House Settlement Approved

[texascpa]

Highlights of the Bill from Ross Dellenger's Posts:

1. Codifies the settlement, grants liability protestion, preempts state NIL laws & includes anti-employment clause. It brings regulations to agents & requires that schools provide athlete degree completion, post-grad healthcare, etc.
2. Prohibits athlete compensation over the new revenue sharing cap and requires that all NIL deals hold a "valid business purpose" and align with NIL Go's fair market value compensation range and the College Sports Commission's anti-circumvention rules.
3. Authorizes an association, such as the NCAA or CSC, to require athletes to disclose deals and aggregate & share publicly anonymized data of those deals.
4. Allows the establishment of a 1-time transfer rule & eligibility standards.
5. Places parameters and requirements around agents, most notably limiting agent compensation to 5% of a total athlete deal. [Coaches told Yahoo Sports that agents are often charging 10 to 20%.]
6. Requires schools to provide athletes with certain levels of academic support & out-of-pocket healthcare for ex-athletes within 3 years of leavaing school; and schools are not permitted to cut scholarships for injury or performance.
7. Requires schools to maintain 16 varsity sports teams, the FBS mimimum, as a way to protect Olympic programs.
8. Schools that earn at least $50 million annually in media rights revenue are not permitted to use student fees to support their athletic programs. [SEC and B1G?]
9. Permits schools to restrict athlete NIL deals if the violate the university's code of conduct or conflict with any existing school agreement, such as an athlete striking a deal with Nike while playing for an Adidas school.

Ross Dellenger of Yahoo Sports believes this Bill has a chance to quickly move through committee and onto the House floor. Its fate in the Senate is uncertain.

6. that is interesting and will hurt schools like Alabama that have a history of using "injury" as a way to pull a scholarship.

8. Uh-oh Rutgers! lolololololol

 

[FloridaCuse]

NIL Collectives at some schools shutting down. College Sports Commission says NIL deals with Collectives need a valid business purpose.

Commission rejecting some athlete NIL deals

The new agency in charge of regulating name, image, likeness deals in college sports sent a letter to schools Thursday saying it had rejected deals between players and donor-backed collectives formed over the past several years.

www.espn.com

 

[FloridaCuse]

 

[FloridaCuse]

 

[HtownOrange]

In short, there will be a legitimate business operated to mutually benefit student athletes and the businesses while the old factories (read SEC, B1G, and others) will return to the days of mysterious bags of money being dropped in the hands of players in excess of the $20MM+ allowed by each university.

What’s old is new again.

Unless severe penalties are enforced on violating schools, nothing has nor will change. If the school lacked character to play by the rules before, there is nothing to incentivize good character to play by the rules now.

 

[richmondcuse03]

In short, there will be a legitimate business operated to mutually benefit student athletes and the businesses while the old factories (read SEC, B1G, and others) will return to the days of mysterious bags of money being dropped in the hands of players in excess of the $20MM+ allowed by each university.

What’s old is new again.

Unless severe penalties are enforced on violating schools, nothing has nor will change. If the school lacked character to play by the rules before, there is nothing to incentivize good character to play by the rules now.

If they merely operated by the rules, they could all spend less, too. They were basically given a gift of a salary cap...and everyone thinks they won't operate by it. It'll be interesting to see what truly happens.

 

[HtownOrange]

If they merely operated by the rules, they could all spend less, too. They were basically given a gift of a salary cap...and everyone thinks they won't operate by it. It'll be interesting to see what truly happens.

Agreed, your first line says it all.

Considering how the SEC traditionally has "gifted" players and "gray-shirts" (stockpiled players to keep opponents from having them, while not technically scholarship players they were walk-ons in the unlimited walk-ons days and usually received nice cash payments), Further, the amount the SEC and B1G has paid outside the rules was never disclosed, but we can determine that stars are well paid by the generous school deals for key players) there is little to lead me to believe that the present limit is merely a arbitrary number to squeeze out D1AA and give the appearance that there exists a limit. The wild-west NIL days are numbered, but the willingness of many to fund the outrageous amounts for some players to sign gear, make an appearance, or make a commercial ad, or whatever, indicates that the rules were there for appearance only. Further, the lack of any measure of punitive authority against the schools and the players for violating the rules indicates that the negotiators knew neither the schools nor t he players would never want close scrutiny nor punishment for violations. In short, the wild-west days of NIL are numbered but the intent to do-whatever-"must"-be-done will continue.

Deion Sanders is calling for a salary cap:

Deion advocates for salary cap in college football

Colorado coach Deion Sanders is advocating for a salary cap in college football, noting that it would help even the competitive landscape in a sport that is already becoming more like the NFL.

www.espn.com

I am not sure it would be perfect but may be a start. Schools in NY and CA would stull have to face the income tax issues v. TX, FL, WI where there is no income tax. Though, I would expect that states like CA will tax all players that play within their state, i.e when Miami played Stanford, the Miami players would pay taxes on 1/12 of their salary to CA.

 

[orange79]

So, can someone explain how this will affect the Orange United collective?

 

[Consigliere]

So, can someone explain how this will affect the Orange United collective?

Most Orange United events are held with a business sponsor. For example they did a meet and greet at Home Team Pub with Yasin Willis and Devin Grant. Seems like that would satisfy the business reason requirement as it is a promotional event supporting the company. seems like the deals that have been rejected are ones where the purpose of the project is solely to promote the collective. Where it gets fuzzy is with the individual contributions and subscription model monthly payments. Can those be used to augment player payments for legitimate business purposes?

In the case of our tailgate NIL it seems like we are fine. Orange United harvests payments from identified members of the Fine Mess (formerly SyraCRUZ) Tailgate and uses those funds to conduct transactions with Syracuse Student Athletes in accordance with the contract I signed with OUC. We have spelled out exact payments for exact activities and OUC keeps track of contributions from members I identified and outgoing payments for name sponsorships, videos and tailgate appearances.

I'll reach out and see if I can get more info.

 

[HtownOrange]

Most Orange United events are held with a business sponsor. For example they did a meet and greet at Home Team Pub with Yasin Willis and Devin Grant. Seems like that would satisfy the business reason requirement as it is a promotional event supporting the company. seems like the deals that have been rejected are ones where the purpose of the project is solely to promote the collective. Where it gets fuzzy is with the individual contributions and subscription model monthly payments. Can those be used to augment player payments for legitimate business purposes?

In the case of our tailgate NIL it seems like we are fine. Orange United harvests payments from identified members of the Fine Mess (formerly SyraCRUZ) Tailgate and uses those funds to conduct transactions with Syracuse Student Athletes in accordance with the contract I signed with OUC. We have spelled out exact payments for exact activities and OUC keeps track of contributions from members I identified and outgoing payments for name sponsorships, videos and tailgate appearances.

I'll reach out and see if I can get more info.

Thanks. I am glad O.U. has not gone wild-west in its NIL dealings.

 

[richmondcuse03]

Thanks. I am glad O.U. has not gone wild-west in its NIL dealings.

None of our collectives are going Wild West. We are following all the rules.

 

[FloridaCuse]

Plaintiff lawyers in NCAA House settlement set to receive more than $750 million in legal fees

Plaintiff laywers in the settlement involving the NCAA and the Power Five conferences are set to receive more $750 million in legal fees and costs.

www.usatoday.com

 

[FloridaCuse]

 

[FloridaCuse]

 

[CU44SE]

I mean it’s been outlined for how long? You can’t just pay a player for nothing. You are paying a player for his Name, image, and likeness to sell something or use his name for jerseys. These collectives thought they could just pay players to be on the team? That’s the entire point of this new settlement.

 

[FloridaCuse]

 

[HtownOrange]

As expected, the conferences will hold a line. Now the players are placed on notice that what happens next is that players will realize that the Wild West Days are over and they will have to make adult decisions. The players' attorneys will have to walk a fine line explaining how they misunderstood the agreement they negotiated.

 

[FloridaCuse]

List of Universities that opted into the House Case Settlement --

Participating Schools

This website lays out the new system in place, overseen by the College Sports Commission.

www.collegesportscommission.org

 

[orange79]

List of Universities that opted into the House Case Settlement --

Participating Schools

This website lays out the new system in place, overseen by the College Sports Commission.

www.collegesportscommission.org

So now we have to compete with Dallas Baptist University too???!!!

 

[FloridaCuse]

 

[Sudano]

None of our collectives are going Wild West. We are following all the rules.

There are no rules

 

[FloridaCuse]

There are no rules

Right now there are, per the College Sports Commission (CSC). Whether they stay after litigation (possibly by the Plaintiffs' attorneys) remains to be seen. Also, Congress may weigh in.

 

[FloridaCuse]

 

[OrangeXtreme]

 

[FloridaCuse]