Oregon Ducks and Ohio State NIL Budgets Revealed: Unfair Advantage?
The Oregon Ducks and Ohio State Buckeyes have NIL budgets of $23 million per year, reveals Nebraska Athletic Director, Troy Dannen, who recently spoke out regarding the role NIL plays in college football. He noted that Nebraska’s budget is less than $10 million per year and sees this as an unfair advantage but hopes change will happen soon.
“We’ve got great advantages here (Nebraska),” Dannen told Football Scoop in a recent interview. “We don’t have debt, we have great reserves, we have a fan base, facilities. In the next couple of years, we’ll be fighting an even fight. Right now, we’re not fighting an even fight.”
Oregon has become a NIL powerhouse in the college athletics landscape. Proof positive of this is in quarterback Dillon Gabriel’s and wide receiver Evan Stewart’s earnings in the NIL space. Ducks Gabriel and Stewart are both in the top 10 of NIL earnings among football players, clocking in at No. 8 and 10 respectively.
Dannen is optimistic that the proposed $2.8 billion settlement between the NCAA and the Power Five college athletics conferences will help level the playing field. However, the settlement is not yet final as it needs to be approved by U.S. District Judge Claudia Wilken, and participants in the litigation can still challenge terms of the agreement.
The terms of the settlement give schools the right to directly compensate student-athletes through revenue sharing. In addition, restrictions that prohibit NIL deals may be lifted. Should that happen, it is not clear what these collectives can and cannot do.
However, and troubling for Dannen’s view of the future, the settlement does not address third-party NIL compensation, which may lead to even more income options for the student-athletes. That, in turn, could result in an even greater imbalance between schools. Yet, Dannen is confident in his view going forward.
“Let me tell you something about NIL: It is not going to last forever,” said Dannen. "There will be an antitrust settlement this year in the courts. Part of (the settlement), the 1890 (Nebraska football collective) is going to get banned. The collectives are going to get banned.”
Dannen’s view may be considered wishful thinking given the forces at play. Executives from the collective industry claim any attempt to dismantle the NIL could be met with litigation to enforce the rights of the collectives.
While impossible to know exactly how this all plays out, the adage, “the rich get richer” seems to apply, at least for the time being. As to whether it is fair or not, that would be in the eyes of the fans and donors.