The NIL era officially began on July 1, 2021, with the Supreme Court’s ruling in O’Bannon v. NCAA. The years following have been the most chaotic in college sports history, and to some, the NCAA landscape is completely unrecognizable. 

NIL has become the talking point for pundits, players, coaches and X personalities. However, one perspective has remained largely overlooked: the donor. Donors are the engine behind NIL — the X-factor for schools looking to break generational cycles of failure.  

Mark H. Carter (B.E. ’98) made headlines earlier this year for endowing the Vanderbilt Men’s Basketball’s head coach position and announcing a $1.5 million matching gift to support the program. The donations came amidst an unprecedented season for Vanderbilt, which saw the Commodores qualify for their first NCAA Tournament since 2017. The Hustler sat down with Carter to discuss his perspective on NIL and its implications for Vanderbilt, the NCAA and student-athletes. 

“I think [NIL] is here to stay. I don’t see us going back to the days where you’re just purely a student athlete,” Carter said. 

No boundaries, no rules 

Carter sees the merit in compensating student-athletes for their work, but he believes the NIL space has become a modern “Wild West.” 

“As [it is] currently constructed, I don’t think it’s great for the student-athlete [or] the university,” Carter said. “There’s just so much switching. There’s so much dynamic change happening at the student level. I think it’s particularly unhelpful.” 

Part of that difficulty is the burden of choice placed on student-athletes trying to navigate a tumultuous landscape. 

“Each and every year, an individual is confronted with the decision of, ‘Do I stay and play, or do I maximize market value?’” Carter said. “I think it’s a very difficult thing for the individual because there’s no right answer.” 

The nationwide game of musical chairs also leaves universities scrambling year after year to fill holes in its rosters. 

“It’s really tough to build a team culture if you have a new team every year,” Carter said. 

NIL can build a dream team in one offseason, but it can also derail a program just as quickly. Carter supports NIL, but he believes that change is necessary. 

“I think it can be a great thing,” Carter said. “But right now, we find ourselves in this weird period where there’s no boundaries, no rules.” 

Leveling the playing field 

One way Carter believes NIL can be regulated is to have conferences decide what proportion of a school’s money is allocated to each sport.

“For instance, you may say, ‘X percent of our cap is going to football, and that’ll be thrust across all members of the SEC,’” Carter said. “Once the money is level, it really does come down to tried-and-true competition, talent development and all the things, as a sports fan, you love to see.” 

A recent settlement between the NCAA and the US House of Representatives marked a major step toward regulating NIL. The June 6 settlement allows direct payments to student-athletes but also institutes a fair-market value review process for all NIL deals valued over $600. Carter views aspects of the settlement favorably. 

“If I own a car wash at the corner of Broadway and First [Avenue], I’ll no longer be able to give an individual a million dollars for showing up to shake a few customers’ hands,” Carter said. “I think instituting that framework is logical, and the gaming of the system goes away.” 

Carter believes regulations will help college sports regain some of the magic that has faded in recent years. 

“It’s important because we all want to get back to talent development and competition,” Carter said. “This money thing clouds that a little bit. While it’s necessary, I personally don’t want that guiding [student-athletes] in-season. I really do want them to focus on the sport they’re trying to master.” 

The future 

Many wonder whether NIL is sustainable, and Carter has an answer. 

“I don’t think it’s sustainable,” Carter said. “I think a lot of these collectives are feeling very stretched. I think [payments] will come down over time.” 

Carter consequently predicts a gradual decline. 

“I do think [NIL] will start to wane quite a bit because the donors are getting quite tired,” Carter said. “Fundamentally, everyone has limited resources.” 

He believes that many share his sentiments, and this may explain the recent chaos in transfer cycles. 

“I think people are viewing this as one of the final years where you can [cash out],” Carter said. “That’s why it [has] exploded.” 

Another reason for the surge could be the House settlement.

“I think you’re seeing this big explosion because it’s about to flip to the university away from the collective,” Carter said. 

This time, it’s personal 

While donations to collectives undoubtedly give schools a competitive edge in the current climate of college sports, Carter did not make his pledges to appease the NIL era. He made them to fulfill a dream. 

“It’s a very personal decision for me and my family,” Carter said. 

Carter finds great joy in watching Vanderbilt sports, but he also sees athletics as a means of promoting his alma mater. 

“The reality is, basketball is an advertising vessel,” Carter said. “When Vanderbilt beat Alabama in football, we were on SportsCenter for five days straight. As I told [Chancellor] Daniel Diermeier, [you] can’t buy that amount of advertising.” 

The heightened exposure from athletic success could raise awareness for Vanderbilt’s academic prowess and positively impact the institution’s notoriety. 

“You’re fundamentally able to target an audience that may not know Vanderbilt for academic reasons,” Carter said. “It’ll cause us to really enhance our academics, enhance the quality of students we’re soliciting [and] improve our rankings.” 

Carter is already starting to see the impact in his home city of Boston.

“I got so many emails from parents of prospective students [after the recent success],” Carter said. “It just has this multiplying effect, whether it’s the branding, the alumni or the advertising for the school.” 

For Carter, it’s always been bigger than basketball. As an undergraduate, he turned games into day-long rituals with friends. Now, he’s passed the tradition along to his children. 

“They’ve totally gotten into [rooting for Vanderbilt]. They love it,” Carter said. “When I endowed the head coaching position for Vanderbilt, my entire extended family was there.” 

The team’s recent success even brought together some old friends Carter used to lounge with in SATCO before games. 

“There was a text chain that hadn’t been touched in nine months,” Carter said. “When Vanderbilt hoops started doing well, people picked up their phones and started texting.” 

For all of its destructive and unifying powers, NIL has become the focal point of the college sports world. Above all the noise from personalities and analysts, Carter’s words offer insight into how a donor perceives NIL — and may even give Commodore faithful a shred of hope for the future. 

The ramifications of the House Settlement remain to be seen, but NIL and alumni donations will continue to have a seat at the table.