The Innovator's Dilemma @ NCAA

The Supreme Court’s June 2021 ruling, which legalized student-athletes’ ability to monetize their name, image, and likeness (NIL), has significantly disrupted the NCAA’s traditional model of amateurism in collegiate sports. This ruling represents a pivotal shift, challenging the NCAA’s long-standing governance and financial structures. Through the lens of Clayton Christensen’s theory of the Innovator’s Dilemma, we can see how the NCAA is facing the classic conflict between maintaining its traditional revenue streams and adapting to innovative, market-driven changes. The Innovator’s Dilemma, as posited by Christensen, describes the challenge established organizations face when they must adapt to technological innovations or market changes that could render their existing business models obsolete. Organizations often struggle with innovation because it requires them to change their successful, established processes and venture into untested markets. This dilemma is particularly relevant to the NCAA, an institution deeply rooted in the tradition of amateurism, which is now confronted with the emerging market dynamics of NIL.

Since the Supreme Court ruling the NCAA landscape has been referred to as the Wild Wild West. I believe it is more appropriate to refer to the current landscape as a revolution, as the NCAA's constituents pound on the gymnasium door asking for their fair share. For academics, I believe this phase in the history of the NCAA will be discussed along the lines of Kodak. If you've been on the planet for more than two decades you'll likely know this business case study. In summary, Kodak was the global brand associated with both consumer and commercial photography. There were other brands, but Kodak was the global market leader and you could literally find a Kodak sign in retail locations in the smallest townships at the farthest reaches of the world. Above and beyond their global reach, they owned the largest digital photography patent portfolio, and developed one of the earliest digital cameras. Yet, even with their grasp of the technology and the distribution channel needed to succeed in the digital era, they would not let go of their legacy chemistry-based business.

In 2007, Apple launched the iPhone with an embedded camera and the rest is history.

Fast forward to 2021 and replace NCAA with Kodak as the brand. The NCAA has and still maintains a huge annuity in the form of media rights for televised collegiate sports. Like Kodak, they manage both the distribution channel through memberships and the student-athletes (assets) through these memberships. In June 2021 when NCAA failed to lean in to support the Supreme Court ruling, a new marketplace evolved and now the NCAA's ability to rein in the market will require congress to step-in and legislate a compromise. What this compromise will look like is unclear. What is certain is that the revolution will continue, and the ecosystem of educators, agents and service providers will need to exercise patience and agility as they seek to support the thousands of NCAA athletes and the millions of high-school athletes that look to collegiate sports as a means to enrich their lives, and potentially their future careers.

At CIMS.AI, this is where we believe the evolution of generative AI can serve the ecosystem and in turn the athletes and their organizations. We believe education and enablement across domains that enrich the collegiate experience for these athletes is the perfect starting point. Further, we believe partnerships with all educators and agents who serve the student-athlete population is the fastest way to build a sustainable ecosystem. This evolutionary approach has generally worked with every new technological change. ie, The browser was a cool invention but it wasn't until 'partners' created content that it became interesting.

Education is crucial for driving this evolution. Education fosters awareness and understanding of the relevant rules, regulations, and standards. When individuals are educated about the expectations and legal requirements in their field, they are more likely to adhere to them, reducing the risk of unintentional violations. Education also empowers individuals by providing the knowledge and skills needed to navigate the NIL economy effectively and ethically, and reinforces a culture of accountability and integrity across the ecosystem. Dare to dream.

To learn more about our white label solutions for educators and agents, please visit: https://www.cims.ai/nilgpt-whitelabel

About CIMS.AI

CIMS.AI was cofounded by ex-Salesforce, Vlocity, and Siebel Systems software executives with the mission to democratize the emerging athlete-influencer economy. CIMS.AI is focused on ensuring athletes across all sports are prepared for the opportunity to participate in the NIL economy and has developed several GAI solutions, including Powered by NILGPT for education and enablement, NIL Agent Desktop for NIL Agreement Compliance and Reporting, and NIL Influencer Scout to support Title IX.

About NIL

The meaning of NIL or Name, Image, Likeness is the right for an individual ‘influencer’ to monetize their Name, Image, and Likeness. Historically, Media and Professional Sports Celebrities have worked with talent marketing agencies to take advantage of this monetization opportunity.

Skip Roncal

CEO & CoFounder

CIMS.AI

For those interested:

Book: The Innovator's Dilemma : https://amzn.to/3xf20h1

Article: How Kodak Failed: https://bit.ly/3To4kKa

Authored with assistance from NILGPT