NIL Policies Reshape College Athletics, Prompt Financial Literacy Push

The Name, Image, and Likeness (NIL) era in college athletics is reshaping the landscape with both positive financial opportunities and significant challenges. Experts like Dr. Bobby Chhabra of UVA emphasize the need for professional sports infrastructure, including hiring general managers to handle NIL deals and finances, as the collegiate sports world becomes more like professional sports. Concurrently, experts from Florida Atlantic University highlight the vulnerabilities of student-athletes due to a lack of financial literacy and the involvement of unregulated agents, stressing the urgent need for enhanced business education to help athletes navigate complex NIL contracts. The College Sports Commission recently revised its “valid business purpose” test to treat school-backed booster collectives like regular companies, signaling increased athlete leverage and a weakening NCAA control over NIL deals. While some fans worry about the impact of NIL on college sports, former Michigan star Blake Corum praises NIL for allowing athletes to build generational wealth and give back to their communities, demonstrating the potential for positive outcomes when athletes are rewarded financially. However, concerns remain about the sustainability of these financial models and the effects on team dynamics amid rising money and transfer portal activity.