NCAA Revenue Sharing Update

[storrsroars]

So it appears that all the potential legal fines and revenue sharing apply only to P5 schools. So, maybe UConn dodged a bullet for now.

House v. NCAA Settlement Fails to Address Biggest Question

Panic around paying damages in the House case has put it at the forefront of industry leaders’ minds. But employee classification is the NCAA’s biggest bogeyman.

frontofficesports.com

 

[nelsonmuntz]

So it appears that all the potential legal fines and revenue sharing apply only to P5 schools. So, maybe UConn dodged a bullet for now.

House v. NCAA Settlement Fails to Address Biggest Question

Panic around paying damages in the House case has put it at the forefront of industry leaders’ minds. But employee classification is the NCAA’s biggest bogeyman.

frontofficesports.com

There is going to be a war over who has to pay that settlement. Even if the plaintiffs settle for 75% of the prospective judgment, which would be very generous on their part, the P5 schools are looking at a MASSIVE fine that most of them do not have the money to pay. If it is based on the revenues generated by school, the biggest revenue producers are looking at staggering liability.

I disagree with the writer about making the athletes employees being a problem. I feel like doing that protects the schools as much as anything.

 

[nelsonmuntz]

No worries, I live in Kirkland WA, right btwn MSFT and AMZN so not relatable at all.

Little deeper article on the NCAA discussions. What would House v. NCAA settlement mean? A revenue-sharing model to end college amateurism

It is in the P4's and especially the P2's interest to keep the G5 conferences engaged. If the G5 leagues break away, the entire sport will get unstable because overall interest will start to drop off dramatically if competition at the highest levels is officially limited to 50 or so schools. Fan interest will decline, and risks collapsing if the overall decline in interest is enough to start impacting the fans of the major programs. We have evidence that the P4 conferences feel this way, because they have offered fairly generous splits of CFP revenue with the G5 schools.

I also stand by my earlier prediction that there are a subset of top academic institutions that will not participate in the world the P4 are creating. I do not see Northwestern, Vanderbilt, Cal, Stanford and Rice sticking with something like this long-term. If those schools pull out, there is a chance that Duke and ND join, and then privates like Wake and Tulane, and maybe even some top academic state schools will be beating a path to join this league.

 

[speckle]

It is in the P4's and especially the P2's interest to keep the G5 conferences engaged. If the G5 leagues break away, the entire sport will get unstable because overall interest will start to drop off dramatically if competition at the highest levels is officially limited to 50 or so schools. Fan interest will decline, and risks collapsing if the overall decline in interest is enough to start impacting the fans of the major programs. We have evidence that the P4 conferences feel this way, because they have offered fairly generous splits of CFP revenue with the G5 schools.

I also stand by my earlier prediction that there are a subset of top academic institutions that will not participate in the world the P4 are creating. I do not see Northwestern, Vanderbilt, Cal, Stanford and Rice sticking with something like this long-term. If those schools pull out, there is a chance that Duke and ND join, and then privates like Wake and Tulane, and maybe even some top academic state schools will be beating a path to join this league.

The whole thing feels like trying to solve a 10000 piece jigsaw puzzle from the inside out. There's barely 40 schools that are causing real problems for the entire collegiate athletics system. Making college athletes employees seems to have one glaring issue that's rarely talked about. The value of the students' scholarships and benefits would become federally taxable income. So schools would have to pay these kids additionally to at least absorb the fed tax bill incurred receiving the scholarship?! The whole thing gets unwieldy at step 1. I'm still very optimistic for UConn and it's exceptional basketball product. I do believe the acc will dissolve this calendar year and will open up some interesting opportunities for us. And I do think you're right about the higher end academic schools and basically all the privates eventually opting away from the mega football schools.

 

[How Sway?!]

Looks like NIL will come in house per ESPN

"Nick Carparelli, executive director of Bowl Season, told ESPN at the Fiesta Bowl Spring Summit this week that his understanding from speaking with conference commissioners and NCAA president Charlie Baker is that NIL collectives are destined to be brought in-house and there have been discussions about contracts in exchange for NIL payments."

 

[speckle]

Looks like NIL will come in house per ESPN

"Nick Carparelli, executive director of Bowl Season, told ESPN at the Fiesta Bowl Spring Summit this week that his understanding from speaking with conference commissioners and NCAA president Charlie Baker is that NIL collectives are destined to be brought in-house and there have been discussions about contracts in exchange for NIL payments."

Yeah, that's kind of what I was expecting. Looks like the shortest route to capping potential liability. Now they just have to figure a way to get thousands of student athletes to agree to collective bargaining without employment protections and we're ready to roll!

 

[McLovin]

Take UConn for an example. They are arguably the top program right now in Men's and Women's basketball and they don't make money in their athletic department. How does a school that isn't the top of their sport expected to even come close to having money to pay athletes?

Syracuse has that media money, they will be just fine.

 

[upstater]

As I said, the money will be coming out of the NCAA Men's & Women's Basketball Tournament. Instead of BBall being revalued to its actual worth, the football schools and the NCAA have somehow managed to DEVALUE basketball by taking a $240m chunk of the $1.1b in annual revenue and giving it to past athletes.

Sources: NCAA could pay over $2.7B to settle 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]

As I said, the money will be coming out of the NCAA Men's & Women's Basketball Tournament. Instead of BBall being revalued to its actual worth, the football schools and the NCAA have somehow managed to DEVALUE basketball by taking a $240m chunk of the $1.1b in annual revenue and giving it to past athletes.

Sources: NCAA could pay over $2.7B to settle 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'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.

 

[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 over $2.7B to settle 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 over $2.7B to settle 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).