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Dellenger: P4 ADs met secretly in DC this week to establish college sports NIL governance
Posted on 2/6/25 at 12:27 pm
Posted on 2/6/25 at 12:27 pm
quote:
Select P4 ADs met secretly in DC this week to establish a new entity to govern college sports’ rev-share system, built around an enforcement arm to police cap violators, phony NIL deals, and tamperers.
The unannounced 'house transition team' includes reps from Ohio State, Clemson, Texas A&M, Kentucky, Washington, Cincinnati, Arizona, and Georgia Tech.
Monumental shift: Power conferences, not NCAA, to control policing athlete compensation (Yahoo)
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Posted on 2/6/25 at 12:33 pm to paperwasp
quote:That's interesting.
Deloitte, the world’s largest professional services network, will operate the new NIL clearinghouse, which is charged with determining fair market value of income earned by athletes outside of the school (ie: name, image and likeness deals). Deals affiliated with a booster, booster group or any entity deemed to be associated with the school are the only ones subject to the clearinghouse’s more rigorous fair market value standard.
Posted on 2/6/25 at 12:47 pm to paperwasp
They have no power to do that, and to collude together brings in anti-trust issues.
If they could govern it, it would have started to begin with.
UNLESS they do what I've said all along and what they should have done from the start which is to limit the boosters rather than the players. And in that way, they can just make it so boosters have to show fair market value and all that.
The same way as allowing them to get a job. However you can't limit how many jobs they can have. Meaning if fair market value for a NIL deal is say $500k, then you can't tell 10 private places they can't do a deal with that recruit. That only works if you multiply it by $0, meaning you have to limit the boosters to no NIL deals for it to work.
And now you're bringing back the old violations of pay to play while still paying them because someone is going to offer shite on the side. While doing nothing to actually address the issues. And the schools are once again at the mercy of their boosters and their activities since the schools are held responsible for them.
The government created this bullshite and the only way college football can fix it is to get anti-trust exemptions like other professional sports. Because that's what it is now. Or they could allow liberty and a private organization to decide for itself as it was before they stuck their greedy noses in it.
If they could govern it, it would have started to begin with.
UNLESS they do what I've said all along and what they should have done from the start which is to limit the boosters rather than the players. And in that way, they can just make it so boosters have to show fair market value and all that.
The same way as allowing them to get a job. However you can't limit how many jobs they can have. Meaning if fair market value for a NIL deal is say $500k, then you can't tell 10 private places they can't do a deal with that recruit. That only works if you multiply it by $0, meaning you have to limit the boosters to no NIL deals for it to work.
And now you're bringing back the old violations of pay to play while still paying them because someone is going to offer shite on the side. While doing nothing to actually address the issues. And the schools are once again at the mercy of their boosters and their activities since the schools are held responsible for them.
The government created this bullshite and the only way college football can fix it is to get anti-trust exemptions like other professional sports. Because that's what it is now. Or they could allow liberty and a private organization to decide for itself as it was before they stuck their greedy noses in it.
This post was edited on 2/6/25 at 12:48 pm
Posted on 2/6/25 at 12:50 pm to Murph4HOF
quote:
Deals affiliated with a booster, booster group or any entity deemed to be associated with the school are the only ones subject to the clearinghouse’s more rigorous fair market value standard.
Great in theory, but how are they not going to be in violation of anti-trust still if they limit what advertisers want to pay players?
Posted on 2/6/25 at 12:53 pm to Murph4HOF
quote:
charged with determining fair market value
quote:
That's interesting
Supposedly / allegedly / assuredly there's a magic binder that each school purchases from an organization that monitors and assigns "going rates" for players.
Will be interesting to see if something like that gets transitioned into a fair market value amount, like a Kelley Blue Book.
And how will it be determined, as a base rate across the board? By position? On a case-by-case basis depending on the region or conference?
Posted on 2/6/25 at 1:01 pm to ukraine_rebel
quote:
the only way college football can fix it is to get anti-trust exemptions
quote:
how are they not going to be in violation of anti-trust
quote:
A California district judge granted preliminary approval to the NCAA and power conferences’ settlement of the House antitrust case, another step in a long process toward the era of athlete revenue sharing.
Judge Claudia Wilken, of the U.S. District Court of the Northern District of California, issued her settlement ruling requiring schools to pay roughly $2.8 billion to former athletes for damages of lost NIL payments, but, perhaps more importantly, it permits schools — not requires them — to share millions with their athletes.
However, the most significant piece is an athlete revenue-sharing concept. Schools will be permitted to directly share as much as $23 million annually with their athletes in a capped system.
The settlement does not completely avoid some future legal challenges, does not prevent athletes from being deemed employees, and still may need the assistance of Congress.
As I understand it, part of the settlement was a capped system, meaning that the schools will have roster limits and a not-to-exceed total based on school revenues.
Where this all lands though sounds like it's still up in the air legally, but it's supposed to be implemented starting in July, I think.
Posted on 2/6/25 at 1:01 pm to paperwasp
There are so many variables to factor in (not just the stuff you mentioned but situations like Bronny James and Olivia Dunne) that any formula they come up with will almost absolutely have to include a margin of error. And they'd be stupid to state what that margin of error is, because it would be taken advantage of.
All it seems like it is doing would be pushing any money more than the fair market value under the table just like how things used to be.
All it seems like it is doing would be pushing any money more than the fair market value under the table just like how things used to be.
This post was edited on 2/6/25 at 1:03 pm
Posted on 2/6/25 at 1:05 pm to paperwasp
quote:
As I understand it, part of the settlement was a capped system, meaning that the schools will have roster limits and a not-to-exceed total based on school revenues.
The capped system would be for revenues generated by the school. It wouldn't include if Canon motors wanted to pay Jaxon Dart above the considered "fair market value" to drive a car in their commercial.
Fair Market Value is also a weird term for this b/c there's no other system like in the country and it's brand now. Who's to say what the fair market is, we have no idea.
Posted on 2/6/25 at 1:09 pm to 3down10
If they run it like a private sector business they absolutely can enforce their own rules and regulations. Even in public sector jobs, you have to abide by rules and requirements. What the college athletes have now is totally unsustainable in the future. So yes, a governing body is certainly required to take back the reigns and stop the inmates from running the asylum.
Posted on 2/6/25 at 1:18 pm to ukraine_rebel
quote:
It wouldn't include if Canon motors wanted to pay Jaxon Dart above the considered "fair market value" to drive a car in their commercial
quote:
The world’s largest professional services network will operate the new NIL clearinghouse, which is charged with determining fair market value of income earned by athletes outside of the school (ie: name, image and likeness deals). Deals affiliated with a booster, booster group, or any entity deemed to be associated with the school are the only ones subject to the clearinghouse’s more rigorous fair market value standard.
Multiple penalties are under discussion for those found to be circumventing or exceeding the new cap or any other rule violation (ie: tampering), including school fines, revenue-share pool reductions and coach/administrator suspensions.
The LLC is expected to employ a head investigator as well as a CEO or director who, perhaps with a small team of people, will be charged with being the ultimate decision-maker(s) on infractions cases using a more timely process than the one currently existing.
Athletes whose outside NIL deals are found not to be at fair market value will be ruled ineligible.
I think you're correct, based on the bolded text above.
I'm just guessing that if something nefarious was taking place, an investigation would ensue to determined if Canon Motors was indeed affiliated with a booster or entity somehow associated with the school.
Additionally, and this is also just a guess, once a fair market value is established, one would have to assume that in the overwhelming majority of instances, a similar offer would be made between outside commercial entities and athletes.
In other words, unless you're talking about a superstar, and if Canon Motors wasn't owned by an independent booster, I'm sure someone at their corporate office would be curious as to why salesman of the month Jimmy Shortstacks was paying Jaxon Dart three-times the going rate for their commercials versus the dealership down the street.
Posted on 2/6/25 at 1:19 pm to Nasty_Canasta
quote:
If they run it like a private sector business they absolutely can enforce their own rules and regulations. Even in public sector jobs, you have to abide by rules and requirements. What the college athletes have now is totally unsustainable in the future. So yes, a governing body is certainly required to take back the reigns and stop the inmates from running the asylum.
Professional sports have anti-trust exemptions given to them by congress.
Posted on 2/6/25 at 1:34 pm to 3down10
quote:Baseball does, but no one else does, that I recall. Pro leagues get away with salary caps because of collective bargaining agreements, but no pro league limits what players can earn through NIL (of course, no pro team has tried to get around salary caps by manipulating sponsorships...yet).
Professional sports have anti-trust exemptions given to them by congress.
Posted on 2/6/25 at 1:38 pm to paperwasp
The Cannon Motors example brings up an interesting point:
They were one of the boosters named in the NCAA's investigation that resulted in Ole Miss being put on NCAA probation, so they definitely have an association with Ole Miss.
I guess to be legit, the owner of Cannon Motors could stop contributing to Ole Miss and any Ole Miss associated collectives while Cannon Motors is giving Ole Miss players NIL deals that are more than whatever the fair market value is, but that guy or family will still end up in the luxury boxes on Saturdays as a guest of someone else.
Thinking about it from that perspective, it reinforces my belief that they'll just be payments under the table again.
They were one of the boosters named in the NCAA's investigation that resulted in Ole Miss being put on NCAA probation, so they definitely have an association with Ole Miss.
I guess to be legit, the owner of Cannon Motors could stop contributing to Ole Miss and any Ole Miss associated collectives while Cannon Motors is giving Ole Miss players NIL deals that are more than whatever the fair market value is, but that guy or family will still end up in the luxury boxes on Saturdays as a guest of someone else.
Thinking about it from that perspective, it reinforces my belief that they'll just be payments under the table again.
Posted on 2/6/25 at 1:49 pm to Murph4HOF
quote:
it reinforces my belief that they'll just be payments under the table again
Exactly what I was thinking too. We've probably all been around this stuff long enough to know exactly what's going to happen.
Although who doesn't love a good ATPB thread now and again?!
Posted on 2/6/25 at 2:21 pm to Murph4HOF
quote:
Thinking about it from that perspective, it reinforces my belief that they'll just be payments under the table again.
Which is why, capping revenues is one thing and is fair and can be regulated quite easily but regulating what NIL Collectives and outside advertising can do is untenable. You'd have to have a couple of thousand of agents at least and unreal subpoena power to control it. It wouldn't take 2 weeks to clog up the clearing house into an oblivion.
Posted on 2/6/25 at 2:54 pm to ukraine_rebel
Yeah, I'm really curious how they plan to mitigate some of these issues.
This has obviously been coming down the pike for a while, so one would think they and their teams of lawyers have managed to sort some of this out by now.
Although I don't know if them meeting "in secret" is a good initial sign or a bad one.
This has obviously been coming down the pike for a while, so one would think they and their teams of lawyers have managed to sort some of this out by now.
Although I don't know if them meeting "in secret" is a good initial sign or a bad one.
Posted on 2/6/25 at 4:33 pm to twk
quote:
Baseball does, but no one else does, that I recall. Pro leagues get away with salary caps because of collective bargaining agreements, but no pro league limits what players can earn through NIL (of course, no pro team has tried to get around salary caps by manipulating sponsorships...yet).
Yes, Baseball has the best one. The NFL got theirs in the 60s by congress, but yeah it's not about NIL stuff since it wasn't an issue.
Posted on 2/6/25 at 5:24 pm to paperwasp
Cincinnati has like 3 fans. Why them? Did they bring their diarrhea Chili?
Posted on 2/6/25 at 8:26 pm to paperwasp
My brother in Christ, if Delly is reporting it, it was never a secret.
Oh, also:
Oh, also:
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