As NIL, otherwise known as Name, Image and Likeness, becomes more common every year in college athletics, athletes have made it a priority to sign the bigger contract, forgetting the outcomes of their education, playing time and the hidden details within these deals.
NIL deals often vary based on an athlete’s position, performance from the previous season, and the opinion of National brands like Nike and Adidas.
These deals can also vary based on how much revenue the University or College earned from the previous year, allowing for the Power Four conferences like the B1G and SEC to have a higher budget compared to the group of five conferences like the AAC and the Mountain West.
“They’re more likely to pick programs where they can earn money, even if the school isn’t as strong academically,” CMU writer John Miller said. “NIL has changed the way athletes make decisions, giving them more control to choose what matters most.”
Since 2021, the total NIL market size has grown from $917 million to over $2.5 billion after the House vs NCAA settlement, which now allows Universities to pay their athletes directly from their revenue.
According to NIL NCAA, under the new sharing model, schools can now make payments directly to their athletes up to $20.5 million per year starting in 2025, and over the next 10 years, the annual cap can increase to around $32 million.
Athletes who have a high-level season at a smaller school (Group of Five) are more likely to transfer to a bigger school for better financial opportunities, similar to how Professional athletes leave their original teams for more money.
Exposure and the premium positions are often a driving factor in how large the NIL deals can become.
Positions like quarterback and wide receiver have shown to earn more revenue and exposure when compared to offensive linemen.
According to FOX Sports, players such as Texas quarterback Arch Manning and Ohio State receiver Jeremiah Smith are expected to earn between $4 million and $6 million for the 2026-2027 season. Similar to NFL first-round rookie contracts before bonuses and guarantees.
According to the Mountain West Connection, in January 2026, over 4,500 athletes entered the transfer portal in hopes of finding a better financial situation rather than playing time.
American Public University explains that student athletes don’t follow the values and traditions that their program follows, while long-term development and loyalty become irrelevant.
Instead, these student athletes lean towards more of a “free agent mindset.”
The increase in college athletes transferring and having free access to leave their program after just a year, along with extra years of eligibility, makes it harder for high-school athletes to be recruited.
“We’ve created a system where there is no loyalty on either side…You can’t build a team if you don’t have continuity,” Alabama coach Nick Saban said. “Why would you recruit a high school player and develop them for two or three years, if someone else can just buy them?”
Along with school’s “signing” proven athletes, the introduction of NIL has made players want to stay back in school for another season, even if they are draft-eligible.
“Or look at Chad Baker-Mazara, a University of Southern California “super senior” currently playing his sixth season of college basketball,” Stud Life writer Ian Heft. “The sixth-year athlete will finish his college career at the ripe age of 26, and is nearly a year older than six-year NBA vets Anthony Edwards and Tyrese Maxey.”
Baker transfered to the University of Auburn for his final year, receiving $1.1 million in NIL fund.
On February 25, The Mississippi House of Representatives passed a bill, HB 4014, that would make all money and income earned from NIL deals tax-free for all student athletes.
“The NIL is something that is taking the country kind of by storm in the college sports arena the last few years,” Rep. Trey Lamar said. “There’s other states doing it. I believe Mississippi needs to remain competitive in that arena.”
The purpose of the bill is to allow students to lose less money from tax deductions but to also raise the interest of high school prospects and transfer to play at schools in Mississippi.
While NIL can play a big part in financial security for college athletes, it also poses a threat to incoming prospects because of the threat of “signing” proven vets.