Chaos Clouds Future of Intercollegiate Athletics

Abstract

Exogenous events disrupted higher education and impacted the decision-making skills of university presidents for years. The problem is most acute at the thirty-six AAU members of the power four  athletic conferences. Among these Exogenous events were the precipitous cancellation of federal research grants, the on again and off again restrictions on both new and current foreign students studying at US universities, the proposed 15% limit on indirect costs, the tax on university endowments, the changes in student loan programs, the annual $20.5 million NIL revenue sharing settlement for Division I (DI) athletes, and their share of the $2.276 billion Name Image Likeness (NIL) settlement payable to athletes for prior years (2016 to July 1, 2025). These events challenged the strategic leadership of Division I athletic programs. As these leaders approached the federal government, bipartisan legislation was proposed in the U.S. Senate. The proposed legislation offered several approaches to address these issues but stopped short of classifying student athletes as employees. Before it gained traction the proposed legislation was turned upside down by a recent court ruling that barred the NCAA preventing a student with an extensive gambling history from participating.