THE IMPACT OF NIL POLICIES ON INCOME INEQUALITY AMONG NCAA ATHLETES

Edgar Fragozo simball

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Meng, Chen  

Abstract:

Abstract:In 2021, the NCAA allowed college athletes to earn money through Name, Image, and Likeness (NIL) opportunities. This change ended the long-standing rule that prevented student-athletes from receiving compensation beyond scholarships. Since then, many athletes have signed endorsement deals, promoted brands on social media, and built personal brands. However, not all athletes benefit equally from these opportunities.This research examines whether NIL policies have increased income inequality among NCAA athletes. It focuses on the difference in earning opportunities between high-revenue sports such as football and basketball and lower-revenue sports. Using publicly available information on NIL deals and estimated athlete valuations, this study compares how compensation varies across sports. It also considers how factors such as media exposure and social media followers influence earnings.The analysis suggests that NIL earnings are concentrated among athletes in high-profile sports and those with greater visibility. While NIL provides financial freedom and new opportunities, it may also increase the income gap between athletes in different sports.Overall, this study explores the economic effects of NIL policies and their impact on fairness within college athletics.,