Written by: Brandon Scuderi
For decades, college athletics followed a strict model in which student-athletes could receive scholarships, but were hindered from earning outside financial compensation. That model, however, has recently been altered by the introduction of Name, Image, and Likeness (NIL) agreements in 2021. NIL allows college athletes to profit from their personal brand through endorsements and sponsorships. Now, college football recruiting has significantly transformed into something entirely new. Top players not only choose based on coaching and development but now find themselves influenced by financial incentives that rival professional contracts.
This transformation was fully displayed when Bryce Underwood, the 2025 class’s No. 1 recruit, announced that he would be flipping his commitment from Louisiana State University (LSU) to the University of Michigan. The 17-year-old Belleville, Michigan, native had initially committed to LSU in January 2024 but shocked the world by switching to Michigan in November 2024 (Jeyarajah, 2024). What prompted this change? Was it a coaching shift, a different development plan, or possibly something entirely different? These questions were reportedly answered this past fall when Underwood released a video on Instagram titled “Hometown. Hero,” announcing that he will be signing with the University of Michigan for an NIL deal worth $10.5 million.
Averaging $2.625 million per year, Underwood’s NIL deal would stand as the largest in college sports history. When the first reports of the deal emerged, it was estimated at $10.5 million, though numerous reports have suggested he could receive up to $12 million (Maynard, 2024). Similarly, other programs have adopted NIL opportunities effectively, such as the Colorado Buffaloes with Shedeur Sanders. Shedeur, the son of NFL Hall of Famer Deion Sanders, has become a standout figure, racking NIL valuations of $6.2 million, all before stepping into the NFL (Lee, 2024). Although securing NIL deals is common today, Underwood’s deal stands out for its longevity and total value, which has never been seen before.
Many critics have expressed major concerns about the process of NIL deals, questioning why they are being distributed to college athletes as if they were a professional free agency system. Years ago, could a 17-year-old quarterback secure an eight-figure deal before taking a collegiate snap? While a deal of that size wouldn’t have been spoken of in the past, NIL has brought this to reality. One concern is the fact that top college players can earn more money than certain NFL players. Take Brock Purdy, one of the top quarterbacks in the NFL, for example. He remains on his rookie deal and has over 16 college football players making more than him in 2024 (Blasi, 2024). This financial reality has shown how powerful the NIL is and why top programs like Michigan are driven to secure top recruits. So, how did Michigan pull such a successful recruitment for Underwood? Michigan, a university known well for its passionate alumni and donors, funded an NIL deal to bring Underwood to Ann Arbor. The influential alumni Dave Portnoy and co-founder of Oracle Larry Ellison are the top contributors to this recruitment success (Weinstein, 2024). This outside financial support helps Michigan’s Brand Equity (BE), giving it a more competitive edge in attracting top recruits. However, this sort of outside financial influence raises concerns about fairness in recruitment. Top collegiate football programs (Michigan, Alabama, Ohio State, etc.) with more resources may have a “monopolistic” effect in offering competitive NIL deals. Consequently, programs without similar support may struggle to compete with these top programs. Originally intended to allow college athletes to profit from endorsements and sponsorships, NIL has quickly shaped into a replicated system of professional sports free agency.
While it’s very clear why Michigan would make such a significant investment in Underwood’s talent, it also has a financial upside. Underwood’s marketability extends beyond the football field as the No. 1 ranked recruit in all High School football in 2025. Likely, Michigan is investing in Underwood as a player, as well as a public figure, recognizing a potential big return on investment (ROI). Given the significant amount of money he signed, it is clear that he is seen as an influential figure outside of football. In fact, Underwood has already begun attracting attention from major brands, including collaborating with Barstool Sports. This led to the launch of ‘QB1,’ featuring his name and number, designed in Michigan colors (Breiler, 2024). A similar investment existed with former University of Southern California’s (USC) Quarterback, Caleb Williams. His NIL skyrocketed at USC, especially after winning the Heisman Trophy, with brand deals with Nissan, AT&T, and Dr. Pepper (Parmer, 2024). The ROI on William’s NIL investment has been significant, as his legacy has helped USC secure major deals, recruit top recruits, and increase the program’s financial standing. Similarly, the branding and attention that Underwood will bring will be consistently beneficial for Michigan. The Wolverines can expect a strong ROI through continued collaborations with big brands. With Underwood’s presence, Michigan becomes more appealing to other top recruits and positions its program for long-term financial success.
The Wolverines, recently off a national championship in 2023, are banking on Underwood to bring another title to Ann Arbor. His deep connection to his home state and desire to be a part of a historical program made Michigan a perfect destination. During his time at Belleville High School, he forged an impressive resume by “leading his team to two MHSAA Division 1 State Championships in 2021 and 2022” (Goricki, 2023). Due to his High School success, Underwood was determined to find a program that consistently competes for championships. Despite LSU offering a deal that would have secured him a large amount of money, Underwood found more value in Michigan’s deal. This deal reflects his goal to be part of a powerhouse collegiate program and win a National Championship. With Michigan’s passionate fans and the NIL opportunity, Underwood can be confident that he has found the right fit for his future career.
Bryce Underwood’s decision to flip his commitment to Michigan will become a monumental moment in college recruitment. As NIL deals continue to increase year after year with more top recruits securing multi-million dollar deals, the gap between wealthy and less wealthy programs will likely increase. These deals are starting to take the shape of professional contracts, setting NIL agreements in college football apart from those in other collegiate sports. As NIL enters this shift, will the NCAA institute new regulations to prevent this, or will college recruitment embrace this free-market system? As the 2025 college football season kicks off in August, it will be interesting to see whether Bryce Underwood and other top NIL earners live up to their financial expectations.
References
Black, Brooke. “The $12 Million Quarterback.” Ann Arbor Observer, 25 Jan. 2025.
Blasi, Weston. “Super Bowl Quarterback Brock Purdy Made $870,000 This Season — 16 College Football Players Made More via Nil.” MarketWatch, 9 Feb. 2024.
Breiler, Chris. “Bryce Underwood Launches NIL Apparel with Barstool Sports.” Michigan Wolverines On SI, Sports Illustrated, 29 Nov. 2024.
Goricki, David. “Prep Football Notes: QB Bryce Underwood Building All-Time Resume during Belleville March.” The Detroit News, 5 Nov. 2023.
Jeyarajah, Shehan. “Five-Star QB Bryce Underwood Commits to Michigan: No. 1 Overall 2025 Prospect Flips Pledge from LSU in Shocker.” CBSSports.Com, 22 Nov. 2024.
Lee, Kenny. “Colorado’s Shedeur Sanders Reveals Top NIL Deal in His Future.” Colorado Buffaloes On SI, Sports Illustrated, 28 Oct. 2024.
Lounsberry, Matt. “Report: Michigan’s Bryce Underwood Was Highest-Paid Prospect in 2025 Class.” Michigan Wolverines On SI, Sports Illustrated, 6 Feb. 2025.
Michigan Stadium Aerial. 14 June 2021. Wikimedia Commons, https://commons.wikimedia.org/wiki/File:Michigan_Stadium_Aerial.jpg.
Parmar, Pankti. “Caleb Williams Nil Earnings: How Much Did He Make from Nil Deals at USC?” EssentiallySports, 21 Apr. 2024.Weinstein, Arthur. “Dave Portnoy Explains How Larry Ellison Helped Michigan Land Bryce Underwood.” Awful Announcing, 27 Nov. 2024.