NIL is destroying college football parity: Texas schools edition

Name, Image, and Likeness (NIL) deals have fundamentally altered college football. The impact is especially visible among Texas schools.

The NIL landscape in Texas (Source: On3 NIL Valuations, Opendorse data):

• Texas and Texas A&M have the largest NIL collectives in the state and among the largest in the country.
• Estimated annual NIL spending at Texas: $10M+. At Texas A&M: $10M+.
• TCU, Baylor, Texas Tech, and SMU spend a fraction of that. Estimates range from $2-5M.
• UNT, UTSA, and other smaller programs: under $1M.

What this means on the field:

• Texas and A&M can out-bid any school in the state for top recruits and transfer portal targets.
• The gap between the haves and have-nots was always there in recruiting, but NIL has made it explicit and quantifiable.
• A 4-star recruit from Allen High School can now compare dollar figures, not just facilities and tradition.

The transfer portal compound effect:

• NIL plus the transfer portal means players can leave programs for more money at any time.
• TCU's 2022 title game team was partially dismantled by portal departures to higher-paying programs.
• Source: Transfer portal tracking data from 247Sports.

The argument for NIL:

• Athletes generate billions in revenue. They deserve compensation.
• Football players at major programs are full-time employees in everything but name.

The argument against:

• It has created a free agency system without salary caps or contract enforcement.
• Schools with richer booster bases win. Merit and coaching matter less.
• The student-athlete experience is now indistinguishable from professional sports, without the protections of a players' union.

Sources:

• On3 — NIL valuation database
• Opendorse — NIL deal tracking
• 247Sports — transfer portal data
• NCAA — NIL policy documents