Most athletic departments aren't in the Big 10 and aren't making a profit, and they use the revenue that they generate from the revenue sports to fund athletic scholarships in the non-revenue sports.
That's socialism.
And maybe if schools weren't paying coaches ridiculous salaries to coach so-called amateurs they'd have more $ for scholarships.
But they are not playing for 'peanuts', as you put it. They are receiving scholarships and expenses coverage worth hundreds of thousands of dollars.
It's peanuts compared to what coaches and even administrators are banking these days.
And much of that value is arbitrary (schools continually hiking tuition) and set by the schools.
And school are basically dipping at both ends.
Counting financial aid, the typical student pays about
1/2 tuition, but schools get the
full (grossly inflated) tuition for each scholarship athlete.
So, the athletes in the revenue sports are basically paying full freight for all the other scholarship athletes.
NILs are simply opening up a previously blocked revenue stream.
Many times Olympic medalist and swimming superstar Ledecky only swam competitively for Stanford for 2 seasons as she was giving up on endorsement deals.
For many athletes in Olympic sports, there are no professional ranks in which to make $ after their college career is over, so they need to make $ (primarily via endorsements) while they can.
Olympic all-around champ in women's gymastics, Suni Lee, likely wouldn't be competing for Clemson this fall without NIL - as she would be giving up millions in endorsement $.
NIL allows for Olympic sport athletes to compete and continue to compete in college.
So that's a huge benefit to having NILs.
It's really not surprising that posters of a certain bent are so opposed to NIL, which is pretty humorous (what happened to capitalism and all that)?
But then again, only the entrenched "old school" powers that be are supposed to make any real big $.
And who knows?
Maybe being able to make a sizable sum from NILs may convince a star FB or BB player to stay in college another year instead of jumping to the pros?