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NIL

Reshaping risk in college sports

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In June, the House v. NCAA settlement brought the most significant change yet to the name, image, and likeness (NIL) landscape: athletic departments can now share up to $20.5 million annually in revenue directly with student-athletes.

While NIL agreements between athletes and brands have been in place since 2021—and athletes can still sign independent sponsorships—this is the first time schools themselves will have to distribute a portion of their own earnings to student athletes.

How that revenue is split will vary widely. Many universities are allocating the lion’s share to football (70-75%), followed by men’s basketball (10-15%) and women’s basketball (5-10%), with the rest distributed across other sports. Some institutions are spreading the benefits more evenly among all athletes, while others are channeling nearly all revenue to marquee programs like football.

The shift from third-party NIL deals to direct school-funded revenue sharing doesn’t just change how athletes are compensated. It fundamentally alters the risk profile of collegiate athletics.

From potential employee classification and escalating medical liabilities to Title IX disputes and budget volatility, universities now face a new set of operational, legal and financial exposures that could—if not managed proactively—derail programs, drain budgets, and redefine the business of college sports.

With the framework in place, the focus now shifts to the questions that will determine whether revenue sharing becomes a competitive advantage or an unsustainable liability for your program.

Will athletes be considered employees in the NIL era?

The House settlement stops short of classifying athletes as employees. For now, they’ll be treated as 1099 contract workers, preventing collective bargaining and limiting eligibility for traditional employee benefits.

That may not hold forever. Many experts predict that the tipping point could come in the early 2030s, when major media rights deals expire and conferences can restructure compensation models. If certain conferences begin operating like professional leagues, the case for full W-2 employee status will grow stronger.

Employee classification would open the door to collective bargaining—something many athlete groups are already pushing for—but it can’t happen without a formal W-2 relationship. That’s one reason the NCAA has lobbied Congress for antitrust exemptions, though neither political party has shown much interest.

The “Saving College Sports Act,” a recent executive order, made headlines but offered little substantive guidance on this issue.

For college risk managers and CFOs, the implications are enormous. If athletes become employees, universities could face workers’ compensation obligations far beyond the scale of their current programs.

Traditional workers’ compensation plans designed for faculty and staff aren’t built to absorb the frequency and severity of athletic injuries. Just a few football-related ACL surgeries can generate as much in workers’ compensation claims as several years’ worth of claims from employees like professors or office staff.

Without planning, that exposure could quickly overwhelm budgets.

How can we control medical liability?

The estimated annual cost of injuries in collegiate athletics is billions of dollars nationwide. Right now, most Division I programs provide at least primary or accident insurance for athletic injuries, and institutional policies often cover significant costs above NCAA-mandated deductibles (which exclude Division II and Division III schools).

Coverage typically extends to practice, play and travel—anything sport-related—and fills the gap when standard student health insurance excludes athletic injuries.

If employee status becomes reality, those costs could balloon under WC requirements. Even without that change, the pressure is mounting. High-cost surgeries, longer recovery times and increased injury awareness have driven up claim expenses year over year.

Alternative funding models like medical captives or self-insurance pools are emerging as a strategic solution. By pooling resources at the conference level, schools can spread costs, maintain greater control over coverage design and better withstand the budget volatility that comes with high-severity claims.

Insurance strategies to help stabilize budgets

In the NIL and revenue-sharing era, insurance is a strategic lever for sustaining the long-term health of an athletic program.

Today’s risks span multiple fronts: legal compliance in areas such as Title IX and employment classification; athlete welfare, encompassing medical coverage, injury management and post-career support; and financial stability, as donor contributions, collective funding and performance incentives fluctuate from season to season.

Well-structured coverage can help smooth these variables. For example, policies tied to team or individual performance can offset revenue shortfalls in a down year or help fund bonus commitments when success exceeds expectations.

Medical coverage tailored to the realities of collegiate athletics can keep injury costs predictable, even as procedures become more advanced—and more expensive. And liability protection designed with NCAA rules, conference policies, and school-specific exposures in mind can reduce the financial impact of disputes or compliance challenges.

Programs should turn to specialized coverages designed for this environment, including:

  • Upside coverage to boost budgets when teams exceed expectations.
  • Downside protection to safeguard roster funding in tougher years.
  • Performance-based bonus coverage to incentivize athletes without massive upfront commitments.
  • NIL and revenue-share protection to insulate against the financial impact if an athlete’s performance or availability changes unexpectedly.
  • Athlete medical coverage tailored to the high-frequency, high-severity claims unique to competitive sports.

This is a new and unique set of risks so working with an insurance broker that specializes in NIL-related risks is essential to help build a buffer against the volatility of this new model, ensuring you remain competitive, compliant, and financially stable, regardless of how next season unfolds.





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NIL

How to make college football worse

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Dec. 26, 2025, 5:03 a.m. ET



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NIL

Chiefs Stadium Deal Is Insane

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stl.pony said:

Feel like it’s largely being paid for by sales tax the new stadium development will generate.

Not in finance, so someone should absolutely check my math/analysis on this.

State of Kansas has an 8.25% sales tax. For the sales tax to generate 3 billion, the total sales would need to be about 36 billion. According to this article the Royals stadium and Arrowhead stadium collectively generate 55 million a year in tax revenue. (Don’t know what the analysis is to produce that; admit it could be wrong.) If you round it up to 60 million a year, the break even point is 600+ years.

If you take the numbers the Chiefs put out, 1 billion in economic impact for the region and 29 million in tax revenue per year. The break even point from tax revenue would be 1800 years?

I don’t know what is considered the region for the economic impact evaluation and how that changes based on if the stadium is on the Missouri side or the Kansas side of Kansas City. I also remember reading a report about the state fair of Texas that claimed that events like the state fair and sporting events don’t necessarily generate additional economic activity in a region, it just concentrates it into the event rather the wider community. (Admittedly, that could mean more tax revenue for one city in the region over another.) In my layperson’s opinion, a sports stadium deal like this doesn’t seem to be as smart of a decision as offering economic incentives to a Toyota or other non-entertainment business to move to your city.



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Michigan urged to hire SEC coordinator over head coaches to replace Sherrone Moore

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As Michigan’s coaching search drags on, some overlooked possibilities could be floating back to the forefront. After apparently striking out on established head coaches like Kenny Dillingham and Kalen DeBoer, one SEC coordinator is exactly such a possibility for the Wolverines.

In a recent episode of Andy and Ari On3, Andy Staples and Ari Wasserman pointed out that the current coaching carousel has been virtually obsessed with established head coaches. Kentucky hired Oregon offensive coordinator Will Stein as its next coach, but otherwise, schools have passed on coordinators in favor of coaches with head coaching experience.

Both Staples and Wasserman singled out Georgia defensive coordinator Glenn Schumann as a strong coaching possibility who Michigan should consider. “Why hasn’t he been in the conversation,” asked Wasserman. “He’s been intereviewed by schools, they just haven’t hired him,” noted Staples. “Normally, multiple coordinators would have either gotten these jobs or been finalists for these jobs.”

“If I were Michigan, I would hire Schumann over all the others,” said Wasserman. “I feel like if you’re Michigan, you want to get the guy that reshapes how you do things. It’s not that Jedd Fisch wouldn’t or Jeff Brohm wouldn’t….Don’t you want to go get the younger coordinator from Georgia who recruits his ass off and has been around big builds and has he defense playing like this at the right time and try to build you program around that?”

Schumann

Having learned under Kirby Smart and Nick Saban, Georgia’s Glenn Schumann could be an intriguing possibility for Michigan. | Joshua L. Jones / USA TODAY NETWORK via Imagn Images

Schumann is only 35 years old, but has spent the last 17 seasons with either the Alabama or Georgia programs. He went to Alabama to be a student assistant coach under Nick Saban, then moved up to graduate assistant and then to Director of Football Operations.

When Kirby Smart left Alabama to take the Georgia head coaching job, Schumann went with him. First, he was the inside linebacker coach. In 2019, he added co-defensive coordinator to his responsibilities and ahead of 2024, he became the sole defensive coordinator

Georgia has historically been a very aggressive big-play-oriented defense, but Schumann has helped remake them on the fly. In 2025, the Bulldogs have held opponents to 15.9 points per game, second in the SEC, despite being near the bottom of the conference standings in sacks (tied for last), tackles for loss (next to last), and turnovers forced (13th).

Schumann was considered in 2023 for the Philadelphia Eagles defensive coordinator role, but hasn’t been significantly linked with another collegiate job. Despite his relative youth, his experience inside two of the foremost college football dynasties of recent vintage makes him an intriguing possibility, should Michigan decide to take a chance.



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No easy fix for what ails college football, but it’s still fun

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As much as the state of college athletics these days drives people to distraction, coaches and administrators don’t have many options.

So, you don’t like players being paid? You don’t like players have the ability to transfer to another program anytime they choose? You don’t like lawyers and agents raking in huge amounts of cash? What can unhappy fans do about it?

You can stop supporting your favorite program. You can stop going to games or even watching games. If enough people do that, what they will accomplish is making it more difficult for their favorite programs to win. They will change nothing.

Despite all of it, coaches are expected to win. Athletics directors are expected to provide the resources for them to win. They have no choice but to play the game with the rules – or lack thereof – in place today.

Is it out of control? Of course it is, in football and basketball. Will there be efforts to mitigate the damage that is being done to the sports so many love? There will be. Will they be successful? Maybe, but so far we’re not seeing it. Yet, TV ratings are higher than ever. Stadiums are filled. It’s still fun, which is what it was always meant to be.

For sure, there are some misconceptions out there.

Players, in fact, can and do sign contracts. There is nothing to keep them from signing multi-year contracts, but those are iffy for both sides. Maybe a player turns out not to be worth what he is being paid. Or maybe he turns out to be worth more than he’s being paid.

None of this is simple. It is further complicated by agents who are neither qualified nor interested in much anything beyond making money for themselves.

Maybe, one day, someone will find a solution. Maybe Congress will step in and help, though there has been no indication that is close to happening.

Players and coaches are better-trained, better-informed and more knowledgeable than they have ever been. Players are not the spoiled, entitled young men they are accused of being. They are being pulled in all sorts of directions by family, agents, boosters and others with agendas of their own.

Almost every effort to find common ground has blown up.

The December signing period was meant to give players who had made up their minds opportunities to get the recruiting process over with. Previous to that move, it was rare for players to graduate early and enroll in time for spring practice. Now, it’s what every coach wants and most players want.

NIL was supposed to be about players having opportunities to earn spending money, maybe even get a car. It was never meant to make anybody wealthy. Along came collectives, and that changed.

Penalty-free transfers were supposed to be about players having opportunities to go in search of more playing time. Instead, added to NIL, it become a monster. Without penalty-free transfers, things would be different today.

For now, if people let this destroy their love for the game, they are letting the forces of chaos win. It’s still college students – yes, they are students – playing football. And they pay a fearsome price in blood, sweat and mental challenges to do it.

Once the portal has opened and closed and rosters begin to be set, things will calm down. The focus will return to where it should be, on those who play the game and the season ahead.

***

To all of you who do us the honor of coming here to read and comment and debate, and to Ron Sanders, Nathan King, Christian Clemente, Jason Caldwell and Patrick Bingham, my valued colleagues, I wish joy, peace and love on this day.



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Oregon Ducks Could Steal Another Transfer Portal Player From USC Trojans

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The Oregon Ducks are in the middle of what hopes to be a memorable run to the National Championship after beating the James Madison Dukes 51-34 in the first round of the College Football Playoff at Autzen Stadium on Saturday.

But with the way the transfer portal calendar works, the coaching staff is still having to do its due diligence when it comes to targeting new additions for next year’s roster.

Oregon head coach Dan Lanning

Oregon head coach Dan Lanning walks off the field after a timeout as the Oregon Ducks take on the Washington Huskies on Nov. 29, 2025, at Husky Stadium in Seattle, Washington. | Ben Lonergan/The Register-Guard / USA TODAY NETWORK via Imagn Images

The Ducks have already been connected to some notable portal players, including Arizona State quarterback Sam Leavitt. More names will certainly be added to the list in the coming weeks, but one interesting player could be joining the mix.

Per reports from On3’s Pete Nakos, Oregon is a potential team to watch for USC Trojans defensive lineman Devan Thompkins. He spent the past three years with the Trojans and

This mirrors what Oregon did last offseason with defensive lineman Bear Alexander, who spent the 2023 and ’24 seasons at USC before transferring to Eugene. This proved to be a

MORE: Three Biggest Takeaways From Oregon’s Playoff Win Over James Madison

MORE: Oregon Coach Dan Lanning Is Turning Heads For Ducks’ Playoff Entrance

MORE: National Championship Betting Odds After Oregon’s Win Over James Madison

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Alexander, who played his freshman season with the Georgia Bulldogs before joining USC, has already confirmed that he will be returning to Oregon for the 2026 season.

“I prayed for this moment. Grateful beyond words to be back on the field. Every doubt, every setback, every hard day led me back here. I am truly thankful for my staffs commitment to my growth both personally and professionally. Stepping back onto this field felt like breathing again and I’m forever grateful. Being away from the game last year was tough, I really missed this more than I can explain. Thankful for the strength, support, and grace that brought me back to this point in my life with all my dreams within reach,” wrote Alexander onto social media.

Alexander posted 45 total tackles and one sack during the regular season with Oregon. In his second-career CFP game against James Madison on Saturday, he had four total tackles (two solo).

Oregon Ducks head coach Dan Lanning

Oregon Ducks head coach Dan Lanning looks on during the fourth quarter against the James Madison Dukes at Autzen Stadium. | Craig Strobeck-Imagn Images

As for Thompkins, it’s a bit too early to know which team he will end up choosing, as the portal is set to open on Jan. 2 after the College Football Playoff Quarterfinals.

However, if he does end up choosing Oregon, the Ducks would be getting an experienced player on the defensive line while simultaneously snagging him away from a Big Ten rival.

This past season, Thompkins had 31 total tackles (18 solo), three sacks, one forced fumble and two pass breakups. He had 4.5 career sacks in three seaons with the Trojans.

But before looking too far ahead when it comes to the portal, the Ducks will look to keep their championship hopes alive on New Year’s Day at the Orange Bowl in Miami against the Texas Tech Red Raiders.

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Report: Terry Smith’s lack of FBS head coaching prevented him from landing Penn State job

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Despite being one of the first major Power Four openings following the Oct. 12 firing of James Franklin six games into the season, Penn State was without a full-time head football coach for 58 days until Iowa State‘s Matt Campbell was formally hired on Dec. 5.

During the two-month-long coaching search, more than 10 candidates — from Alabama‘s Kalen DeBoer to Nebraska‘s Matt Rhule — were reportedly mentioned in connection to the Nittany Lions opening, even if most were never serious options. Several of those candidates — Rhule, Indiana‘s Curt Cignetti and BYU‘s Kalani Sitake — received lucractive contract extensions just for being mentioned in connection to Penn State.

In the meantime, longtime assistant and interim head coach Terry Smith did his best to pick up the pieces of the once-promising season and closed out on a three-game win streak to secure bowl eligibility for Penn State (6-6). That late-season surge helped boost support for Smith to be promoted to full-time head coach, especially among current and former players.

During Penn State’s victory over Rutgers, multiple players held up signs that read, “Hire Terry Smith,” which showed the amount of support the veteran coach had built within the program. Former PSU star Michael Robinson also advocated for Smith to get the top job.

Terry Smith on support from PSU alumni: ‘It means everything’

“It means everything,” Smith said in late November. “Obviously, the support that the lettermen are giving me, especially Michael Robinson doing that, obviously it means we’re doing something right. Just trying to create a culture for our team to play hard, play tough, and for our fans to get behind us and support us and stay in our corner.”

Smith, a four-year letter winner between 1987-91 under legendary head coach Joe Paterno, was ultimately retained and will return as the associate head coach under Campbell. But the lengthy search left many wondering why the 56-year-old alum and longtime associate head coach wasn’t given more serious consideration.

Turns out Smith was a “legitimate candidate,” according to a detailed report from ESPN’s Adam Rittenberg, Max Olson and Eli Lederman released on Christmas Eve. The ESPN report revealed Smith was among five candidates that actually interviewed with PSU athletic director Pat Kraft, though he “ultimately lacked the FBS head coaching experience Penn State desired.”

Of course, prior to his interim gig this season, Smith has never led his own collegiate football program. The former collegiate receiver nicknamed “Superfly” has served as the Nittany Lions’ cornerbacks coach since 2014, adding the title of assistant head coach two years later in 2016 before becoming the associate head coach in 2021. Given that wealth of experience, Smith was a priority for Campbell and Penn State, which reportedly made him college football’s highest-paid non-coordinator, according to NFL insider Jordan Schultz.



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