Troy Dannen admits there was ‘donor weariness’ at Nebraska over paying players

Donor Fatigue Meets New NIL Rules: A Test for College Athletics

Nebraska athletic director Troy Dannen isn't shy about the challenges facing college sports in the wake of sweeping name, image, and likeness (NIL) reforms.

"Some people are betting that since it’s happened, there’s no way you go backwards," Dannen said. "This has to hold. This has to work."

He's referring to the new House Settlement, a landmark agreement allowing revenue sharing between schools and athletes. While it signifies a shift from the free-for-all of recent NIL seasons, it doesn't eliminate donor fatigue entirely.

"The money that was coming in and frontloading and the money that was there for NIL the last two, three years – that was not an endless stream," Dannen explained. "It’s not just here, but it’s across the country." Now, with schools directly paying athletes through revenue sharing, some donors are questioning their own contributions: “Why am I writing a check if you’re paying them?”

The House Settlement allocates up to $20.5 million across sports, primarily earmarked for football. It aims to curb rampant spending by implementing stricter regulations. Deals exceeding $600 require third-party approval and must be processed through a new clearinghouse called NIL Go.

A dedicated enforcement arm has also been established to address violations.

Despite these measures, Dannen remains cautious. "The biggest question is, what are we going to do with high school recruiting? Because the frontloading has moved to high school recruiting," he stated. The settlement's lack of control over pre-enrollment deals allows for potential circumvention, leading to a "a lot of money going pre-enrollment right now as a way to circumvent the gap."

The long-term impact of the House Settlement remains unclear.

"There’s a lot of us that have made suggestions about what we should do from a regulatory standpoint. We’re waiting," Dannen said. This uncertainty fuels frustration among athletic directors like himself who are urging patience and regulation to ensure fairness in the evolving landscape.

Ultimately, Dannen emphasizes the need for balance: avoiding donor fatigue while securing competitive rosters. Success on the field is paramount, but only time will tell how these new rules shape the future of college athletics.