More money, more problems: NIL deals’ effect on NCAA booster donations

Purpose This paper explores the effect of recent changes in National Collegiate Athletic Association rules permitting student athletes to profit from their name, image and likeness (NIL) on donations to public university athletic departments. Design/methodology/approach Using Prais–Winsten panel data models, we test whether boosters decreased donations in order to divert funding to pay student athletes. Findings We find evidence that NIL deals are complements rather than substitutes for traditional booster donations. Originality/value These changes only took place very recently, and no other work to date has explored the effect of NIL deals on the host institutions and their finances.