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The New Age of College Athletics Will Strain Higher-Ed Budgets

Athletes today may well get compensated fairly, but perhaps at the cost of accelerating contraction in higher education.

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Michigan Wolverines quarterback J.J. McCarthy (9) throws a pass during the first quarter against the Washington Huskies in the 2024 College Football Playoff national championship game at NRG Stadium in Houston, Texas, January 8, 2024.

Troy Taormina-USA TODAY Sports

The age of amateurism ended with a whimper. The National Collegiate Athletic Association (NCAA) has agreed to a $2.8 billion settlement that will forever change college sports, allowing athletes to get paid directly by their schools in addition to receiving scholarship monies and external sponsorships.

Following the Supreme Courtโ€™s 2021 ruling in NCAA v. Alston, the NCAA permitted athletes to be compensated for the use of their name, image, and likeness (NIL), opening up a new frontier for commercialization. Most student athletes arenโ€™t big stars like Joe Burrow and couldnโ€™t raise much money (if any) through independent partnerships. Instead, โ€œcollectivesโ€ formed, outside organizations funded by fans and other donors pooling together resources to support athletes financially. Boosters couldnโ€™t directly coordinate with athletics departments or pay students for their on-field performance but could pay athletes for other activities, such as promoting a boosterโ€™s companies.

JP

About the Author

Joe Pitts

Joe Pitts is a public-policy professional currently working in Washington, D.C. He is a native Arizonan.

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