NIL payments continue long history of college athlete compensation

The current era of Name, Image, and Likeness (NIL) payments represents a continuation of a long, complex history regarding athlete compensation in American college sports. Historically, athletes received various forms of inducements, including cash, train tickets, and scholarships, often through unofficial or ‘under the table’ channels.

Following the 1948 Sanity Code, the NCAA attempted to regulate recruiting inducements and maintain amateurism, eventually standardizing athletic scholarships in 1956. However, legal challenges significantly altered the landscape. A pivotal moment occurred in 2014 when former UCLA basketball player Ed O'Bannon won a class-action lawsuit regarding the use of his likeness in video games. This legal victory challenged the NCAA’s control and paved the way for athletes to receive stipends for cost-of-living expenses.