I don't know what that means, if it's accurate, how to measure it, or how—if it's true—this measure ensures competitive balance or compensates athletes fairly.
Are all athletes supposed to be compensated equally? Evaluated per team? Per season? Per performance? All players on the same team are to be compensated equally? Does it not factor in that a (more) profitable sport makes up for the expenses of less profitable sports? If Elijah Hughes works X hours for his sport and Becky J works X+100 hours for the fencing team, but accounts for close to zero revenue, and the basketball team's revenues subsidize the fencing team's operations, how is compensation determined? Does the amount of compensation fluctuate with team accomplishments? Get further in the tournaments, and you make more money? If it's all about revenues generated by players, shouldn't that matter? How do you ensure a school with more sports, higher enrollment, better tv contracts can't just sign all the best players? Or that a school doesn't cancel 'lesser sports' so that they can afford better players for the 'premier' teams?
College costs 40,000/year. How is that "nominal compensation?" Kinda difficult to find many 18 year olds making 40k/year. I can't consider that "nomimal."
My perspective is that this is college. College, almost by definition, is a preparatory experience. Preparation for a professional career. Same for everyone. Players 'study,' build their professional values and earn the exposure in college that launches them into professional careers. The fact that they exploit the 'machine' of college athletics toward that eventual goal shouldn't invalidate the role of that machine, and even if you consider the school/ncaa to be an 'employer' of sorts, since it makes money is no reason to obligate 'profit sharing.' Most employees do not have profit sharing.
I get it—the current system is broken because violations are not enforced often or stringently enough. But, that's the problem—the need to fix what exists—not the structure itself.