College recruiting becomes big money

When you think of high-paid athletes, you might think of Stephen Curry sinking long threes for the Golden State Warriors or Tom Brady slinging the pigskin for the New England Patriots (or, more recently, the Tampa Bay Buccaneers). Yet many pro athletes got started in college, including both Brady and Curry. And just as in the pros, finding talent at the college level means winning games and making money. Now, uncovering high school talent has blossomed into a big-money industry.

For one, colleges are spending big on recruiting, trying to attract the most talent so they can win the most games. For the 2019 fiscal year, the University of Georgia spent $3.67 million on recruiting, while the University of Alabama shelled out $2.66 million. Both schools have won multiple national championships in recent years. Of course, many other schools are spending millions as well, with the Big 10 and SEC conferences combined spending more than $30 million in 2019.

This should be no surprise, given how much money is at stake. In 2021, division I colleges reported bringing in over $13 billion in revenue via their athletic departments. Teams and conferences that win more tend to bring in more, enjoying better TV deals and more support from fans.

Further, spending by schools accounts for only a portion of the total money spent on recruiting. It’s hard to pinpoint exactly how much is being shelled out, but in 2007, Yahoo paid $100 million to buy rivals.com, a recruiting service that scouts college athletes and assigns them rankings. Currently, another recruiting website, 247Sports, is estimated to pull in nearly $40 million in revenue annually.

Spending and revenues are likely to increase. Previously, students were forbidden from making money off their Name, Image, and Likeness (NIL). These rules have since been rolled back, and as a result, many alumni and local businesses are pouring in millions to attract recruits to their favored universities. In the first year, NIL spending is believed to have topped $900 million. Sports news site The Athletic was shown a NIL deal for an anonymous but coveted recruit — a deal worth a total of $8 million over three years. With billions in revenue at stake, spending is likely to get bigger.