Report: NCAA Must Evolve To Handle NIL, Finances, Issues Facing Student-Athletes

By Barry Janoff

August 2, 2023: This past May, the NCAA hired strategy firm Bain & Co. to perform a “top-to-bottom analysis of the entire non-profit organization.”

Today, the NCAA released findings of the report, stating that, “College sports remains in a period of dramatic transformation, and the NCAA must evolve in response to and anticipation of these changes.”

The State of Business Review Of NCAA Operations focuses on key challenges facing college sports today and in the coming years years— including NIL, finances, the impact of sports wagering, mental health resources and the changing and growing needs of student-athletes — and also outlined a series of strategies the NCAA would undertake to achieve those goals.

"College sports remains in a period of dramatic transformation, and the NCAA must evolve in response to and anticipation of these changes," NCAA president Charlie Baker, who began his tenure in March and commissioned the report, said via the organization.

“We can no longer pretend things are as they always have been — and our new way of doing business will ready the national office to move forward with urgency, purpose and a plan.”

According to Baker, “I believe the results of this review provide a compelling and detailed vision that every NCAA action should anchor to."

The review analyzed “critical trends that student-athletes and the NCAA will face for years to come, including increased pressure on member schools because of the decline in college-age young adults, the skyrocketing costs of college, and new professional athletics opportunities.”

One major finding includes a “clarified operating plan for the national office that prioritizes the needs of student-athletes and aligns the national office with member schools and conferences as partners in the effort.”

That also entails the NCAA providing “a world-class athletics and academic experience for student-athletes that fosters lifelong well-being.”

In addition, the report acknowledges the “rapidly growing disparity among Div. I schools and calls for addressing the impact this gulf has on student-athlete experiences and competition.”

"The NCAA will strive to support student-athletes who are dealing with an increasingly complex and publicly accountable environment in which they play the sports they love, and we will work with our members as they confront growing challenges in higher education and the sports world," said Baker, who was governor of Massachusetts before joining the NCAA.

“College sports remain popular and will continue to grow, and there are more opportunities for growth ahead."

To that end, the NCAA said today it would offer member schools “post-eligibility injury insurance coverage for student-athletes beginning Aug. 1, 2024.”

The coverage would be for two years after student-athletes complete their college athletics experience and would cover injuries that occur while playing for their school.

The post-eligibility injury insurance program will be available to all student-athletes at all member schools in Divs. I, II and III.

The policy's annual premium is projected to be $26 million. It will have a $90,000 excess limit per injury, with no deductible. There will also be limited coverage for mental health care related to the documented injury. The policy is secondary to other insurance policies, all according to the NCAA.

"Student-athletes deserve the coverage offered in this plan, no matter their division," said Baker. "Thanks to the many voices who have supported this idea since the Div. I Transformation Committee formalized it in their final recommendations earlier this year.

“It's another occasion where the NCAA can show its unwavering commitment to and support for student-athletes."

This week, the NCAA also received a progress report resulting from an independent assessment focused on the progress the organization has made toward gender equity advancement across NCAA championships.

Last month, following months of discussion, the NCAA confirmed and provided details for the creation of the Women's Basketball Invitation Tournament.

The 32-team post-season tournament, which will be owned and funded by the NCAA, will be held annually beginning in the 2023-2024 post-season, similar to the men’s NIT.

"The NCAA will strive to support student-athletes who are dealing with an increasingly complex and publicly accountable environment in which they play the sports they love."

"The NCAA has made a concerted effort to implement gender equity principles throughout our work, and this gender equity progress report confirms that those efforts are enhancing the experiences of college athletes, especially for those participating at NCAA championships across all sports,” Felicia Martin, NCAA svp-inclusion, education and community engagement, said via the NCAA.

“In addition to focusing on equity in 88 championships this past year, we have made additional strides toward equity of opportunity in Div. I women's basketball with the creation of the WBIT and the first College Basketball Academy for women. We still have work to do, but we are proud of these results."

According to The State of Business Review Of NCAA Operations, the media rights bundle going out to bid “offers the NCAA a unique opportunity to restructure the digital and sponsorship rights tied to Div. I Men’s Basketball, making it possible to dramatically expand media and digital content and sponsorship for women’s championships.

“This bid also gives the NCAA a chance to consider a different channel for those who want to watch some of its less visible championships – and potentially some of its member organizations’ conference championships as well.”

Among issues and actions outlined in the Bain & Co. report:

Issue: NIL programming is unaccountable and lacks any kind of consumer protections for student-athletes.

Action: Put an accountable and transparent framework in place on NIL before the end of the year.

Issue: Sports betting is now legal in almost 35 states, but young people (and others) are betting on sports using mobile apps in all 50 states.

Action: Prepare student-athletes for the impact that widespread betting on college sports could have on them and their campuses.

Issue: Social media is omnipresent in the lives of young people, more so for student-athletes, who are public figures on their campuses.

Action: Build on NCAA’s mental health best practices and work with member institutions, SAACs and outside experts to confront challenges social media can create for student-athletes.

Issue: Mental health management, load management, rest and recovery and other health/well-being issues have become far more important to student-athletes in recent years.

Action: Play a leading role in sharing information and creating learning opportunities for schools and athletic departments as these trends develop.

Key findings in the report also ranged from “overhauling the national office's functions to optimize workflow and spending to reforming the championship bid process to improve student-athlete experiences and revenue potential.”

The findings include a “goal of tackling the growing officiating crisis by building a pipeline of officiating talent across the country.”

To address issues and trends raised in the Bain & Co. report, Baker said he has set several goals for the NCAA:

• Coordinate and deliver safe, fair and inclusive competition directly and via members.

• Provide world-class services to student-athletes and members that leverage the NCAA's collective scale.

• Grow the college sports ecosystem.

• Deliver sustainable funding for the NCAA mission.

The NCAA should also “determine if there are other sports that are played by collegians or by young people that are worth supporting and promoting, such as women’s flag football, 3x3 basketball, wheelchair basketball/tennis or pickleball.”

"It won't happen overnight, but we must make major progress on items that are immediately in front of us in order to set the table for next year," said Baker.

"We will get better at working together and moving more quickly than we have in the past. The world is changing quickly, and I look forward to working with our member schools to move faster."

See the full report here.

NCAA Builds Women’s Hoops

Charlie Baker Named New NCAA President

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