{"id":194,"date":"2026-05-04T10:50:57","date_gmt":"2026-05-04T14:50:57","guid":{"rendered":"https:\/\/people.bsu.edu\/econbriefs\/?p=194"},"modified":"2026-05-04T10:50:57","modified_gmt":"2026-05-04T14:50:57","slug":"nil-and-the-new-economics-of-student-athletes-by-dr-cecil-bohanon-and-dr-john-horowitz","status":"publish","type":"post","link":"https:\/\/people.bsu.edu\/econbriefs\/2026\/05\/04\/nil-and-the-new-economics-of-student-athletes-by-dr-cecil-bohanon-and-dr-john-horowitz\/","title":{"rendered":"NIL and the New Economics of Student-Athletes\u2013 by Dr. Cecil Bohanon and Dr. John Horowitz"},"content":{"rendered":"<p><span data-contrast=\"auto\">\u00a0 College\u00a0student\u00a0athletes earn money from their name, image, and likeness\u00a0(NIL)\u00a0through third-party deals and\u00a0receive direct payments from schools.\u00a0Under\u00a0new rules,\u00a0scholarship caps have been removed,\u00a0but roster limits\u00a0ultimately\u00a0govern participation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">NIL earnings are highly concentrated,\u00a0with\u00a0roughly 0.3%\u00a0(50-75\u00a0college\u00a0athletes)\u00a0earning\u00a0over $1 million.\u00a0NCAA\u00a02024 data indicated that\u00a096% of\u00a0disclosed\u00a0deals had values of\u00a0less than $10,000,\u00a0with a\u00a0<\/span><a href=\"https:\/\/nilassist.ncaa.org\/data-dashboard\/\"><span data-contrast=\"none\">median deal of $60. Men\u2019s football, baseball, and basketball account for over 60% of NIL deals<\/span><\/a><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">At the high school level, rules vary widely.\u00a0<\/span><a href=\"https:\/\/sportsepreneur.com\/high-school-nil\/\"><span data-contrast=\"none\">Indiana is one of five states that prohibit NIL payments for high school athletes<\/span><\/a><span data-contrast=\"auto\">. In contrast,\u00a0others allow them,\u00a0prompting some families to relocate, as in Jada Williams\u2019 move from Missouri to California. Where NIL is permitted, parents often manage deals, sometimes with help from lawyers or agents.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">NIL\u00a0also\u00a0creates incentives\u00a0to focus on branding opportunities, such as\u00a0social media\u00a0presence, follower growth, and sponsor acquisition.\u00a0<\/span><a href=\"https:\/\/www.methodschools.org\/blog\/the-impact-of-nil-on-high-school-athletes\"><span data-contrast=\"none\">While there are benefits to\u00a0these\u00a0increased earning opportunities<\/span><\/a><span data-contrast=\"auto\">, the trade-off is that athletes\u00a0and their families\u00a0must focus not only on\u00a0the student\u2019s\u00a0school work\u00a0and game performance\u00a0but also on their personal marketability and brand.\u00a0The increased pressure to perform at a high level, gain endorsement deals\/sponsorships,\u00a0and maintain a public image\u00a0can take the joy out of the game.\u00a0Unsurprisingly, the potential for NIL deals has caused some\u00a0student-athletes\u00a0to prioritize NIL potential over academics or other activities.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/proskillsbasketball.com\/nil-impact-basketball\/\"><span data-contrast=\"none\">Recruitment has\u00a0changed\u00a0as\u00a0colleges focus\u00a0first\u00a0on re-signing current players, then transfers, and finally on high school recruits<\/span><\/a><span data-contrast=\"auto\">.\u00a0<\/span><a href=\"https:\/\/www.si.com\/fannation\/college\/cfb-hq\/sec-powerhouse-nil-distributes-32m-in-athlete-payments-football-coach-takes-1m-pay-cut\"><span data-contrast=\"none\">Some college coaches have given up part of their pay to fund NIL deals<\/span><\/a><span data-contrast=\"auto\">.\u00a0<\/span><a href=\"https:\/\/sportsepreneur.com\/college-coaches-against-nil\/\"><span data-contrast=\"none\">NIL has also shifted power away from coaches to\u00a0booster collectives. Eventually, athletes may be classified as employees rather than amateur athletes<\/span><\/a><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Booster-funded NIL collectives\u00a0account for over\u00a0<\/span><a href=\"https:\/\/www.lowndes-law.com\/newsroom\/insights\/house-v-ncaa-decision-what-will-become-of-collectives\"><span data-contrast=\"none\">80% of total NIL dollars<\/span><\/a><span data-contrast=\"auto\">\u00a0and fuel\u00a0an escalating arms race for elite recruits.\u00a0Agreements must include clear deliverables and reflect\u00a0fair market value.\u00a0<\/span><a href=\"https:\/\/rubbingtherock.com\/rubbingtherockcom\/ncaa-cracks-down-on-nil-why-the-new-rules-could-change-college-football-s-money-game-01k6jzfz8c5h\"><span data-contrast=\"none\">The NCAA is trying to\u00a0stop\u00a0pay-for-play inducements and sham services<\/span><\/a><span data-contrast=\"auto\">.\u00a0The\u00a0<\/span><a href=\"https:\/\/sports.yahoo.com\/articles\/college-sports-commission-distributes-reminder-235907740.html?guccounter=1\"><span data-contrast=\"none\">College Sports Commission requires\u00a0all third-party NIL deals of $600 or more to be submitted for review through the NIL Go clearingh<\/span><\/a><span data-contrast=\"auto\">ouse. Enforcement responsibilities vary by level: state athletic associations govern high school NIL participation, while\u00a0colleges rely on institutional compliance offices and NCAA governance structures.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As NIL reshapes recruiting and compensation, it\u00a0will inevitably\u00a0redefine amateur status and the future of\u00a0high school and\u00a0college sports.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 College\u00a0student\u00a0athletes earn money from their name, image, and likeness\u00a0(NIL)\u00a0through third-party deals and\u00a0receive direct payments from schools.\u00a0Under\u00a0new rules,\u00a0scholarship caps have been removed,\u00a0but roster limits\u00a0ultimately\u00a0govern participation.\u00a0 NIL earnings are highly concentrated,\u00a0with\u00a0roughly 0.3%\u00a0(50-75\u00a0college\u00a0athletes)\u00a0earning\u00a0over $1 million.\u00a0NCAA\u00a02024 data indicated that\u00a096% of\u00a0disclosed\u00a0deals had values of\u00a0less than $10,000,\u00a0with a\u00a0median deal of $60. Men\u2019s football, baseball, and basketball account for over 60% [&hellip;]<\/p>\n","protected":false},"author":112,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[462],"tags":[1720,1719,1715,339,270,661,1714,1718,1717,1716],"class_list":["post-194","post","type-post","status-publish","format-standard","hentry","category-microeconomics","tag-amateurism","tag-booster-collectives","tag-college-athletics","tag-compensation","tag-labor-market","tag-ncaa","tag-nil","tag-recruiting","tag-sports-economics","tag-student-athletes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>NIL and the New Economics of Student-Athletes\u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/people.bsu.edu\/econbriefs\/2026\/05\/04\/nil-and-the-new-economics-of-student-athletes-by-dr-cecil-bohanon-and-dr-john-horowitz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NIL and the New Economics of Student-Athletes\u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs\" \/>\n<meta property=\"og:description\" content=\"\u00a0 College\u00a0student\u00a0athletes earn money from their name, image, and likeness\u00a0(NIL)\u00a0through third-party deals and\u00a0receive direct payments from schools.\u00a0Under\u00a0new rules,\u00a0scholarship caps have been removed,\u00a0but roster limits\u00a0ultimately\u00a0govern participation.\u00a0 NIL earnings are highly concentrated,\u00a0with\u00a0roughly 0.3%\u00a0(50-75\u00a0college\u00a0athletes)\u00a0earning\u00a0over $1 million.\u00a0NCAA\u00a02024 data indicated that\u00a096% of\u00a0disclosed\u00a0deals had values of\u00a0less than $10,000,\u00a0with a\u00a0median deal of $60. 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