New Pay for Play Concept

[Consigliere]

Had an unconventional idea how programs can implement a new income stream to support revenue sharing.

Once House is approved and student athletes begin signing contracts directly with universities in exchange for direct payments, the program is essentially investing in the player. Why should the return on that investment end when the player leaves the school? The athletic development that the school provides in terms of coaching and facilities carries on throughout the athletic career.

Suppose there was a clause in the contract that says should a player go on to play professional sports at a specified level or above, the athlete will donate a modest amount back to the institution that helped them reach that level. Say 1 or 2% over a base income.
Take it a step further and if that athlete transfers to another program where their total income from athletics (revenue sharing and NIL) exceeds that from their previous school, they also donate a portion of that back to the original program.
There was a platform called Nilly that was launched a few years back that essentially gave individuals the opportunity to make the same type of investment. I am just suggesting extending the concept to athletic departments. Could be a better long term approach to protect the “poachees” than buyout clauses and can also address the alumni who were developed and given visibility through their college careers but haven’t given a dime of the millions they have reaped back to their schools.

 

[bigmike]

I like the concept. As usual the devil will be in the details. During initial recruitment it might end up, looking like (voiced through their agent):

5 Star player: “no flipping way”
4 Star Player: ‘we only have to agree to .5% at the University of X”
3 Star Player: “ok, deal”
2 Star and below player: “how ‘bout I give you 10%”

 

[Scooch]

I always love creativity. Honestly though, if my kid was given that ultimatum by a school there's no way on Earth I'd let them go there.

 

[BronsonCuse]

Someone may know more, but is this like what the Atlanta Braves do? Donate 1 or 2% back to the "Atlanta Braves Foundation"

 

[MSOrange]

Someone may know more, but is this like what the Atlanta Braves do? Donate 1 or 2% back to the "Atlanta Braves Foundation"

That was actually the first thing that came to my mind as a Braves fan.

 

[Reilly35]

Kentucky board of trustees approves shifting university's athletics department into limited liability company

A university press release calls the move 'perhaps the first of its kind'

www.cbssports.com

 

[FloridaCuse]

This clause in a contract might have to be part of the House case settlement in order to be able to require. I also wonder if buyout clauses and a payback if a player decides to stop playing after 4 games to preserve a year of eligibility (absent a new 5 in 5 years rule) could be done without being part of the settlement.