House Settlement Approved

[OCESIP]

It may have been approved , but without congress passing a law, enforcement is not going to happen.
States have already written NIL rules, and courts have ruled you can't enforce anything different then state laws.

Are they actually able to review every NIL deal over $600? That would be a massive undertaking.

 

[richmondcuse03]

Are they actually able to review every NIL deal over $600? That would be a massive undertaking.

they'll get submitted into an electronic clearing agency and a lot of it will be automated, I'm sure. Maybe they review every X number deal. It's a windfall for the consulting agency that has been working on setting it up, that's for sure.

Granted, the number of NIL deals should be purely tied to actual marketing deals as intended vs. the hidden pay for play that they are now. I'm sure collectives will streamline how they report the deals, too.

The question will be what happens when the first one is caught lying about what they actually gave or gets dinged because it's "above" market. And then someone sues.

 

[Cuseregular]

ok so we kinda go back to the old days? Everyone gets paid from an equal kitty of $20mil. per school which is supposedly the limit right? So now just like the old days the southern schools and factory schools will still have boosters paying ridiculous sums to recruits but back under the table it goes?

And with NIL is it still no limits as to what current kids can get paid and it can be open and in plain sight for all to see? Don't think this addresses the portal windows at all?

 

[SU68]

I think it's bad for American higher education as a whole.

I agree, but that ship has sailed.

 

[Cuseregular]

I agree, but that ship has sailed.

Yep exactly, Time to come up with another name because referring to it as “college“ sports no longer applies.

 

[OttoinGrotto]

universities have a more complex bs bureaucracy than the federal government. combined with an enormous lack of transparency and grossly elitists self important attitude under the guise of "academic freedom". its so complex that su cannot fix the law school, develop a first class research program etc etc. occ is more visionary productive and contributory than the other cny schools.

Ok

 

[OttoinGrotto]

I agree, but that ship has sailed.

You are correct.

 

[Archbold44]

I agree, but that ship has sailed.

I hate the new era. But the ship sailed when they started paying coaches multiples of what the highest paid people in the University make. The only way they could do that is if the revenue was coming in. The only way the revenue was coming in was via donations, ticket sales, and media rights. The schools were not turning down those sources of revenue... and the coaches recognized that they were a source of it. It's not like Syracuse gave refunds during the G-Rob era out of guilt. This was a business all along.

There are no solutions to prevent the rich and highly motivated from circumventing ANY system. But if this is an effort to try to do so, then so be it. The good thing is that there might be enough skin in the game for Ohio State to want to police Michigan and Alabama... and for Texas to police LSU and Auburn... and so on. We will see.

I think roster stability would help.

 

[Chip]

Honestly, I don't have the juice tonight to get into this again.

Short of it is University operations are already extremely complex, and it's difficult enough to manage the finances to support their academic missions.

This layer of direct payments to student-athletes further skews things and will inevitably open unexpected doors.

Might open the door for new finance jobs at the University.

I should apply, the free kids tuition alone...

Wonder if they're ok with working remote and paying for travel up there for meetings on Fridays of home football weekends and midweek for select hoops games.

 

[OttoinGrotto]

Might open the door for new finance jobs at the University.

I should apply, the free kids tuition alone...

Wonder if they're ok with working remote and paying for travel up there for meetings on Fridays of home football weekends and midweek for select hoops games.

Maybe.

Probably accelerates PE involvement.

Which is... not great.

 

[Chip]

they'll get submitted into an electronic clearing agency and a lot of it will be automated, I'm sure. Maybe they review every X number deal. It's a windfall for the consulting agency that has been working on setting it up, that's for sure.

Granted, the number of NIL deals should be purely tied to actual marketing deals as intended vs. the hidden pay for play that they are now. I'm sure collectives will streamline how they report the deals, too.

The question will be what happens when the first one is caught lying about what they actually gave or gets dinged because it's "above" market. And then someone sues.

Yeah, having Deloitte in charge of this doesn't mean some staffer consultant is going to read every single deal.

They'll build a system, some thing that data can be easily fed into and quickly interpreted out of. Certain elements will be flagged for further review.

Your last question is interesting, because of the human element.

 

[Chip]

Maybe.

Probably accelerates PE involvement.

Which is... not great.

When conference commissioners', chancellors/presidents' and athletic directors' eyeballs turned into dollar signs a long time ago, this was all headed down a path of completely changing the sport and the very definition of "college athletics" at the highest levels.

Frankly, I'm surprised it has kept its form this long.

 

[FloridaCuse]

Yeah, having Deloitte in charge of this doesn't mean some staffer consultant is going to read every single deal.

They'll build a system, some thing that data can be easily fed into and quickly interpreted out of. Certain elements will be flagged for further review.

Your last question is interesting, because of the human element.

I think I've read that they've already built algorithms to sort out the different types of NILs (e.g. product or business endorsements, appearances) and have set some basic parameters based on those types.

 

[OttoinGrotto]

When conference commissioners', chancellors/presidents' and athletic directors' eyeballs turned into dollar signs a long time ago, this was all headed down a path of completely changing the sport and the very definition of "college athletics" at the highest levels.

Frankly, I'm surprised it has kept its form this long.

Agreed, but again, I'm less concerned about the welfare of college athletics than I am higher education.

 

[Consigliere]

Yeah, having Deloitte in charge of this doesn't mean some staffer consultant is going to read every single deal.

They'll build a system, some thing that data can be easily fed into and quickly interpreted out of. Certain elements will be flagged for further review.

Your last question is interesting, because of the human element.

Have to assume the process will start with AI reviewing agreements and flagging for suspicion of transactions exceeding reasonable FMV.

And the fact that any school that has transactions reviewed by Deloitte has opted in to the settlement may limit the legal challenges.

 

[Consigliere]

When conference commissioners', chancellors/presidents' and athletic directors' eyeballs turned into dollar signs a long time ago, this was all headed down a path of completely changing the sport and the very definition of "college athletics" at the highest levels.

Frankly, I'm surprised it has kept its form this long.

The justification has been that very few if any Athletic Departments are true profit centers. Every dollar from football and men’s basketball is funneled back in to fund the full portfolio of non revenue and revenue negative sports.

 

[richmondcuse03]

The justification has been that very few if any Athletic Departments are true profit centers. Every dollar from football and men’s basketball is funneled back in to fund the full portfolio of non revenue and revenue negative sports.

Which is now out the window. It’s not completely out the window because the revenue sharing percentage is still substantially less than professional leagues. But there’s no way the math works anymore.

 

[Dick_in_MI]

When conference commissioners', chancellors/presidents' and athletic directors' eyeballs turned into dollar signs a long time ago, this was all headed down a path of completely changing the sport and the very definition of "college athletics" at the highest levels.

Frankly, I'm surprised it has kept its form this long.

Many years ago, a number of schools decided that college sports was headed in a direction that didn’t align with their academic mission.

Here are some of the teams in the final Top 20 in 1950:

#5 Army
#8 Princeton
#14 Wyoming
#18 Washington and Lee
#19 Navy
#20 Cornell

Along the way, the business of the sport became too crazy and a lot of those schools (and others like them) simply said “no way.” Perhaps in some cases they couldn’t compete financially, but in other cases they decided that isn’t why their academic institution existed. I don’t think that the prestige of the Ivys was hurt too badly by that decision.

Now? It’s light years worse than in 1950. “College athletics” has become, in many cases, nothing more than a school running a pro team. Just show biz and a revenue stream kiddies, and if along the way a player gets a degree, well that’s merely a bonus. Y’all be sure to donate to help pay those players, OK?

 

[Newhouser]

I'm just a fan but I don't see how this helps the lower revenue schools. Reads nice and tidy but the reality is the spending gaps will still exist.
Also the next step is school is optional or part-time. Do the schools show their true colors and say no problem or tap out?

 

[Jake]

This all boils down to enforcement. Allegedly it’ll be better than the NCAA….allegedly…

 

[GoSU96]

Are they actually able to review every NIL deal over $600? That would be a massive undertaking.

If there is agreed to standard format they can be scanned and flagged by AI tools in seconds

 

[baggerbob]

they'll get submitted into an electronic clearing agency and a lot of it will be automated, I'm sure. Maybe they review every X number deal. It's a windfall for the consulting agency that has been working on setting it up, that's for sure.

Granted, the number of NIL deals should be purely tied to actual marketing deals as intended vs. the hidden pay for play that they are now. I'm sure collectives will streamline how they report the deals, too.

The question will be what happens when the first one is caught lying about what they actually gave or gets dinged because it's "above" market. And then someone sues.

The only type of enforcement that they will able to get without going to court and losing will be a monetary fine.
And a big booster will pay it, schools may agree to sign something but look at FSU, and Clemson for what signing something means in reality.

 

[texascpa]

they'll get submitted into an electronic clearing agency and a lot of it will be automated, I'm sure. Maybe they review every X number deal. It's a windfall for the consulting agency that has been working on setting it up, that's for sure.

Granted, the number of NIL deals should be purely tied to actual marketing deals as intended vs. the hidden pay for play that they are now. I'm sure collectives will streamline how they report the deals, too.

The question will be what happens when the first one is caught lying about what they actually gave or gets dinged because it's "above" market. And then someone sues.

That's what the arbitration clause is for.

 

[kingtidge]

Yeah, having Deloitte in charge of this doesn't mean some staffer consultant is going to read every single deal.

They'll build a system, some thing that data can be easily fed into and quickly interpreted out of. Certain elements will be flagged for further review.

Your last question is interesting, because of the human element.

90% will be auto-approved by Deloitte's AI I bet.

Only the red-flagged potential problem deals will get bubbled up for human review.

 

[Chip]

90% will be auto-approved by Deloitte's AI I bet.

Only the red-flagged potential problem deals will get bubbled up for human review.

And they won't be from the schools with the deepest pockets.