In a groundbreaking NIL proposal, NCAA President Charlie Baker sent a letter yesterday to Division I NCAA members stating that schools should be able to pay their athletes directly.

In this letter, Baker describes a new “subdivision comprised of institutions with the highest resources to invest in their student-athletes.”

Baker is suggesting a subdivision within Division I that allows schools to make their own decisions about policies and paying their athletes. Schools can choose whether or not to join this subdivision, but if they do join, they will have to meet certain criteria. 

Through a trust fund, each school in the subdivision will have to invest at least $30,000 per year into at least half of the school's athletes. These schools will also have to ensure that they follow Title IX protocol and provide at least 50% of their investments to female athletes. 

This concept all sounds good in theory; schools can have more control over NIL and the transfer portal. Athletes would reap the benefits as well. College sports is a huge market, as some coaches make over $11 million a year. Schools would be able to share the wealth with the people who are doing all of the dirty work. 

Why is this a big deal?

The NCAA has consistently fought against any form of paying athletes since the start. They have been dedicated to keeping the amateur integrity of college sports. If approved, this would be a huge move for the NCAA and everything they have stood for in the past. 

The big question is whether or not schools will be willing to join this subdivision. Ohio State athletic director Gene Smith has already stated on social media,

“I am 100% supportive of your efforts. Intercollegiate Athletics needs the proactive and forward thinking you are providing. Thank you for this letter!”

Schools that will be able to afford to join this subdivision are expected to primarily be schools from the Power Five conferences (SEC, ACC, Big 12, Big Ten, and Pac-12). By joining, these schools will have more control over the transfer portal, as many players are choosing to enter the transfer portal to earn more NIL money at another school. 

It would also entice athletes to want to stay at their school longer. Many athletes leave college early to head to the professional level because that is where the money is. If money is no longer an issue for athletes, they can get top-tier athletes to stay as long as possible.

However, $30,000 for half of the athletes at a school is a lot of money. According to YahooSports, “A school depositing the minimum of $30,000 each year per athlete for half of their athletes would spend about $6 million a year.” This is a huge chunk of money and would only be a realistic option for a handful of high-profile schools.

This proposal is hypothetical, as it needs to go through the approval process. The NCAA Division I Council and the NCAA Division I Board of Directors would have to give final approval and then the NIL proposal could face Congress as a legislative bill. 

There is no timeline for this idea, but if approved, it could completely change the course of the NCAA and Division I sports. 

* Originally published on December 6, 2023, by Bella Nevin