THE FUTURE OF COLLECTIVES -- TALKS ARE UNDERWAY BETWEEN COLLEGE SPORTS LEADERS AND HOUSE CASE SETTLEMENT ATTORNEYS. Below is a link to a new article tonight by Yahoo Sports discussing the latest on this subject. Below the link are highlights from the article.
A resolution between the two sides could shape the future enforcement of college athletics’ new revenue-share concept.
sports.yahoo.com
A resolution between the two sides could shape the future enforcement of college athletics’ new revenue-share concept by potentially upending the settlement agreement’s primary goal: to limit or reduce the role of school-affiliated NIL collectives — booster-backed entities that have paid millions to athletes over the last four years.
The goal of the settlement, in part, is to shift athlete pay from these booster-run collectives to schools, now permitted to directly share revenue with athletes under the capped system that began July 1. However, many schools are still operating their collectives as a route to provide third-party compensation to athletes that does not count against a program’s cap — a way to, perhaps, legally circumvent the system.
“There are ways for collectives to operate that have been contemplated,” Sankey said. “If there’s a decision that results from either negotiations with plaintiffs or a court that says differently, you have a much softer cap. That would be the description.”
For school administrators, a “softer cap” potentially means an unchanged environment from the unruly spending of the last four years — something that many within the industry describe as the “Wild West” while others describe it as a free market working to recruit and retain talent.
Some schools have shuttered their collectives in an effort to fall in line with the new era of school compensation. But not everyone has made such a move. At many places, schools continue to operate their collective, some out of fear that others will do the same and some that believe the settlement will fail under the weight of legal challenges.
Ultimately, the schools hold authority to control their own affiliated collectives.
“For how long have people been begging for guardrails?” Sankey asked. “Well, now we have guardrails. Those broadly across the country that claim they wanted guardrails need to operate within the guardrails. If you allow what’s happened to continue to escalate, there would be a very small number of programs that would be competitive with each other and we’d not have a national sport or a national championship.”