Business
In College Sports’ Big Money Era, Here’s Where the Dollars Go
What wins college football championships? A potent defense? An explosive offense? In the era of name, image and likeness, it is money.
Lots of it.
It can cost as much as $10.5 million for a title-contending starting offense and defense in the new Power Four conferences. The big-ticket item, of course, lines up behind the center.
A blue-chip quarterback in a Power Four conference — schools like Alabama, Michigan and Washington — can expect to earn hundreds of thousands of dollars annually through name, image and likeness, or N.I.L., deals. A quarterback in the Southeastern Conference can bring in more than $1 million, on average.
Expected annual compensation for starting players in the Power Four conferences by position Source: Opendorse. Data is based on N.I.L. transactions disclosed through or processed by Opendorse between July 1, 2021, and June 30, 2024.
Note: To be included in the calculations players’ earnings must rank in the top 25 at their position. Specialist ($60,000) and Tight End ($140,000) positions are not labeled.
How much top-earning football players make in a year
And that is merely an average. Ask the Texas Longhorns.
Quinn Ewers
$1.7 million
Texas
Their starter, Quinn Ewers, has N.I.L. deals worth nearly $2 million annually, according to the website On3, which tracks deals for college athletes.
Arch Manning
$3.1 million
Texas
Arch Manning, his backup who hails from one of football’s royal families, has deals worth more than $3 million.
Carson Beck
$1.4 million
Georgia
Georgia’s quarterback, Carson Beck, brings in enough that he recently bought a Lamborghini that retails for $270,000.
Between the cash pouring into athletic programs via collectives — a fancy name for boosters who funnel much of the N.I.L. money to players — and more lenient transfer rules, a sort of eBay to buy athletes has been created, transforming how powerhouse teams are built.
“It’s whoever wants to pay, the most money raised, the most money to buy the most players, is going to have the best opportunity to win,” Nick Saban, the recently retired football coach at the University of Alabama, told Congress in March.
But how do athletes, coaches and administrators determine the going rates? Many consult the Black Book, a kind of Zillow for college sports, which details an athlete’s expected annual earnings, and, in the case of sports like football and men’s and women’s basketball, even breaking them down by position and conference.
A series of three proportional area charts related to the N.I.L market. The first square shows the overall size of the N.I.L. market, the second shows that 80 percent of the market is made up by donor groups known as collectives and the third shows that only 30 percent of the market is publicly disclosed.
Opendorse, the company behind the Black Book, projects around $1.7 billion in transactions in the N.I.L. market this year.
Of that, 80 percent will come through collectives like Texas’ Team One Foundation and the Classic City Collective at the University of Georgia. But even that is an incomplete picture of a rapidly changing N.I.L. frontier awash with money.
There is no universal requirement for athletes to disclose how much they are being paid. Less than a third of the money that student athletes are making is publicly known, according to Opendorse.
Still, the Black Book is a must have for university collectives and collegiate athletic officials, as well as the lawyers involved in House v. N.C.A.A., an antitrust case in which the Black Book and all Opendorse data from 2016 through 2022 were subpoenaed. The sides recently agreed to a $2.8 billion settlement.
If a federal judge approves it, schools will be allowed to set aside around $20 million per year, beginning in the fall of 2025, to pay athletes. (The proposal also calls for a program by which athletes’ N.I.L. deals could be reviewed.)
The Black Book, copies of which were obtained by The New York Times, shows that, even as football remains the dominant sport financially, sports like women’s basketball have become increasingly lucrative. In her final season at the University of Iowa, Caitlin Clark sold out arenas, increased television ratings and had sponsorship deals valued at $3 million.
Clark may have been the sport’s unicorn, but title-contending programs are expected to spend more than $730,000 on their starting five, with guards being the most valued at $225,000.
The N.I.L. era has also created a new generation of entrepreneurs and given them a more concrete sense of their earning potential. For instance, Alex Glover, a star volleyball player who recently concluded her career at Southern Methodist University, made more than $100,000 from sponsors who wanted to be associated with her Instagram video series, called “Day-In-The-Life of a D1 Volleyballer.”
Livvy Dunne
$3.9 million
L.S.U.
Olivia Dunne, a gymnast at Louisiana State University, has become something of a celebrity in recent years. Dunne, who goes by Livvy, has leveraged a large social media following — she has over five million followers on Instagram — to notch deals with major brands like Nautica and Vuori.
Paige Bueckers
$1.4 million
Connecticut
Paige Bueckers, a standout basketball star at the University of Connecticut, similarly has millions of followers on social media and has signed N.I.L. deals with Nike, Gatorade and Verizon.
The top N.I.L. earners in women’s gymnastics usually make around $20,000 annually, about 10 times as much as their male counterparts, according to data from Opendorse. Besides the major men’s sports — football, basketball and baseball — collegiate female athletes typically earn more than male athletes in the same sport.
Expected annual compensation in select Olympic sports
Source: Opendorse. Data is based on N.I.L. transactions disclosed through or processed by Opendorse between July 1, 2021, and June 30, 2024.
Note: To be included in the calculations, players’ expected annual earnings must rank in at least the top 50 at their position. The Track/Cross Country category includes athletes in track and field.How men’s and women’s annual earnings compare in smaller sports
“By nature, athletes are disciplined and purpose-driven,” said Blake Lawrence, the co-founder of Opendorse. “What has been really cool to see is how many athletes on our platform, especially the women, lean into the opportunities to be creative and build a brand. They don’t want to get paid just for going to practice and games.”
Lawrence, a former starting linebacker at the University of Nebraska, began Opendorse in 2012 to help his former teammate Prince Amukamara monetize his brand after he entered the N.F.L. as a first-round draft pick with the New York Giants. Lawrence understood the commitment required of college athletes and anticipated that the pay-to-play model was coming sooner rather than later. More than a decade on, some 150,000 athletes have used his platform to grow their name, image and likeness revenues.
The company compiles its numbers based on previous N.I.L. marketing deals signed by a large cross section of football and basketball players and competitors in the so-called nonrevenue Olympic sports. Clients that pay for the information include university athletic departments, their collectives and athlete agencies.
“I know what it takes to be an athlete and wanted to create something like Expedia or Zillow that took the mystery out of getting good value and putting that power in the hands of athletes,” said Lawrence, who offers tutorials on topics like marketing and pay benchmarks on his Instagram feed. “This is all new to them. I see six contracts a second and want them armed with information to make what could be life-changing decisions.”
Like the American economy, college sports have a hierarchy, and its “1 percenters” are the so-called Power conferences like the SEC and the Big Ten.
Expected annual compensation for starting players in each conference by position
Source: Opendorse. Data is based on N.I.L. transactions disclosed through or processed by Opendorse between July 1, 2021, and June 30, 2024.
Note: To be included in the calculations players’ earnings must rank in the top 10 at their position.How the Power Four conferences compare
The expected annual N.I.L. compensation for a top-10-earning football player at any position is $216,000 for the Big Ten and $565,000 in the SEC, which is more than three times the annual earnings of $159,000 in the Big 12.
The SEC’s stature is even more pronounced this year. The former Big 12 powerhouses Texas and Oklahoma have joined the conference, which is made up of state universities that have long taken football seriously and invested heavily in athletics. The top-10-earning SEC players at every position — except for tight ends and specialists — earn more annually on average than players in any other Power Four conference. A running back in the SEC can now expect to make about half a million dollars, almost as much as a Big 12 quarterback. Offensive and defensive linemen in the SEC do even better, tallying upward of $700,000.
For the smaller, so-called Group of Five conferences, which include Conference USA and the Mountain West, the new N.I.L. environment puts football championships even further out of reach. The average value of top 25 players at any position at schools such as Liberty (part of Conference USA) or Boise State (in the Mountain West) is just under $50,000.
The money is lucrative in the top tier of men’s and women’s basketball, as well: A starting five of top-25-earning men’s basketball players costs about $3.3 million, with forwards on the top of the pay scale making around $750,000. And while women’s basketball earnings are comparatively much lower, top-level women’s players have had substantial growth since last year, with pay across all positions up by $30,000.
How much top-earning basketball players make
Expected annual compensation for players, on average, by position
Source: Opendorse. Data is based on N.I.L. transactions disclosed through or processed by Opendorse between July 1, 2021, and June 30, 2024.
Note: To be included in the calculations players’ earnings must rank in the top 25 at their position.
Even better for basketball stars? With their faces and personalities in full view during games, it is easier for them to enhance revenues beyond collective money through sponsorship partnerships with national brands.
This new market allowed Armando Bacot, who played at the University of North Carolina, to remain in college last season and begin work on a master’s degree in business. His partnerships with the Opendorse clients Dunkin and Kellogg’s Frosted Flakes, as well as others with regional and local companies, have made him a multimillionaire.
Many star players like Bacot are now forgoing the ritual of leaving school after just a year or two to enter the N.B.A. Instead of jumping (ready or not) into the draft in search of riches, more players are choosing the ample N.I.L. pay and more time to work on their games and degrees. (Bacot went undrafted and signed with the Utah Jazz this summer.)
“With more and more veteran guys staying in school longer, it’s going to be harder and harder for freshmen to get big minutes, because coaches would rather have veterans,” said Daniel Hennes, the chief executive of Engage, which represents college basketball stars like Bacot in N.I.L. deals. “So, underclassmen will stay in school longer, and the draft will get older and older. In a lot of ways, that’s good for everyone.”
Mike Boynton is among the many college coaches who are not so sure. He brought the future N.B.A. star Cade Cunningham to Oklahoma State with four years of shoe leather. He outworked more accomplished rivals with national titles on their résumés with the promise of doing right by the young star.
“I can’t work that hard anymore,” said Boynton, now an assistant at the University of Michigan. “Not when you can say, ‘Hey, here’s $500,000 to come spend nine months over here.’”
Source: Opendorse. Data is based on N.I.L. transactions disclosed through or processed by Opendorse between July 1, 2021, and June 30, 2024.
Note: To be included in the calculations, players’ expected annual earnings must rank in the top 25 at their position. The Track/Cross Country category includes athletes in track and field.Big sports still pay big money …
… but athletes in the so-called nonrevenue sports are finding increased earnings, too.
For many athletes — those who aren’t top stars in the marquee sports — the N.I.L. era is different, though no less exciting. Zoe Ledet, a 19-year-old sprinter at West Virginia State University, joined TikTok in 2020, at the height of Covid-era teenage boredom. She said she quickly amassed a following for “funny skits, hair care, you know, relatable stuff” and now has 1.7 million followers on the platform and nearly 300,000 on Instagram. Still, Ledet never thought brands would be interested in working with her as an athlete.
“I knew that big track athletes like Sha’Carri could get deals with Nike, but I didn’t know there were smaller deals to be had,” said Ledet, referring to the Olympic sprinter Sha’Carri Richardson.
West Virginia State
Last year, during her freshman season, Ledet was approached by B.E. Collective+, an organization that supports student athletes from historically Black colleges and universities in the N.I.L. market. She signed with the group and had N.I.L. deals worth about $3,500 in her first year.Zoe Ledet
$3,500
For Ledet, those earnings aren’t life-changing money, but she has been able to use platforms like the BE Collective+ and Opendorse to gain a better sense of her value in the new marketplace. Her followers now ask her to post more about track and to share videos from meets, content that she hopes will in turn lead to more N.I.L. deals.
“There are a lot of athletes bigger than me, of course, but N.I.L. has allowed athletes like me to widen our platform and get more recognition, too,” she said.
Source: Opendorse. Data is based on N.I.L. transactions disclosed through or processed by Opendorse between July 1, 2021, and June 30, 2024.
Note: To be included in the calculations, players’ expected annual earnings must rank in at least the top 50 at their position. The Track/Cross Country category includes athletes in track and field.
Look up expected annual N.I.L. earnings by sport
Sport
Position
Div.
Expected annual earnings
Football Football
Quarterback
SEC
$1,043,252
Football Football
Quarterback
Power 4
$819,020
Football Football
Offensive line
SEC
$779,288
Football Football
Defensive line
SEC
$756,497
M. Basketball Men’s basketball
Forward
NCAA DI
$749,201
Football Football
Wide receiver
SEC
$705,554
M. Basketball Men’s basketball
Guard
NCAA DI
$636,472
M. Basketball Men’s basketball
All
NCAA DI
$630,796
Football Football
Wide receiver
Power 4
$614,561
Football Football
Linebacker
SEC
$584,629
Business
U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
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