So, question to Krazy and BamaInBham what's your solution? Because the status quo clearly isn't going to cut it
I've not been directly addressing the issue of compensation for the players' image or likeness.
I would not be opposed to athletes getting nothing for incidental use of their likeness. Businesses do it in that they have employment agreements stipulating that anything you produce belongs to the company even though it is your own idea. You use their facilities, learn from their employees, etc. IMO, it is the same with players. Compensation would open up an incredible can of worms that can be avoided by taking this approach.
I think part of the problem with this specific issue is that at the moment it is a representation for all that is wrong, and yes I do agree that there are things wrong with the current model, with high profile college sports (i.e., fb and men's bb). So, if you want to pass on this issue you will be portrayed as being fully satisfied with the status quo. That's not true.
IMO, players should get a very useful stipend, which I was very much for years before it came to pass. I don't know if the current levels are enough but IMO, a "useful stipend" is enough. Likely, there are not many players who would make much off of their likeness, so sometimes you have to sacrifice for the good of all. But IMO, it is unbecoming for the universities to make money from their image. Current students do work for their professor receiving little or no money or recognition. Medical students intern for years (a few whimper a bit about being free labor, though no "free med student" movements afoot that I'm aware of).
Unfortunately, it's unlikely that college football is going to be spared some kind of change related to this specific issue. So, though in general I'm a "lightly regulated free market" guy, I would be for a more socialistic remedy with pools and caps and such. College sports is very socialistic in many, not all, respects: Scholarship limits, regulatory rule, conference redistribution of wealth, limits on TV appearances, player weekly time limits, etc. So, such an approach would not be incompatible with it's existing structure.
IMO, a labor agreement with the players would be madness.
If recruiting is as corrupt as many say or intimate, it needs to be cleaned up. It can be done if a serious investigative arm was formed.
Coaches salaries which is a sticking point for many are embarrassing but I have no idea if that needs to be changed or if so, how.