Direct Payment System for College Athletes

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Direct Payment System for College Athletes

Inspired by a conversation on:

Freakonomics Radio

Freakonomics Radio

648. The Merger You Never Knew You Wanted

Host: Stephen Dubner

Timestamp: 00:29:05 - 00:30:00

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Feather Flow

Direct Quote

"It requires NCAA programs to distribute a few billion dollars to recent and current athletes in the form of lost NIL revenue."

Market Gap

Current NIL system lacks direct compensation for college athletes.

The recent changes in NCAA regulations have allowed athletes to profit from their name, image, and likeness (NIL), but the system remains fragmented and often relies on third-party deals that may not be sustainable. Many athletes face uncertainty in receiving promised payments and lack the security found in traditional employment. A direct payment system would provide a clear, reliable method for compensating college athletes based on their contributions to their school's athletic programs. Without such a system, many athletes may continue to experience financial instability and inequities.

Summary

This idea focuses on creating a direct payment system for college athletes based on their contributions to their respective programs. Following the recent legal settlements that allow for more direct compensation, schools could establish a structured payment system that ensures athletes receive fair compensation for their efforts. This system would reduce reliance on fluctuating NIL deals and provide a steady income stream for athletes, enhancing their financial security during their college years. By implementing this model, schools would not only comply with new regulations but also foster a more ethical sports environment that values athletes' contributions.

Categorization

Business Model
Service
Target Founder
Subject Matter Expert
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000 - $10,000

Potential MRR (18-24 months)

Conservative
$5,000 - $10,000 MRR
Moderate (Most Likely)
$20,000 - $40,000 MRR
Optimistic
$50,000 - $100,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
7/10
Feasibility
8/10
Market Potential
9/10
Evidence
8/10
Overall
8/10
Found on October 3, 2025 • Analyzed on October 3, 2023 11:59 AM

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How should I validate this service idea before building it?

2:34 PM

Great question! For a service idea like this, I'd recommend starting with these validation steps:

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Collective Ownership Model for College Sports

The proposed collective ownership model for college sports would allow fans and alumni to buy shares in their university's athletic programs, creating a new source of funding and engagement. By adopting this model, colleges could alleviate financial pressures on their athletic departments while also fostering a greater sense of community among supporters. This structure would not only create a new revenue stream but also allow for greater accountability and transparency in how funds are utilized. As programs continue to navigate financial challenges, this innovative approach could redefine the relationship between colleges and their supporters, ensuring a more stable future for all athletic programs.