NIL is different state to state as state legislatures have gotten in to the act.
As I understand it, high school athletes in Tennessee can't receive NIL money and still be eligible to play sports in Tennessee high schools. Other states, California being one of them, can. And from what I am told that is why a recent QB commitment from California is not moving to West Knoxville to play his senior year of high school football as was originally planned, but is staying in California and transferring to another high school there. He can go ahead and begin getting NIL money in California, where he can't in Tennessee.
I don't have any issue with the basics of NIL. It does, however, need to be standardized across the board by all of the schools instead of different schools having different rules based on state laws. The playing field needs to be leveled.
Another issue is that too many people have their hands out looking for a piece of the pie.
Case in point, the Speyer Group, who is "working with" potential UT athletes, by their own admission, are taking 10% of all monies they get to put deals together off the top. To put that in perspective, the NFL only allows 3% for agent fees, and the NBA 4%. And because Speyre is a for profit company the "donations" they are soliciting from Joe and Jane Vol Fan are not tax deductible, but they aren't giving that info out front.
What I see happening is NIL forcing the "super division" of 50-60 schools in football, the upper 2/3 of the power 5 and a few others - to finally be formed. The lower levels of the power 5 and the mid majors just don't have the financial ability to play the NIL game.
The power basketball programs seem to be doing a decent job of putting NIL deals together, but they aren't the $8 million type deals, so we'll still see early entrants to the NBA on a regular basis. And surprisingly, I am being told that some baseball programs, UT included, are coming up with enough NIL deals to help the players and their families make up for what scholarships don't cover.
But all of that said, NILs are taxable income, so whatever number you hear has 30% taken off the top for Uncle Sam to waste. The schools that have been funneling money under the table to signees and their current athletes aren't going to stop doing that. It's pretty naive to believe that they will.