SBJ IAF 2025: NIL insurance takeaways for ADs

In this post:

Overview of SBJ IAF and who was in the room
Two recurring themes: guardrails and budgets
Guardrails: what ADs are asking for
Why a CBA feels distant
Budget stabilization ideas ADs discussed
Group Critical Injury: what it is and why it fits NIL
Why this matters in NIL budgets
What’s covered, claims basics, and scope
Scale and budgeting lens
Key takeaways for ADs and next steps

Overview of SBJ IAF and who was in the room

I recently attended the Sports Business Journal’s Intercollegiate Athletics Forum (SBJ IAF) in Las Vegas on Dec 9-10, where athletic directors and university administrators from some of the most prominent universities and conferences discussed the state of college sports in the NIL era. In attendance were ADs from USC, Ohio State, Alabama, Texas A&M, Texas Tech, Washington, Oklahoma, South Carolina, SMU, Auburn, Texas, UCLA, Fresno State, Boise State, Oregon State, Maryland and Tennessee, as well as commissioners from the Big East, the MAC, the American Conference, the ACC, the Big 12, and the Pac-12, among others.

Also in attendance was Michigan AD Warde Manuel – and it is eerie, really, to think that only a few days after he was onstage discussing brand management in college sports that his world was about to galactically implode with the arrest of football coach Sherrone Moore and the revelations of his relationship with a female staff member. By comparison, the topic of NIL is tame.

Two recurring themes: guardrails and budgets

But NIL is here, and the consternation it causes among those in charge of athletic departments and programs was palpable throughout.

Two themes kept surfacing—guardrails and budgets.

Guardrails: what ADs are asking for

First, it was unanimous that NIL needs guardrails, some sort of mechanism that gives decision-makers direction on how to handle this rather than it being the wild, wild west.

Now, you can certainly argue that this issue is of the NCAA’s own making in the sense that this could have and should have been addressed years ago, long before the House Agreement altered college sports forever.

But the folks in the room were not the architects of the current system; they are merely placed in charge of navigating it with almost no road map available.

One of the things that I thought was most interesting is that on multiple occasions, ADs lamented the fact that when a rule is put in place to try to establish guardrails, the first reaction from many of their peers is not, Oh, OK, let’s respond within those rules.

The first response, they said, was, Let’s try to figure out a way to skirt the rule. They did not name names, of course, but if you are always fighting to stay competitive against folks who are always looking for a loophole, then a system is never going to be devised that is going to be fair for everyone. That was a pretty sobering admission.

Why a CBA feels distant

There was a lot of discussion about establishing a collective bargaining agreement between institutions and athletes, but it sure seemed to me like that solution is a long way off given the complexities of organizing collective bargaining across hundreds of member schools, 50 states with different laws and, really, no real interest on the part of the athletes to be regulated.

I mean, let’s face it, if athletes can shop themselves on the open market via the transfer portal and maximize their earnings by moving around, why would they subject themselves to the pain of collective bargaining? And if you have strikes and lockouts when you are trying to do collective bargaining for 30-team leagues like the NFL and NBA, how in the world would you organize collective bargaining across the many, many different factions of the NCAA, and the many different sports. I can’t even imagine trying to organize and coordinate that undertaking.

Budget stabilization ideas ADs discussed

So where does that leave departments right now? Budgets.

In lieu of having a CBA, the athletic directors mostly focused on finding creative ways to generate revenue in order to stay competitive in recruiting because not every school is getting the same level of revenue sharing.

Some ideas were as simple as selling alcohol at games, while others were contemplating things like selling tickets to fans who want to be in the tunnel to be able to high-five players on their way out to the field, or figuring out some way to give hungry fans more access to the players and the internal workings of a team.

Group Critical Injury: what it is and why it fits NIL

I, of course, presented my own ideas to the ADs and commissioners with whom I spoke. We have a product called the Group Critical Injury policy. In plain English: it pays a defined lump sum to the policyholder (typically the institution) when a covered athlete sustains a specified injury—helping offset unplanned costs. Schools can take out a Guaranteed-Issue Group Insurance policy on a set or group of athletes on either a football team or men’s basketball team, and if one of those athletes gets injured, the school may be paid a tax-free, lump-sum payment of either $150,000 (for specified major injuries) or $75,000 (for specified moderate injuries), subject to policy terms and exclusions.

It’s a practical way to stabilize budgets when injuries disrupt the season.

Why this matters in NIL budgets

Here is how I look at it. Injuries are inevitable; budgets need stability.

If you watched the movie The Big Short, Michael Burry and several others purchased credit default swaps (insurance policies) on a once-in-a-lifetime event – a nationwide mortgage meltdown. Everybody thought they were crazy, until the economy collapsed in 2008 and 2009, millions of homes were foreclosed on, and billions were made by Burry and his cohorts.

In my scenario, you are buying a relatively inexpensive insurance policy on something that literally happens every day on every level in sports – injuries. Injuries are inevitable, they are unavoidable, and they are a part of the game. Any game. Next man up, as they say. This isn’t “profiting from injuries”; it’s hedging operational risk so scholarships, medical support, and season operations remain funded when the roster takes hits.

What’s covered (simple schedule), examples, and scope

The injury has to be a qualifying injury. But if a player suffers an ACL tear, a torn Achilles, a torn patellar, a torn rotator cuff, or a torn UCL, the school will be paid $150,000. If an athlete tears a hammy, a pectoral, a proximal tendon, a tricep, or an abductor, the school can be paid $75,000. Lump sum. Tax-free.

Scale and budgeting lens

Think about this for a moment. There are several football teams this year that have had maybe 10 or 12 season-ending injuries. You have that happen, a school can make more than $1 million in insurance claims. That is 5% of the $20.5 million that schools are allowed to pay out under the House Agreement. Hell, there are some Division 1 schools that do not have more than $1 million budgeted for all NIL.

The best part is, this does not even have to happen during competition. This is a 24-hour, worldwide policy. One of your athletes is on vacation with his family in Paris, steps off a curb and tears his Achilles’, the school gets $150,000. Maybe he is working out with his trainer and gets hurt. The school gets paid. A random car accident. The school gets paid.

Bottom line

Athletic directors have to wear many hats these days. One of those hats is managing finances. Every financial advisor will tell you there are ways to hedge against downside risk. This is no different. In a world with few guardrails, this is smart money management – and if you come out looking like Michael Burry, well, all the better.

Key takeaways for ADs and next steps

Guardrails remain unclear; budgets can’t wait. Departments need tools that stabilize costs now.
Group Critical Injury can offset real, season-long expenses from specified injuries—any sport, any gender—subject to terms/exclusions.
Complement, don’t replace, athlete protection. Institutions hedge program risk; athletes should consider PTD and Loss-of-Value personally.

If you want a 10-minute fit check for your sport or roster profile, contact us—we’ll outline eligibility, schedules, and timelines for your specific situation.

About the Author

Frank Hughes is the founder of NIL Insurance Company and a longtime sports journalist who has covered the NBA, NFL, and Pac-12. He now helps athletes, families, collectives, and schools protect future earnings with clear, tailored coverage. Contact: [email protected].

SBJ IAF 2025 key takeaways for athletic directors: NIL insurance, guardrails, budgets