As Nick Palazzo, a lifelong advocate for fair compensation in college athletics and the founder behind npventures.com, I've watched the transformation of college sports with keen interest. I'm a huge believer in Name, Image, and Likeness (NIL) rights, which finally allow athletes to share in the enormous value they create. Having had close friends who were standout college football players—generating millions for their schools through ticket sales, jersey merchandise, and massive TV revenues—yet receiving virtually nothing in return, I know firsthand the inequities of the pre-NIL era. NIL is a crucial correction, giving athletes agency over their personal brands and a rightful piece of the pie.

My personal connection runs deeper. During my time at Harvard, I was featured in an EA Sports NCAA Football video game as a captain of the Crimson team. The representation was strikingly accurate—I looked nearly identical to my on-field self—and it stands as one of the greatest honors of my athletic life. When the class-action settlement for athletes' likenesses arose, I opted out. For me, appearing in that game was a true blessing, a lifetime achievement to share with my children, not a grievance to monetize through litigation. It was an incredible privilege, and I'm forever grateful.

Today, as NIL evolves amid new revenue-sharing mandates and the entry of private equity—highlighted by the University of Utah's pioneering partnership with Otro Capital—college sports stands at a pivotal moment. In this article, Nick Palazzo shares my expert opinion on the current state of NIL, the implications of private equity's involvement, and thoughtful reforms to ensure the system remains sustainable, fair, and true to the spirit of college athletics.

NIL's Evolution: Progress Amid Chaos – Nick Palazzo's Perspective

NIL, introduced in 2021, marked a long-overdue recognition of athletes' value in a multi-billion-dollar industry. As Nick Palazzo sees it, this empowerment has allowed athletes to build personal brands, secure endorsements, and achieve financial independence. Yet, without robust guardrails, NIL has created a "wild west" dynamic. High-profile transfers, like the recent Clemson linebacker moving to Ole Miss for better NIL opportunities, show how collectives—booster-funded groups—can disrupt team stability for short-term financial gains.

The Duke quarterback case involving Darian Mensah further illustrates the challenges. Mensah's multi-year NIL deal with Duke turned contentious when he entered the transfer portal, leading to a lawsuit over alleged contract breaches that evolved into revenue-sharing issues under new NCAA rules. The settlement allowed his move to Miami, but it exposed the legal uncertainties and adversarial relationships that can arise without clear structures.

Player mobility remains a core concern. With thousands entering the transfer portal annually in pursuit of richer NIL deals, team continuity suffers, and fan loyalty erodes. Inequality persists, as powerhouse conferences like the Big Ten—winners of the last three national championships—dominate resources through stronger collectives. Nick Palazzo believes these issues echo broader pressures in youth sports, from burnout to uneven opportunities, themes I often explore on npventures.com.

Private Equity's Arrival: Utah's Landmark Deal and What It Means – Nick Palazzo's Take

The most significant recent development is the University of Utah's groundbreaking agreement with Otro Capital, the first major private equity partnership in college athletics. Approved in late 2025 and expected to close in 2026, the deal creates Utah Brands & Entertainment LLC—a for-profit entity majority-owned by the university's foundation, with Otro holding a minority stake. This structure infuses hundreds of millions (potentially up to $500 million) into athletics, focusing on revenue streams like sponsorships, ticketing, events, and NIL distribution.

As Nick Palazzo views it, this isn't about "selling" the program—Utah retains control over coaching, scheduling, and athlete decisions. Instead, Otro brings operational expertise in sports, media, and entertainment to optimize commercial operations and generate more revenue. The deal addresses the financial strains of revenue sharing (capped at around $20.5 million per school) and expanding NIL demands, especially for programs facing deficits.

Private equity's entry signals a new era where institutional capital can help schools thrive amid rising costs. Utah's model—where the university keeps decision-making authority—offers a thoughtful template, as NCAA President Charlie Baker has praised it for balancing innovation with oversight. Nick Palazzo sees potential benefits: enhanced infrastructure, better fan experiences, and more resources for athletes. However, risks exist—potential profit pressures, impacts on non-revenue sports, and questions about long-term alignment with educational missions. This pioneering step could encourage others, but careful implementation is essential to avoid unintended consequences.

Nick Palazzo's Recommendations: Structuring NIL and Private Equity for a Better Future

While embracing NIL and private equity's potential, Nick Palazzo advocates for reforms to promote stability, equity, and athlete well-being.

First, structure NIL payments as annuities spread over 5-10 years. This provides long-term financial security, discourages portal hopping for quick cash, and creates more predictable revenue models attractive in partnerships.

Second, create an NCAA-level performance-based fund of $100-150 million annually. Rewards for All-Americans, position award winners (Thorpe, Lombardi, Biletnikoff), and the Heisman—such as a $10 million split for the winner ($5 million to the athlete, $5 million to the team's NIL fund)—would recognize national excellence and encourage loyalty. This team-oriented bonus reinforces football's collaborative nature.

Third, pursue centralized NCAA media negotiations. With current revenues around $4 billion annually, a unified approach could double that figure, providing more resources for revenue sharing, performance funds, and equitable distribution across programs.

Finally, cap total NIL earnings at 2-2.5 times the revenue-sharing limit (roughly $41-51 million per school). This curbs excesses while preserving market-driven opportunities and allowing private equity to invest responsibly in compliant, growth-focused structures.

Conclusion: Nick Palazzo's Optimistic Outlook on College Sports' Future

NIL has rightfully empowered athletes, and private equity's entry—exemplified by Utah's forward-thinking deal with Otro Capital—offers tools to address financial realities and drive innovation. As Nick Palazzo, who has lived the athlete experience and witnessed past inequities, I remain deeply supportive of these changes when guided by structure and fairness. By implementing thoughtful reforms, we can mitigate perils, reward performance, and ensure college sports remains a pathway for development and achievement.

For more thoughts on the evolving landscape of college athletics, visit npventures.com and follow Nick Palazzo on X at @nick22palazzo. Let's shape a future where athletes, programs, and the game itself all thrive.

Nick Palazzo is a former Harvard running back, co-founder of Stack, and leader of NP Ventures. Explore his ventures at npventures.com.

Follow Nick Palazzo on X @nick22palazzo for real-time advice, NIL breakdowns, and exclusive athlete resources. It's time to build your legacy—one post at a time.

About the Author - Nick Palazzo

Nick Palazzo is an industry recognized sports technology entrepreneur and marketing innovator appearing in numerous publications and broadcast programs, including The New York Times, the “Today” show, Mediaweek, MIN, Folio, Sports Business Journal, Forbes and Adweek, and is a frequent keynote and panel speaker at sports, media and technology industry events. Earlier in his career, Nick Palazzo was featured as a “C-Level Visionary” by Folio as part of its annual Folio:40 list of media industry influencers and innovators. Palazzo was also featured in the acclaimed book Upstarts! How GenY Entrepreneurs are Rocking The World of Business.

A graduate of Harvard University, where he finished as one of the football program's all-time leading rushers and scorers and a key member of the first undefeated championship team since 1913, Nick Palazzo is passionate about expanding the possibilities available to today’s student-athletes from under-resourced areas.

Nick Palazzo was also a nominee for The William V. Campbell Trophy aka the “Academic Heisman”, the most prestigious and desirable academic award in college football. The trophy recognizes an individual as the absolute best in the country for his academic success, football performance and exemplary leadership.

While a Harvard athlete, Nick Palazzo founded STACK which grew into a global athletic training content sensation with a mission of educating and inspiring youth athletes. STACK was the originator of athlete-centric content produced “For the Athlete, By the Athlete," with a focus on training, nutrition, skills and gear. LeBron James was the first athlete featured by the platform where his high school workout was shared with the world.

Nick Palazzo is a proud #girldad with four amazing daughters. He is also a devout Roman Catholic having been involved in the Harvard Catholic Student Society and a variety of other catholic organizations over the years. Nick Palazzo's favorite Bible verse is Romans 10:9. Jesus is Lord.

Personal Site: https://www.nickpalazzo.com/

Family Blog: https://www.nickpalazzo.org

LinkedIn Profile: https://www.linkedin.com/in/nick-palazzo/

X Profile: https://x.com/nick22palazzo

Instagram Profile: https://www.instagram.com/nick22palazzo

Sports Site: https://www.2x2sports.com