Changing the Game With NIL

Professor Tim Derdenger joins the Tepperspectives Podcast to discuss the impact that name, image, and likeness (NIL) have on college sports. In “Does Personalized Pricing Increase Competition? Evidence from NIL in College Football,” Derdenger and his co-author Ivan Li examine how the results from NIL deals have done the opposite of expectations by dispersing talent and increasing competition in college football.

Instead of the top-tier programs attracting all the talent, NIL has created a more competitive landscape by spreading out 4- and 5-star players to a broader range of schools. This shift is giving more programs a real shot at attracting elite athletes, which in turn leads to more unpredictable and exciting games.

They also found that student-athletes, especially 3-star recruits, are making decisions based on financial opportunities more often, sometimes even prioritizing NIL money over a school’s academic reputation. This expanded bargaining power for players has created a more balanced market for talent, as they now weigh financial gains alongside athletic and academic goals. The result? More parity in the sport, with researchers noting that sportsbooks are setting tighter point spreads, a sure sign that the game is becoming more competitive. This research suggests that NIL is a win for everyone, making college football a more thrilling and less predictable sport.