• Loading stock data...
Wednesday, June 25, 2025

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

The Players Era Festival, which will be played in Las Vegas and air on TNT, will offer up to $9 million in NIL opportunities for participating players.

Nov 20, 2024; Birmingham, AL, USA; Alabama forward Derrion Reid (35) grabs a rebound in the CM Newton Classic at Legacy Arena. Alabama defeated Illinois 100-87.
Gary Cosby Jr.-Imagn Images

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.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

How the Celtics Cut $500M Roster Bill Nearly By Half in 1..

Boston is now under the second tax apron for next season.
Dec 24, 2022; Cleveland, Ohio, USA; Cleveland Browns quarterback Deshaun Watson (4) warms up before the game between the Browns and the New Orleans Saints at FirstEnergy Stadium

Unearthed NFL Arbitration Ruling Raises More Questions Than Answers

The NFL was cleared of collusion, but new questions have emerged.
exclusive

Fever and Bonner Heading for a Breakup? Here’s What We Know

The Fever are exploring options as DeWanna Bonner seeks a fresh start.

Timberwolves’ 4-Year Ownership Saga Ends As A-Rod, Lore Take Over

The unanimous approval brought a clean end to a long-disputed transaction.

Featured Today

Mar 15, 2025; Fort Worth, TX, USA; UAB Blazers forward Yaxel Lendeborg (3) dribbles the ball upcourt against the North Texas Mean Green during the first half at Dickies Arena

NIL Is Shrinking the Pool of NBA Draft Entrants

Agents are now advising many players to stay in school.
Apr 24, 2025; Green Bay, WI, USA; Penn State Nittany Lions defensive end Abdul Carter on the red carpet before the 2025 NFL Draft at Lambeau Field
June 21, 2025

‘More Is More’: The Elite Luxury Jewelers Decking Out Athletes

Meet the elite group of luxury designers crafting the biggest statement pieces.
Dec 5, 2024; Miami, FL, USA; FIFA president Gianni Infantino presents the FIFA Club World Cup trophy during the Club Word Cup draw at Telemundo Studios.
June 15, 2025

Revamped Club World Cup Is FIFA’s Billion-Dollar Gamble

The revamped soccer event debuts amid controversy.
Jun 10, 2025; Nashville, Tennessee, USA; United States head coach Mauricio Pochettino stands during the anthem against the Switzerland during the first at Geodis Park
June 14, 2025

Gold Cup Is Complicated for USMNT—but U.S. Soccer Has Its Eyes on..

Uncertain tournament success isn’t fazing forward-looking U.S. soccer.

Colleges Are Raising Student Fees to Pay for Athlete Revenue-Sharing

Schools are preparing to pay student athletes up to $20.5 million annually.
Wisconsin cornerback Xavier Lucas (6) is shown during the first quarter of their game against South Dakota Saturday, September 7 , 2024 at Camp Randall Stadium in Madison, Wisconsin.
June 20, 2025

Wisconsin Sues Miami for ‘Tampering’ With Football Transfer

Xavier Lucas signed NIL deals in Madison before transferring to Miami.
Dec 27, 2024; San Diego, CA, USA; The Washington State Cougars ban perform during the second half at the Holiday Bowl at Snapdragon Stadium. Mandatory Credit:
June 23, 2025

Pac-12 Announces CBS As ‘Anchor’ in New Media-Rights Deal

The league may announce expansion before finalizing the rest of the package.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
June 19, 2025

Omaha Delivers Again: LSU, Coastal Carolina Set for CWS Showdown

LSU and Coastal Carolina begin their three-game series Saturday.
Washington's Ben Gorsage, right, and Orland Park Sandburg's Mateo Ramiro-Garcia tangle at the start of the Class 3A state 800-meter run Saturday, May 31, 2025 at Eastern Illinois University in Charleston. Gorsage took third place, followed by Ramiro-Garcia in fourth.
June 19, 2025

Dozens of Olympic Sports Have Been Cut in Wake of House v...

Tennis, track and field, and swimming and diving appear heavily impacted.
Jun 16, 2025; Omaha, Neb, USA; Arkansas Razorbacks starting pitcher Gage Wood (14) celebrates completing a no hitter against the Murray State Racers at Charles Schwab Field.
June 17, 2025

College World Series Enters Cinderella Era

A series of upsets gives the fast-growing event a new look this year.
Jun 14, 2025; Omaha, Neb, USA; LSU Tigers starting pitcher Kade Anderson (32) pitches against the Arkansas Razorbacks during the seventh inning at Charles Schwab Field.
June 16, 2025

How College Athlete Buyouts Could Work in the Revenue-Sharing Era

The buyouts could put both players and schools at a disadvantage.