NCAA in talks to settle NIL antitrust case

[David321]

Sources: NCAA in talks to settle NIL antitrust case

The leaders of college sports are involved in "deep discussions" to reach a legal settlement that would likely lay out the framework for sharing revenue with athletes in a future NCAA business model, sources told ESPN.

www.espn.com

 

[CU44SE]

The landscape will be unrecognizable within 3 years. So much change needs to occur within college sports.

The perfect solution is the league that John Wildhack is part of proposing. There continues to be 1 giant problem. The Big 10 and SEC would have to take a pay cut. And conference employees would need to take pay cuts and siese to exist.

There needs to be 1 voice and 1 leader. College Athletics has too many voices and too many leaders that are looking out for their own interests.

 

[Qbobby]

I agree, if you are going to go to an NFL and union system, you are going to need a commissioner with power. But man, good luck getting the SEC/B1G to take a cut. The only thing that maybe prods them along is that threat of a $4 billion dollar class action suit... or heaven forbid an anti-trust suit... which carries triple damages if found guilty.

 

[baggerbob]

I agree, if you are going to go to an NFL and union system, you are going to need a commissioner with power. But man, good luck getting the SEC/B1G to take a cut. The only thing that maybe prods them along is that threat of a $4 billion dollar class action suit... or heaven forbid an anti-trust suit... which carries triple damages if found guilty.

And if they try to go to 40 and cut everyone else out the anti-trust suit would happen.

 

[kingtidge]

Looks like the judge in this case said nope... come back with something better, LOL.

Judge puts $2.78 billion NCAA settlement on hold​

"...Currently, boosters can provide NIL payments to athletes that essentially serve as salaries.

[Judge] Wilken said, “The schools don’t have to pay those benefits, and the schools may or may not be able to pay those benefits, but clearly, the collectives or the boosters or the third parties do have those resources and are willing to pay them, apparently.”

She added, “I think we’ve got problems with this, and I don’t have an idea of how to fix them. So I think I’m just gonna have to throw this back on you all to see if you can come up with something better.”

 

[texascpa]

Looks like the judge in this case said nope... come back with something better, LOL.

Judge puts $2.78 billion NCAA settlement on hold​

Was listening to Full Ride yesterday and Neuheisel said he expected it to get kicked back because there are other lawsuits that would be negatively impacted if this was approved. Looks like he was right.

 

[OrangeXtreme]

 

[OrangeXtreme]

$2.8B in back-pay.- spread over 10 years- from NCAA + school distribution (NCAA Tournament money)- distribution determined using a formula based on a player’s value- $2.3B goes to P4 FB/MBB players (avg of $120K a player over 10 years)- Back-payments begin as soon as May

$20B+ in rev-share over 10 years.- schools must stay under an annual cap determined thru avg of P4 revenue data- 1st-year cap likely $21-23M per school with escalators to as high as $33M by 2035- schools are not *required* to share revenue- rev-share to start July 1

More on future rev-share.- schools can distribute revenue at own discretion- most plan to use back-pay formula for distribution: 75-85% FB, 10-15% MBB, 10-15% others- Title IX is not exempt, resulting in certain lawsuits- revenue mostly shared by buying player NIL rights

More on future rev-share.- $2.5M of Alston pay counts toward the cap, which is why many schools plan to curtail Alston pay- $2.5M of new scholarship money that a school adds counts toward the cap (look for schools to add more scholarships to women sports to balance Title IX)

Roster structure.- schools to provide scholarships to full rosters under new roster limits- roster limits changed dramatically: in FB, roster is 105 (from 85); MBB is 15 (13); BSB is 34 (11.7)- walk-ons still exist. Ex: most SEC BSB programs to only scholarship 20-27 spots

Enforcement arm.- Cap management system: plaintiffs/P4/NCAA to police cap requiring regular school submissions- Clearinghouse: a non-NCAA 3rd party to approve certain non-school (booster) NIL to athletes- Arbitration: neutral arbitrator to hear appeals on enforcement matters

Opting in/out.- schools have a choice to opt out of settlement terms, thus prohibiting them from sharing revenue- many FCS & basketball-playing programs plan to opt out of the settlement- there is on-going debate on future competition between P4 schools & those that opt-out

Settlement will require NCAA rule changes. DI Council expected to:- eliminate National Letter of Intent- apply FB redshirt rule (can play up to 30% of a 5th season) to all sports- permit athletes to receive prize money/pay before enrollment.

 

[SYRtoBOS]

Players getting there due aside, I am not excited for these costs to get pushed back onto the consumer. Im not sure if it will be through higher broadcast rights costs or higher ticket sales, but it will definitely hit us somewhere.

 

[Nick44]

Can someone explain this to a 6 yr old like me to understand?

 

[RandygoCuse]

Players getting there due aside, I am not excited for these costs to get pushed back onto the consumer. Im not sure if it will be through higher broadcast rights costs or higher ticket sales, but it will definitely hit us somewhere.

So this is the question - as people are cutting cords, costs going up is going to make for a double whammy. I'm not excited either, but I'm willing to bet that coaches, ADs, and athletic directors are even more nervous. My guess is their compensation is about to take a hit as money shifts to athletes.

 

[kcsu]

It is a step in the right direction. Next step will take congress to get involved which i believe they will