College Sports for Sale – Who LOSES in the Deal?

SEC regulations are transforming college sports from a tradition of school spirit into a commercial enterprise, raising concerns about whether these changes truly serve student-athletes and the future of collegiate athletics.

At a Glance

  • A proposed House settlement could soon allow schools to pay athletes directly, with a $20.5 million revenue-sharing cap
  • SEC Commissioner Greg Sankey has warned these economic changes could negatively impact Olympic sports development in the US
  • SEC and Big Ten conferences are pushing for changes that increase the gap between wealthy programs and less-funded schools
  • The SEC recently increased penalties for field storming to a flat $500,000 fine, regardless of whether it’s a first or subsequent offense
  • Despite the commercialization, college sports viewership remains strong with recent NCAA tournaments drawing large audiences

The Commercialization of College Athletics

The landscape of college sports is undergoing a dramatic transformation, with SEC Commissioner Greg Sankey recently addressing these changes at the CAA World Congress of Sports in Nashville. A proposed House settlement would soon allow schools to pay athletes directly, marking a fundamental shift from the traditional amateur status that has defined collegiate athletics for generations. This settlement includes provisions for a clearinghouse for Name, Image, and Likeness (NIL) deals, a $20.5 million revenue-sharing cap, and an enforcement arm to ensure compliance with new regulations.

“It’s not the end of the story. It is a chapter. It’s a necessary chapter. And one of the realities around other ideas related to college sports is they have started at a point ignoring what we have to deal with from the past,” said Greg Sankey regarding the settlement framework.

The NCAA’s policy allowing college athletes to profit from their name, image, and likeness has been in place for nearly four years. Current regulations represent a complex mix of state laws, legal settlements, and NCAA rules, with no single governing body overseeing them. This regulatory patchwork has created confusion and inconsistency across collegiate sports programs, with high-profile disputes emerging, such as Tennessee’s recent split with quarterback Nico Iamaleava over a deal disagreement.

Impact on Olympic Sports and Competitive Balance

One significant concern about the new revenue-sharing model is its potential impact on Olympic sports. These programs, which typically generate less revenue than football and basketball, may see reduced funding as athletic departments allocate more resources to revenue-generating sports. Sankey has been particularly vocal about this issue, warning about unintended consequences for America’s Olympic development pipeline, which has traditionally relied heavily on college athletic programs.

“Not that anyone listens to my football media days speeches, but in 2019, the line was, ‘When you change the economics of college sports, you alter the Olympic development program in this country,'” Sankey noted, highlighting his long-standing concerns.

NIL deals and the transfer portal are having a substantial impact on competitive balance within college sports. Top-tier schools with larger fan bases and greater resources are benefiting more than mid-major programs, potentially widening the gap between the “haves” and “have-nots.” This trend is evidenced by the decreased number of early entrants for the NBA draft, possibly due to lucrative NIL deals making college more financially attractive than before.

Power Conference Dominance and Playoff Structure

The SEC and Big Ten conferences are actively collaborating to reshape college sports in ways that critics say further increase the disparity between wealthier and less wealthy programs. They are pushing for a playoff structure that would guarantee them more automatic bids, potentially disadvantaging other conferences. The proposed 16-team playoff format would favor the SEC and Big Ten with four automatic bids each, while the Big 12 and ACC would receive only two each.

“I don’t lecture others about the good of the game and coordinate press releases about the good of the game, okay. You can issue your press statement, but I’m actually looking for ideas to move us forward,” Sankey stated, defending his approach to reshaping college football.

This power consolidation has raised concerns at the federal level. U.S. Representative Brendan Boyle has warned that the SEC and Big Ten’s actions could harm major college football and suggested congressional hearings into their practices. Meanwhile, college sports leaders are seeking congressional help to avoid an employee-employer relationship with athletes, which they argue could financially harm many programs, particularly those with limited resources.

Stricter Fan Behavior Regulations

In a move that affects the fan experience directly, the SEC has increased penalties for universities whose students and fans storm football fields or rush basketball courts. The new policy imposes a flat $500,000 fine for each incident, regardless of whether it’s the first or subsequent occurrence. This represents a significant increase from the previous tiered system established in 2004, which started at $100,000 for first offenses.

“The motivation was ‘field rushing is field rushing, the first time or the 18th time,” explained Commissioner Greg Sankey about the change.

Despite these regulatory changes and the increasing commercialization of college athletics, fan interest remains strong. Recent NCAA tournaments have drawn large audiences, suggesting that while the business model of college sports is evolving, the core appeal of collegiate competition continues to resonate with American sports fans. The challenge for administrators is finding a balance that preserves the unique character and educational mission of college sports while adapting to legal and economic realities.