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Troy Dannen Breaks Down Nebraska’s NIL, Revenue Sharing Future

Player compensation rules are still evolving. Troy Dannen outlined how Nebraska plans to stay competitive.
Nebraska athletic director Troy Dannen watches a softball game at Bowlin Stadium.
Nebraska athletic director Troy Dannen watches a softball game at Bowlin Stadium. | Kenny Larabee, KLIN

The future of college athletics is being built right now, and Nebraska plans to be ready for it every step of the way.

Days after the announcement of a $600 million renovation of Memorial Stadium, financial decisions have never been more important. But from Athletic Director Troy Dannen’s perspective, the priority is making sure the programs he oversees are ready for wherever player compensation goes next.

Here’s the latest on where things stand, along with the Big Red's contingency plans for what comes next.

The Current Layout of Player Compensation

For the common fan, the current plan for player compensation is tricky to follow, especially given how quickly NIL has already changed since it became legal in July of 2021. NIL collectives were how schools funded rosters from the very beginning. However, roughly one year ago, everything changed.

“After the House Settlement, starting July 1 of 2025, [collectives] could no longer happen,” Dannen said. “To get above the cap, there are two terms we have to get used to; one is the revenue share cap. That is the $20 million the department is allowed to pay directly to athletes. Anything above that comes from bona fide NIL deals, where an athlete and a company come together, and you’re going to promote or do X, Y, and Z for the company, and they’re going to pay you for that.”

In Lincoln, like most places, the revenue-sharing allotment is largely split between football, men’s and women’s basketball, and volleyball. While student-athletes can be paid directly by the university, Nebraska is continuing to work to fund its rosters above the cap with external deals.

Where Player Compensation Could Go Next

Some athletic departments can navigate the current model better than others. However, Dannen is attempting to better position the Huskers for what comes next.

“As important as the stadium is,” Dannen said. “The most important thing moving forward is whatever the player compensation model is. We have to be prepared to have every bullet in our coach's holster. Matt [Rhule], Fred [Hoiberg], Amy [Williams], Danny [Busboom Kelly], everybody. Every bullet in the holster to be able to compete financially, as we compete X and O-wise, facility-wise, and nutrition-wise.”

With the possibility of the revenue-sharing cap expanding or even becoming unlimited, NU is preparing for multiple outcomes. The goal, to remain competitive no matter how the rules evolve, stays the same. If that means leaning more into direct payments to athletes, expanding NIL opportunities, or both, the athletic department wants to be ready to act either way.

For Dannen, the direction of college athletics may not be clear, but the Big Red's athletic department is ready to adapt early to ensure every program has the resources needed to compete at the top of their respective sports.

How NU Plans for an Uncapped Future

The current model may already be difficult to track, but more changes are almost certainly on the way. For the Huskers, that means planning beyond what the system looks like in its current state.

“We’re not done changing NIL rules,” Dannen said. “As we prepare for a year, two, three years down the line, we need to theoretically prepare for if the revenue sharing cap goes from 20 to unlimited. How do we fund that out of the athletic department? In the case of corporate deals, would I rather have a company have a deal with [the university], or with an athlete? A lot of what we’re telling companies now is, I would rather have you do a deal with this athlete or that athlete, rather than do it with me.”

If the cap continues to grow or is removed altogether, the financial model across college athletics would shift yet again. That is why a renovated Memorial Stadium, in Dannen’s view, is key to sustaining success.

The ability to host events within those facilities could help generate revenue that offsets what schools may lose from fewer direct corporate partnerships. It also allows athletes to earn through external deals without cutting into the university’s budget, creating a structure that can benefit both player and school.

What All This Means

Unlike some programs around the country, Nebraska does not have unlimited resources. Even so, the Huskers are more than capable of competing at a high level in their current state. But if the model shifts again, NU will need to be ahead of the game. That’s where having leadership like Dannen's matters.

Memorial Stadium needed renovation regardless, but the current plan is designed to generate revenue beyond the seven Saturdays it's guaranteed each fall. To spend money on athletes, you have to make it first, and Nebraska is positioning itself to do just that.

By creating opportunities to bring in revenue year-round, the Big Red is building a foundation to stay competitive, no matter where the future of player compensation goes. The idea is there. Now, time will tell if they can execute it as well as they need.

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Trevor Tarr
TREVOR TARR

Trevor Tarr is the founder of Skers Scoop, a Nebraska football media outlet delivering original coverage through writing, graphics, and video content. He began his career in collegiate athletics at the University of South Dakota, producing media for the football team and assisting with athletic fundraising. A USD graduate with a background in journalism and sports marketing, Trevor focuses on creative, fan-driven storytelling in college football.