Big schools and blue bloods will love this. It does seem like the natural progression based on where CFB has been going the last 20 years.
This might help lower tier P5 programs because it would be better to be a sponsored starter at Pitt and get paid now than buried on the depth chart at Ohio State for years. However, transfer rules might make it where good players will go play a couple years to get paid, then transfer to the college they really want and can start at.
This will absolutely hurt TU athletics. There's no way to make this into a good thing for TU. TU will not be able to compete with the money even lower tier P5 programs will put up, much less what SMU, UC, UCF, UH, Tulane or Memphis will put up. The rich will get richer and TU will get the same borderline walk-on players TU gets now.