The Ivy League announced Tuesday that it will opt out of a proposed National Collegiate Athletic Association settlement, declining to provide current and former student athletes with direct compensation through revenue sharing.
www.thecrimson.com
A little confused as to what Opting Out means. You can certainly opt in and then just give your athletes $1. Give them a bottle of water.
So why officially "Opt Out" of the entire settlement?
The payments to former Alabama or Clemson football players goes through the NCAA. The Ivies have nothing to do with that.
It's interesting, but I tend to trust the Ivy League's decision that is determined by really smart people that get guidance from other really smart people. I assume it's partially because the settlement is fully negotiated by the NCAA and P5(-1) and is a net-negative to the Ivy League.
The settlement is really just about the past NIL payments that players weren't able to get. That seems like a normal settlement. "We should have allowed you to get NIL so we owe you $X in lost opportunity." But the NCAA caved and is paying that money from unpaid tournament credits. The non-P5 had no say in that. My GUESS is that the former Ivy players still get their cut because the NCAA isn't allowing leagues to opt-out of using the credits.
By opting out, I guess the Ivy League can be sued by its past athletes, but if those athletes got their payouts, it would be hard to sue for more when their NIL opportunities were probably less than the settled amount that factored in the P5 players.
The future stuff isn't really a settlement. Everything seems to focus on what the leagues CAN do going forward, not what they MUST do. It's more like collective bargaining, but without a union. The school CAN pay up to 22% of revenue. The school CAN increase roster spots. I don't even see how it's enforceable on future athletes. They didn't opt-in (or have a chance to opt-out) of the class action. And these things can just have been done as part of a change in NCAA rules.
The Ivy League wasn't named in the lawsuit, they don't plan on paying athletes and may or may not expand their rosters. Should they choose to pay their athletes in the future or expand roster spots, they'll be doing that pursuant to NCAA rules anyway (if the NCAA continues to exist) and future players can still sue to say it's not enough (whether in the settlement or not). So what does opting in get them besides admitting to the facts (even though the settlement will say they don't admit to any liability)? I'm assuming the Ivy League has the best lawyers available and they made a determination that opting in is worse than not.