The NIL Domino Effect: Smaller Schools Struggle to Keep Up
Marzell Davis
Since the NCAA approved Name, Image, and Likeness (NIL) rights in 2021, the conversation has centered primarily on big-time athletes signing endorsement deals and cashing in at powerhouse programs. But there’s another side to this story, one that doesn’t get as much attention. NIL has created a growing divide between the top-tier schools and their mid-major counterparts, and the smaller schools are the ones paying the price.
A New Farm System?
For coaches at Group of Five schools, the challenge isn’t just recruiting talented players; it’s keeping them. In the past, a breakout season for a quarterback or wide receiver at schools like Memphis, Toledo, or Appalachian State might mean national recognition and maybe NFL draft buzz. Now, it often means one thing: that player will enter the transfer portal and head to a bigger program with a stronger NIL collective.
It’s created what some insiders are calling a “farm system” effect. Smaller programs are developing players, only to see them poached before they can reap the benefits. Fans are frustrated, too—how do you build loyalty around a team of star players who are gone after one good season?
The Growing Divide
This talent drain is reshaping competitive balance. The new 12-team College Football Playoff was supposed to open the door for more programs to compete nationally. In reality, NIL has tilted the scales even more toward the Big Ten, SEC, and a handful of other large conferences. Money talks, and right now, the richest collectives are making the loudest offers.
Possible Fixes
Some administrators believe NIL revenue sharing could be part of the solution. As TV contracts spread wealth across conferences, a regulated system could provide smaller schools a fighting chance. Still, convincing powerhouse programs to give up their advantage won’t be easy.
For now, NIL is here to stay, and so is the talent gap, which has widened. Until structural changes are made, smaller schools will continue to lose their best athletes to the bright lights and big paychecks of college football’s heavyweights.
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