TN to add 'talent fee' to all tickets

[RamblinRed]

TN is adding a 10% 'talent fee' to all tickets (single game and season) to help pay for revenue sharing with Student Athletes.
This will be in addition to any other increases they decide to make.

Tennessee set to add 10% 'talent fee' to tickets to fund plan for revenue sharing with players

The Volunteers have been one of the most aggressive programs in NIL

www.cbssports.com

 

[apatriot1776]

Very relevant to us considering Kemp just signed into law that GA public colleges can pay players directly.

https://gtswarm.com/threads/brian-kemp-signs-nil-law.28678/#post-1032011

 

[cpf2001]

Feels like a framing that’s designed to get some backlash.

 

[Vespidae]

What’s the point? SEC schools have decided to let every school pay 22% of a $100 million cap to players. All this does is shift some of the cost to fans directly. So instead of paying $22 million, Tenn pays $14 million.

Seems to me it should come out of the media distribution.

 

[FlatsLander]

This sounds incredibly stupid

 

[stinger78]

This is where I check out.

 

[RamblinRed]

One other note on this. All of this depends upon the House settlement which the judge has currently sent back to the parties to renegotiate.

Also, in an article I read schools see the $23M number more as a floor not a ceiling. Schools that have the resources are expected to spend way more than $23M on players.

 

[Vespidae]

Schools that have the resources are expected to spend way more than $23M on players.

That is not my understanding. Conferences can decide what it is. The SEC looked at the lowest school, Vandy, and made their budget the cap so that no school within the conference can outspend another.

Other conferences can decide their rules.

 

[RonJohn]

That is not my understanding. Conferences can decide what it is. The SEC looked at the lowest school, Vandy, and made their budget the cap so that no school within the conference can outspend another.

Other conferences can decide their rules.

'Caps' will have the same issues that caused the lawsuit. I don't see how an agreement to a current lawsuit can contractually limit future players. It will probably be litigated again at some point, unless there is a collective bargaining agreement with the players.

 

[roadkill]

That is not my understanding. Conferences can decide what it is. The SEC looked at the lowest school, Vandy, and made their budget the cap so that no school within the conference can outspend another.

Other conferences can decide their rules.

It's not clear to me that this is the case. Maybe they are referring to averages within a conference. I could be misinterpreting.

According to the NCAA's latest info release, 22% is a cap against the average P5 revenue. From their release: "...allow schools to provide up to 22% of the average Autonomy 5 athletic media, ticket, and sponsorship revenue to student-athletes"
Source: NCAA Latest info on House Settlement

 

[SOWEGA Jacket]

That is not my understanding. Conferences can decide what it is. The SEC looked at the lowest school, Vandy, and made their budget the cap so that no school within the conference can outspend another.

Other conferences can decide their rules.

Cap? That has to be a joke, right? So teams that paid players when the cap was $0 and probation was a possible penalty are gonna magically stop at whatever the cap is on paper? This is laughable.

I can see it now, “here kid, here’s your 400K wired into your account. Now, next Tuesday stop by Bubba’s car lot and pick up your car in the name of Vincent Dooley. Just don’t tell anyone, okay.” Or “here’s your 400K wired into your account, now tell your mama she may want to look under her back porch for a red Target bag with what we talked about inside“.

 

[Vespidae]

It's not clear to me that this is the case. Maybe they are referring to averages within a conference. I could be misinterpreting.

According to the NCAA's latest info release, 22% is a cap against the average P5 revenue. From their release: "...allow schools to provide up to 22% of the average Autonomy 5 athletic media, ticket, and sponsorship revenue to student-athletes"
Source: NCAA Latest info on House Settlement

I'm sharing what I heard directly from the folks that are executing it. Take it for what it is. Maybe they are wrong? I dunno.

 

[JacketOff]

NIL payments are not going to be sustainable long term. The current model of “college” athletics will not exist by the time the ACC’s GOR ends in 2036. College football and its powers are absolutely murdering their own golden goose. The infinite money pool they think they’ve figured out by allowing NIL is going to rapidly dry up. Once fans get fed up with players taking their money and then moving on to the next big thing, it’s over. What’s the point in supporting a program whose players don’t respect you or your money? The same large programs with the biggest fanbases and donors are just going to keep winning. Can’t believe anybody thought something else would happen.

 

[Vespidae]

Cap? That has to be a joke, right? So teams that paid players when the cap was $0 and probation was a possible penalty are gonna magically stop at whatever the cap is on paper? This is laughable.

I can see it now, “here kid, here’s your 400K wired into your account. Now, next Tuesday stop by Bubba’s car lot and pick up your car in the name of Vincent Dooley. Just don’t tell anyone, okay.” Or “here’s your 400K wired into your account, now tell your mama she may want to look under her back porch for a red Target bag with what we talked about inside“.

Why don't you compare eras before and after the forward pass was invented while you are at it? You are trying to equate two completely different eras now ... just like before and after gambling.

 

[Techster]

There can't be a compensation "cap" (whether NIL, salary, etc.) without collective bargaining amongst Student Athletes...otherwise you'll see a class action lawsuit for collusion and price fixing labor, among other antitrust issues. Also, you have to have a distinct measure of where the "cap" is coming from. For instance, the professional leagues and their respective players unions start with a percentage of the annual media payouts, and work their way down to percentage of merchandise, etc.

Some of this was addressed by the Supreme Court recently, and there's currently legislation regarding an SAs right to collectively bargain.

Standing Shoulder Pad to Shoulder Pad: Collective Bargaining in College Athletics - Virginia Law Review

Responding to the professionalization of their billion-dollar industry, college athletes have embraced collective bargaining as an avenue for addressing their grievances with universities and the National Collegiate Athletics Association (NCAA). The movement toward unionization has culminated in...

virginialawreview.org

Beyond that, I think what UTennessee is doing will be what MANY other schools will start doing. Whether it's delineated in fees or not, the consumer (or fans) will ultimately bear the brunt of SA costs. If you think about it, it also helps schools clearly show how they can pay different "wages" or payments to different SAs from different sports. A gymnasts will have a hard time arguing they should be paid the same as the football team's QB when the amount of "talent fee" from events for gym meets is far lower than football games.

 

[roadkill]

Cap? That has to be a joke, right? So teams that paid players when the cap was $0 and probation was a possible penalty are gonna magically stop at whatever the cap is on paper? This is laughable.

I can see it now, “here kid, here’s your 400K wired into your account. Now, next Tuesday stop by Bubba’s car lot and pick up your car in the name of Vincent Dooley. Just don’t tell anyone, okay.” Or “here’s your 400K wired into your account, now tell your mama she may want to look under her back porch for a red Target bag with what we talked about inside“.

As I understand it, the cap is for a pool that is intended for the rank and file S-A. I don't believe the distribution is expected to be even across all S-As, so elite athletes could be compensated well above the average.

Also to your point, the settlement is just for "above the table" compensation. Nothing to limit "under the table" comp for elite athletes. But the pool should be enough to mitigate that somewhat.

 

[roadkill]

There can't be a compensation "cap" (whether NIL, salary, etc.) without collective bargaining amongst Student Athletes...otherwise you'll see a class action lawsuit for collusion and price fixing labor, among other antitrust issues. Also, you have to have a distinct measure of where the "cap" is coming from. For instance, the professional leagues and their respective players unions start with a percentage of the annual media payouts, and work their way down to percentage of merchandise, etc.

Some of this was addressed by the Supreme Court recently, and there's currently legislation regarding an SAs right to collectively bargain.

Standing Shoulder Pad to Shoulder Pad: Collective Bargaining in College Athletics - Virginia Law Review

Responding to the professionalization of their billion-dollar industry, college athletes have embraced collective bargaining as an avenue for addressing their grievances with universities and the National Collegiate Athletics Association (NCAA). The movement toward unionization has culminated in...

virginialawreview.org

Beyond that, I think what UTennessee is doing will be what MANY other schools will start doing. Whether it's delineated in fees or not, the consumer (or fans) will ultimately bear the brunt of SA costs. If you think about it, it also helps schools clearly show how they can pay different "wages" or payments to different SAs from different sports. A gymnasts will have a hard time arguing they should be paid the same as the football team's QB when the amount of "talent fee" from events for gym meets is far lower than football games.

I'm not a lawyer, but my understanding is that the Class Action Settlement is sort of a proxy for a collective bargaining agreement. Any athlete can opt out of the settlement, but if they don't, the terms are binding within the bounds of the Class. Also if anyone opts out of the Settlement, they are on their own insofar as litigation against the NCAA is concerned.

 

[RonJohn]

I'm not a lawyer, but my understanding is that the Class Action Settlement is sort of a proxy for a collective bargaining agreement. Any athlete can opt out of the settlement, but if they don't, the terms are binding within the bounds of the Class. Also if anyone opts out of the Settlement, they are on their own insofar as litigation against the NCAA is concerned.

For former and current players. Can a class for a lawsuit include future people "harmed" by the actions of an entity? I dummy see how an agreement today between former athletes and the NCAA can include our be legally binding upon future athletes.

 

[stinger78]

NIL payments are not going to be sustainable long term. The current model of “college” athletics will not exist by the time the ACC’s GOR ends in 2036. College football and its powers are absolutely murdering their own golden goose. The infinite money pool they think they’ve figured out by allowing NIL is going to rapidly dry up. Once fans get fed up with players taking their money and then moving on to the next big thing, it’s over. What’s the point in supporting a program whose players don’t respect you or your money? The same large programs with the biggest fanbases and donors are just going to keep winning. Can’t believe anybody thought something else would happen.

10K households $100 per month? To give to 18-22 year olds to play college football? We’ve gone absolutely stone-cold daft.

 

[Northeast Stinger]

This is where I check out.

It reminds me of going to my favorite restaurant and discovering that they are now tacking on an extra 4-5% to the check to cover their credit card transaction fee. It feels manipulative in a dishonest kind of way.