College Athletics Enters Revenue Sharing Era

Status
Not open for further replies.
#27      
I don’t think that has to be the case. In fact, it can be flaunted even more. The ruling stipulates that, for NIL, any payment over a certain amount ($600, I believe) must be scrutinized. But I can’t see that withstanding the first legal challenge because who can dispute it when, say, Twin City Radiator says “why yes, we expect endorsements from this four star offensive lineman to generate $3.5 million in revenue for us. Why do you ask?”

The only real change is that schools will have to make sure their players are doing at least some form of actual endorsing to keep up appearances.
Same thing would apply to Sir Georges Buffet and Mama Would Be Proud.
 
#28      
I think that we are entering the age of specialization. Cal State Fullerton might dump millions into baseball, Oregon track and field, while Auburn shoots for golf. Mike Small might buy the top players in Australia, while Mike Poeta scours local pubs for a few brawlers.
 
#29      
Same thing would apply to Sir Georges Buffet and Mama Would Be Proud.
giphy.gif
 
#30      
Doesn't mean we have to like it, forewarned or not. As Social Media shows us on a daily basis, some of us will react in a 'Yeah, whatever' way, others will get hysterical, scream and shout, and proclaim that both we and the sport are doomed. I'm really curious, how many of us are under or over the age of 35? And the percentages of each group that are for or against the professionalization in the way that it seems to be headed? Someone do a poll!
 
#31      
hopefully we’re all in agreement that the athletes deserve to be compensated fairly. been exploited for a long time
The issue is agreeing upon what's fair. I think market rate is fair. Others think what would've been market rate ten years ago is fair.
 
#32      
I read the ruling as 20.5 million salary cap from example OSbuckeyes. Then their booster will add another 25 million for NIL. Thus, Ohio state having a 50 million dollar roster. Texas, OMG 60 or 70 million when done. College athletics is officially dead, soon to follow smaller conferences and schools. I support athletes making money. This is not remotely close to being good for the brand nationwide.
I'll look forward to MWC and Pac? whatever moving down and competing for a nattty in new lower division.
 
#33      
I think that we are entering the age of specialization. Cal State Fullerton might dump millions into baseball, Oregon track and field, while Auburn shoots for golf. Mike Small might buy the top players in Australia, while Mike Poeta scours local pubs for a few brawlers.
It possibly gives a big advantage to schools like Gonzaga and all the Big East schools that can potentially dump the full allotment of money into men's basketball without worrying about putting any money for football.
 
#36      
It possibly gives a big advantage to schools like Gonzaga and all the Big East schools that can potentially dump the full allotment of money into men's basketball without worrying about putting any money for football.
Keep in mind, Gonzaga may not have to share the revenue with football, but it also doesn’t have football to generate the revenue to be shared.
 
#39      
I read the ruling as 20.5 million salary cap from example OSbuckeyes. Then their booster will add another 25 million for NIL. Thus, Ohio state having a 50 million dollar roster. Texas, OMG 60 or 70 million when done. College athletics is officially dead, soon to follow smaller conferences and schools. I support athletes making money. This is not remotely close to being good for the brand nationwide.
I'll look forward to MWC and Pac? whatever moving down and competing for a nattty in new lower division.
No, this is not how it’s supposed to work. (Whether it actually works as intended is a different question.) Everyone here saying that booster NIL is still uncapped or unrestricted is incorrect and this has been talked about endlessly if anyone has been following this case for the past couple of years.

The intent of the new system is that the pure NIL collective booster money in the way that a lot of people are thinking about it (e.g. giving an athlete money for simply playing on the team) would be prohibited. However, “real NIL” from third parties that’s consistent with the NIL market value of players would still be allowed. For instance, legitimate endorsements like Caitlin Clark or JuJu Watkins doing commercials for State Farm while college players are “real NIL” and that is unrestricted.

A clearinghouse run by Deloitte would determine whether NIL payments are legitimate or not. Now, there are a LOT of questions of whether this will ultimately be enforceable. Deloitte has said that over 70% of NIL collective payments up to this point would have been prohibited in the new system, which will inevitably lead to new lawsuits. We can see it coming down the pike when a local car dealer owner booster pays $1 million to a star athlete to come in and sign autographs for an hour at the store - who is to say what’s market value or not there?

So, I have a lot of doubts on whether this system will ultimately survive. I believe that the only way that there can be true enforceable restrictions is to have the colleges enter into collective bargaining agreements with the players, but that would require the colleges to admit that the athletes are employees and they still don’t want to do so.

Anyone placing blame on the players or boosters is totally off base. This is on the colleges themselves for putting their heads in the sand for generations on athlete compensation (and can’t be passed off on the bogeyman of the NCAA because the NCAA was doing what the colleges, including ours, wanted to do). They have only themselves to blame for creating a system (e.g. unilaterally imposing restrictive rules on compensation and movement on people that they claim aren’t even employees, much less that aren’t under collective bargaining agreements) that would be a clear violation of antitrust law in virtually every other business in America.
 
#41      
All of it, no matter what they come up with, is completely stupid and unworkable without contracts.

We've already seen the Tennessee QB whose name is too hard to spell basically hold out for money and leave. Players are bouncing from school to school. Why do I want to spend resources developing players for someone else? It makes every season be championship or bust.

I think the amount of money these guys are getting paid is stupid. 90%+ of college basketball players have no chance at the NBA. But the money is making college basketball the highest paid league outside the NBA. I have said before, but it fits here as well, I have 0 interest in seeing college basketball turn into the Euro Leauge part 2, because 20-year-olds, who have no interest in a college degree come over to the US to get paid.

Also, we've already seen it happening, but with 360+ college basketball teams, how in the world are the bottom 250-300 teams supposed to compete? Answer they can't. So how many schools will just drop a level or close up shop? Then when you look at dropping a level, now all the schools that have been D2 or D3 are going to be ousted by these D1 schools that are now coming to their level.

This has been screwed up in every possible way. I was in favor of paying players, but I had always envisioned a flat fee, MUCH lower than they're getting.
 
#42      
No, this is not how it’s supposed to work. (Whether it actually works as intended is a different question.) Everyone here saying that booster NIL is still uncapped or unrestricted is incorrect and this has been talked about endlessly if anyone has been following this case for the past couple of years.

The intent of the new system is that the pure NIL collective booster money in the way that a lot of people are thinking about it (e.g. giving an athlete money for simply playing on the team) would be prohibited. However, “real NIL” from third parties that’s consistent with the NIL market value of players would still be allowed. For instance, legitimate endorsements like Caitlin Clark or JuJu Watkins doing commercials for State Farm while college players are “real NIL” and that is unrestricted.

A clearinghouse run by Deloitte would determine whether NIL payments are legitimate or not. Now, there are a LOT of questions of whether this will ultimately be enforceable. Deloitte has said that over 70% of NIL collective payments up to this point would have been prohibited in the new system, which will inevitably lead to new lawsuits. We can see it coming down the pike when a local car dealer owner booster pays $1 million to a star athlete to come in and sign autographs for an hour at the store - who is to say what’s market value or not there?

So, I have a lot of doubts on whether this system will ultimately survive. I believe that the only way that there can be true enforceable restrictions is to have the colleges enter into collective bargaining agreements with the players, but that would require the colleges to admit that the athletes are employees and they still don’t want to do so.

Anyone placing blame on the players or boosters is totally off base. This is on the colleges themselves for putting their heads in the sand for generations on athlete compensation (and can’t be passed off on the bogeyman of the NCAA because the NCAA was doing what the colleges, including ours, wanted to do). They have only themselves to blame for creating a system (e.g. unilaterally imposing restrictive rules on compensation and movement on people that they claim aren’t even employees, much less that aren’t under collective bargaining agreements) that would be a clear violation of antitrust law in virtually every other business in America.
You’re correct in everything here… this is not how it’s intended. But when has college athletics been about doing what’s intended?

It really wouldn’t be all that difficult for boosters, or those who are running the current NIL collectives to funnel money to, say Twin City Radiator, Goldblatts or Robeson’s Department Store and say “here’s some ‘advertising revenue’ for you.” Then those businesses bring in the athletes and have them film commercials or do autograph sessions or even have them spinning a sign on the street corner and then claim their endorsement is 100% worth the cost. The only difference now will be that the athletes will actually have to do something tangible to “prove” their worth.

At the end of the day, this is not an NCAA rules issue, it’s a legal issue. And courts generally frown on the restriction of free trade in our market driven system.

arrested development banana stand GIF
 
#43      
You’re correct in everything here… this is not how it’s intended. But when has college athletics been about doing what’s intended?

It really wouldn’t be all that difficult for boosters, or those who are running the current NIL collectives to funnel money to, say Twin City Radiator, Goldblatts or Robeson’s Department Store and say “here’s some ‘advertising revenue’ for you.” Then those businesses bring in the athletes and have them film commercials or do autograph sessions or even have them spinning a sign on the street corner and then claim their endorsement is 100% worth the cost. The only difference now will be that the athletes will actually have to do something tangible to “prove” their worth.

At the end of the day, this is not an NCAA rules issue, it’s a legal issue. And courts generally frown on the restriction of free trade in our market driven system.

arrested development banana stand GIF
Gonna be pretty hard to rationalize that Twin City Radiator, who brings in $2 m gross revenue a year, with a marketing budget of $50k, gets an ROI for paying Kylan Boswell $1 m to sign autographs.
 
#44      
You’re correct in everything here… this is not how it’s intended. But when has college athletics been about doing what’s intended?

It really wouldn’t be all that difficult for boosters, or those who are running the current NIL collectives to funnel money to, say Twin City Radiator, Goldblatts or Robeson’s Department Store and say “here’s some ‘advertising revenue’ for you.” Then those businesses bring in the athletes and have them film commercials or do autograph sessions or even have them spinning a sign on the street corner and then claim their endorsement is 100% worth the cost. The only difference now will be that the athletes will actually have to do something tangible to “prove” their worth.

At the end of the day, this is not an NCAA rules issue, it’s a legal issue. And courts generally frown on the restriction of free trade in our market driven system.

arrested development banana stand GIF
Courts also frown on the violation of laws related to equal employment opportunities, equal pay for equal work, etc. …

Get your popcorn ready.
 
#46      
Gonna be pretty hard to rationalize that Twin City Radiator, who brings in $2 m gross revenue a year, with a marketing budget of $50k, gets an ROI for paying Kylan Boswell $1 m to sign autographs.
I don’t know that you can litigate bad business decisions. If Twin City Radiator invests a million dollars in Boswell and turns out to be a “bad decision…” oops!
 
#47      
I'm just waiting for the lawsuits demanding half be allocated to female sports
Definitely some interesting points that this doesn't resolve. Off the top of my head -
1.) What happens to the many violations that are in progress? The NCAA is insanely slow in and actions from years ago are working through it's process.
2. Women's sports? Will the universities be pressured internally or will they go with what was developed in the settlement, and will the settlement hold up when challenged under Title IX?
3. "NIL Go, which will be used to verify whether deals between athletes and boosters or associated entities are for a valid business purpose rather than a recruiting incentive." Seems like a huge open-ended issue all in itself.

As some others have already said, I fully expect a lot of rules to be easily gamed. People saying this brings clarity, IMHO are nuts!
 
#48      
I don’t know that you can litigate bad business decisions. If Twin City Radiator invests a million dollars in Boswell and turns out to be a “bad decision…” oops!
It's not a bad business decision. It would be an NCAA infraction, and it wouldn't take more than 20 mins or so to discover that. Presumably that is exactly what this governing body would be looking it.

Not hard to say, let me see last year's financials. Ok what changed? Where did you get the money? I would hope no one would be that stupid and obvious.
 
#49      
Yes, but the litigators will have to get in line. Courtrooms don't have much space left these days. As for this brave new world of compensation, it's like putting termites in charge of home remodeling.
 
#50      
It's not a bad business decision. It would be an NCAA infraction, and it wouldn't take more than 20 mins or so to discover that. Presumably that is exactly what this governing body would be looking it.

Not hard to say, let me see last year's financials. Ok what changed? Where did you get the money? I would hope no one would be that stupid and obvious.
A private business/entity will be under no directive to need to voluntarily hand over financial data or even who they pay.

NIL has already opened the door for pay for play. Not like you can penalize a player for accepting money for likeness anymore.

Outside of getting an antitrust exemption like the MLB and having a collective bargaining agreement for college athletes the NCAA doesn't seem to have any recourse for limiting it as long as the payments/taxes are all done legally.
 
Status
Not open for further replies.
Back