The problem is...There are no rules!
Ahhhh .. but there are rules. Myriad rules. Complex rules. Think the IRS tax code. The haves benefit from this complex, overlapping set of rules.
A simple market likely will function in a more transparent and efficient manner than what currently exists. This is a rare occasion in which I would agree with an attorney. 'The market should be a free market,” said Michael Hausfeld, an attorney representing athletes who are dissatisfied with the settlement, in an interview with
The Athletic.
However the likelihood the status quo evolves toward a free market is very close to zero. What I anticipate is an industry similar to healthcare in the United States which involves a complex and confusing combination of governmental edict, large money interests, increasing costs to the customer (in athletics that would be us the fans) and acceleration between the haves and the haves not. William Baumol developed the metric of the cost disease which offers insight into these types of industries in an accessible manner. His two books The
Cost Disease: Why Computers get cheaper and Healthcare Doesn't and
Good Capitalism Bad Capitalism elaborate on this cost disease analytic and make wonderful reading. Baumol was an important thinker and economist and in my view should have been a Nobel prize winner.
Higher education may exemplify the cost disease by magnitudes greater than healthcare. More and more and more money in the industry lower quality and quantity. When I graduated from Arizona State University in 1978 the semester tuition was $250. I believe tuition at Arizona State University is approximately $5100 per semester but it's very difficult to know given all of the additional fees, charges, and add-ons that accompany enrollment at Michael Crows real estate conglomerate.
Currently there are a ton of rules that make no sense, that are overlapping, that violate the law. Scroll to the end to read about revenue sharing.
Assuming the NCAA settlement takes place there will be revenue sharing beginning at 20 million per School. As I understand at this 20 million will be for All sports. So clearly 80 to 90% of that money will go to football. Taking 80% as the football take that would leave approximately 4 million for all other sports. Assuming men's basketball takes the Lion share of that 4 million think Cooper Flagg/Duke then there's very little revenue that would impact women's basketball. The question is will the settlement be enforceable or will nil continue. I think the answer to that is clear.
The NCAA now allows college athletes to profit off their name, image and likeness, otherwise known as NIL. Learn more about how it works now.
www.espn.com
Direct payments to athletes in the expected $2.8 billion NCAA settlement might not solve schools' legal woes
www.espn.com
It's significant that the NCAA is dragging their feet as once the settlement is implemented and revenue sharing begins this rent seeking corrupt organization will find itself accelerating to oblivion. The bureaucrats at the NCAA will be frantically searching for legal justification to hold on to revenue from March madness and the college playoff system.
The link below gives an overview of the rules of nil and the different types. Only one female athlete in the top 10 the famous gymnast from LSU.
NIL deals give student-athletes the opportunity to profit from their own brand through business ventures, partnerships, sponsorships and endorsement deals.
www.si.com
Link below for the proposed settlement that many observers think will be taking effect July 1.
Confused about the House v. NCAA settlement? We’ve got answers.
www.deseret.com
A great read
Is it a gold rush or a minefield? How Nico Iamaleava's failed hold-out is an example of the harsh reality about the new state of College Athletics in the NIL era
open.substack.com