NIL Levels the Playing Field in College Football, Study Finds

Carnegie Mellon University researchers found that name, image and likeness (NIL) rules, which let college athletes earn money through things like endorsements, sponsorships or selling their personal brand, are making college football fairer and more exciting. 

Researchers Tim Derdenger(opens in new window) from CMU’s Tepper School of Business(opens in new window) and Ivan Li at the Jindal School of Management at the University of Texas at Dallas, find that NIL has led to a wider distribution of talent across college programs, directly benefiting athletes who seek to maximize their brands and earning potential. 

This research overturns the "rich get richer" narrative, asserting that college athletics now foster a more dynamic and competitive environment for aspiring players. Instead of all the best players going to just a few top schools, talent is now spread out more evenly.

With NIL, smaller programs have a stronger shot at attracting top-ranked athletes, including 4- and 5-star players (athletes are rated on a five-star scale). By allowing student-athletes to earn money, NIL expands their choices and bargaining power. Instead of focusing only on athletic or academic goals, athletes now weigh financial opportunities as well, creating a more balanced market for talent.

"Our findings clearly show that NIL is not just about the top institutions; it's empowering a broader range of schools to compete for elite talent, directly benefiting more student-athletes," said Li. 

The study found that many 3-star recruits now put NIL money ahead of academics when choosing a school. They’re more likely to pick programs where they can earn money, even if the school isn’t as strong academically. This shows how much NIL has changed the way athletes make decisions, giving them more control to choose what matters most to them, whether that’s financial gain, athletic goals or other priorities.

When more schools have access to better players, the game is more competitive. Sportsbooks are setting tighter point spreads for games, even when factoring in talent, team performance and students who transfer to other schools.

NIL allows a broader array of teams to vie for top-tier talent and achieve success, Derdenger said. 

"We've observed a tangible shift in competitive dynamics. These data speak volumes: NIL makes college football a more exciting and less predictable sport, which is a win for everyone involved,” he said. 

The researchers suggest that policymakers make NIL available across all schools and set clear rules for how deals are managed. They also recommend requiring schools to educate athletes about NIL contracts and to keep track of how NIL impacts college sports over time.