Name, Image, and Likeness, or NIL, is a term used to describe how collegiate athletes are allowed to receive compensation. Athletes can earn money through deals, which include autograph signings, endorsements, and grants from booster collectives.
On December 4th, five-star recruit and no.1 ranked high school football player in the country, Bryce Underwood, signed his national letter of intent, locking in his commitment to play football at the University of Michigan. The Michigan native is the highest-rated offensive recruit in Michigan program history, marking a historic point in head coach Sherrone Moore’s young stint leading the team. Previously verbally committed to Louisiana State University, Underwood’s flip to the maize and blue was a multifaceted process–or–transaction.
The process began on September 24, 2024, when Barstool Sports founder and owner Dave Portnoy took to a podcast amid his alma mater’s early-season struggles. Portnoy expressed his dissatisfaction with lackluster quarterback play and later made the comment that started it all. He threw his hat in the ring, claiming he would donate $2-3 million a year to Michigan’s NIL collectives circle to ensure the school would land an elite quarterback every year. However, Portnoy’s number wouldn’t have cut it in this day and age of college football, where top-ranked players rake in millions of dollars.
Upon seeing an Instagram post regarding the circulation of a rumored $4 million offer to flip his commitment, Underwood took to the comments with multiple laughing emojis, expressing his loyalty to LSU. However, in hindsight, it seems that Underwood shooting down initial rumors was the turning point of this process. With the entire college football world doubting Michigan’s ability to flip the prized recruit, Portnoy and the NIL collective leaned in, determined to land their quarterback of the future.
In times when NIL values are seemingly skyrocketing, the solution was simple: Underwood’s contract would have to separate from the pack. A big-time program requires big-time players. And to flip the best recruit in the country, Michigan needed big-time money. This is where the billionaire tycoon and third-richest person in the world, Larry Ellison, came into play.
In Michigan’s case, five is the magic number. Ellison’s fifth wife, Jolin, has stated her support for the University and its athletic programs. Jolin went to work without a confirmed affiliation with the University other than being a diehard fan. Due to her efforts, Michigan finally got its big-time money. On November 21st, Michigan landed its prized recruit, and it didn’t take long for the number to be unveiled. Ellison’s grant allowed the Michigan NIL collective to make an offer Bryce Underwood couldn’t refuse: a staggering $12 million guaranteed over his time in Ann Arbor.
Now, we are left with a few questions: First, is this the start of a billionaire-backed era in collegiate athletics? With all this money coming in, will there be a difference between the pros and college? What happened to committing to a school, opportunity, or culture instead of a paycheck? In Underwood’s case, he revealed the uncertainty of playing professional football. Injuries, skill drop-offs, and simply being a bust can undoubtedly throw a star like Underwood off trajectory.
Finally, will there ever be a ceiling? With student-athletes making more money than professionals and being granted “free agency” twice a year through the transfer portal, NIL has been completely blown out of proportion. A new era has begun.
