The House case

[huskymedic]

-> The NCAA sent out a four-page memo to all 32 Division I conferences this week detailing how the organization plans to cut back on distribution to leagues in six annual payout categories in order to pay the proposed $2.7 billion in damages.

The memo detailed how the NCAA could split up an expected $1.6 billion that would come from reductions in NCAA distribution, sources told ESPN. The remaining $1.1 billion is expected to come from NCAA reserves, catastrophic insurance, new revenue and budget cuts, sources said.

Of that $1.6 billion, nearly 60 percent is expected to come from leagues outside the Power 5 leagues that are named in the House lawsuit, according to sources. (The NCAA is named, and all of the schools are members.) The other 40 percent will come from the power conferences.

For example, the cost annually for the Big East Conference is projected at between $5.4 million and $6.6 over the next decade, according to a source familiar with the memo. <-

 

[UConnJim]

-> The NCAA sent out a four-page memo to all 32 Division I conferences this week detailing how the organization plans to cut back on distribution to leagues in six annual payout categories in order to pay the proposed $2.7 billion in damages.

The memo detailed how the NCAA could split up an expected $1.6 billion that would come from reductions in NCAA distribution, sources told ESPN. The remaining $1.1 billion is expected to come from NCAA reserves, catastrophic insurance, new revenue and budget cuts, sources said.

Of that $1.6 billion, nearly 60 percent is expected to come from leagues outside the Power 5 leagues that are named in the House lawsuit, according to sources. (The NCAA is named, and all of the schools are members.) The other 40 percent will come from the power conferences.

For example, the cost annually for the Big East Conference is projected at between $5.4 million and $6.6 over the next decade, according to a source familiar with the memo. <-

I wondered how the NCAA was going to pay the $2.7 billion in damages when their only real source of revenues is the NCAA men's basketball tournament. Well, they want to take the basketball money to pay for a mostly football problem. Incredible.

 

[nelsonmuntz]

I wondered how the NCAA was going to pay the $2.7 billion in damages when their only real source of revenues is the NCAA men's basketball tournament. Well, they want to take the basketball money to pay for a mostly football problem. Incredible.

They are two choices:

1) A bunch of schools with small athletic programs pay for the misbehavior of about 65 programs,
2) Those 65 programs have to come out of pocket.

 

[noeynox]

The P5 does whatever they want, the P5 says to other schools foot the bill or we are leaving.

 

[CL82]

How about prorating the obligation by the media distribution rights owed by each conference?

 

[FfldCntyFan]

How about prorating the obligation by the media distribution rights owed by each conference?

While this would be a far more fair methodology, I don't see how the NCAA could enforce this.

 

[CL82]

While this would be a far more fair methodology, I don't see how the NCAA could enforce this.

The NCAA is merely an association. Make the individual schools signatories to the settlement since they are the ones who received the purported benefit from the uncompensated NIL of past players.

 

[billybud]

Now we have a P4...not P5

28 Conferences would pay 40% of the cost

4 conferences would pay 60%

Each G5 conference would pay a little less than 1.5% of costs

Each P4 would pay 10 times that cost.

Shows you the disparity in athletics and money, And the downside of being Borgs and accumulating...

 

[huskymedic]

Now we have a P4...not P5

28 Conferences would pay 40% of the cost

4 conferences would pay 60%

Each G5 conference would pay a little less than 1.5% of costs

Each P4 would pay 10 times that cost.

Shows you the disparity in athletics and money, And the downside of being Borgs and accumulating...

 

[nelsonmuntz]

Based on that analysis, I would expect the P5 to indirectly pick up the majority of the NCAA's 40%.

 

[FfldCntyFan]

Out of curiosity, are Oregon St and Washington St still P5 schools as it pertains to this?

 

[huskymedic]

Out of curiosity, are Oregon St and Washington St still P5 schools as it pertains to this?

Believe so but not solely… they were P5 before NIL was legalized in the summer of 2021 (Believe this was part of the lawsuit against the PAC12).

 

[Rufus]

Power Conferences Team Up on Tax-Return News Dump Amid Strife

The synchronized disclosure plan is in play even as the relationship between the conferences has grown increasingly fractious.

www.sportico.com

 

[nelsonmuntz]

-> The NCAA sent out a four-page memo to all 32 Division I conferences this week detailing how the organization plans to cut back on distribution to leagues in six annual payout categories in order to pay the proposed $2.7 billion in damages.

The memo detailed how the NCAA could split up an expected $1.6 billion that would come from reductions in NCAA distribution, sources told ESPN. The remaining $1.1 billion is expected to come from NCAA reserves, catastrophic insurance, new revenue and budget cuts, sources said.

Of that $1.6 billion, nearly 60 percent is expected to come from leagues outside the Power 5 leagues that are named in the House lawsuit, according to sources. (The NCAA is named, and all of the schools are members.) The other 40 percent will come from the power conferences.

For example, the cost annually for the Big East Conference is projected at between $5.4 million and $6.6 over the next decade, according to a source familiar with the memo. <-

There is an irony to the P4 schools attempting to pay for their antitrust violations by engaging in more antitrust violations.

 

[pepband99]

I miss the old days where a poster would slink off to oblivion or at least change his handle when he was as wrong as you were.

I don't disagree with the post or opinion here, but Mr. "Victory Lap" WaylonJennings saying this is the least self-aware thing I have ever seen. LOL.

 

[John]

I don't disagree with the post or opinion here, but Mr. "Victory Lap" WaylonJennings saying this is the least self-aware thing I have ever seen. LOL.

A broken clock is right twice a day should be his motto.

 

[huskymedic]

-> The NCAA sent out a four-page memo to all 32 Division I conferences this week detailing how the organization plans to cut back on distribution to leagues in six annual payout categories in order to pay the proposed $2.7 billion in damages.

The memo detailed how the NCAA could split up an expected $1.6 billion that would come from reductions in NCAA distribution, sources told ESPN. The remaining $1.1 billion is expected to come from NCAA reserves, catastrophic insurance, new revenue and budget cuts, sources said.

Of that $1.6 billion, nearly 60 percent is expected to come from leagues outside the Power 5 leagues that are named in the House lawsuit, according to sources. (The NCAA is named, and all of the schools are members.) The other 40 percent will come from the power conferences.

For example, the cost annually for the Big East Conference is projected at between $5.4 million and $6.6 over the next decade, according to a source familiar with the memo. <-

 

[nelsonmuntz]

The Big East suing is a certainty if the P5 do not back down, and more conferences will want to join as plaintiffs. That proposal may be the most idiotic thing the P5 leagues have done. How do they even have standing to cut a deal where another third party has to pay their bill?

The Big East and other non-football leagues have a lot of leverage, because the settlement amount is going to be a lot more than $2.8 billion if it goes to court, and the P5 will end up pay almost all of it. The House plaintiffs want a settlement soon or they are going to court, which puts the P5 leagues in a really precarious spot.

 

[pepband99]

Val "strongly object mean words" Ackerman strikes again. Gladly participating in the NCAAs basketball revenue model, and then complaining when it's used to fund a settlement, isn't going to go far.

She may have some leverage if she can get a coalition going to strike this down, but the flipside is that this then opens the door to her member schools potentially paying more, if they lose in court. It's not a great hill.

 

[huskymedic]

Val "strongly object mean words" Ackerman strikes again.

Damned if she speaks - damned if she doesn’t. It’s all theatre - they have no leverage.

 

[CL82]

Damned if she speaks - damned if she doesn’t. It’s all theatre - they have no leverage.

Which is a sign that she's lost the fan bases of her member schools.

 

[Drew]

Damned if she speaks - damned if she doesn’t. It’s all theatre - they have no leverage.

Which is why it’s hilarious when people say stuff like “you can’t hold the NCAA Tournament without the Big East!!” Or “the Big East is a power conference!!”

The BE is a pretty good men’s basketball league. That is it. They have zero leverage, bargaining power, national brands, etc. The second it is advantageous for the P4 to discard of them (and the other non-football leagues), they will do so, regardless of the changes to the NCAA Tournament it causes

 

[Drew]

Which is a sign that she's lost the fan bases of her member schools.

What leverage does she have honestly to change this? She’s not even invited into the room with the power brokers who are negotiating this

 

[CL82]

What leverage does she have honestly to change this? She’s not even invited into the room with the power brokers who are negotiating this

Not a heck of a lot, other than vocally opposing it. The heat she's taking is a consequence of her slow and tepid response to Big East teams being given the short shrift in this year's NCAA selection and our mediocre, at best, conference media deal. One could argue that she doesn't have much leverage there either, but having ready justifications for poor performances in areas doesn't improve them and certainly doesn't make them more tolerable.

She needs a success somewhere.

 

[Drew]

Not a heck of a lot, other than vocally opposing it. The heat she's taking is a consequence of her slow and tepid response to Big East teams being given the short shrift in this year's NCAA selection and our mediocre, at best, conference media deal. One could argue that she doesn't have much leverage there either, but having ready justifications for poor performances in areas doesn't improve them and certainly doesn't make them more tolerable.

She needs a success somewhere.

I very much agree with your last sentence, it seems as though despite the on-court successes of UConn (and previously Villanova), the league has failed to gain any major traction in viewership growth outside of specific UConn related pockets. The OTA numbers for non-UConn games on FOX are bad and the FS1 numbers are even worse.

Speaking of the media deal, FOX exclusive window ended a month ago and we haven’t heard squat. I am guessing they’ll re-up with FOX (reduced # of games) and some other partners given we haven’t heard about them taking their primary rights to the open market but we will see what it means from a $ and exposure standpoint. The FLO sports type deals need to end- and I wouldn’t be surprised to see Peacock or another streamer engaged for some MBB to also absorb some of the non-revenue sport games too