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College basketball's financial landscape has changed significantly over the years. Due to the NIL deals secured by players, it's likely affecting when they decide to enter the NBA draft. Let's explore if there is a basis to that notion.
What is NIL in college basketball?
In college basketball, NIL refers to the ability of student-athletes to profit from their personal brand through endorsements, sponsorships and other opportunities.
Players can now earn money through social media promotions, appearances and selling merchandise, which was previously prohibited by the NCAA.
NIL has significantly changed the landscape of college sports, allowing athletes to earn compensation while still maintaining their amateur status. It has also become a factor in recruiting, with some schools and collectives offering prospects NIL deals.
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Latest NIL rulings and changes
The most significant development in NIL rules is the NCAA's shift away from its traditional amateurism model. It now allows institutions to directly pay student-athletes.
This change is part of the $2.8 billion House vs. NCAA settlement, and is set to take effect on July 1. Additionally, there are changes regarding disclosure of NIL deals, potential third-party reviews and increased regulation.
College players are now required to disclose their NIL agreements of more than or equal to $600. Third-party agreements outside of the school will also be reviewed by the NCAA.
How NIL is changing player decisions about the NBA draft
In the past, the most talented college basketball players took an early leap to the NBA to get paid. Even less talented players who had pro dreams declared early. However, there has been a steady decline in the number of draft entrants since NIL, with this year’s 106 representing the lowest since 2016.
NIL has allowed players to stay in college until they see a deal worthwhile in the NBA, as there is something to fall back on should that fail.
With players making money in college directly through the school and third-party brand deals, the financial risk of staying in college has become slimmer.
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