In 2021, the NCAA introduced Name, Image, and Likeness (NIL) policies, allowing college athletes to profit from their personal brands through endorsements, sponsorships, and more. This change has turned college basketball into a financial powerhouse, drawing young talent with the promise of money and exposure.
This has sparked worries across the Atlantic, where European basketball development has long thrived on a different model. Now, whispers are growing louder that two of Europe’s giants, Real Madrid and Barcelona, might shut down their youth academies. The reason that was allegedly stated to be a talent drain to the NCAA, fueled by NIL’s lucrative pull.
How NIL Has Changed the College Basketball Landscape
Since NIL kicked in, college basketball has become a viable career move. Players can now cash in on their skills while still in school, something that wasn’t an option before 2021. For European talents, this is a game-changer. They can hone their game in the U.S., get scouted by NBA teams, and pocket serious money along the way.
NIL has changed the game, just saw a report that some European clubs like Real Madrid are thinking about shutting down their youth teams bcz of talent drain to NCAA due to NIL https://t.co/qT76RY5odF
— Sravan (@sradjoker) May 20, 2025
Data backs up the shift. A 2023 report from Sports Business Journal found that the number of European players in the NCAA jumped 25% since NIL began. Take Kasparas Jakucionis, an 18-year-old Lithuanian guard. He signed with the University of Illinois in 2024, turning down a path with Barcelona’s senior team, due to an NIL deal reportedly worth six figures.
For decades, clubs like the ones mentioned above have been talent factories. Their academies scout kids as young as 10, train them rigorously, and feed them into pro leagues like Spain’s Liga ACB or the EuroLeague.
Stars like Luka Dončić (Real Madrid) and Ricky Rubio (Joventut, later Barcelona) came through this system. But as it stands, NIL is really shaking things up.
Jakucionis isn’t alone. French wing Melvin Ajinça joined St. Mary’s in 2024, lured by an NIL package, instead of staying with ASVEL’s youth setup. These moves sting European clubs, who invest years and millions into prospects only to see them bolt for the NCAA.
A study in 2024 noted that 15 top-20 European prospects under 19 signed with U.S. colleges between 2022 and 2024, up from just four in the two years before the introduction of NIL.
On Reddit, a user wrote, “Nah, it’s about money (and I’m not judging them). Young players have been at the end of the bench forever. The reason they are making the move more frequently now is that you can make a small fortune playing in the NCAA with NIL.” The sentiment captures the growing reality that Europe’s pipeline is leaking.
Financial Pull of NIL Outweighs European Contracts
In Europe, young players breaking into pro rosters might earn $20,000 to $30,000 a year, according to sources. That’s decent for an 18-year-old, but it pales next to what NIL offers.
On3 reports that top college basketball players average $50,000 to $100,000 annually through NIL deals, with stars like Duke’s Cooper Flagg reportedly nearing $1 million in 2024.
So, the math is simple for a European prospect. Stay home, sign a modest pro deal, and grind through a system with limited immediate exposure. Or head to the NCAA, bank bigger bucks, and play on a stage where NBA scouts are courtside every night.
If academies like Real Madrid’s and Barcelona’s close, the fallout could be massive. These programs are the backbone of European basketball’s depth. Over the past decade, 12 of 20 EuroLeague Final Four MVPs came from Spanish club academies, per FIBA records.
Without them, the talent pool might shrink, leaving leagues less competitive and scouts looking elsewhere.
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The NBA’s global reach could widen too. In 2024, 14 of the first 30 draft picks were international, a record high, as noted by the NBA. If more Europeans detour through the NCAA, that number might climb, but the question is at what cost to Europe?
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