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Good morning. It's Wednesday, May 29. 

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Since NIL began more than 34 months ago, plenty has been made about how financial packages are factoring into the decisions of top recruits.

At Tuesday's second annual On3 Elite Series in Nashville, the top prospects in the nation emphasized that NIL is a factor in recruitments. However, finding the best fit remains the real dealbreaker in the sport.

"For sure that's a big deal," Five-Star Plus+ offensive tackle David Sanders said ahead of a crucial month of visits in June. "I feel like you need to live your now, and if you're a top-rated guy in your class, then you deserve to get what you can get. You deserve to get it then, and then you can get it in the NFL as well.

"But I feel like development is going to play a big piece of your decision. You don't want to go somewhere where all they're offering for you is money, rather than someplace where their offer will come with the development piece, where you know you go there do your thing and get to the next level."

Sanders has trips scheduled to Clemson, Georgia, Tennessee, Alabama and Ohio State. He's repped by WME and has aspirations of playing in the NFL.

On the flip side, George MacIntyre has already shut down his recruitment. The five-star quarterback committed to Tennessee in January. He saw firsthand how desperate some programs are when they're on the losing end of recruiting battles.

"I would say, right around commitment time, I was getting phone calls from schools I never visited before," the No. 16 recruit in the nation told On3. "I didn't choose my school based off of money, but it's good to be able to capitalize off your name. I think it's greatly benefited Tennessee and their football and stuff like that, so it's definitely been good."

An outlier at this moment, USC quarterback commit Julian Lewis has reaped well into the six figures off NIL as a high school athlete in Georgia. He told On3 he's been able to spend NIL earnings on a new car for himself and his father, TC.

Despite the commitment, he has not fully shut down his recruitment with Auburn, Colorado and Indiana all still under consideration. He's leaned on his representation at Athletes First to help him profit off the field and keep his recruitment on track.

"Shoot, money's life," Lewis said. "I've got to help provide for my family. I bought my first car. I bought my dad's car. It's definitely been a blessing to go through the process. But I mean, my whole thing is football. I'll make more in the NFL than I will right now in high school or college off NIL." – Pete Nakos

The NCAA and power conferences approved the House settlement last week. A judge won't certify the agreement for a few months. And the new revenue-sharing model won't take hold until at least fall 2025.

And yet, focus has already shifted to one critical, forward-looking question: How can schools circumvent the $22 million salary cap?

"The commercial NIL ecosystem is going to be an arms race," Tommy Gray, chief operating officer for Altius Sports Partners, told On3. "Providing athletes with an infrastructure and real tangible dollars that they can count on, on top of the cap, outside of the cap, is going to be very important to remain competitive at the highest levels of sports."

Expect three compensation avenues for athletes:

Schools, at their discretion, can share as much as $22 million annually with athletes. It remains to be seen how many schools will be willing and able to reach the salary ceiling and how exactly they will divvy up those dollars among athletes.

Second, athletes can unlock organic commercial NIL opportunities with brands and companies. These can be facilitated either under a school's umbrella or by a third-party entity such as Altius.

"When you combine in a more organized fashion athlete NIL with school IP and assets, and you take it to market in new and better ways that already exist in the professional ranks, there is opportunity here," Gray said. "Schools will have an ability to go faster and do better there than their peers if they're sophisticated about it."

Third, donor-driven collectives will still exist, largely outside the university's umbrella, to add additional compensation in the pockets of marquee athletes for recruitment and retention efforts. Operating outside the parameters of the school, some legal experts say, enables collectives to avoid Title IX scrutiny.

The House settlement includes plans for the creation of an enforcement arm, perhaps separate from the NCAA, to better regulate the polarizing collective space. The agreement also entails plans for athletes to report third-party NIL deals.

Several industry leaders expressed skepticism to On3 that an enforcement mechanism could effectively police collectives.

"The NCAA and conferences think this new enforcement arm structure will be able to stop [collectives]," Mit Winter, a college sports attorney with Kennyhertz Perry, told On3. "But I don't see how. It's going to be interesting to see how schools try to circumvent the cap. Because that will definitely happen – whether it's through collectives or some other way."

Industry sources expect the Title IX question to hover over the coming revenue-sharing model until or unless there is guidance from the courts or from the U.S. Department of Education. There is no consensus stance among legal experts or campus leaders.

Some athletic directors believe revenue needs to be shared proportionally between female and male athletes. Others believe the majority of dollars can go to those who generate that revenue, largely football and men's basketball players.

Nevertheless, finding ways to put additional dollars into athletes' pockets outside of the salary cap will be paramount for schools in an ultra-competitive landscape.

"When there is a cap in place, and if there are more robust enforcement mechanisms in and around synthetic NIL [collective dollars], commercial NIL dollars for athletes are going to be really important," Gray said. "That is the new arms race." – Eric Prisbell

"It's unfair, and the way that they've handled it is wrong. I just think that if you're going to allow it for one particular set of kids, then it shouldn't be allowed for all of them. And if it isn't going to be allowed for everyone, then nobody should be able to do it." – Thomas Davis, former Georgia and NFL star, talking about how he believes NIL should be allowed for public high school students in North Carolina.

For institutions nationwide, their relationship with their multimedia rights partner has never been more valuable as schools seek guidance on how best to navigate these uncharted, landscape-shifting waters on the heels of the House settlement.

On3 caught up with Christy Hedgpeth, president of Playfly Sports Properties, a sports marketing company with a portfolio of more than 25 universities and conferences, to discuss the questions immediately arising from schools.

"They [schools] really need to be thinking more like brands and more like media companies," Hedgpeth said. "These changes are – and we've already seen it – definitely forcing them to have a more commercial mindset, because they are going to be under enormous budget pressure, not that they weren't already."

Universities are grappling with how much revenue they are willing and able to share, and how best to divvy up those dollars among athletes. They are confronting an intensifying need to find new revenue streams and break down internal silos that separate in-house revenue buckets. 

And broadly, they need to operate more commercially – more like a media company.

Hedgpeth echoes sentiments expressed by others to On3 – that college sports' new financial model could lead to more of a need for athletic directors to possess business acumen rather than the traditional campus pedigree. 

Or, she said, this brave new world could lead to the creation of new positions, such as a chief revenue officer. She said a couple schools are looking to add those types of positions.

Strategically, there has never been a more opportune time for athletic departments to push the envelope in seeking new revenue streams, perhaps pushing back on some resistance that may typically exist at the president level on campus. 

"The schools that are going to come out, I think, farther ahead are going to be the ones that are thinking more commercially, more like an entrepreneur," Hedgepeth.

Among the most significant lingering questions is how Title IX applies to revenue shared by athletic departments. The only thing clear at this point: It's weighing on stakeholders' minds.

"Almost everyone I've spoken with, they're very conscious of Title IX, and they recognize that the House settlement they anticipated is silent on Title IX," Hedgpeth said. "So, I think schools are wise to assume that it will continue, and that they need to start planning for that. "

As college sports is preparing to usher in a revenue-sharing model, that seismic change is occurring at the same time private equity is entering college sports in a big way, a development sure to further alter the paradigm.

"They're rushing in with capital," Hedgpeth said. "I think anyone who takes on that capital will need to be ready for a much higher level of scrutiny on their every move." – Eric Prisbell

Used by more than 250 schools and 100,000 student-athletes, Teamworks Influencer is the complete NIL solution that helps collegiate athletic departments navigate the NIL era with confidence. As the leading athlete brand-building and NIL business management app, Influencer’s power lies in connecting the entire NIL ecosystem, eliminating fees, and empowering student-athletes to build and grow their NIL brands. Learn More >

+Evan Stewart was the top available wide receiver in this year's college football transfer portal. The Texas A&M transfer and former Five-Star Plus+ recruit had interest from USC, Oregon, Florida State and LSU. But he ultimately decided on the Ducks after a visit, giving him a chance to play in the same offense with quarterback Dillon Gabriel and a shot to make the College Football Playoff.

The junior has now become the latest college football star to sign an NIL deal with the football equipment brand NXTRND.

Also known as "Next Trend" the football equipment company makes everything from back plates to gloves to visors. The company traveled out to Oregon for a full photoshoot with Stewart, and he's now featured on the brand's social media channels.

A popular brand at the high school level, NXTRND's Instagram page has become a place to promote some of the top high school prospects. Stewart joins Colorado defensive back/wide receiver Travis Hunter, Missouri wide receiver Luther Burden and Ohio State safety Caleb Downs as the brand's ambassadors.

+Oklahoma women's basketball announced a significant teamwide NIL deal with local auto dealer Fowler Auto late last week via X and Instagram. The video announcement featured star players such as Skylar Vann, Payton Verhulst and Sahara Williams receiving brand-new cars from the dealership.

Oklahoma had an impressive 2023-24 campaign, winning the 2024 Big 12 regular-season title and besting Florida Gulf Coast to reach the Round of 32 in the NCAA Tournament.

+Through an NIL deal, South Carolina guard Raven Johnson is the new ambassador for Black beauty brand Parfait. During the 2023-2024 national championship season, Johnson averaged 8.1 points for the Gamecocks.

"I'm so grateful that beauty brands are partnering with women athletes," Johnson told Andscape. "I'm so excited, not just partnering with a beauty brand like Parfait, but a brand that Black women own. That means a lot to me."

+Oklahoma State offensive lineman Preston Wilson, a multi-year starter for the Cowboys, signed an NIL deal with outdoor lifestyle apparel brand Ole Boy Outfitters. The partnership was facilitated by the Pokes with a Purpose collective.