True cost to the NCAA revealed in landmark case paving way for NIL

NIL has reigned in a new era for college athletics, compensating players at an unprecedented rate. As it turns out, however, while the athletes are cashing in on their fame for the first time, it ended up hurting the NCAA financially during the first academic year the law was put into place thanks to the lawsuit that paved the way for athletes to benefit from their personal brand.

The NCAA’s new federal tax records show it had $52.5 million in outside legal costs in 2021, when the appeal of Alston (the case that made way for NIL) to the Supreme Court occurred, down by nearly $15 million from 2020. According to USA Today’s Steve Berkowitz, over past seven fiscal years, the NCAA has shown $304.5 million in outside legal expenses and $69.1 million in legal-cost recoveries.

In defeat, the NCAA spent loads of cash fighting a losing battle to Also in an attempt to prevent athletes from not exceeding $5,980 of compensation each per year for academic achievement, according to Sports Illustrated’s Pat Forde.

OpenDorse co-founder predicts 50k minimum pay each Power 5 basketball, football player due to NIL

Blake Lawrence, a co-founder of OpenDorse, a company that helps facilitate endorsement deals for professional athletes, has predicted that each Power 5 football and basketball player can expect to make at least $50,000 in NIL deals “because of the influx of cash from so-called booster.” Lawrence is basing his prediction on the assumption that booster collectives are directing an annual sum of $5 million into NIL pools. 

A former college football player at Nebraska himself, Lawrence has expanded his range from more than just helping professional athletes manage their endorsements since the rules allowing college athletes to be compensated for their personal brand was passed. 

He now helps schools and athletes navigate the uncharted waters of NIL, and was even was the advisers who worked with the NCAA on forming initial NIL policies.

Lawrence said that major five-star recruit could be in store for potential NIL deals north of $1 million per year when money coming from sources outside the booster collective is considered, depending on the position of the player, especially in football. Four-star recruits could earn well into the six figures, but it will be the less coveted recruits that earn in the $50,000 ballpark, “because the booster collective will make sure of it to keep peace on the team,” Lawrence said.