NIL Settlement with NCAA this week - $3B in back payments

[YlJacket]

And here I thought NIL was all about going forward - looks like the NCAA is about to put a settlement offer to a vote of its members which both pays past athletes appx $3B in payments for lost NIL - about half from NCAA reserves and half from withheld NCAA tournament disbursements. This would also set a framework up for athletes to be paid a percentage of TV revenue - especially in the P5 (now P4) conferences.

Big East has already filed an objection as the pain of the withholdings seems to fall 60% on non P5 leagues (not sure exactly how but it does).

P5 leagues will have to set up individual revenue sharing plans but will basically become pro leagues (so I guess it is going forward too). Revenue share will have to come from other expenses in the athletic departments. Key questions like Title IX and others controlling how much can be pulled from Olympic sports to Football/Basketball are unanswered.

House versus NCAA - Enjoy

 

[ESPNjacket]

And here I thought NIL was all about going forward - looks like the NCAA is about to put a settlement offer to a vote of its members which both pays past athletes appx $3B in payments for lost NIL - about half from NCAA reserves and half from withheld NCAA tournament disbursements. This would also set a framework up for athletes to be paid a percentage of TV revenue - especially in the P5 (now P4) conferences.

Big East has already filed an objection as the pain of the withholdings seems to fall 60% on non P5 leagues (not sure exactly how but it does).

P5 leagues will have to set up individual revenue sharing plans but will basically become pro leagues (so I guess it is going forward too). Revenue share will have to come from other expenses in the athletic departments. Key questions like Title IX and others controlling how much can be pulled from Olympic sports to Football/Basketball are unanswered.

House versus NCAA - Enjoy

I find irony that the original case (House) was filed by a swimmer and a WBB player.

 

[slugboy]

I find irony that the original case (House) was filed by a swimmer and a WBB player.

Interesting profile of Grant House (men’s swimming at ASU) here:

Meet Grant House, the man front and center fighting the NCAA's last gasp to cap athlete compensation

 

[ESPNjacket]

Big East has already filed an objection as the pain of the withholdings seems to fall 60% on non P5 leagues (not sure exactly how but it does).

I believe the correct split is 60% from the NCAA and 40% from the power conferences. The settlement isn't finalized last I knew so it could change.

 

[YlJacket]

I believe the correct split is 60% from the NCAA and 40% from the power conferences. The settlement isn't finalized last I knew so it could change.

It is not finalized and the NCAA has not voted yet. So while it could change I have to expect the lawyers have done a lot of work to make the settlement acceptable. One would think the NCAA has previewed this extensively with its members but it is the NCAA so I make no comment

There are 2 things going on regarding the back payments beyond the total amount which I assume has been negotiated with lawyers and the Judge - how much is from the NCAA reserves and how much from the member schools and 2) what do individual schools/conferences get hit with out of that amount

The articles I am seeing are saying that the NCAA reserves are $1.1B and the schools are getting hit with $1.6B primarily as I understand it by tournament withholdings (could be wrong here) - but that is more a 60% schools/40% NCAA reserves split.

And it is not just power conferences - that is what has the BE up in arms. By some math not fully spelled out in the articles, the P5 are only getting hit with 40% of the back settlement and leagues outside the P5 are getting hit with 60% of the bill. (nice work by the P5 lawyers I guess )

From the article linked "The NCAA sent out a four-page memo to all 32 Division I conferences this week detailing how the organization “plans to cut back on distribution to leagues. Sources said that the memo detailed how the NCAA “could split up an expected” $1.6B, while the other $1.1B is “expected to come from NCAA reserves, catastrophic insurance.” Of that $1.6B, “nearly 60% is expected to come from leagues outside the Power 5 conferences that are named in the House lawsuit.”

Going forward are requirements for revenue sharing from the leagues to the athletes which I have to believe will be the primary revenue stream to athletes - more than NIL.

Interesting times to say the least

 

[ESPNjacket]

And it is not just power conferences - that is what has the BE up in arms. By some math not fully spelled out in the articles, the P5 are only getting hit with 40% of the back settlement and leagues outside the P5 are getting hit with 60% of the bill. (nice work by the P5 lawyers I guess )

From what I have read elsewhere I believe the article is wrong.

 

[ESPNjacket]

This article is more concise. All of the back payments come from the NCAA with $1.6B of it resulting in reduced payments from the NCAA to the schools. I don't like to speculate but the only thing that makes much sense to me is to divide the figure by the number of NCAAT units for an even reduction across those payments. Using 2023 figures, they were 59 P5 (45%) and 73 (55%) other. So I guess that's what the Big East is saying ain't right.

 

[tsrich]

So I played intramural football and basketball back in the 80s. Anyone know what my share of this settlement will be?

 

[YlJacket]

So I played intramural football and basketball back in the 80s. Anyone know what my share of this settlement will be?

My daughter was scholarship VB player several years ago. I have already notified her to look out for either a payment or a lawsuit to cling on to.

 

[ESPNjacket]

Here is another one for anyone wanting to keep up with this.

 

[ESPNjacket]

A bit more detailed:

 

[ESPNjacket]

 

[57jacket]

Per the AJC, the just agreed settlement regarding athletes as employees:
o Each school permitted to set aside $21M to share with athletes.
o School to decide who/ how much per athlete
o Title IX impact unknown, to be determined when, ???
o NIL moved inhouse unknown, to be determed when??

 

[dtm1997]

 

[awbuzz]

From Angel and Jay

A Message from President Ángel Cabrera and Athletic Director J Batt Georgia Tech Community, As you might have seen in the news, the governing boards of the NCAA and the Autonomy Five conferences – ACC, Big Ten, Big 12, Pac-12 and SEC – voted this week to approve settlement terms in a number of class-action lawsuits related to student-athlete compensation (House v. NCAA, Hubbard v. NCAA, and Carter v. NCAA). While the settlement still needs to be approved by the court and many details are yet to be fleshed out, it is fair to expect a major shift in how college athletics will operate. At Georgia Tech, we will use this as an opportunity to invest further in our student-athletes and remain competitive at the highest level of intercollegiate athletics, without compromising our academic standing among America’s leading universities. We are well-positioned to establish ourselves as one of the nation’s premier intercollegiate athletic programs and to compete for championships, while supporting our student-athletes athletically, academically and in their preparation for careers after graduation. A key to our success in the new environment is already clear: we need your support to keep Georgia Tech athletics among the best programs in the nation. Please continue to support our student-athletes through the purchase of season tickets, donations to the Alexander-Tharpe Fund and backing of The Tech Way collective. With the support of the entire Georgia Tech community, we will reach our objective of competing for championships at the highest level of intercollegiate athletics! Thank you for your continued support and Go Jackets! Sincerely,

Ángel Cabrera Georgia Tech President J Batt Georgia Tech Director of Athletics

 

[Peacone36]

I won’t pretend to understand any or all of this. But I know what it means. Where do we send the tombstone? Hope y’all like HS basketball, bc the BS is just gonna keep on coming. This is Pandora’s box, Schroder's Cat and Occam’s Razor all hitting CBB ( only one I GAF about) at the same time.

 

[Steverc]

At some point we are going to have professional minor league football and basketball teams operating on campus with no connection to the university except the use of its mascot. What's more, they would be partially supported by donations and student fees. If this happens, I say kick both teams off campus and let them fend for themselves. The valuable real estate can be put to more productive use.

 

[leatherneckjacket]

I will give it one year to see how this gets executed, but 2024-25 may be my last season supporting Georgia Tech Athletics.

 

[mstranahan]

We have professional minor league football and basketball teams operating on campus with no connection to the university except the use of its facilities. What's more, they would be partially supported by donations and student fees. If this happens, I say kick both teams off campus and let them fend for themselves. The valuable real estate can be put to more productive use.

Edited mildly but you nailed it. The end of college sports is here. Sad, because it as really fun the 70s til about 2007 to so. Has been a weaker product in the floor and NIL, transfer portal and direct student payments from universities is the death knell

 

[YlJacket]

Not sure if it is the same lawsuit but the NCAA just agreed that it will not enforce any transfer regulations/restrictions going forward. Wild Wild Western Free Agency across the board.