(LINK) Jay Bilas shows his hand finally; non-P4 conferences get hosed

[upstater]

https://twitter.com/JayBilas/status/1791818215611343297

Here's the article Bilas is referencing: Sources: Non-Power 5 irked by settlement plan

Non P-4 commissioners and schools are upset that they are footing 40% of the costs of this lawsuit when they only had 10% of the players who will earn in the settlement. Effectively, DePaul will be paying for Kentucky's All-Americans.

And Bilas weighs in and says they have no right to be "irked." No sympathy for schools that lose 10s of millions in all this annually, and get peanuts back. No reckoning with the fact that basketball provides all the funds for the NCAA through the tournament. Bilas just says, TOUGH. Duke gets away with its many millions annually and pays just a fraction of the cost. Other schools will chip in 25% of their NCAA revenue.

The P-4 football schools are getting away with murder.

This is going to hurt the non-P4 schools for the next 10 years or more.

 

[TheHorde]

x.com

x.com

Here's the article Bilas is referencing: Sources: Non-Power 5 irked by settlement plan

Non P-4 commissioners and schools are upset that they are footing 40% of the costs of this lawsuit when they only had 10% of the players who will earn in the settlement. Effectively, DePaul will be paying for Kentucky's All-Americans.

And Bilas weighs in and says they have no right to be "irked." No sympathy for schools that lose 10s of millions in all this annually, and get peanuts back. No reckoning with the fact that basketball provides all the funds for the NCAA through the tournament. Bilas just says, TOUGH. Duke gets away with its many millions annually and pays just a fraction of the cost. Other schools will chip in 25% of their NCAA revenue.

The P-4 football schools are getting away with murder.

This is going to hurt the non-P4 schools for the next 10 years or more.

It’s all fun and games until they end up ruining college athletics. Which they absolutely will. It’s the same thing as an economy that benefits a top 5-10% and not the bulk of the population.

 

[shizzle787]

If the Big East is paying, that means the league continues to be Division 1.

 

[shizzle787]

It's about 600k a year for each Big East school for the next decade. It's really not that bad.

 

[AllHusky]

It's about 600k a year for each Big East school for the next decade. It's really not that bad.

Love to see how that is calculated. Seems bearable, what do Duke and Kentucky pay?

 

[shizzle787]

Love to see how that is calculated. Seems bearable, what do Duke and Kentucky pay?

The Big East is going to owe between 60-70 million over the next decade according to ESPN. Divide by 11 schools and assume some inflation.

 

[upstater]

It's about 600k a year for each Big East school for the next decade. It's really not that bad.

Im at an AAU school that is currently looking to shutter departments because of a $2m deficit. The idea that any of this money is fungible is not reality. UConn will need to fork over $600k more to Zion Williamson and Anthony Davis et al while somehow telling the academic units they need to cut 15% of faculty.

I know it doesn't seem like much money when a P-4 starter in bball makes about that much, but when entire colleges have $10m-$12m budgets, it adds up. And again, why should UConn pay when it didn't get any money from the P-4 TV contracts?

 

[TheHorde]

Im at an AAU school that is currently looking to shutter departments because of a $2m deficit. The idea that any of this money is fungible is not reality. UConn will need to fork over $600k more to Zion Williamson and Anthony Davis et al while somehow telling the academic units they need to cut 15% of faculty.

I know it doesn't seem like much money when a P-4 starter in bball makes about that much, but when entire colleges have $10m-$12m budgets, it adds up. And again, why should UConn pay when it didn't get any money from the P-4 TV contracts?

This is trending toward about 80 or so powerhouse schools running college sports, while sports is an afterthought at the remaining D1 schools if they don’t shutter their sports programs or move down to D2 or D3.

 

[upstater]

Love to see how that is calculated. Seems bearable, what do Duke and Kentucky pay?

Kentucky of course makes $60m from its SEC TV contract + football playoff money.

Kentucky: $60m / $900k annual payment = 1.5% of their TV money
UConn: $5m / $600k annual payment = 12% of their TV money

That UConn has to foot anything more than 10% of this is scandalous.

They should figure out who the money is going to as part of the lawsuit and have each school responsible for paying those players.

 

[shizzle787]

Im at an AAU school that is currently looking to shutter departments because of a $2m deficit. The idea that any of this money is fungible is not reality. UConn will need to fork over $600k more to Zion Williamson and Anthony Davis et al while somehow telling the academic units they need to cut 15% of faculty.

I know it doesn't seem like much money when a P-4 starter in bball makes about that much, but when entire colleges have $10m-$12m budgets, it adds up. And again, why should UConn pay when it didn't get any money from the P-4 TV contracts?

Because if they don't, the P4 could use it as grounds to officially separate from the rest (either within the NCAA or without). If that happens, UConn will lose a lot more than 600k in marketing. If we pay what is effectively a fine, we will stay in Division 1. Also, keep in mind within the next decade UConn will likely join the ACC after it has some defections. We will ultimately be okay. Also, a budget crises can be solved by a few old guys in the state dying in the same year as has happened before. The boomer population is going to start dying and there will be a lot of estate taxes that the state will be able to use to fund things in the next 15-20 years.

 

[shizzle787]

Im at an AAU school that is currently looking to shutter departments because of a $2m deficit. The idea that any of this money is fungible is not reality. UConn will need to fork over $600k more to Zion Williamson and Anthony Davis et al while somehow telling the academic units they need to cut 15% of faculty.

I know it doesn't seem like much money when a P-4 starter in bball makes about that much, but when entire colleges have $10m-$12m budgets, it adds up. And again, why should UConn pay when it didn't get any money from the P-4 TV contracts?

What Division 1 college has a $10-12 million budget? Most Division 1 schools have an athletic budget itself north of 10 million. Also, Division 2 and 3 colleges will not be affected. Do I expect a handful of schools to drop out of Division 1? Sure, but not many.

 

[shizzle787]

x.com

x.com

Here's the article Bilas is referencing: Sources: Non-Power 5 irked by settlement plan

Non P-4 commissioners and schools are upset that they are footing 40% of the costs of this lawsuit when they only had 10% of the players who will earn in the settlement. Effectively, DePaul will be paying for Kentucky's All-Americans.

And Bilas weighs in and says they have no right to be "irked." No sympathy for schools that lose 10s of millions in all this annually, and get peanuts back. No reckoning with the fact that basketball provides all the funds for the NCAA through the tournament. Bilas just says, TOUGH. Duke gets away with its many millions annually and pays just a fraction of the cost. Other schools will chip in 25% of their NCAA revenue.

The P-4 football schools are getting away with murder.

This is going to hurt the non-P4 schools for the next 10 years or more.

By the way, Bilas has pushed for a smaller Division 1 of 150-200 schools. I sort of agree but I think I would have the number between 225-250.

 

[upstater]

Because if they don't, the P4 could use it as grounds to officially separate from the rest (either within the NCAA or without). If that happens, UConn will lose a lot more than 600k in marketing. If we pay what is effectively a fine, we will stay in Division 1. Also, keep in mind within the next decade UConn will likely join the ACC after it has some defections. We will ultimately be okay. Also, a budget crises can be solved by a few old guys in the state dying in the same year as has happened before. The boomer population is going to start dying and there will be a lot of estate taxes that the state will be able to use to fund things in the next 15-20 years.

It's entirely the opposite of what you describe. The lawsuit is against the schools. If they leave the NCAA, they are on the hook for the money. What's being debated right now is a settlement. They can't get out of this by having the NCAA go bankrupt.

This is exactly why I said a few weeks ago that the non-P4 schools will never have more leverage than right now. The NCAA and the schools are on the hook for $2.6b. The non-P4 schools should use this fact to maximize leverage.

I really don't want to get into estate taxes, etc., type discussion here but we are looking at Higher Education armageddon, not some boomer windfall. Look up the Step Up in Basis in tax law to understand why the ultra wealth will never be taxed unless they change that ridiculous law.

 

[upstater]

What Division 1 college has a $10-12 million budget? Most Division 1 schools have an athletic budget itself north of 10 million. Also, Division 2 and 3 colleges will not be affected. Do I expect a handful of schools to drop out of Division 1? Sure, but not many.

Academic budgets for fungible costs in a typical College of Arts, Sciences & Humanities. I was referring to the fact that in schools that already have an athletic deficit will need to shell out an additional $600k to cover this.

 

[shizzle787]

Academic budgets for fungible costs in a typical College of Arts, Sciences & Humanities. I was referring to the fact that in schools that already have an athletic deficit will need to shell out an additional $600k to cover this.

Schools already agreed to a package from the NCAA transformation committee costing 1-2 million per year. This 600k is a non-story.

 

[shizzle787]

It's entirely the opposite of what you describe. The lawsuit is against the schools. If they leave the NCAA, they are on the hook for the money. What's being debated right now is a settlement. They can't get out of this by having the NCAA go bankrupt.

This is exactly why I said a few weeks ago that the non-P4 schools will never have more leverage than right now. The NCAA and the schools are on the hook for $2.6b. The non-P4 schools should use this fact to maximize leverage.

I really don't want to get into estate taxes, etc., type discussion here but we are looking at Higher Education armageddon, not some boomer windfall. Look up the Step Up in Basis in tax law to understand why the ultra wealth will never be taxed unless they change that ridiculous law.

The lawsuits are against the P4, the Pac-12, and the NCAA. I personally don't think the P4 will leave the NCAA. However, if nobody else pays up, the P4 could make a case to start a new division above Division 1 and exclude every that doesn't pay.

 

[upstater]

Schools already agreed to a package from the NCAA transformation committee costing 1-2 million per year. This 600k is a non-story.

That must be why ESPN is reporting there is pushback. Read the article.

 

[upstater]

The lawsuits are against the P4, the Pac-12, and the NCAA. I personally don't think the P4 will leave the NCAA. However, if nobody else pays up, the P4 could make a case to start a new division above Division 1 and exclude every that doesn't pay.

Good luck with that. I've been saying there are antitrust issues here. And it's not a matter of no one else paying up. It's a matter of school's paying their fair share. The NCAA basketball schools like UConn are already at a disadvantage since the football money isn't used to fund all other sports championships. Only the basketball money is used as revenue for the other sports.

 

[shizzle787]

That must be why ESPN is reporting there is pushback. Read the article.

I read it. Smaller schools don't feel it is proportional. Problem is that the bigger schools do have leverage when it comes to the NCAA tournament structure and money payouts. They can use that threat to get what they want here.

 

[shizzle787]

Good luck with that. I've been saying there are antitrust issues here. And it's not a matter of no one else paying up. It's a matter of school's paying their fair share. The NCAA basketball schools like UConn are already at a disadvantage since the football money isn't used to fund all other sports championships. Only the basketball money is used as revenue for the other sports.

There are antitrust issues if the P4 create they own subdivision. However, if they create their own subdivision and allow schools to opt in by paying some of this settlement and they choose not to do the latter, the antitrust claim will be legitimately contested.

 

[upstater]

I read it. Smaller schools don't feel it is proportional. Problem is that the bigger schools do have leverage when it comes to the NCAA tournament structure and money payouts. They can use that threat to get what they want here.

What leverage?

 

[shizzle787]

What leverage?

The same leverage the SEC and B1G used to get 58% of the CFP money. The threat of walking away. They would still be on the hook for most of the NCAA debt, but they could walk away after paying that. According to Matt Norlander (CBS), there are some industry insiders that suggest the P2 could make double what they are making now if they do create their own organization.

 

[upstater]

The same leverage the SEC and B1G used to get 58% of the CFP money. The threat of walking away. They would still be on the hook for most of the NCAA debt, but they could walk away after paying that. According to Matt Norlander (CBS), there are some industry insiders that suggest the P2 could make double what they are making now if they do create their own organization.

These are very different things.

The CFP money is related to one sport only.

The basketball money funds the championships and playoffs of ALL other sports.

If they leave outside the structure, they will then need to run ALL other sports championships themselves.

And how do the 34 P2 teams plan to make any money running a college basketball tournament??

They have to cut in the other schools, they have no choice, and this is why I say the leverage for the non-P2 or non-P4 schools has never been greater, nor will it ever be.

If they don't maximalize the pressure now by aligning together to force Charlie Baker's hand, they will never have another opportunity like this to extract concessions.

 

[Rocktheworld]

https://twitter.com/JayBilas/status/1791818215611343297

Here's the article Bilas is referencing: Sources: Non-Power 5 irked by settlement plan

Non P-4 commissioners and schools are upset that they are footing 40% of the costs of this lawsuit when they only had 10% of the players who will earn in the settlement. Effectively, DePaul will be paying for Kentucky's All-Americans.

And Bilas weighs in and says they have no right to be "irked." No sympathy for schools that lose 10s of millions in all this annually, and get peanuts back. No reckoning with the fact that basketball provides all the funds for the NCAA through the tournament. Bilas just says, TOUGH. Duke gets away with its many millions annually and pays just a fraction of the cost. Other schools will chip in 25% of their NCAA revenue.

The P-4 football schools are getting away with murder.

This is going to hurt the non-P4 schools for the next 10 years or more.

What is Bilas’s “hand”?

 

[kobe]