Big-time football and basketball programs have figured out to compete, they need cash and lots of it. Money from long-term TV contracts and sponsorship deals are just the beginning. To compete for specific athletes, schools need to offer the most lucrative NIL deals. But because of current NCAA rules, colleges cannot pay athletes.
So how do they do it? These schools encourage an outside "unaffiliated group" to form a NIL collective to raise money from rich boosters. These NIL collectives then can funnel money, often five- or even six-figure sums to athletes, often with little or no oversight.
As more money is funneled into college athletics, and more of the money bypasses the NCAA, school administrators and athletic programs, transparency is key. All schools should publish a list of how much money each student athlete receives from whatever source, including from these collectives. Everyone will benefit from transparency - competitive schools, athletes, teammates and the public. It is the only viable way forward. To argue otherwise is for hiding the money.
The rapid rise of big-dollar payments to student-athletes from so-called donor collectives has emerged as one of the biggest issues in college sports, transforming how players are recruited and encouraging a form of free agency for those looking to transfer. And because many of the groups are set up as charities or with charitable arms that make donations tax-deductible, they are drawing scrutiny from the Internal Revenue Service.
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