Fourth and Millions
Each year, college football players are slightly bigger and faster.
The business of college football, however, has been changing at a more rapid pace, and with stunning force.
As a former player, I look out on a landscape that is almost unrecognizable. As a new season begins, the SEC welcomes powerhouses Texas and Oklahoma, while further realignment has seen the Big Ten, Big 12 and ACC take in all but two members of the Pac-12, killing off a 109-year-old conference. What was the Power Five is now the Power Four, and they dominate college athletics.
Money is the driver of this upheaval. SEC football teams earn over $50 million per year from broadcast rights. The University of Texas raked in total revenue of $239 million last year, topping the nation. On average, football accounts for 75 percent of a school’s athletic department income, with men’s basketball a distant second.
A recent study showed 31 of the 50 highest-paid state employees are football coaches, with Alabama’s Nick Saban earning $11.7 million per year before his retirement after last season.
The biggest change has been felt by athletes, who can now get paid though something called name, image and likeness, or NIL. We had nothing like this in my playing days.
NIL was created through a patchwork of state laws with few guidelines, resulting in a sort of Wild West. Donors with deep pockets can directly contribute to a school’s NIL fund, which is separate from the school’s budget. It has become common for high school athletes to agree to an NIL deal before committing to attend.
There are many consequences, intentional and unintentional, that will play out over the next few years. Power has transferred from the NCAA to conferences. And while only a small percent of players make it to the NFL, those on the borderline can now stay in school another year to develop their skills while making money. Those who won’t go pro can still get paid to play while in college.
Any remaining threads of the thin amateur student-athlete veil have been pulled away. On any given campus, there are at least several freshmen driving fancy cars, making millions and “attending” classes with the rest of the student body. Others are getting a free education and graduating in four years with thousands of dollars in the bank.
They aren’t the only ones who benefit. The huge college football and NIL money helps other sports. Scholarships have dramatically increased, and women’s sports, such as basketball, soccer and gymnastics, have star athletes making serious money while building a strong social media presence.
My Duke University classmate and current ESPN broadcaster Jay Bilas has been a longtime vocal advocate of paying players, citing the huge money they help bring to a school. He thinks this major disruption in college sports will smooth out over time, but overall is a definite positive.
As the college football season kicks off this month, the on-field product will be better than ever. But this begs the question: At what point will there be noise from trustees, professors or even Congress, given college athletics’ antitrust status? For now, money is king, with athletes at last getting a share of the revenue.
Mark Militello is a Member of the Club.
Words: Mark Militello
Illustration: Tania Vicedo
September 2024
