The hidden costs of NIL for college athletes

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I have some money-focused stories today about how NIL is impacting on the NFL draft, if Congress can ever come up with a solution for college sports and a hilarious note about the Tennessee General Assembly. We also have actual feedback from athletes on the pressure that NIL money has created.

Enjoy.

— Kyle

KICKOFF

Stay or go? How NIL and transfers are redefining college football’s draft decisions

The stay-or-go decision for top college football players isn’t what it used to be. Not long ago, it was pretty simple: if you were a top prospect, you declared for the NFL draft as soon as you could. If you weren’t quite there yet, you stuck around another year to boost your stock. Easy.

Now? Not so much. Between NIL/revenue sharing money and the transfer portal, the entire equation has changed. College players aren’t just thinking about development anymore, they’re weighing real financial opportunities that can rival an NFL rookie deal.

Take Oregon quarterback Dante Moore. On paper, his decision should’ve been a no-brainer. He put up elite numbers and was projected as a potential No. 2 overall pick, which could’ve meant a signing bonus somewhere around $34 million. Instead, he chose to stay in school. Why? Because staying isn’t exactly a sacrifice anymore. With an NIL valuation already around $3 million, Moore gets another year to develop without walking away from serious money. It’s a gamble, but one more players are increasingly willing to make.

Of course, it doesn’t always work out. Penn State QB Drew Allar came back with first-round buzz and saw his draft stock take a hit after a season-ending injury. Running back Nick Singleton had a similar experience, with declining production hurting his outlook. But both still made millions through NIL deals. The risk didn’t disappear, it just became a little easier to stomach.

All of this is forcing NFL teams to adjust how they evaluate talent. It’s no longer just about what happens on the field. Teams are now paying closer attention to how players handle money, attention and decision-making before they even enter the league. It’s a bonus. Front offices get a preview of a prospect’s maturity and priorities in real time instead of guessing.

The NIL boom has sparked plenty of debate. Big-money deals and high-profile spending have become part of the college football landscape, and not everyone is comfortable with that. Some see it as long-overdue compensation for athletes. Others think things are starting to spiral a bit.

And then there’s the transfer portal, another layer of chaos. With thousands of players entering the portal every year, movement has become the norm. Players are constantly looking for better situations, whether that means more playing time, more exposure or a bigger payday. Some players thrive after transferring. Others get lost in the shuffle or see their draft stock take a hit.

For scouts, that creates a tricky balancing act. Seeing a player succeed in multiple systems can be helpful. But it’s harder to evaluate consistency and character when a player hasn’t stayed in one place very long.

The effects are already showing up in the draft. More players are choosing to stay in school, which means deeper and older talent pools at the college level. Top prospects can still cash in bigger once they reach the NFL, but for mid-round guys, another year in college can make a lot of sense financially.

Players today have more flexibility, more leverage and more ways to shape their own paths than ever before. But with that freedom comes tougher decisions – and a lot more uncertainty. For NFL teams, there’s adapting, or risk falling behind. 

Congress agrees there’s a problem, but not the solution

There’s one thing lawmakers on both sides of the aisle seem to agree on right now: college sports are in a messy place. The current system, where athletes can transfer freely and profit off NIL deals with very few restrictions, is widely seen as unsustainable on Capitol Hill. But while Democrats and Republicans agree there’s a problem, they’re still far apart on how to fix it.

Their divide was on full display during a recent Senate hearing focused on the future of college athletics. Over the course of two hours, lawmakers acknowledged that changes are needed, especially when it comes to NIL rules and the transfer portal. But the conversation didn’t move much closer to an actual solution.

At the center of the disagreement is a big question: should college athletes be treated more like employees? Some Democrats think giving athletes the ability to collectively bargain could help bring structure to what currently feels like chaos. Some administrators have openly said collective bargaining is the best path forward. CBAs set clear rules around pay and player movement in professional sports. 

Republicans, however, aren’t on board. Their concern is that labeling athletes as employees would dramatically increase costs for schools and potentially create ripple effects like cutting smaller sports programs or changing how scholarships are taxed. That tension showed up not just among lawmakers, but also among the witnesses who testified, ranging from former athletes to athletic administrators and advocacy group representatives.

Congress has been circling this issue for years. Since 2020, there have been numerous hearings and proposed bills. None have made it to a full vote. One of the most talked-about proposals, the SCORE Act, has been stuck in limbo. The bill would standardize NIL rules nationwide and allow revenue sharing, but it also includes protections for the NCAA and blocks athletes from being classified as employees – two sticking points that have drawn strong criticism, especially from Democrats.

Other ideas are floating around: limiting how often athletes can transfer or finding new ways for schools to share media revenue. Nothing has gained traction. For now, college sports remain in a legislative standstill. Everyone agrees that a fix is needed. But they can’t agree on what the fix is. 

Tennessee moves to shield college sports secrets

In what feels like a very 2026 headline, Tennessee lawmakers are working to keep something pretty specific out of the public eye: the University of Tennessee football playbook.

According to reporting from Daniel Libit of Sportico, new legislation moving through the Tennessee General Assembly would expand what college athletic departments are allowed to keep confidential. And it’s not just playbooks. We’re talking game plans, communication signals and even practice footage.

The idea itself isn’t brand new. Back in 2019, Tennessee put these protections in place as legalized sports betting started to take off aiming to prevent the misuse of inside information. That law is set to expire on July 1. The new bill changes that. If finalized, it would make those protections permanent.

The legislation – which is backed by the University of Tennessee – doesn’t just stop at on-field strategy. It also expands confidentiality to include certain business-side records, like contracts tied to athletic programs that could give competitors an edge if they were made public. Schools would still have to share the big-picture details – how much public money is being spent, who they’re doing business with and the general purpose of those deals. And the part of the bill dealing with proprietary business information expires in 2033.

The momentum behind the bill has been overwhelming. It cruised through the legislature with strong support in both chambers and is now waiting on final steps before heading to Gov. Bill Lee’s desk. 

If the public interest outweighs the need for secrecy, records could still be released. In reality, universities would be the ones making that call first, and that’s where critics start to raise eyebrows. Giving schools that much control could mean less transparency overall. Tennessee has already been moving in this direction. In 2023, the state expanded its NIL law to keep most athlete compensation records private, aside from broad, aggregated numbers.

Other states are heading down a similar path. Wisconsin recently passed NIL legislation with sweeping confidentiality provisions, and in South Carolina, lawmakers overrode a veto to protect records tied to athlete revenue sharing. A clear trend is emerging: as college sports become more professionalized and more profitable, the window into how everything operates is getting smaller.

More news and links:

• Matt Brown of Extra Points wrote about why college basketball games could be going to Serbia and Croatia.

• The 32-team Players Era tournament for 2026-27 is hitting roadblocks, writes Sportico’s Daniel Libit.

• St. John’s was already heavily invested in men’s basketball. Now, they’re upping the ante with more money for head coach Rick Pitino, his assistants and the program at large.

• Tampering doesn’t stop in college basketball, not even during the NCAA tournament, according to Michigan coach Dusty May.

DOWN TO BUSINESS

How NIL adds opportunity (and pressure) for college athletes

College athletes have always had to balance school and sports. Now, there’s a third responsibility in the mix: building a personal brand. With the rise of NIL, athletes can earn money through endorsements and sponsorships, but new research shows that it comes with added pressure. 

A study from the University of Michigan and the University of Minnesota surveyed 350 Division I athletes across 11 universities and four major conferences to better understand how NIL is shaping athletes’ lives. The results offer a clearer picture of both the benefits and the growing pains of this new era.

One of the more surprising findings is that NIL doesn’t pull athletes away from their identities as students. Instead, athletes who were more involved in NIL actually reported a stronger sense of identity as athletes, while their academic identity remained stable.

The study found a direct link between NIL involvement and stress levels. The more time and energy athletes devoted to NIL, the more stress they reported. The stress wasn’t because athletes felt forced to choose between school and sports, it came from “role overload,” or simply having too much to juggle at once.

While the survey didn’t quantify differences in stress across groups, many athletes reported feeling disadvantaged in the NIL space. This was especially true for women athletes, athletes in non-revenue sports and international athletes. These structural gaps highlight that access to NIL opportunities isn’t evenly distributed, even as the system expands.

Another key finding was that athletes who felt satisfied with their NIL opportunities reported lower stress levels. When deals were well-managed and aligned with an athlete’s interests, NIL often felt like a benefit rather than a burden. Positive experiences helped offset the added workload and made the process more manageable.

The study found that NIL can provide meaningful financial support, boost confidence and create opportunities for personal branding and career development. When aligned with an athlete’s goals and values, NIL can be both empowering and professionally valuable.

Despite the upside, many athletes reported struggling with the business side of NIL. Common issues included confusion about NIL rules, a lack of guidance or support from universities, and navigating complex or poorly managed contracts. NIL participation requires skills outside of athletics – marketing, branding, legal knowledge – which adds another layer of responsibility on top of already demanding schedules.

For many, time is the biggest obstacle. Between academics and athletics, some athletes said they simply don’t have the bandwidth to fully take advantage of NIL opportunities. 

The takeaway is straightforward. NIL can be a powerful tool, but it requires careful time management and the right support system. For schools, that means stepping up with better education, legal resources and guidance. In today’s college sports landscape, athletes aren’t just students or competitors anymore, they’re managing all three roles at once.

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