revenue sharing is not NIL, and NIL is not revenue sharing
Posted on: June 16, 2025 at 11:34:01 CT
phrejd STL
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the $$ the universities pay the athletes as part of the new agreement is just a cut of the athletic dept budget. the settlement essentially declared that athletes are employees, so they're due compensation from their employers. just like you or I are due compensation from our employers. who gets paid what is up to the employer, but they set a number that has to be paid out.
NIL is a completely different and unrelated thing. NIL came from a legal decision that said athletes were unfairly restricted from working and capitalizing on their name, image or likeness. that ruling opened up a new wild west where athletes could start making individual deals and contract with advertisers (or whoever) and get paid for the advertiser (or whoever) using their name, image or likeness. NIL are essentially endorsement deals that now they're able to do legally. but they're paid for by advertisers (or whoever) and not by the university.
revenue sharing = structured salary paid by the employer (athletic dept)
NIL = unstructured freelance work on the side paid by advertisers (or whoever)