I’ll use the WWE example.
Back in 1996 no one in the then WWF was making more than $600K per year. No contract was guaranteed.
WWF Champion Bret Hart dropped his title at WM12 and became a free agent. Eric Bischoff of World Championship Wrestling offered a three year deal at around $3M per year, guaranteed.
Vince responded with a twenty year deal that saw Bret paid around 1.4M a year for the first three years,
which Bret took out of loyalty and desire to stay with the company. But within a year Vince was trying to get out of the deal. Why?
Because if Bret Hart was earning 1.4M a year, what about Shawn Michaels who was second at $600K a year? What about Undertaker? What about Steve Austin? Their contracts would come due eventually, and they would all want as much or more. And this was at a time where the WWF was losing money to boot.
So I think the same thing is true for the NIL. If a 5 star player is brought in for $2M, what about the existing five star players on your roster who have a $500K deal? They have to be bumped to equivalent or greater deals. Or they can go elsewhere. That’s the risk in overspending for one player. You may get him, but then you have to bump up key players on the rest of your roster.