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How do you interpret the last sentence, and what's your prediction for how it plays out?
Posted on 1/4/25 at 2:38 pm
Posted on 1/4/25 at 2:38 pm
In a much anticipated antitrust class action settlement, a federal judge granted preliminary approval of a $2.7 billion proposed settlement that will cap the amount of money National Collegiate Athletic Association (NCAA) schools can spend in compensation for the use of student athletes’ name, image, likeness (NIL). Assuming final approval is granted, NCAA schools will be able to spend a maximum of $23.1 million each year, and that cap will increase on a yearly basis during the ten-year-long settlement agreement. The spending limit is based on a formula that gives NCAA athletes 22% of the money the average power conference school makes from media rights deals, ticket sales, and sponsorships. Time will tell if this settlement raises more questions than answers for NCAA schools.
The settlement was preliminarily approved by Judge Claudia Wilken and any NCAA athlete impacted by the settlement will have until January 31, 2025, to file objections or opt out. A final hearing to approve the deal is scheduled for April 7, 2025, which is perhaps by coincidence the scheduled date for the NCAA men’s basketball championship game. If Judge Wilken deems the settlement fair, adequate, and reasonable, the court will grant final approval of the settlement, paving the way for schools within the NCAA’s purview to pay athletes directly.
Schools will not be required to spend the full amount of the available money, but most athletic departments in the power conferences will be expected to approach the cap to remain competitive in recruiting. NIL collectives, or groups of donors who compensate athletes with funding and endorsements, will also be able to provide NIL payments to players as long as the NCAA deems them to be legitimate forms of endorsement compensation, i.e., the athlete must provide a service in exchange for the payment, not just receive money for their athletic ability alone.
https://www.mccarter.com/insights/highly-touted-settlement-caps-nil-payments-to-student-athletes/
The settlement was preliminarily approved by Judge Claudia Wilken and any NCAA athlete impacted by the settlement will have until January 31, 2025, to file objections or opt out. A final hearing to approve the deal is scheduled for April 7, 2025, which is perhaps by coincidence the scheduled date for the NCAA men’s basketball championship game. If Judge Wilken deems the settlement fair, adequate, and reasonable, the court will grant final approval of the settlement, paving the way for schools within the NCAA’s purview to pay athletes directly.
Schools will not be required to spend the full amount of the available money, but most athletic departments in the power conferences will be expected to approach the cap to remain competitive in recruiting. NIL collectives, or groups of donors who compensate athletes with funding and endorsements, will also be able to provide NIL payments to players as long as the NCAA deems them to be legitimate forms of endorsement compensation, i.e., the athlete must provide a service in exchange for the payment, not just receive money for their athletic ability alone.
https://www.mccarter.com/insights/highly-touted-settlement-caps-nil-payments-to-student-athletes/
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Posted on 1/4/25 at 3:24 pm to Violent Hip Swivel
Sounds like a crock of shite, I’m all for paying these kids what they’re worth. But this shite is getting out of hand. Paying a 17 year old kid who’s never taken a snap in college football 12.4 million dollars is ridiculous.
Posted on 1/4/25 at 3:27 pm to Violent Hip Swivel
Is the 23 million just for football or is that across all sports combined.
Posted on 1/4/25 at 3:29 pm to Herodijontiger
quote:
Paying a 17 year old kid who’s never taken a snap in college football 12.4 million dollars is ridiculous.
Are you still crying for being broke? Maybe you should have gotten more money from the local children’s hospital.
Posted on 1/4/25 at 3:31 pm to Violent Hip Swivel
the revenue share plan is football will have a $12 million salary cap.
EDIT: the revenue plan is the $23 million spread over all sports. Somewhere around $12 million is planned for football.
Players can make more money from companies through NIL on top of it but it must be a real deal. The NCAA wants to have a committee oversee NIL contracts to make sure they are legit and not pay for play. So for instance, Nike can still pay college players to advertise their brand, but playing for Oregon can't be a stipulation of the contract. And if a player were to leave and suddenly the deal gets pulled, it could get them in trouble.
NFL does something similar I believe.
Now the big question is will the court system allow the NCAA to do this or not?
EDIT: the revenue plan is the $23 million spread over all sports. Somewhere around $12 million is planned for football.
Players can make more money from companies through NIL on top of it but it must be a real deal. The NCAA wants to have a committee oversee NIL contracts to make sure they are legit and not pay for play. So for instance, Nike can still pay college players to advertise their brand, but playing for Oregon can't be a stipulation of the contract. And if a player were to leave and suddenly the deal gets pulled, it could get them in trouble.
NFL does something similar I believe.
Now the big question is will the court system allow the NCAA to do this or not?
This post was edited on 1/4/25 at 3:32 pm
Posted on 1/4/25 at 4:18 pm to bird35
quote:Sounds like across the board.
Is the 23 million just for football or is that across all sports combined.
Next question is what the schools do to make up the 22% budget cut.
Posted on 1/4/25 at 4:35 pm to HarryBalzack
quote:
Next question is what the schools do to make up the 22% budget cut.
Charge tuition, room and board, student fees, like they charge all of their other students.
Posted on 1/4/25 at 4:40 pm to Violent Hip Swivel
quote:
as long as the NCAA deems them to be legitimate
Inevitable course correction from hands-off-the-wheel free-for-all of the last three years. Returns some oversight, caps the amount schools can directly contribute (and by doing so directly addresses the underlying need for player compensation), but leaves the collectives without financial limitations. Consequential evolution of form, imo.
Posted on 1/4/25 at 4:45 pm to Violent Hip Swivel
I think this is a step in the right direction. If they can reign in the portal as well, CFB just might be saved…
Posted on 1/4/25 at 5:16 pm to deeprig9
quote:
Charge tuition, room and board, student fees, like they charge all of their other students.
The UGA football program made a profit of 83,000,000 dollars during the most recent fiscal year.
Posted on 1/4/25 at 5:23 pm to Violent Hip Swivel
If high school athletes were marketable just for being good, you'd see retail focused entities getting involved.
I don't see Target or Walmart or Best Buy or CostCo (or whoever) involved right now.
It's just people with money buying teams.
I don't see Target or Walmart or Best Buy or CostCo (or whoever) involved right now.
It's just people with money buying teams.
Posted on 1/4/25 at 5:34 pm to Violent Hip Swivel
quote:
The UGA football program made a profit of 83,000,000 dollars during the most recent fiscal year.
Profit, or revenue?
Posted on 1/4/25 at 5:43 pm to deeprig9
Those two funding lines don't cross. IA won't even be straight up about what money they have. I've had several colleagues on the oversight committee and every request for a detailed budget report has been rebuffed (not new, it's been going on forever). Technically, they are state funds and subject to the open records law, but good luck finding anyone willing to fight them on it.
Regardless, that's $0.22 less from every dollar they will have coming in the future. Not like they had been building huge treasure chests to absorb that in perpetuity. They will have to raise ticket, concession, parking, and/or beer prices because they can't use tuition and fees money for that and the media rights contracts are set for a while.
My guess is this will prompt a concerted pushback from chancellors/presidents. Money going out instead of in will do that.
Regardless, that's $0.22 less from every dollar they will have coming in the future. Not like they had been building huge treasure chests to absorb that in perpetuity. They will have to raise ticket, concession, parking, and/or beer prices because they can't use tuition and fees money for that and the media rights contracts are set for a while.
My guess is this will prompt a concerted pushback from chancellors/presidents. Money going out instead of in will do that.
Posted on 1/4/25 at 5:50 pm to HarryBalzack
quote:
They will have to raise ticket, concession, parking, and/or beer prices
In my observation, they are already charging what the market will bear. I don't know they'll be able to make it up by simply raising prices. Some schools probably could. Many still struggle selling out their games.
Posted on 1/4/25 at 6:20 pm to Violent Hip Swivel
Profit. 153 in revenue and 69 in expenses.
Posted on 1/4/25 at 6:25 pm to Violent Hip Swivel
quote:
Profit. 153 in revenue and 69 in expenses.
Would you mind posting a link? I would like to delve deeper.
Posted on 1/4/25 at 6:52 pm to Violent Hip Swivel
quote:
How do you interpret the last sentence, and what's your prediction for how it plays out?
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