The College Football Playoff debuted its new 12-team format this weekend, featuring four first-round matchups between some of the nation’s top programs. Playoff team expansion and first-round byes are among the latest changes that bear similarities to the NFL structure. Additionally, adjustments have been made to college football rules that more closely align with the NFL game, including the addition of an extra timeout and a two-minute warning. In many ways, the framework of college football has evolved into more of a professional model. Although there will always be opposition to change, college sports have entered a new era defined by transience, athlete empowerment, and business acumen rather than the traditional amateur ideal.
In the last six or seven years, school sports have undergone a seismic shift due to major legislative adjustments. These adjustments have profoundly impacted the business environment for all stakeholders involved. In 2018, the NCAA introduced the Transfer Portal, designed to streamline the moving process, improve transparency, and empower student-athletes. As a result, school athletes no longer want to ask coaches for permission to replace programs. The sports portal works as a form of free enterprise for school athletes. However, professional athletes sign multi-year contract agreements, while school athletes function autonomously year after year.
Nearly three years after the pass portal launched, the NCAA approved an interim name, symbol and likeness (NIL) policy in 2021, allowing school athletes to financially capitalize on their private brands. The NCAA has long opposed such a policy, but was forced to replace its position due to a key ruling by the U. S. Supreme Court and the enactment of NIL legislation in several states. Subsequently, scholastic athletes are now free to act as entrepreneurs, seeking income-generating opportunities with minimal regulation, while universities engage in bidding wars to attract talent. For example, high school quarterbacks can now get multi-million dollar NIL contracts. To attract top talent, university athletic departments work in collaboration with NIL collectives, which are independent organizations that raise funds from alumni and donors.
Alongside the NIL policy, conference realignment emerged as another major development in 2021 and continues to influence the landscape today. These changes were primarily initiated by the Football Bowl Subdivision (FBS) and initially involved ten conferences. Notable cross-country moves, such as USC and UCLA joining the Big Ten, were largely motivated by the desire of athletic departments to benefit financially and secure lucrative television contracts. Consequently, conference realignment has resulted in extensive travel for college athletes and significant time away from campus. The travels are often likened to business trips for college football programs in Power Four conferences.
As with most businesses, profit generation is the lifeblood of school football. According to online marketplace TickPick, Texas’ recent rivalry with Texas A
Recently, CNBC listed the 75 most valuable college athletic programs and included four programs that were valued at over $1 billion. Ohio State was first on the list with a $1.32 billion valuation. Football accounts for the majority of revenue for most athletic programs. There have been discussions centered on private equity possibly purchasing stakes in conferences and venture capitalists owning majority shares of college athletic programs. Marc Lasry, former co-owner of the Milwaukee Bucks, forecasted the future of college sports and stated in a recent interview that he believes “a number of schools will sell their teams” to private investors.
Another new direction for school sports that resembles a professional style is the latest proposal for a revenue sharing plan for the 2025-2026 educational year. Under the new structure, universities are expected to distribute between $20 million and $30 million of their revenue to athletes. This could simply lead to collective bargaining in school sports, which would be highly correlated with pro-sports paint systems.
From a leadership perspective, school football is becoming an interesting job option for professional football. In an unexpected move, legendary NFL coach and longtime Hall of Famer Bill Belichick accepted a position as head coach of college football in North Carolina earlier this month. In a recent interview with ESPN, Coach Belichick expressed similarities between school and pro football and talked about his purpose of helping school athletes “build their careers” within his program. Another step toward the proization of school football is the arrival of the position of general manager in the executive structure, whose primary function is to oversee and recruit departments.
Several connections can be made between the direction high school football is taking and the existing design of the NFL. Change generates criticism, but it also provides opportunities. More adjustments are sure to come, continuing to force those in leadership positions to adapt if they need to excel in this new high school football environment.
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