Big news was announced from the NCAA this week: the agreement known as the NLI (National Letter of Intent), which had been around for about 60 years… is gone. Now, athletes face significant shifts in how they navigate the college recruiting process and their sports careers. This change brings both opportunities and potential challenges, and athletes, their parents and/or guardians should be aware of the following implications. Here is what it could mean for athletes.
What the Elimination of NLI Could Mean for Athletes
More Flexibility, But Less Commitment. Previously, the NLI was a binding agreement requiring athletes to stay with a school for one academic year. Its removal allows athletes greater freedom to explore their options, as they are no longer locked into a single institution for that first year. This can be beneficial, especially if a school or athletic program is not the right fit.
However, this increased flexibility can come at a cost. Schools may be less inclined to offer long-term support if athletes can easily transfer out without penalties, which could lead to a decrease in institutional loyalty. Athletes should consider that the lack of a binding NLI may also reduce the financial security previously provided through these one-year agreements.
Scholarship and Financial Aid Contracts Will Change. Without the NLI program, financial aid and scholarship agreements will replace the letter, which means these new agreements could vary widely between schools. While some contracts might be more favorable to athletes, others could be more restrictive or performance-based, making it crucial for athletes to fully understand the terms of their financial aid. Unlike the uniformity of the NLI, these new agreements may resemble professional contracts with varying conditions.
Increased Importance of Academic Performance and Transfers. Athletes must pay close attention to how the end of the NLI affects their ability to transfer between schools. Under the previous NLI rules, transferring within the first year came with penalties, such as losing a season of eligibility. The removal of these restrictions opens more doors for movement, but at the same time, athletes should still be mindful of their academic and athletic performance, as transfers may still require eligibility checks.
If an athlete transfers frequently, it might affect their academic progress or standing with the NCAA, potentially jeopardizing both their athletic and academic careers.
Uncertainty for Smaller Sports. Revenue-driven sports like football and basketball may continue to thrive in this new environment, especially as revenue-sharing models begin to take shape following recent legal decisions. However, athletes in non-revenue sports should be aware of the potential downsides. Some smaller sports programs, like cross-country or track and field, may see reduced funding or even elimination if schools prioritize the big money-makers.
Athletes in these sports may need to navigate a landscape where institutional support is less reliable, and where personal and team success is tied more closely to their ability to drive their own revenue through NIL opportunities.
Revenue Sharing Could Become a New Norm. In tandem with the elimination of the NLI, the NCAA is also preparing for major changes to athlete compensation. A recent antitrust settlement paves the way for schools to begin revenue-sharing with athletes, which could start as early as the 2025-26 school year. While this presents an exciting opportunity for athletes to be compensated more fairly, it also introduces a level of professionalism that could change the dynamic between athletes, schools, and collegiate sports.
The elimination of the NLI signals a major shift in how college sports function. For athletes, this change provides more freedom and flexibility, but also comes with new challenges, particularly regarding financial aid agreements, transfer rules, and the viability of smaller sports programs. Athletes should carefully consider the long-term implications of these changes on their academic, athletic, and financial futures.