The First-Ever College Basketball Tournament to Pay Players Has Arrived

For the first time in NCAA history, a college basketball non-conference tournament will pay athletes for participation.

The Players Era Festival, which will take place at the MGM Grand Garden Arena in Las Vegas on Nov. 26, 27, and 30, will feature eight men’s basketball programs from across the country. A total of $9 million in NIL (name, image, and likeness) earnings are up for grabs for players on participating teams.

The three-day Thanksgiving week event, which Front Office Sports first reported on in March, will consist of 12 total games, splitting the eight participating teams into two separate sub-tournaments. Alabama, Houston, Rutgers, and Notre Dame will play the “Impact Tournament,” while Creighton, Texas A&M, Oregon, and San Diego State play the “Power Tournament.” (Alabama, Houston, Rutgers, Texas A&M, and Creighton were all ranked in the AP Top 25 as of Nov. 22.)

In September, the tournament operators inked a multiyear deal with Warner Bros. Discovery to broadcast the event on multiple platforms, including TNT, TBS, truTV, and Max. Given that WBD is also a seasoned broadcaster of the men’s March Madness tournament, the network promised to give it a “March Madness feel.”  The event is one of several high-profile college sports media rights deals that the network has completed in the past year. 

The Players Era Festival is a company created by EverWonder Studio, which was founded by former president of Time and Time Studios Ian Orefice. EverWonder is backed by former CNN, Turner Sports, and NBCUniversal president Jeff Zucker and RedBird IMI. Seth Berger, the president of The Players Era Festival, is the founder and CEO of And1 Basketball.

“On the highway as I was coming into my hotel [in Las Vegas], I saw a huge billboard for The Players Era Festival with all eight teams,” Berger tells Front Office Sports. “I could not be more excited for the start of a new era in college basketball. … We are proud to be just a part of this movement of players being compensated fairly for who they are, and what they do.”

How does the NIL distribution work?

Each team will receive opportunities to earn up to $1 million each for NIL activities that will take place outside competition—from autograph signings to charity work. The money is being provided by sponsors. Starbucks, Eli Lilly Company, and MGM Resorts have signed on as presenting sponsors.

At the end of the tournament, there will be another $1 million worth of opportunities for all players. Originally, the plan was to provide that extra $1 million in NIL opportunities for the winner of the tournament—but NCAA rules prohibit tying NIL deals to player performance, so the opportunity must be available for all players. 

After players have done the deals, sponsors will send money to The Players Era Festival’s corporate entity, who will then distribute the money to schools’ NIL collectives. At that point, it’s up to coaches to decide what allotment of NIL dollars players receive.

I thought college athletes couldn’t get paid to play (yet). How is this allowed?

The Players Era Festival has had to navigate ever-changing NCAA rules regarding NIL deals in order to set up a compliant tournament. 

NCAA rules currently prohibit schools, conferences, or tournament or bowl-game operators from compensating players directly. But with NIL rules, players are allowed to sign third-party endorsement deals, or profit off the use of their names off the field or court.

When the NIL era began in 2021, non-conference tournament operators and bowl game operators—who are separate companies from teams, conferences, and the NCAA—thought they could offer NIL deals to players participating in their events. But the NCAA later came out with a memo saying this was, in fact, prohibited.

In August, however, the NCAA reportedly distributed yet another memo saying that tournament sponsors weren’t allowed to offer deals to participating athletes, either. The NCAA and tournament operators have worked together directly to ensure that the tournament was compliant with all NCAA guidelines, and have had an open line of communication, Berger says.

And even if the Players Era Festival is seen as violating NCAA rules, it’s unclear if the governing body actually has the teeth to punish the tournament or teams, thanks to a February federal court ruling that stripped the NCAA of its NIL rule enforcement powers. 

Are there plans for future iterations of The Players Era Festival?

The event intends to expand to up to 18 teams in coming years. In 2025, Baylor, Iowa State, Gonzaga, Michigan, St. John’s, and Saint Joseph’s have committed to play. Tournament operators have said they will also create a companion women’s basketball tournament. They could also wade into other sports.

In all, the event operators also plan to distribute more than $50 million in NIL earnings over the next three years.

Editors’ note: Front Office Sports and EverWonder share the same main investor, RedBird IMI.