I have the perfect solution for the question of paying athletes or not paying. It's so simple I can't believe nobody has seized on it yet.
I probably already said this, but here it goes again.
Put a percentage of all merchandise sales into an escrow account. Any item that's "officially licensed" counts.
Each sport gets a percentage. Smaller sports like frisbee golf just don't get as much, but that's left to school discretion.
Athlete plays two seasons, he gets X. Plays three, he gets Y. Four, gets Z.
It's an incentive for idiots who aren't draft ready to stick it out because there's money at the end. Make it so that students who begin their fourth season can get loans against their share.
Athletes are rewarded for helping improve the university image because more stuff sold = more of a share for them later.