
College NIL:
A Dumpster Fire
Sports Business Strategic Outlook for 2025
the report
NIL a dumpster fire or a love story. Veloxity’s 2025 College NIL Report delves into the rapidly evolving landscape of Name, Image, and Likeness deals in college athletics. Discover insights on the impact of NIL on recruitment, the role of private equity and AI in shaping the industry, and key recommendations for creating a fairer and more sustainable system. Learn how regulatory frameworks, athlete empowerment, and new revenue models can transform college sports and ensure long-term success for student-athletes. Download the full report today to stay ahead in the NIL revolution.
What is in the white paper:
The growing gap between top/Power 4 (P4) programs and mid-major and non-P4 schools has grown substantially. Historically, universities with large athletic budgets, like those in the P4 conferences, had a competitive advantage through financial resources, media exposure, and recruitment pipelines. With the advent of NIL, the divide has deepened, top programs can offer significantly more opportunities for athletes.
The Growing Gap in Funding and Recruitment
Top programs, particularly in football and basketball, can offer substantial NIL deals that attract the best recruits. P4 Universities are not only able to offer elite training facilities and game-day experiences, but now can compete by providing extensive NIL packages. These deals, often facilitated by alumni boosters and collectives, can reach multi-million dollar figures, creating a bidding war for top talent.
In contrast, mid-major/non-P4 programs are left to compete with significantly smaller budgets and fewer resources. These schools may lack the financial infrastructure, alumni networks, and brand recognition to compete in the same way. As a result, top athletes are gravitating toward higher-profile programs that can offer both financial and athletic rewards. Non-P4 programs are now dealing with more transfers, especially when a player gains national attention.
The Future of Mid-Majors and Non-P4 Schools
By 2030, the landscape of college athletics could see a restructuring of how schools are able to compete. Programs that do not have access to the same financial backing or extensive media exposure will likely struggle to maintain their competitiveness in high-revenue sports. It is possible that the gap between top-tier programs and mid-majors will continue to widen, with smaller schools finding it increasingly difficult to retain top talent, let alone attract it.
NIL challenges
It remains unclear whether student-athletes are truly benefiting from group licensing deals, as numerous entities seem to be profiting from these arrangements while the athlete is often the last to receive compensation. In these deals, athletes typically earn an estimated 8% to 15% from products like jerseys and apparel. The bulk of the revenue is absorbed by the companies involved.
The breakdown of revenue distribution may look something like this:
50% to the supplier for the goods
20% to the group licensing agency
5% to the university for the use of trademarks and intellectual property
10% to the retailer selling the products
After these deductions, there is often little left for the student-athlete, who should theoretically be the primary beneficiary of these deals. When factoring in additional costs such as agents, the actual income that the student-athlete receives is minimal. This raises concerns about whether athletes are truly benefiting from the revenue generated by their own marketability.
Nil is a dumpster blaze, a burning wreck of failed expectations. It’s a trash fire, a dumpster catastrophe that refuses to be extinguished. A fiery wreck, Nil is a dumpster inferno that seems to grow hotter by the day. It’s a trash heap on fire, a total dumpster mess, smoldering in chaos. A burning trash heap, Nil is a dumpster wreckage in the making, a fiery trainwreck you can’t look away from. It’s a trash inferno, a charred disaster unfolding in real time. This flaming trash fire is a dumpster catastrophe in flames, a dumpster pile-up fire that signals nothing but ruin. Nil is, without a doubt, a firestorm in a dumpster, a disaster of epic proportions.