeness" (NIL), booking endorsement deals and autograph signings.
• Most news outlets have focused on what this change means for the athletes. But what about the schools?
• I see two big problems. The first is economic. The old NCAA rules brought athletes to schools that then made huge amounts of money from ticket sales and TV rights. These are mostly public schools--think the Big 10, for instance. But this list also includes private schools with well-known programs like Notre Dame.
• Now all of these colleges are going to have to bid for athletes and will likely give up most of that revenue in order to get them to attend. While the revised rules still forbid "pay for play" arrangements or compensation linked to recruitment, the reality is that many schools appear eager to dance around this. Money is always fungible. Louisiana State University has already put up a billboard in Times Square billing itself as "NILSU."
• If the colleges lose that income, ultimately they're going to cut costs or charge higher tuitions to make up for it. Scholarships for smaller sports might disappear, or such sports could get cut altogether. Considering that the biggest moneymakers by far in college sports are men's basketball and football, schools could struggle to fulfill their Title IX responsibilities.
• The second problem is one of identity. This new model goes against the basic idea of what a college is for. Historically, the American college was seen as a destination for religious, moral, and character development. Later on, in the early 20th century, colleges evolved into how we think of universities today: as places where students train to be credentialed experts and professors in specialized fields, from the sciences to the humanities.
• Both of these models were about furthering knowledge and imparting learning to students. But now, star athletes will have a fundamentally different relationship with the school they're attending. They're already making money, so the college is not really imparting much of anything to them; they're simply hiring them to benefit from a mutual business arrangement. Presumed Alabama starting quarterback Bryce Young is already on track to earn $1 million from endorsements. Rather than enroll in academic study, he's probably better off hiring a tax lawyer and a life coach. And if these state schools are turning into all-purpose branding institutions, why are taxpayers subsidizing them? 
• The NCAA decision might be a boon for the students. But for the higher-ed world, the identity crisis is just beginning.