House v. NCAA settlement approved: Landmark decision opens door for revenue sharing in college athletics

[Ha Who]

Well it was nice enjoying college athletics for the last 30+ years. This is the beginning of the end. It's all based on an utterly flawed assumption that the athletic contributions of these players, without the marketing power of these schools is worth something. It's really not, or at least, very little.

I can take only so many Auburn and Alabama games. Boring as sheet

 

[UConnTrumbull]

Well it was nice enjoying college athletics for the last 30+ years. This is the beginning of the end. It's all based on an utterly flawed assumption that the athletic contributions of these players, without the marketing power of these schools is worth something. It's really not, or at least, very little.

They’ll learn the hard way once the golden goose is cooked. We root for the jersey on the front not the back.

 

[huskymedic]

Considering basically every high major is going to spend the $20 mil on revenue sharing seemingly without drastic changes, it does appear many did have it lying around, or at least within arm's reach.

Michigan must have short arms because they project they are $15m short after budget gimmicks and revenue adjustments…

 

[auror]

Michigan must have short arms because they project they are $15m short after budget gimmicks and revenue adjustments…

Michigan budgeted 250 million in "expenses". UConn spent 100 million in expenses. One of those programs is actively monitoring its budget, the other is throwing money around and could reduce its budget if it actually got serious.

Michigan isn't actually reducing its budget because they're hosting less home football games this year. They'll make $20 mil more next year so it'll be a wash with the shortfall this year.

They're adding 82 new scholarships. They're not actually trying to reduce their budget, because they don't have to.

 

[nelsonmuntz]

Michigan budgeted 250 million in "expenses". UConn spent 100 million in expenses. One of those programs is actively monitoring its budget, the other is throwing money around and could reduce its budget if it actually got serious.

Michigan isn't actually reducing its budget because they're hosting less home football games this year. They'll make $20 mil more next year so it'll be a wash with the shortfall this year.

They're adding 82 new scholarships. They're not actually trying to reduce their budget, because they don't have to.

It is amusing to read posts by “financial experts” that have no idea about the F5 tornado ripping through college finances right now.

 

[BigTenFan]

How will the 20 million be split among all sports?

 

[auror]

How will the 20 million be split among all sports?

The conferences, especially the power conferences, are suggesting that schools follow the formula for the back pay to also dictate the revenue sharing. But they aren't bound to that, so schools can decide to do whatever they want.

Well whatever they want until somebody sues over title IX.

 

[huskymedic]

The conferences, especially the power conferences, are suggesting that schools follow the formula for the back pay to also dictate the revenue sharing. But they aren't bound to that, so schools can decide to do whatever they want.

Well whatever they want until somebody sues over title IX.

House v. NCAA settlement payments on hold amid legal challenge from female athletes on Title IX grounds

 

[huskymedic]

 

[Lafayette]

The Calipari effect.....

 

[auror]

Kansas AD says it plans to allocate ~5 mil for rev share to basketball

https://www.kansascity.com/sports/college/big-12/university-of-kansas/article308648840.html

 

[huskymedic]

 

[ecasadoSBU]

This is scary. Universities are willing to continue to get deep in debt for athletics in this revenue sharing environment. Holy Shy#t. the corruption in academia is worse than I thought

 

[pepband99]

This actually makes sense. It's like everyone is forgetting the REVENUE piece of revenue sharing. Track isn't drawing flies.

There is a reason BC is seen as in a dilemma here - their basketball stinks, and you could easily see them trying to outspend everyone in hockey, to the detriment of it.

 

[huskymedic]

 

[CTFAN4LIFE]

This is scary. Universities are willing to continue to get deep in debt for athletics in this revenue sharing environment. Holy Shy#t. the corruption in academia is worse than I thought

Me thinks university presidents understand that their athletic departments bring much more revenue to their universities than the "simple" Athletic Department P&L shows. Athletics are the best form of advertising a university can do. Think general endowment, academic and research notoriety, increased applications/fees, etc. It's 3D chess of sorts.

 

[ecasadoSBU]

Me thinks university presidents understand that their athletic departments bring much more revenue to their universities than the "simple" Athletic Department P&L shows. Athletics are the best form of advertising a university can do. Think general endowment, academic and research notoriety, increased applications/fees, etc. It's 3D chess of sorts.

Yeah. I get it to a certain extent. But damnnn. We are talking about a top-notch SEC school. SEC schools already have huge revenue sources and large athletic budgets

If a top-tier SEC schools cannot figure out a way to balance their budgets or even make a profit despite being on the top tier of collegiate athletics - the system is clearly broken.

Athletics at these P2 schools should move to a for-profit model as opposed to ALWAYS being a money losing proposition.

Using debt to finance operations feels like a recipe for disaster. Imagine if you constantly had to borrow on your credit card just to run your household... (to be fair the tweet stated the loan if for both - capital and operational revenue)

 

[auror]

Yeah. I get it to a certain extent. But damnnn. We are talking about a top-notch SEC school. SEC schools already have huge revenue sources and large athletic budgets

If a top-tier SEC schools cannot figure out a way to balance their budgets or even make a profit despite being on the top tier of collegiate athletics - the system is clearly broken.

Athletics at these P2 schools should move to a for-profit model as opposed to ALWAYS being a money losing proposition.

Using debt to finance operations feels like a recipe for disaster. Imagine if you constantly had to borrow on your credit card just to run your household... (to be fair the tweet stated the loan if for both - capital and operational revenue)

They could figure it out and balance their budgets. They just don't care enough to, because to some extents the budgets are just moving money around.

 

[huskymedic]

 

[jostar1]

Thinking outside the box.

 

[CTFAN4LIFE]

Thinking outside the box.

Following North Carolina's lead.

 

[huskymedic]

Kansas AD says it plans to allocate ~5 mil for rev share to basketball

https://www.kansascity.com/sports/college/big-12/university-of-kansas/article308648840.html

 

[huskymedic]

 

[huskymedic]

 

[huskymedic]

-> While not commenting specifically on how the Boilermakers will distribute revenue among sports, Purdue AD Mike Bobinski confirms that football, men's basketball, women's basketball and volleyball will be included. Additionally, Purdue has set aside "roughly" $300K for non-revenue sports "to either retain or recruit elite level athletes,” according to the Lafayette Journal & Courier’s Sam King, who notes: “Coaches in Purdue's non-revenue sharing sports can appeal for money in those instances and they'll be considered on a case-by-case basis.” Asked if Purdue will take a 75% for football, 15% for men's basketball approach that is “somewhere in the neighborhood of the industry standard,” Bobinski said it'll be a little less than that for football and more for men's basketball. <- Link