I’m getting asked a lot about Michigan not discussing numbers with recruits. I know this has come up with recruits Aidan has spoken to, and I’m aware other reporters are making this into a massive issue.
So I want to clarify what I believe is a misunderstanding of Michigan trying to do things the right way ahead of the House settlement.
The “cap” of $20.5 million only applies to the direct pay from the school to players—that’s the revenue-sharing component of the settlement. There is currently no rule outlining how that money must be distributed between sports and players. Michigan plans to disperse the revenue share largely based on revenue earned, meaning football will receive a substantial portion. The “chart” you may have heard about refers to Magee and Moore’s system for how that money will be allocated. I’ve begged to see it—hopefully someday—but understandably, it’s not being widely shared. From what I understand, it operates similarly to an NFL salary cap: better players at more important positions receive more.
What the NCAA is not doing is capping what a player can earn through third-party NIL deals. They can’t do that. That’s what NIL was meant to be—third-party businesses using a player’s name, image, and likeness in marketing and compensating them for it. What the NCAA is adding is oversight.
All NIL agreements over $600 must be submitted and reviewed. An external organization will provide oversight, flagging any deals that appear to be significantly above market value or otherwise suspicious. There’s a lot more to it than that, but that’s the general idea.
As I understand it, Michigan is simply doing what it’s always done—trying to navigate these waters the right way. Other schools have been known to promise recruits a certain amount of money to get them to commit, sometimes presenting it as a “take it or leave it” offer. Then, the collective would attempt to raise that amount. Sometimes they couldn’t follow through, and we’ve all heard those stories. Players then decommit, and the cycle continues.
Because those NIL deals are made through third parties, they don’t truly exist until the agreements are made. You can estimate them and show examples of what past recruits earned—what a starter earned, or what a star player earned. You get the picture.
Michigan not discussing exact numbers is because they don’t know the exact numbers. But guess what? Neither does any other program. Any school promising massive deals to players right now better have a plan, because otherwise things could get ugly come August. And honestly, I don’t know how they’re even making those promises when the settlement hasn’t been finalized.
My point is this: Michigan has positioned itself well for the new NIL era. We’re in a very odd period right now as we wait for the House settlement to be finalized. I expect this cycle to follow the usual pattern—panic in the spring, a surge in the summer, and a strong finish.
You don’t go from landing Bryce Underwood to not talking NIL with players in four months. I think that’s just a misunderstanding of what’s really happening. Some players will find that out later.
So I want to clarify what I believe is a misunderstanding of Michigan trying to do things the right way ahead of the House settlement.
The “cap” of $20.5 million only applies to the direct pay from the school to players—that’s the revenue-sharing component of the settlement. There is currently no rule outlining how that money must be distributed between sports and players. Michigan plans to disperse the revenue share largely based on revenue earned, meaning football will receive a substantial portion. The “chart” you may have heard about refers to Magee and Moore’s system for how that money will be allocated. I’ve begged to see it—hopefully someday—but understandably, it’s not being widely shared. From what I understand, it operates similarly to an NFL salary cap: better players at more important positions receive more.
What the NCAA is not doing is capping what a player can earn through third-party NIL deals. They can’t do that. That’s what NIL was meant to be—third-party businesses using a player’s name, image, and likeness in marketing and compensating them for it. What the NCAA is adding is oversight.
All NIL agreements over $600 must be submitted and reviewed. An external organization will provide oversight, flagging any deals that appear to be significantly above market value or otherwise suspicious. There’s a lot more to it than that, but that’s the general idea.
As I understand it, Michigan is simply doing what it’s always done—trying to navigate these waters the right way. Other schools have been known to promise recruits a certain amount of money to get them to commit, sometimes presenting it as a “take it or leave it” offer. Then, the collective would attempt to raise that amount. Sometimes they couldn’t follow through, and we’ve all heard those stories. Players then decommit, and the cycle continues.
Because those NIL deals are made through third parties, they don’t truly exist until the agreements are made. You can estimate them and show examples of what past recruits earned—what a starter earned, or what a star player earned. You get the picture.
Michigan not discussing exact numbers is because they don’t know the exact numbers. But guess what? Neither does any other program. Any school promising massive deals to players right now better have a plan, because otherwise things could get ugly come August. And honestly, I don’t know how they’re even making those promises when the settlement hasn’t been finalized.
My point is this: Michigan has positioned itself well for the new NIL era. We’re in a very odd period right now as we wait for the House settlement to be finalized. I expect this cycle to follow the usual pattern—panic in the spring, a surge in the summer, and a strong finish.
You don’t go from landing Bryce Underwood to not talking NIL with players in four months. I think that’s just a misunderstanding of what’s really happening. Some players will find that out later.
