Nick Saban quit college football primarily due to rule changes surrounding the NIL.
The legendary University of Alabama coach said this on March 12 at a Congressional Roundtable hosted by Sen. Ted Cruz. Saban won seven national championships and is considered the greatest coach of his generation, but he shockingly retired after the Crimson Tide lost in the College Football Playoff in January. (FSU coach Mike Norvell almost replaced him at Alabama.)
On Capitol Hill, Saban recounted a conversation he had with his wife. In it, her wife said the players were only concerned about next season's salary, she said. “Everything I've believed in over my 50 years of coaching no longer exists in college athletics,” Saban said. “It's always been about developing players, it's always been about helping people be more successful in life.”
Saban has said similar things since retiring in January. And he's not the only high-profile coach to step down in recent years as NIL laws expand across the country. College basketball greats Mike Krzyzewski, Roy Williams and Jim Calhoun have surprisingly retired. Boston University head coach Jeff Hafley is leaving to become defensive coordinator for the Green Bay Packers, while Chip Kelly is leaving as UCLA's head coach and soon-to-be conference rival Ohio State's offensive coordinator. He did the amazing thing of getting a job. These moves were partially anchored in the difficulties of coaching in the NIL era.
Is NIL really a liability? Why is it such a big problem? What does it all mean? Here's what you need to know:
What does NIL mean?
NIL stands for “Name, Image, Likeness.” Basically, a student-athlete's ability to sign her NIL contract means she can sign a contract to promote products and make money with her personal brand. They can air TV commercials, post brand ads on social media channels, and get businesses to do the same. It's what professional athletes have been doing for decades.
Why are NIL laws so important?
The Supreme Court unanimously ruled in 2021 that NCAA rules limiting benefits to athletes are unconstitutional, paving the way for states to decide whether student-athletes can benefit from NIL contracts. I opened it. Previously, athletes were not allowed to receive benefits other than scholarships.
That was off-putting to many athletes and fans. Coaches, schools, and conferences made millions of dollars from major college sports, especially from lucrative television contracts. Saban, for example, made more than $11 million in his final season at Alabama. There was even a clause in his contract that essentially guaranteed he would always be the highest-paid coach.
By allowing NIL transactions, athletes who participate in those games can be compensated for their work.
Justice Brett Kavanaugh has held that “a company agrees not to pay its workers a fair market wage on the theory that its product is defined by not paying its workers a fair market wage. “Nowhere in America is immune,” Justice Brett Kavanaugh wrote in the court's concurring opinion. decision. “And, following the usual principles of antitrust law, it is not clear why college sports should be any different. The NCAA is not above the law.”
In Washington, Saban gave some support to athletes making NIL money. “I want their quality of life to improve,” he said. “Name, image and likeness is a great opportunity for them to build a brand for themselves. I'm not against that at all. Devising some kind of system that can help young people develop is something I still want to do. That's the most important thing for the future of college athletics. ”
How does the NIL work in college football? Where does the NIL money come from?
It is important to note that college athletes still cannot receive a paycheck directly from their school. Instead, it will be done through the NIL Collective, which organizes funds from donors. This funding will be used to pay athletes through NIL transactions.
Like boosters of old, collectives cannot be directly involved in recruitment efforts. However, most are operated in conjunction with schools and tend to be supported by coaches and school officials. According to Business Insider, 80% of his funding going to NIL comes from associations, and the rest comes from brand deals.
There are still limits. The NCAA investigated the University of Florida over the Gators' failure to recruit Jaden Rashada, and in January, FSU became the first school to be sanctioned for improper NIL recruiting.
Can non-athletes obtain NIL?
yes. But this is nothing new; college students, other than NCAA athletes, were able to enter into sponsorship deals prior to the Supreme Court's landmark NCAA v. Alston decision in 2021.
Can high school athletes make money from NIL?
It depends on state law. Thirty states and Washington, D.C., allow high school athletes to sign NIL contracts, according to the Business of College Sports tracker. Florida remains one of the states that prohibits high school athletes from competing in the NIL, but the FHSAA is working on a plan.
What are Florida's NIL laws?
Florida Governor Ron DeSantis signed the first NIL bill in 2020, which went into effect on July 1, 2021. The law allows Florida college athletes to receive compensation for the use of their name, image and likeness and prohibits the activities of college and university athletes. Universities do not prevent athletes from obtaining money or goods. The school itself cannot compensate the player.
The law was amended in 2023 to allow schools, teams, and coaches to facilitate NIL transactions for players. And the FHSAA is working on rules that would allow high school athletes to profit from their name, image and likeness. We are planning a workshop in April.
What are the most expensive transactions in NIL? Who is making the most NIL?
According to On3's NIL tracker, the player with the most NILs is USC basketball player Bronny James, the son of NBA superstar LeBron James. The site lists the freshman NIL valuation as $4.9 million. The top 5 as of March 16th are as follows.
- bronny jamesUSC Basketball: $4.9 million
- Shedua SandersColorado Football: $4.7 million
- Livvy DunnLSU Gymnastics: $3.6 million
- caitlin clarkeIowa State Basketball: $3.1 million.
- arch manningTexas Football: $2.8 million
Notably, two of Texas' quarterbacks, Manning and Quinn Ewers ($1.9 million), rank in the top 10 of the NIL. And while the NIL industry is worth an estimated $1 billion annually, according to NIL company Overdorse, On3's tracker lists only 22 athletes nationwide worth $1 million in NIL valuations. And college football writer Ross Dellenger reported that the average Power 5 football player makes about $10,000 to $50,000 through NIL collectives.
