Restoring structure to college athlete compensation
Purpose of the Rule
Create a structured system that protects the integrity of college sports while fairly compensating athletes.
- Ends the era of unregulated NIL collectives
- Introduces a work-study-style compensation framework
- Ensures oversight through schools, not external boosters
- Respects athlete dignity while encouraging institutional accountability
The Problem We're Solving
NIL collectives have created an unregulated arms race (and they lie to these kids!).
- Boosters control recruiting outcomes (with lies!)
- No salary structure, no compliance, no institutional responsibility
- Schools have no real incentive to develop or retain talent long term
- Student-athletes face public scrutiny for money they didn't negotiate
Rule Mechanics, Pt. 1
Elimination of NIL collectives:
- Booster-run NIL collectives are banned. Relax, they can still throw money around (more on that below)
- Schools regain full responsibility for athlete payments and compliance.
School-administered compensation:
- Athletes are paid directly through a work-study style salary program.
- Salaries are treated as taxable W-2 income.
- Athletes may perform nominal community or promotional work for the school.
Payment floor and salary mediation:
- Minimum salary = full cost of in-state tuition, room, and board.
- Offers above the minimum must be reviewed and approved by an NCAA mediator.
- No mid-contract renegotiations allowed.
Rule Mechanics, Pt. 2
Transfer buyout clause:
- Transfers trigger a buyout equal to 150% of the next two years' compensation.
- Exceptions for hardship or coaching changes reviewed by the NCAA appeals board.
Performance-based escalators:
- Bonuses for athletic or academic performance are allowed if pre-approved.
- Escalators must be set at the time of signing and cannot be renegotiated
External NIL deals:
- Athletes remain free to sign personal NIL deals outside of school salary structures.
- Deals must be disclosed and free of booster coordination.
Oversight and compliance:
- Schools submit annual compensation reports.
- NCAA Compensation Mediation and Oversight Division (CMOD) conducts regular audits focused on institutional, not individual, compliance.
Funding of Athlete Salaries
Because I'm sure some people were wondering…
- Universities may create official athlete compensation funds through their athletic departments.
- Fundraising efforts can be chaired by major boosters but must be operated through the institution itself — not third parties.
- Funds would directly support athlete salaries, educational services, and compliance efforts.
- Oversight stays within the school, ensuring transparency and protecting athletes.
- Details of program structure and examples of best practices will be presented in Part 2: A Framework for Compliance.
Compliance Philosophy
A core tenet of this proposed rule framework is that oversight should fall on institutions — not 18-year-olds!
- Annual school compensation reporting required
- NCAA will audit school records, not student lives
- No "lifestyle audits" of athletes (cars, housing, social media)
- Enforcement is documentation-based, not speculative
Addressing Potential Booster Loopholes
For when a booster tries to woo a potential recruit through a bespoke scholarship program…
- Criteria must be broad and apply to a reasonable pool of students
- Programs designed to benefit only one athlete will be flagged
- CMOD (Compensation Mediation & Oversight Division) has full audit authority
- Keeps booster dollars from being backdoor recruiting tools
This doesn't mean a kid like Bryce Underwood can't get paid a lot – just trying to ensure there is a thought-out process to how that business is conducted
Escalating Institutional Sanctions
Structured accountability — protects athletes, pressures institutions.
First violation
- Penalty: fine equal to 50% of head coach's annual salary
Second violation
- Penalty: 50% scholarship reduction over 4 years
- Year 1: 5% scholarship reduction
- Year 2: 10% scholarship reduction
- Year 3: 15% scholarship reduction
- Year 4: 20% scholarship reduction
- Scholarships for existing athletes
- Schools may not revoke existing scholarships from current athletes.
- Reductions must be absorbed entirely through new recruiting classes.
Third violation
- Penalty: 1-year competitive suspension for the violating program
- Teams may continue practicing internally.
- No games, tournaments, or public exhibitions allowed.
The Compensation Mediation and Oversight Division (CMOD) oversees all sanctions, audits, and appeals.
Summary of Benefits
| Stakeholder | Benefits |
|---|---|
| Athletes | Fair pay, fewer distractions, brand freedom |
| Schools | Controlled budgets, clearer rules, team stability |
| NCAA | Regains trust, enforces parity, protects brand |
| Fans | Better competition, less drama, healthier culture |
I'm very in favor of paying players for doing a job, which is what is happening. But framing everything around "Name, Image, and Likeness" is not only inaccurate, it's ineffective. We need a fix.