NCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
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The end of college football as we know it?
- Thread starter OKLionFan
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NCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
College football as we knew it ended some time ago. This just makes it official...assuming it gets approved, which I'm pretty sure it will.
NCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
I'm most curious as to how a not for profit University can still have a football team if they are paying the athletes.
Seems as if this is just a minor league and not 100% outside the college NFP umbrella.
Now they are paying players to make money for them. Very far outside whatever charters set up these universities
It will be interesting. Title IX gonna be in play here. NIL still in play per SCOTUS.
(Saturdays used to be sacred to me, but I think I am personally done.)
(Saturdays used to be sacred to me, but I think I am personally done.)
NCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
Not even close to the end.
It just ends the antiquated mindset and system where universities and coaches routinely pocketed all the money on the backs of student-athletes.
Justice has been served.
What? People are just crying about what they knew was coming.
None of this is bad
These athletic departments need to go public and then you’ll really see a different model. Scholarship limits will be gone. Who pays for that now? 85 players times $50k/per player is $4.25m in ships alone. How much will a football team pay out? The $40m is to cover all sports. How much does BB, wrestling, VB, hockey, etc.. get? Expect varsity sports to drop to around 20. The administration of the money alone will cost big bucks. At PSU it will be at least 20 people!
Here is a good summary. Click the link and he walks through the impact very concisely
They were damned if they did and damned if they didn't. All of college football/sports would have gone bankrupt. But even at this approval how are all the small colleges ever going to afford their share of the fees that will be owed. They will either go ahole in debt or cut sports and maybe both for some.NCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
While I agree maintaining 31 sports like PS is pure welfare insanity compared to Bama's 17 which at least sane.
Somewhere/Somehow PS needs to come to a semblance of financial responsibility on that issue but not likely given the sports welfare lobby that seems to infest all things at PS.
Agreed but Emmertt could have minimized the damage when he saw what was coming. They didn't want to give up the golden goose but had to know a judge was coming for it. Emmertt and the NCAA just made it worse. They could have had a better overall outcome.
This I thought was the most pertinent,
Rev Share-
How much: ~$20-22M annually (fluid; will escalate based on school rev figures)-
From: Schools- To: Athletes- Distribution: School discretion (Title IX applies)-
Implementation: Summer/Fall 2025- Exceptions: $5M of Alston/new scholarships can count toward cap
Cap Enforcement-
Court oversight/audits- Athlete reporting mechanism of 3rd party
NIL- Must be “true NIL” based on developed “fair market value” data-
Enforced thru NCAA/outside entity w/Court backing-
Burden on school/athlete to prove “true NIL"-
No pay-4-play/booster pay
Also, you have to wonder if the Back Damages portion of the ruling doesn't inform or set precedence for allocation of the annual $20M-$22M. So, perhaps schools have a precedent in the ruling to pay football and MBB 90% of that sum annually. And if so, you have to wonder if it isn't challenged in the future as being unfair to other sports (particularly women's sports).
How much: $2.776 billion over 10 years-
From: NCAA national office (40%) & schools (60%)-
To: 15-25,000 DI athletes who played from 2016-2020ish-
Distribution: “Allocation formula” used, with estimated 90% to P5 FB/MBB players (~6K athletes)
Will the money (from this settlement) being paid to the athletes be taxed or is it tax exempt because it was part of a settlement?
That wasn't specified in that X thread, but I guarantee that the government wants its cut.
Who gets paid? Just the sports that make money (football & basketball) or players in all sports? Can a track athlete or tennis player claim some of this money? What about former athletes who played in the 1960s - 1990s? Do they need their own lawsuit? What's the title IX impact? Must women get an equal share even if they don't generate as much revenue?
I assume the lawyers get 1/3 of this money and that those who originated the claim will get higher payouts due to their preferred class.
I assume the lawyers get 1/3 of this money and that those who originated the claim will get higher payouts due to their preferred class.
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The true NIL thing sounds like a good idea. Will be interesting to see it in practice.
Good point. We'll see how easily or how evenly it is policed. Either way, with a $20M-$22M even cap from the schools, the outside NIL will be a much smaller percentage of the entire package. So it may be a $22M - $30M difference verses $1M - $10M disadvantage today.
I read that the football-basketball model of those sports getting the lions share of the revenue sharing may run afoul of Title IX, and that the money may have to be distributed evenly to all athletes in all sports at each school. This is going to continue to make a lot of money for attorneys for a lot of years. Nothing is totally settled yet.
Talk about unfair. That will just cause schools to cut programs. We'll be left with only football, basketball and one lucky women's sport to make it "fair".
Too be honest some sports should be cut anyhow I cant wait to see how AD's/Presidents of schools determine which they are
True, but the math will dictate that only football, basketball, and 1 women's sport (likely with the fewest female athletes) will remain. This maximizes the "fair" even payout to all players by minimizing the athlete numbers splitting the $20M.
Anyway, I am not convinced that the 90% to football and MBB in this legal decision isn't now precedent. And how is title IX enforced with men playing women's sports now?
Actually, I think they have to have equal or nearly equal numbers in the male/female ratio. So look for them to have a couple female teams with large numbers but minimal costs. Like soccer or fiel hockey.
If it's a drain on athletic departments and also outside of the core mission of the university, then why do those sports exist? It is just driving up costs.
This no longer fits the mission of higher education. Should not be part of college sportsNCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
ROI and value to the university are negative, especially for sports that are not really prominent in our region like Swimming and tennis
You used to love it when the kids did all the work, brought in all the eyeballs, made all these old men rich for organizing a kids' game, and those kids had very little freedom where they could go after the old men plucked them from high school when they were 16 or 17?
But now that those kids have freedom, and are reaping some of the rewards for their blood, sweat and tears, you've had enough?
Yeah, back when the kids were 4th year "seniors," and still hadn't declared a major (which would eventually be something like advertising, sports management or sociology), as they got their hands held every step of the way, basically being guaranteed passing grades as long as they showed up to class ... while they spent 50 hours per week on football and 15 hours a week on "education" ... it was so much more representative of the mission of higher education.
NCAA, Power Five OK $2.7 Billion Antitrust Settlement
The NCAA and power conferences have approved a historic $2.7 billion settlement with players in antitrust cases but many steps remain.
I thought you might have been talking about this....
THE CASE TO END COLLEGE FOOTBALL
https://www.sportico.com/leagues/college-sports/2024/case-to-end-to-college-football-1234779221/
Let’s start with the basics: Big-time college football is one of the most egregious sites of economic exploitation in U.S. society today. Despite recent moral panics about how name, image and likeness (NIL) liberalization is ruining the sport, the fact remains that although 42 athletic departments produced more than $100 million in revenue in 2021-2022, universities continue not to directly compensate the campus athletic workers responsible for producing that value.
Instead, they funnel the revenue produced by players into the hands of formal athletic department employees such that 36 head football coaches pull in more than $5 million per year, 66 assistants extract more than $1 million, 51 athletic directors receive more than $700,000 and even 21 strength coaches receive more than $500,000. Indeed, at Ohio State, an astounding 2,158 people are on the payroll of the athletic department. None of them are football players—a fact that the athletes we interviewed were acutely conscious and deeply resentful of.
The dynamics of this system are compounded by racial inequalities. A disproportionate number of college football players are of color, particularly Black, including 55.7% of players at Power Five schools. Yet between 2019–2020, only 5.7% of the student body at these schools were Black. This matters because of not only how much money these players generate, but also who receives the benefits of it.
Ted Tatos and Hal Singer have calculated that Black football and men’s basketball players lose out annually on a $1.2 to $1.4 billion racial transfer of wealth to white coaches, administrators and athletic department officials. And yet, the Black football players who attend these predominantly white institutions (PWIs) and are subjected to this form of egregious wage theft told us that they must also endure constant microaggressions through the insinuation of other students and faculty that they do not deserve to attend such hallowed academic spaces—a truly odious example of adding insult to injury.
Indeed, the question of academics is one that is not typically afforded enough discussion in conversations about exploitation and harm in college football. According to the logic of the NCAA system, education is, in a very direct sense, compensation for players—a wage furnished in scholarship form. And yet, our interviews revealed that the education players receive is the poorest facsimile of the pedagogical experience enjoyed by their non-sporting peers.
Ubiquitous policies such as academic clustering (steering players to supposedly ‘easier’ non-STEM classes), scheduling practice during times that limit class options, traveling during the week for games, and summer training that interferes with travel abroad and internship possibilities mean that the academic experience of college football ‘student’-athletes is shaped and constrained by athletic obligations. And that doesn’t take into account the brute reality that a 40-hour work week at football produces levels of fatigue that make classroom concentration nearly a physical impossibility. Thus, while players may be ‘paid’ in scholarship form, the educational experience they receive is not even close to resembling the one universities have been accredited to provide.
Always wondered why the woke mob never attacked college and professional sports. I guess just having the NFL and NBA acquiescing to the mob was enough.
Varsity sports existed before some started generating millions and ADs at some universities became self-funding. The management and funding of ADs will need to revert back to the 'old days' or roughly how things work at the FCS/DII levels today.
