The NCAA can't fix this. The only way to fix it is for the schools who wish to compete with the opportunity and ills of NIL to break away and form their own league. No one, probably even Congress, has the power to limit someone's earnings outside of a collective bargaining agreement. But a league can establish roster management and transfer rules for its league. Secondly, no one wants to deal with a union for 17 to 20 year Olds which would literally make up thousands of men and women athletes.
Given how many times it's been tried over the years, semi-pro and offseason pro leagues just have not gained traction with the media and fans. These avenues like the USFL and G League are not really viable for an emerging athlete to get the development they need to succeed as a professional.
With this as the backdrop, you can see the value the college game provides to the gap between these alternative leagues and the established professional leagues. Recognizing this, this is the leverage the colleges can lean on for establishing rules for their sports, rosters, and participation.
I have not seen where the NCAA or the schools have made the argument for the value of their role from this point of view.
Personally, I think their should be 2 tracks on participation of a college team...
1) NIL track - a player can choose this route without any restriction on the amount of NIL money the player makes. A player can pursue this track whenever they want as a freshman signee or later if a NIL spot is available on the team or another team. There are only so many, say max 30 NIL spots, on an 105 man roster. You must be a student at the university in good standing and progressing toward a degree. However, the NIL spots do not receive a scholarship and must pay their own tuition. NIL spots are re-awarded every year by the school. The NIL player would be restricted in his/her ability to transfer 1 time every 2 years unless released by the institution or dismissed for cause in the month following the academic semester. The NIL player can surrender his NIL spot and remain on the team as a scholarship player subject to the invitation from the team and subject to terms for scholarship players. NIL players can engage a 3rd party agent for endorsement purposes only. A NIL player can only occupy a NIL roster spot for 4 years during his 5 year eligibility. The NIL player will retain all his NIL rights without restriction from the school. The NIL player would be required to disclose a list of all sponsors and a tax return each year prior to competition.
2) Scholarship track - a player can choose this route with restrictions on the amount of NIL money the player makes. A player can elect this track as a freshman signee. There are max 85 scholarship spots on an 105 man roster. Any NIL-converted players will count toward the 85 limit. You must be a student at the university in good standing and progressing toward a degree. The scholarship spots receive a full-cost of attendance scholarship paid by the school. The scholarship players will eligible to receive NIL money only from endorsements representing the school and the moneys will be distributed pro rata among the team. The scholarship player would be allowed to transfer 1 per year without restriction in the month after the completion of the academic semester. The scholarship player will have a guaranteed scholarship for 5 years and eligible to play for all 5 years unless dismissed for academic performance or other cause. The school will provide cost-free representation to the player toward his first professional contract in his sport or preferred occupation upon graduation. The school will retain the rights to scholarship players school-affiliated NIL for 5 years post-completion. The school would assist cost-free with any tax reporting and withholding requirements.
The student and their parent-guardian can pick which route they would prefer to go down. I think this choice would sustain a challenge in court and give the schools much need structure for these issues.