NIL laws will have sweeping impacts on college sports, ADs tell @SInow, the most noteworthy of which is the widening of competitive gaps among schools.
The rich (schools in large metros with big donor bases) will get richer.
On NIL, school presidents are “panicked,” ADs are “scratching their heads,” and working group is “conflicted.”
While consensus in Congress is rare, lawmakers agree on 1 thing, says Rep. Donna Shalala
“They have nothing but negative feelings for the NCAA" bit.ly/2S9VC3y
Sen. Chris Murphy takes @SInow inside the 2 conversations among lawmakers: (1) Should Congress or NCAA create NIL rules? (2) And should athlete compensation go beyond NIL?
“We should be looking at a broader set of legal protections to allow schools to compensate athletes.”
One Power 5 AD who spoke to @SInow sees NIL thru a different prism.
“Booster says, ‘I’m going to put you in a law firm ad and pay you all this money.’
The power conferences this week sent to their members the initial cap number for Year 1 of athlete revenue sharing, per a memo obtained by @YahooSports.
For the 2025-26 sports year (starting July 1), schools are to operate under a *projected* cap of $20.5 million, the memo says
The $20.5 million - lower than what some expected - could increase when final 2024-25 reporting figures are released in the spring. The cap is 22% of P4 revenues in the previous year.
The cap has built-in escalators (4% in Year 2 and Year 3 + a re-calculation in Year 4).
Schools are permitted to distribute the $20.5 million to their athletes however they see fit, but many plan to use the House settlement back-damage formula for the distribution: 90%+ to football & men’s basketball.
A thread on the NCAA’s settlement in the House case.
The settlement - negotiated by plaintiffs seeking back-NIL pay and NCAA/power leagues - has 3 main parts: 1) $2.8B in back-pay to former athletes 2) $20B+ in rev-share to future athletes 3) New roster rules & enforcement arm
$2.8B in back-pay.
- spread over 10 years
- from NCAA + school distribution (NCAA Tournament money)
- distribution determined using a formula based on a player’s value
- $2.3B goes to P4 FB/MBB players (avg of $120K a player over 10 years)
- Back-payments begin as soon as May
$20B+ in rev-share over 10 years.
- schools must stay under an annual cap determined thru avg of P4 revenue data
- 1st-year cap likely $21-23M per school with escalators to as high as $33M by 2035
- schools are not *required* to share revenue
- rev-share to start July 1
Rob Sine, CEO of Blueprint Sports, which operates UNLV's collective, tells @YahooSports that the collective never agreed to a $100,000 deal with QB Matthew Sluka.
It made a payment of $3,000 to Sluka & were discussing a monthly payment of $3,000 before QB’s decision this week.
Matthew Sluka’s agent, Marcus Cromartie of Equity Sports, first introduced himself via email to UNLV collective officials in late August, Sine says.
Cromartie wrote to officials that he was seeking more NIL opportunities thru the collective for his client.
However, Sine said Cromartie is not a registered agent in the state of Nevada. Because of this, he advised Cromartie/Sluka to discuss the situation directly with the coaching staff until Cromartie registers in the state.
A thread on the NCAA’s historic 10-year settlement agreement that will pay back-damages of $2.8 billion, at least $15 billion in rev-share & reshape the governance, enforcement & scholarship structure of major college athletics.
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Back Damages
- How much: $2.776 billion over 10 years
- From: NCAA national office (40%) & schools (60%)
- To: 15-25,000 DI athletes who played from 2016-2020ish
- Distribution: “Allocation formula” used, with estimated 90% to P5 FB/MBB players (~6K athletes)
Rev Share
- How much: ~$20-22M annually (fluid; will escalate based on school rev figures)
- From: Schools
- To: Athletes
- Distribution: School discretion (Title IX applies)
- Implementation: Summer/Fall 2025
- Exceptions: $5M of Alston/new scholarships can count toward cap
Five Michigan football coaches at the center of the recruiting violations during the COVID dead period have reached an agreement on penalties with the NCAA.
"The negotiated resolution also involved the school's agreement that the underlying violations demonstrated a head coach responsibility violation and the former football head coach failed to meet his responsibility to cooperate with the investigation."
Penalties:
- three years of probation for Michigan
- a fine & recruiting restrictions
- one-year show-cause orders for the coaches
NCAA president Charlie Baker is proposing the creation of an FBS subdivision that permits schools to directly compensate athletes thru a trust fund & NIL, sources tell @YahooSports.
It is perhaps the most revolutionary concept introduced in NCAA history. bit.ly/4a68NIY
Charlie Baker outlined the groundbreaking proposal in a letter sent to DI members & obtained by @YahooSports.
Members of the new FBS subdivision are permitted to strike NIL deals with their own athletes, but the most impactful change is the trust fund. bit.ly/4a68NIY
For entry into the subdivision, schools are required to deposit annually at least $30,000 per athlete into a trust for half of their athletes. Schools must follow Title IX (50% go to women).
A 4-year athlete stands to earn at least $120,000 in a career. bit.ly/4a68NIY