Back in 2021 when the NCAA authorized athletes to profit off their name, image and likeness (NIL), nobody quite knew what to do. Without any defined parameters or blueprints, it took some time to figure everything out. Three years later, the NIL landscape has largely been dissected. But some areas within NIL remain uncharted — most notably, revenue sharing. Between ticket sales, TV broadcast contracts, donors and merchandise alone, money pours in to elite football programs like Michigan. What drives all those revenue streams is largely the players themselves, yet they aren’t compensated for those things. But that’s about to change. As soon as July 1, 2025, it is expected that the players will be able to reap the benefits with the new revenue sharing model, but the question remains on how exactly to implement it. While schools can’t just copy and paste the NFL’s model, it can be an invaluable resource to navigate this uncharted territory. Unlike other schools, the Wolverines have someone who can do that with Sean Magee as their associate athletic director for football. “Having the opportunity to see the world through the lens of professional football and developing that perspective, … I’m the only one who’s been in an NFL front office, to be able to see that, to be able to live and experience it, so hugely invaluable to have that,” Magee said earlier this week in an interview with The Michigan Insider’s Sam Webb. After spending five years at Michigan from 2017-21, Magee took a position with the Chicago Bears as the chief of staff for the 2022 and 2023 seasons. In that role, one of Magee’s responsibilities was the allocation and administration of multiple budget areas. Even with that coveted NFL experience, there’s still a lot of questions for Magee and the Wolverines to answer. While revenue sharing won’t be in play until next year, Michigan is making the most of that time to best prepare. Between constructing a budget, and determining how the money will be allocated to the players — based on production and position — there’s a lot to consider. Utilizing the NFL’s approach to revenue sharing allows for the creation of structure in an otherwise haphazard area. “We have developed strategies of how we’re gonna compensate to a market value that doesn’t necessarily exist,” Magee said. “So here — and because of experience and exposure — we’re able to leverage off of what the NFL’s done. We’re able to leverage off the percent allocation for salary cap by position. So if a player’s achieved or we see a player at a certain level, we can look at the comparable data of an NFL player, of what a player with similar production, similar attributes, similar traits, what they’ve done at that level and what that allocation to the salary cap is.” While the NFL’s player evaluation can be applicable at the collegiate level, the absence of compensatory picks makes revenue sharing much more difficult. “Player evaluation is straightforward, it’s your production and comps,” Magee said. “…As you see and read about the contracts in the NFL and how they’re derived, there’s a straightforward approach. So the problem in college football right now is there’s no comps. You can understand production, you can understand whether it’s on your own team, whether it’s in the transfer portal that’s played at this level. You can also have projections from recruits of what you believe that production is going to be. But there’s no defined comps. So what we have the opportunity to do is create a system and a structure prior to employment or collective bargaining or any other idea that’s implemented that can give that information on what salaries are or put everything out in the open like it is in the NFL.” Magee and Michigan understands what needs to be done in preparation for revenue sharing’s implementation next July, and through Magee’s NFL experience, he can lead the way in creating the right system to allocate resources and reconstruct the NFL’s model at the collegiate level.

Sean Magee's NFL background is assisting Michigan Football in developing its future revenue distribution framework.

Back in 2021, when the NCAA permitted athletes to monetize their name, image, and likeness (NIL), there was considerable uncertainty on how to proceed. With no clear guidelines or frameworks, it required time to sort out the details. Three years down the line, the NIL environment has been largely analyzed. However, certain aspects of NIL, […]

Back in 2021, when the NCAA permitted athletes to monetize their name, image, and likeness (NIL), there was considerable uncertainty on how to proceed. With no clear guidelines or frameworks, it required time to sort out the details.

Three years down the line, the NIL environment has been largely analyzed. However, certain aspects of NIL, especially revenue sharing, remain unexplored.

From ticket sales to television contracts, donations, and merchandise, elite football programs like Michigan rake in substantial funds. The players are the main drivers of these revenue sources, yet they do not receive compensation for it.

However, this is on the verge of transformation.

Starting July 1, 2025, players are anticipated to start benefiting from a new revenue sharing model, though how to implement this remains a challenge. Schools cannot simply duplicate the NFL’s model, but it can serve as a significant guide in this uncharted direction. Unlike many other schools, the Wolverines have Sean Magee, their associate athletic director for football, who possesses the expertise to navigate this.

“Having the chance to experience the world from a professional football perspective and gaining that insight, … I am the only one to have worked in an NFL front office, allowing me to understand and experience it, which is incredibly invaluable,” Magee stated in an interview with The Michigan Insider’s Sam Webb earlier this week.

After five years at Michigan from 2017-2021, Magee transitioned to the Chicago Bears, serving as the chief of staff during the 2022 and 2023 seasons. In that capacity, Magee was responsible for managing and overseeing various budget areas.

Despite that sought-after NFL experience, numerous challenges still await Magee and the Wolverines. While revenue sharing might not take effect until the following year, Michigan is optimizing this time to prepare effectively. They are tackling budget construction and deciding how to distribute funds to players—determined by performance and position—which entails considerable contemplation.

Applying the NFL’s strategy of revenue sharing helps to impose order in an otherwise chaotic arena.

“We have devised strategies to offer compensation at a market value that doesn’t yet exist,” Magee remarked. “Therefore, here — owing to experience and exposure — we can utilize insights from the NFL. We can leverage the percentage allocation for salary caps by position. If a player has achieved a certain level or we identify a player meeting particular criteria, we can reference the comparable data from NFL players—those with similar performance and attributes—to gauge what has been done at that tier and how it correlates with the salary cap.”

Even though NFL player assessments are relevant at the college level, the lack of compensatory picks complicates revenue sharing significantly.

“Evaluating players is straightforward; it comes down to your performance and comparisons,” Magee noted. “…As you observe the contracts in the NFL and how they are structured, you can see a clear-cut methodology. The challenge in college football lies in the absence of comparisons. You can analyze production levels, whether from your own roster or from the transfer portal. You can make educated predictions from recruits anticipating future performance. However, there are no established comparisons. Thus, this presents us with an opportunity to create a structured system prior to employment negotiations or any practical applications that can provide clarity on salaries, much like the transparency in the NFL.”

Magee and Michigan recognize the necessary steps required for the implementation of revenue sharing next July, and thanks to Magee’s NFL experience, he is poised to guide the establishment of an appropriate system to redistribute resources and adapt the NFL model for the collegiate framework.