NIL, Eligibility, and a Bigger Payday Ahead: Who Really Benefits?
October 17, 2026 | College Athletics & NIL
By Marcus Coleman, CFP® | Founder & CEO, Canaan Holdings LLC | Former Division I Football Player, Syracuse University
College sports is becoming a billion-dollar business. But are we building the right financial systems to protect the athletes who make that business possible?
As a former Division I football player at Syracuse University, I've experienced college athletics from inside the locker room.
As a CFP® professional and founder of Canaan Holdings LLC, I now examine the industry through a different lens: capital allocation, financial risk, contracts, and long-term economic opportunity.
Those two perspectives lead me to one conclusion:
College athletics doesn't just need more money. It needs better financial infrastructure.
Three developments from October 16 illustrate why.
1. Eligibility Is No Longer Just About Playing Football
When I played at Syracuse, eligibility determined whether you could compete.
Today, eligibility can also determine whether an athlete can earn substantial compensation.
On October 16, the NCAA challenged an Ohio executive order addressing additional eligibility for certain college athletes.
Meanwhile, temporary court relief in Kentucky allowed athletes involved in eligibility litigation to return to competition.
These are ongoing legal disputes, not permanent changes to NCAA eligibility rules.
But consider the economic consequences.
One additional season could mean:
Another year of NIL endorsements.
Additional institutional revenue-sharing payments.
Continued scholarship benefits.
More opportunities to develop an athlete's professional value.
My perspective: An eligibility decision is increasingly an economic decision.
Athletes shouldn't enter financial agreements without understanding what happens if their eligibility changes.
Contracts need clear provisions addressing payment obligations, termination, transfers, and eligibility contingencies.
Because an opportunity isn't truly valuable if you don't understand the risks attached to it.
2. College Football Could Generate Hundreds of Millions More
The College Football Playoff is reportedly moving toward another major expansion.
On October 16, reports described a preliminary agreement that could expand the postseason to 24 teams beginning in 2027, with approximately $345 million in additional annual media payments.
The proposal is not yet a finalized agreement.
From my perspective as a former athlete, additional playoff opportunities mean more exposure, competition, and commercial potential.
But as a financial professional, I ask a different question:
How much of that additional revenue actually creates sustainable economic value?
More games also mean additional travel, operating expenses, athlete support costs, and physical demands.
Revenue is not profit.
And profit is not necessarily cash flow.
Universities must understand those distinctions before making long-term financial commitments based on projected revenue.
My perspective: Growth without financial discipline can create instability, regardless of how much money an organization generates.
The same principle applies to athletes managing their first significant compensation agreements.
3. The NIL Contract Matters as Much as the Dollar Amount
I've spent time on both sides of the athlete experience: competing on the field and studying financial decisions off it.
One thing I've learned is that the headline number rarely tells the full story.
An athlete might celebrate signing a six-figure NIL agreement.
But what does that agreement actually require?
Before signing, I believe every athlete should understand five questions:
Who is paying me, and when?
What am I contractually required to deliver?
What happens if I transfer or lose eligibility?
Who controls my name, image, likeness, and related content?
What happens if a payment is delayed, disputed, or challenged?
These aren't minor administrative details.
They determine how much economic value an athlete can actually realize.
My perspective: A well-structured agreement can be more valuable than a larger agreement with poorly defined obligations.
That is why athlete representation must extend beyond negotiating compensation.
It must include helping athletes understand the agreements they're entering, with appropriate legal review.
4. Taxes and Compliance Are Part of the Business
Athletes are increasingly operating like entrepreneurs, whether they recognize it or not.
They may have multiple income sources, contractual obligations, expenses, and reporting requirements.
NIL compensation can create federal and state tax obligations. Cash payments and qualifying noncash benefits may be taxable.
For 2026, the federal Form 1099-NEC reporting threshold is $2,000.
That does not mean income below $2,000 is automatically tax-free.
Separately, certain third-party NIL agreements are subject to College Sports Commission reporting and review requirements through NIL Go.
Tax compliance and NIL compliance are separate responsibilities.
My perspective: Athletes need financial organization before financial complexity becomes a problem.
That starts with basic habits:
Track every contract and payment.
Maintain organized expense records.
Understand potential tax obligations.
Monitor reporting deadlines.
Coordinate with qualified legal and tax professionals.
These practices aren't glamorous.
But neither is losing money because you failed to manage it properly.
5. Athlete Protections Must Evolve With Athlete Compensation
Federal lawmakers are also considering changes to the rules governing college sports.
The proposed Protect College Sports Act addresses issues including athlete representation, transfer restrictions, compensation oversight, and athlete protections.
Although the legislation passed the Senate in September, it has not become federal law.
That distinction matters.
Proposed protections are not the same as enforceable rights.
As compensation increases, I believe the industry must take a more comprehensive approach to protecting athletes.
That includes contractual transparency, financial education, appropriate medical protections, and clear accountability among the organizations involved.
My perspective: Athlete compensation and athlete protection should develop together.
One without the other leaves the system incomplete.
6. The Real Opportunity Is Bigger Than NIL
When people discuss the future of college sports, the conversation often centers on how much money athletes can earn.
I believe that's only part of the opportunity.
The larger question is:
What systems will help athletes turn short-term opportunities into long-term economic stability?
That requires more than representation.
It requires coordination among legal professionals, financial professionals, business advisors, families, universities, and other stakeholders.
It requires infrastructure that supports athletes before, during, and after their playing careers.
That's part of the vision behind Canaan Holdings LLC.
Through our businesses, including Canaan Sports Management, Canaan Business Advisory, and Canaan Family & Talent Services, we're working to build complementary services around the increasingly complex needs of athletes and the people supporting them.
Not every athlete will become a professional.
Not every NIL opportunity will become a long-term business.
But every athlete deserves the opportunity to make informed decisions about their economic future.
The Canaan Perspective: Strategy Follows Structure
Football taught me the importance of preparation, discipline, and execution.
My experience in financial services reinforced those same principles.
Talent creates opportunity.
But structure helps determine what you do with it.
As college athletics continues to commercialize, I believe the greatest opportunity is not simply increasing compensation.
It's building the systems that help athletes, universities, and their advisors manage that compensation responsibly.
The future of college sports won't be defined only by how much money enters the industry.
It will also be defined by how effectively that money is managed, protected, and converted into lasting opportunity.
That's why I believe the next chapter of college athletics is about more than NIL.
It's about economic infrastructure.
Strategy Follows Structure.
What I'm Watching Next
Eligibility litigation: How ongoing court decisions affect athlete compensation opportunities.
College Football Playoff expansion: Whether proposed media revenue translates into sustainable financial growth.
NIL legislation: Whether Congress establishes new federal standards for representation, transfers, and athlete protections.
NIL compliance: How clearinghouse reviews, fair-market-value assessments, and enforcement evolve.
Athlete financial education: Whether financial literacy and long-term planning become standard components of athlete support.
Sources & Further Reading
NCAA, October 16, 2026: Federal legal challenge concerning Ohio athlete eligibility.
Associated Press, October 16, 2026: Preliminary College Football Playoff expansion agreement.
A Sea of Blue, October 16, 2026: Kentucky athlete eligibility litigation.
Internal Revenue Service: Name, Image and Likeness Income.
College Sports Commission: NIL Go reporting and compliance guidance.
U.S. Senate Commerce Committee: Protect College Sports Act.
Disclosure: Research current through October 17, 2026. This article represents the author's perspective and is provided for educational and industry analysis purposes only. It does not constitute individualized legal, tax, or investment advice.
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