March Madness is in full swing, and through the upsets and the glories, one thing remains: the NCAA and its schools will reap the financial haul that is generated during the tournament month.
However, even though student-athletes can now make money through the name, image, and likeness deals (NIL), there still has yet to be a resolution for the revenue the schools are generating off the backs of the athletic scholar.
Recently, “Shark Tank” panelist and entrepreneur Daymond John gave his thoughts on the collegiate athletic system.
The Shark Speaks
“I don’t know where there’s an upside because to have to fight for your right at the Supreme Court and what percentage (of student-athletes) will make money?” said John to TMZ. “Five percent? What about the average player that’s going to make $500? I think this is horrible actually guys.”
According to the Department of Education, collegiate athletic programs accumulated $14 billion in total revenue in 2019; this was up from $4 billion in 2003, not including income from broadcasting rights or corporate sponsorships.
Since the NIL laws were passed, the NCAA has felt like it is off the hook for the imbalance between student-athletes generating revenue and the lack of financial trickle-down.
The NCAA’s Take
“This is an important day for college athletes since they all are now able to take advantage of name, image and likeness opportunities,” NCAA President Mark Emmert said in a statement back in 2021 when the legislation was passed.
“With the variety of state laws adopted across the country, we will continue to work with Congress to develop a solution that will provide clarity on a national level. The current environment — both legal and legislative — prevents us from providing a more permanent solution and the level of detail student-athletes deserve.”
However, to John, the school and NCAA system still have a long way to go to even the playing field.
Read full story at The Shadow League here.