Or what a kid can show they have DONE above the average for the market. In other words what can they show that makes them worth so much. I think a lot of kids will struggle with that. Kids will have to be paid based on what they have accomplished not what they have the potential to accomplish. Good luck Iowa lmfao
House v. NCAA/NIL/Revenue sharing/Roster caps/Scholarship limits
- Thread starter El-Jefe
- Start date
When I hear of these $500k NIL deals, I suspect it is a sum of the whole package including scholy, room & board, books, and NIL. At $40-60k/ year just for the scholy, coupled with the NIL portion allocated over multiple years, the annual NIL is probably more than a bit more modest than the crazy numbers we have been hearing for a long time.
I think people have to understand that there are two types of NIL deals. One is from the colleges collectives like Happy Valley United. That type of deal is going to be regulated with the new settlement coming up tomorrow. That will be regulated by the NCAA for fair market value. The other type of deal is made by the athlete himself and under state regulations, which means essentially unregulated. These deals we are hearing about are not of the first NIL type, which is the college collectives. There is no mandatory transparency in either type of NIL deal so everything you hear is just rumor.
This settlement happening today will begin the most monumental set of changes to college sports ever! Everything will be different or unknown. It's importance to college sports and wrestling cannot be overstated. Admittedly, the details will be boring and confusing. I hope it gets 1/10 of the attention here that the Zack Ryder transfer received.
Please watch and report back to us.
Zoom
Meeting ID: 160 526 5531
Password: 593853
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So what we all know is the Bagman will live on...
Unfortunately that appears to be the case. But his time to be regulated will come. Legal guidelines are inevitable.
I'm reading that legal experts are saying that it's likely the judge today in the hearing will approve all the terms without modifications. But she might not issue her final ruling until tomorrow
The Defendants have signed a contract with Deloitte to establish the clearinghouse and determine fair market value. I have no idea what the process for that will be.
They have also committed to set up a tracking and enforcement arm so that will not be an NCAA responsibility.
the main issue here is its all being done in California. Wrong place to have this being done. Fair market values are not close from California to most of the country.
House v. NCAA settlement final approval hearing live updates
If a California judge approves the House v. NCAA settlement, athletes will begin to take a share of revenue directly from universities.
www.on3.com
Excerpt
By: Pete Nakos
Wilken pushes against roster limits
04/07/2025 12:57:19 PM
Judge Claudia Wilken raised some questions about the new, proposed roster limits, specifically for those athletes who are cut. She suggested to NCAA attorney Rakesh Kilaru that there be an exception for athletes currently on rosters, potentially grandfathering in roster limits.
So roster reduction may be premature.
The thing that many people don't understand is that there are two types of NIL deals. The first one is those deals set up by the college collectives, like Happy Valley United. If the proposed settlement terms go into effect then all of these deals will first go to a Power 5 college conference approval committee to determine fair market value. Then they will go to the NCAA Clearing House for their determination. It is unknown now exactly how this fair market value can be accurately assessed because as nearly all deals up to this point have been private. Everything now is speculation and rumor because no one releases the exact details of a deal. The second type of NIL deal is done outside of the college parameters by the individual athlete. He can hire an agent or solicit deals by himself. Many athletes will prefer this method because then they can determine how their own brand evolves and they can take advantage of existing relationships. This type of deal is under State rules for the most part. It's hard to tell what those State rules are at this point.
This might be a separate thread, but it sounds like the new NIL rules involve a profit sharing strategy? Then, (I am extrapolating) if a team doesn’t make a profit, then there is no NIL to be had? Can someone lay out the new procedures?
I'm not quite sure what you're asking. There are two types of NIL- the college collectives and the individual athlete/agent solicitation deals. These types have different sets of rules and there is no profit sharing.
Revenue share rather than profit share. There is a cap, but no floor to the direct payments to the athletes from the schools that opt in.
NIL is separate.
Hearing in recess. Lawyers for class and NCAA are aligned to move forward. They will file something in a week addressing all issues from today's hearing. Objectors will have a day to submit a one-page response.
Some issues include:
1) grandfathering in rostered athletes vs subjecting them to cuts from proposed roster limitations;
2) case law explaining how rights of future would be class members (e.g. 10 year olds today) are impacted (can they even be subject to the agreement);
3) consistency with state laws considering their sovereignty; and,
4) the unique treatment of "associated entities" (i.e. boosters) and their deals. Settlement aims to prevent pay-for-play and protect athletes from unscrupulous "associated entities."
Some issues include:
1) grandfathering in rostered athletes vs subjecting them to cuts from proposed roster limitations;
2) case law explaining how rights of future would be class members (e.g. 10 year olds today) are impacted (can they even be subject to the agreement);
3) consistency with state laws considering their sovereignty; and,
4) the unique treatment of "associated entities" (i.e. boosters) and their deals. Settlement aims to prevent pay-for-play and protect athletes from unscrupulous "associated entities."
Thanks, buddy. Maybe it’s my age or short attention span but I have a hard time following the NIL rules.
#4 looks very interesting based on the current state of affairs.
J
It's the wild wild west now. Rules are TBD post settlement. But Congress has something going on tomorrow I believe to discuss a bill introduced by Ted Cruz which mimicked the settlement language to date.
Judge also tried to get lawyers to decouple House from the other two settlements (Hubbard and Carter). The class and the NCAA lawyers resisted.
Judge is expecting lawyers to provide sound legal basis for elements of their settlement including associated detailed plans.
It's the wild wild west now. Rules are TBD post settlement. But Congress has something going on tomorrow I believe to discuss a bill introduced by Ted Cruz which mimicked the settlement language to date.
Judge also tried to get lawyers to decouple House from the other two settlements (Hubbard and Carter). The class and the NCAA lawyers resisted.
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Today's hearing has ended and the judge has not issued a final ruling. She has settled on most of the key issues but ordered attorneys on both sides to come back in a week on the issue of rosters athletes that may be cut and future athletes being bound to the settlement. The judge also said that she would not issue any rulings on collective bargaining, Title IX issues, or employment issues (employee or subcontractor). So nothing's happening for another week.
I'm pretty sure nothing's going to happen in Congress until there's a final settlement. If the NCAA is left with the entire burden their legal exposure could be up to $10 billion and they can't handle that. They would then go to Congress via Ted Cruz to propose a bill that would give them immunity from this prosecution.
I read that hypothesis elsewhere. NCAA could just as easily declare bankruptcy, disband, and then be transformed into a new entity where student athletes are employees with a CBA. No $10 billion dollar payout need ever occur.
This guy has a pretty good update Tweet series. He was in the courtroom.
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Today at the NCAA settlement hearing the judge sent the lawyers back to come to an agreement on an aspect of roster limits. What it boils down to is those colleges over the 30 limit will be grandfathered in somehow and won't be cut.
I saw that chatter in the other thread. Does that suggest that some of the PSU guys in the portal are likely to back out of the portal and stay put? I get the impression that at least some (most?) entered the portal due to the impending 30-man roster cut. If that goes away, I'd think many of those guys would want to stay.
If I were gonna be a room guy somewhere I'd want it to be on the team with the greatest chance of a team trophy and heaviest concentration of stud teammates. Don't all team members get a championship ring, even non-starters?
We won't know that final grandfathering in answer until at least a week from now.
OK State news - 2024-25
Could we conceivably shut out OSU in a dual this year? Put another way, can Lightning Luke beat Spratley already? Yes
pennstate.forums.rivals.com
Most know by now that there are two types of NIL deals- College associated deals and private athlete deals. The private athlete deals are governed by state rules. Pennsylvania has the most restrictive state rules and the state of Iowa has no state NIL rules whatsoever. Pennsylvania requires private deals to be of 'equal' and not 'fair' market value. That means if El Jefe does a car ad for X amount then Mitchell Messenbrink can only do a similar car ad for the same X amount. This rule was made to counter the 'pay to play' aspect of deals. And it almost negates the value in trying to pursue private deals. It is no real surprise that the state of Iowa has no state rules. Virtually anything goes there and as long as transparency and compliance is virtually non-existent then big donor Bob can do what he wants.
A good summary here:
House v. NCAA Settlement Approval in Sight, but Judge Wants Tweaks
U.S. District Judge Claudia Wilken reviewed the settlement in House v. NCAA as roster limits could pose a problem for the parties.
www.sportico.com
Well 1 really sucks how many kids are in the portal because of potential roster cuts that's stupid
People often act based on the best information they have available at the time.
I'm confused again. I think I understand NIL, revenue sharing, and what pay to play means. So within those rules how do donors get away with offering big bags of cash? Offering cash to a recruit or transfer portal athlete is simply pay to play and that's illegal. And with NIL the athlete must perform some type of service beyond wrestling to receive money. And there must be a contract that has to be submitted to the NCAA. So to me those big bags of cash and apartments or cars given to these athletes is simply pay to play. I guess I know part of the answer is that the NCAA is relatively toothless in its enforcement efforts. I simply don't understand how the big donors get away with offering Basset millions or Teemer $500,000 to just wrestle. Help me understand this please.
I think it boils down to:
1) No applicable federal law or state law (in many states) or NCAA rule currently in effect that prevents offering a bag of cash.
2) No will or feasible means to enforce such a law or NCAA rule.
I think there is a general understanding that the Supreme Court ruling made unilateral creation of NCAA rules moot where it comes to eliminating student athlete earning potential.
One element of the House settlement attempts to put in place a system that could monitor to enforce the notion of fair market value in any NIL contract as a means to prevent pay for play visa vi a big of cash. It remains to be seen how effective this system might be, including whether individual would bring legal challenges to it.
In February 2024 a Tennessee federal court issued a temporary injunction banning the NCAA from enforcing the pay to play rules for third party NIL. Last month the injunction was made permanent.
Reading what the judge said it's sounding like roster caps won't effect anyone currently on roster if the judge has her way
Can't the new judgement state that anything outside of the rules dictated in new deal means you no longer are eligible for profit sharing. Maybe that could help coaches keep boosters in line. This of course depends entirely on honesty and integrity which is something a lot of coaches lack. But there's always hope right
To your points: 39 States have pay to play rules with no enforcement mechanism. The NCAA has pay to play rules with no enforcement mechanism. There is presently very little if any transparency, compliance or enforcement of NIL deals on any level. Every level of enforcement is toothless. The house settlement will put in place a three level system to determine acceptance or denial of deals based on fair market value. The first level is the collectives that negotiate and execute the NIL contract. Then that contract will go to the Power Five colleges committee for compliance. And finally, the contract will go to the NCAA Clearing House for approval. But to my knowledge, all of that is useless if there is not real punishment for violators. I'm just finding it hard to believe that there isn't a major outcry on media because obviously big money pay to play deals are happening left and right. And nothing is really being done about it.
Currently nothing is being done because nothing can be done. See my post above about the Tennessee federal court ruling.
