Isn't the opposite true? That a free agency system makes it harder for the traditional programs to dominate, because all that is really needed to compete for recruits is $$? How could any up and coming school have competed in recruiting against the guy who coached MJ, Worthy and Perkins? But if they are allowed to pay, they can level the playing field.
Both are true, although the advantages to the "upstarts" is overrated in most cases.
If you have a donor or donors who are willing to bankroll your roster via NIL donations of $10-15mil per year, then you are able to jump to the front of the line and play with the big boys immediately. That has seemingly happened in a few cases...BYU, St. John's, and Miami (and maybe another school or 2 that I'm forgetting). But since it's so early in the portal/NIL era, it's hard to tell if any of these programs will actually get the needed NIL for 3+ seasons to make a lasting improvement or if we'll see occasional donor funded jumps that receded after a couple of seasons because donors get exhausted.
But the blue bloods are also the schools who are in the best place to pull in the needed cash to pay for top-line rosters over a significant period of time. Those programs have, on the whole, built programs which create solid revenue (including donor revenue) and are best positioned to still be at the head of CBB in terms of the funds needed for their basketball team. It's telling that which Hubert stating that Carolina Basketball needed more NIL funds to compete, we're still believed to have been in the top 20 teams or so in spending and that his plea now likely has us in the top 10 for the upcoming season. The biggest spenders are largely the teams already at the top of CBB.
Here's a CBS Sports article about the
"$10 Million Club" for CBB, for teams expected to spend $10mil on their roster for the upcoming season...
10 teams: Arkansas, BYU, Duke, Indiana, Kentucky, Louisville, Michigan, North Carolina, St. John's, Texas Tech
And here's there list of thost expected to be at a minimum of $8mil and could possibly go higher...
14 teams: Auburn, Connecticut, Florida, Houston, Kansas, Kansas State, Miami, Purdue, Tennessee, Texas, UCLA, USC, Villanova, Virginia
Those 24 teams are pretty much a who's who of CBB top contenders with a few upstarts thrown in (sorry I missed you above, Texas Tech, plus Houston, Kansas State, & USC...also, where's Alabama?).
So while there is an opportunity for non-traditional powers to use money to become a real contender very quickly, it's not terribly easy to convince donors to give the needed funds over multiple seasons based solely on hope and the traditional programs have built such donor networks & revenue generation over time, making it far easier for them to get the needed NIL funds to be at the top of the heap.