Anyone capable of making sense of the deal cut today

[oldboiler52]

I don't understand the so-called House settlement. If someone can explain it to me, I would appreciate it. I was chatting with Eric Bosse and knew this was changing the game. But revenue sharing is more for your athletes in Football and Basketball than say swimming. There are no scholarships only roster size 15 for basketball. How much an athlete earns will be based mainly on TV contracts. B10 expected to pay 22 million per year. And NIL must be based on fair market value anything over $600 your revenue sharing maybe reduced. June anyone in the transfer Portal is out for next year. I was told this is why Cluff was an easy get. If someone can fill in the details. I'm hearing this gives the B10 a huge advantage over all other schools, does it?

 

[Thordog]

The settlement paid out 2.6 billion for athletes since 2016 - roughly 75% goes to football players, 20% to basketball 5% to other sports.

The revenue sharing going forward is set at 22% of the average P5 media revenue deal - translates to $20.5 million per school. P5 schools are required to do this, others can opt in or out. There's a 4% growth each year and the total amount is recalculated every 3 years. My understanding is that all schools have this limit so there really isn't a financial advantage from one P5 conference to the next. I'm sure some schools will favor basketball at the expense of football etc.

The NIL funds count towards the 22% cap and there will be penalties if a school exceeds the amount. Universities are required to vet all NIL deals above $600 to ensure they are legit and not pay for play shenanigans and this is probably the end of collectives - they are required to form a separate LLC that manages caps, compliance, gambling issues etc - this is separate than the NCAA. The software company that the Major Leagues use has been hired to build a cap management system.

Rosters limits instead of scholarships - probably the end of walk ons, and probably a good reduction in Olympic sport program rosters and AD staff.

The settlement didn't address how Title IX fits into this, employee - employer status etc.

Your comment about the portal after June being left out - first time I've heard that.

here's a good article covering a fair amount of details.

Landmark House Settlement Set for Final Approval: Here’s What to Know

On Sunday evening in Tampa, the NCAA will crown a new national champion in women’s basketball. The next night in San Antonio, it will be the men’s turn to hoist

www.si.com

 

[Thordog]

Also, April 7 court date could be the date when NIL deals begin the vetting process. Getting a collective deal & payment before then would not be scrutinized and perhaps why we saw some surprise portal entries.

 

[Tommaker]

My understanding is that all schools have this limit so there really isn't a financial advantage from one P5 conference to the next. I'm sure some schools will favor basketball at the expense of football etc.

It was my understanding the first 5 years it's capped at 20 mil for all schools, but after that it goes to 22% of revenue/income (with the increases you noted....also have seen some speculation those increases could be even higher). I saw some crazy stat where Knight giving so much to Oregon amounted to $65 mil going to the players. Bigger schools with bigger budgets will obviously be paying more (in the case of an OSU or Bama, a LOT more).

 

[Tommaker]

The settlement didn't address how Title IX fits into this, employee - employer status etc.

Ding Ding Ding Ding Ding!!!!! As the Titanic learned, it wasn't the visible tip of the iceberg that took them down.

 

[Thordog]

It was my understanding the first 5 years it's capped at 20 mil for all schools, but after that it goes to 22% of revenue/income (with the increases you noted....also have seen some speculation those increases could be even higher). I saw some crazy stat where Knight giving so much to Oregon amounted to $65 mil going to the players. Bigger schools with bigger budgets will obviously be paying more (in the case of an OSU or Bama, a LOT more).

if that's the case, then it could create a disparity of caps.

The article used language: "every program is capped at 22% of the average power school’s media-rights revenue, ticket sales and sponsorship revenue" I interpret that as the calculation equated to an average cap $20.6 million that all schools will start with along with a 4% growth for the next 3 years, then recalculation every 3 years to determine the new average of all P5 programs revenue as new media rights deals come in and as programs revenue changes. That number will then be used as the new cap for the following 3 years. So it results in the same amount across the board for P5.

The ironic thing is that the person who brought the suit (House) was a swimmer and this revenue sharing may end up reducing rosters for Olympic sports at many universities..

And this will probably result in more lawsuits as the new vetting firm starts declining NIL options, Title IX, etc.

 

[BoilerBonz]

if that's the case, then it could create a disparity of caps.

The article used language: "every program is capped at 22% of the average power school’s media-rights revenue, ticket sales and sponsorship revenue" I interpret that as the calculation equated to an average cap $20.6 million that all schools will start with along with a 4% growth for the next 3 years, then recalculation every 3 years to determine the new average of all P5 programs revenue as new media rights deals come in and as programs revenue changes. That number will then be used as the new cap for the following 3 years. So it results in the same amount across the board for P5.

The ironic thing is that the person who brought the suit (House) was a swimmer and this revenue sharing may end up reducing rosters for Olympic sports at many universities..

And this will probably result in more lawsuits as the new vetting firm starts declining NIL options, Title IX, etc.

Agree, this House settlement is a very expensive band-aid that will be ripped off with the first serious legal challenge. All it takes is one Federal judge to blow up the whole thing! Plus, this agreement isn't an acceptable solution to any program outside the P4. It's effectively the end for all the mid and low majors, with the exception of those with some very wealthy benefactors. Individually, the mid and low majors don't count for much, admittedly, but collectively, they represent a huge number of fans, many of whom will lose interest in D1 sports once their team is left behind. What we need is an anti-trust exemption for the NCAA. But the Big 10 and SEC have no interest in that, for now, because the House settlement gives them an edge!