I agree. At work during our football conversations, we all agreed after many months of debate that the NCAA Division I should be split into the "semi-pro NFL development league". The NCAA needs to bite the bullet and pick a path--hypocritical mafia stuck in the past or smart business moving forward.
A friend of mine actually got published for outlining such a business model. First he started with analyzing the market value of a sample of NCAA amateur basketball players. The model is easier for basketball, but it can be extrapolated for football. The NBA minimum salary is almost $500K for 0 years of service, and some of those kids that command that salary are "one-and-dones" with only a year of college! In recent years, NFL first-rounders command $10M per year for 5 or 6 years, with an average of about 3 years of college for each of those first rounders. NFL minimum salaries are lower than NBA minimums because we are spreading the average across QBs, WRs, DBs, LBs, and even kickers--$350K per year for 2 years.
So, for argument's sake, let us say NFL first rounders have a market value of $500K for 5 years as rookies. Auburn "allegedly" paid Cam Newton's dad $300K for one year as a college QB with 2 years of Division I backup experience and 1 year of Division II starter experience. One could argue that a 3-year starting QB in Division I has a market value of $500K/year (just as my friend argued in his paper). The top NCAA football teams turn tens of millions of dollars in profit. Let us assume they "only" wanted half of that profit so they could pay the NFL some penance for support as the NFL development league, complete with NFL support that would let them make that money back (profit sharing, anyone?). Teams likes Texas and Florida consistently rake in $20M per year. Divide that out by the 85 players on scholarship and you can easily pay each scholarship player $235K. The "poorest" of the profitable teams that consistently cranks out NFL talent, such as South Carolina, still turn on profits over $7M, so I will say they need to divvy up half of that and divide out to 85 players. This results in a $180K market value adjusted to the profit of the top NCAA teams with a 50% tax to the NFL. Funny. Cecil Newton hit the number right on the head--$180K.
The NCAA could take the top 20 teams and let each team pay out an average of $180K per year in FY12 dollars to its 85 scholarship players. Some teams may elect to pay the QB $500K per year and the kicker would get a box of cookies each week, or the team could elect to pay per statistic, or the team could develop its own business model within the $180K average salary cap. Some teams may even be rich enough to pay all 105 roster players using the average of $180K--it's their prerogative. This is a capitalist economy, and some teams can pay more.
This is win-win for the top 20 NCAA teams and the NFL, because the NCAA can negotiate to share profit with NFL and win back more profit for pushing out more NFL talent. The NFL gets a safer route to developing future talent, plus they can legally have a say in amateur/semi-pro ball. The players win because as semi-pros they should see the royalties off videos games, jerseys, and other items sold off their names.