NCAA Revenue Sharing Update

[upstater]

That's interesting. I can't recall article I read over weekend, but it stated that the NCAA made about $1.3 bn this year, with expenses of $1.17 bn, leaving $130 million for their coffers. Which obviously is less than $240 million, so let's see how this is structured.

Yes, but it does ding the hope that the NCAA tourney will be revalued once there is a split between the P4 and the others. I was hoping the tourney would be autonomous and thus fully valued for the actual money it produced, while the NCAA would wither away...

If the NCAA is responsible for everything, I'm not sure the big schools will ever leave it in the next 10 years, or else the NCAA would go bankrupt.

 

[HooperScooper]

That's interesting. I can't recall article I read over weekend, but it stated that the NCAA made about $1.3 bn this year, with expenses of $1.17 bn, leaving $130 million for their coffers. Which obviously is less than $240 million, so let's see how this is structured.

I hope they made more than that because they may be on the hook for $2.7 billion to settle antitrust suits.

Sources: NCAA could pay $2.7B in antitrust suits

The NCAA's national office might be footing the bill for a settlement expected to be more than $2.7 billion in the landmark House v. NCAA antitrust lawsuit in hopes of reshaping and stabilizing the college sports industry, sources told ESPN.

www.espn.com

 

[storrsroars]

I hope they made more than that because they may be on the hook for $2.7 billion to settle antitrust suits.

Sources: NCAA could pay $2.7B in antitrust suits

The NCAA's national office might be footing the bill for a settlement expected to be more than $2.7 billion in the landmark House v. NCAA antitrust lawsuit in hopes of reshaping and stabilizing the college sports industry, sources told ESPN.

www.espn.com

That might just be the D1/2/3 mens & womens hoops tourneys, but that's the biggest piece of the pie.

 

[Fishy]

The proposed settlement is disastrous.

NCAA will pay out its share from reduced distributions which make up a disproportionate amount of our revenue. Revenue sharing of up to $20,000,000 per year. We don’t have it. Expanded scholarships so instead of say, 11.5 scholarships for a baseball team now, schools can offer everyone a full ride. We can’t afford that.

We simply can’t afford to do what power conference schools will be able to do.

 

[Fishy]

That's interesting. I can't recall article I read over weekend, but it stated that the NCAA made about $1.3 bn this year, with expenses of $1.17 bn, leaving $130 million for their coffers. Which obviously is less than $240 million, so let's see how this is structured.

It’s not rocket science. Most of their expenses involve distribution to D1 schools; those distributions will be reduced.

 

[upstater]

It’s not rocket science. Most of their expenses involve distribution to D1 schools; those distributions will be reduced.

The only possible good thing to come out of this is that it binds the P4 to the NCAA for another 10 years. But other than that, it's a disaster.

 

[speckle]

Unfortunately the NCAA is too stupid or corrupt to realize that they will never have more leverage over the top football schools than they do right now. Sb locking in every mutually beneficial item on the wishlist in exchange for this kind of liability protection instead of negotiating against the best interests of 95% of member institutions. Literally provide no cap and restructuring and let these mega schools and conferences directly participate in an uncapped liability scenario. The current proposal is bad and you'll end up with other schools and conferences suing the NCAA thereafter. NFPs negotiating with big businesses never fails to entertain.

 

[shizzle787]

The proposed settlement is disastrous.

NCAA will pay out its share from reduced distributions which make up a disproportionate amount of our revenue. Revenue sharing of up to $20,000,000 per year. We don’t have it. Expanded scholarships so instead of say, 11.5 scholarships for a baseball team now, schools can offer everyone a full ride. We can’t afford that.

We simply can’t afford to do what power conference schools will be able to do.

We don't need to. The 30 million is a cap; not a floor. We just need to revenue share at the same level as the P4 for M/W basketball.

We won't be able to compete in baseball or soccer any more but those are the sacrifices that will need to be made.

I actually don't think a lot is going to change. Our budget deficit will probably get about 5 million per year worse but that is about it. We won't be funding more baseball or soccer scholarships. I expect the rest of the Big East to drop about 5 million between their sports (aka something painful but manageable).