House settlement finally released….

[The Big Red Lebowski]

I think you are right about the collectives. But I think it will be hard to hide the Mercedes, and when seen on social media, someone will text the Deloitte hot line asking if they approved the deal. It may be harder for bagmen than we think - especially since the conference can penalize schools that allow it.
By the way, Nebraska giving a star volleyball player a $100,000 auto may be good for the dealership and pass market value tests because the promotional instagrams or TikToks will be seen by millions. But the same isn’t true for a volleyball star at Rutgers, who might have the car disallowed. I think that is why some teams will benefit from the potential for NIL, even w/o a pre-signing deal.

It's easier to hide, because the kids are going to get direct payments in addition to NIL. I'd wager starters are going to get low-to-mid 6 figures. A kid earning $10k to $20k per month can afford the payments on a luxury car without an NIL deal. I don't think the commission/Deloitte are going to have the resources to deep dive into the finances of thousands of college athletes.

My example for the volleyball player was an autograph session. It's certainly possible that an endorsement deal with an auto dealer is worth $100k. To your point, it'll depend on social media reach. Players that have large followings on TikTok, Instagram, FB et al will command larger payouts.

 

[19D Cav]

Article on high school recruits being left out of recruiting due to NIL and roster limits.

MSN

This was bound to happen with the free agency transfer portal and all the $$$. I am not against athletes getting money for NIL in it's true meaning but the system right now is just pay for play you cannot convince me its not. The top tier guys are loving it and the lower level guys are paying the price with the roster limits and portal guys getting more attention and more scholarship's, which means fewer scholarships for the developmental guys.

 

[skerinks]

This was bound to happen with the free agency transfer portal and all the $$$. I am not against athletes getting money for NIL in it's true meaning but the system right now is just pay for play you cannot convince me its not. The top tier guys are loving it and the lower level guys are paying the price with the roster limits and portal guys getting more attention and more scholarship's, which means fewer scholarships for the developmental guys.

Exactly. The board had wondered how soon the first lawsuit would be filed and by whom. In my opinion the next one is going to be by walk-on's vs the cap numbers. Pretty easy to prove the new plan restricts one's ability to participate.

 

[MiniDisk]

The Title IX lawsuits will start as soon as revenue sharing starts and a school pays 70-80% to mens sports. The individual schools will be named litigants, and not just the NCAA and conferences.

3rd party NIL agreements that are not directly from the institutions will not receive Title IX scrutiny.

Revenue being shared directly to student athletes from universities that are NPE's will receive Title IX scrutiny. IMO it is likely that Title IX will apply to revenue sharing.

The question is will universities spend a bunch of money on attorneys to find this out or will a few schools split the allowed 22% evenly based on advice of counsel?

already filed lawsuits..... just as i said would happen.....

Appeal of NCAA settlement won't stop current athlete payments

An appeal of the NCAA's landmark antitrust settlement won't stop college teams from paying current athletes starting July 1, but it will pause the NCAA's plans to begin paying former athletes.

www.espn.com

"Several college athletes filed the appeal Wednesday, claiming the deal violates Title IX law. Now the roughly $2.8 billion in negotiated back damages will sit while the appeal works through the system."

 

[MiniDisk]

Exactly. The board had wondered how soon the first lawsuit would be filed and by whom. In my opinion the next one is going to be by walk-on's vs the cap numbers. Pretty easy to prove the new plan restricts one's ability to participate.

absolutely, it restricts the historical fact that universities determined their roster size not leagues or NCAA. the only thing the NCAA/leagues limited were scholarships. Basically this is similar to what F1 and Nascar have done, if you dont have 200mill you cant get into the sport because they wont let you (athlete judge to not be talent worthy). A Barrier that a startup team will never have that much money (you never know how a player will end up in his development). the NCAA could still determine the scholarship limit and say only 105 at max but to block anyone from playing or participating will get challenged.

 

[Speedlimit]

already filed lawsuits..... just as i said would happen.....

Appeal of NCAA settlement won't stop current athlete payments

An appeal of the NCAA's landmark antitrust settlement won't stop college teams from paying current athletes starting July 1, but it will pause the NCAA's plans to begin paying former athletes.

www.espn.com

"Several college athletes filed the appeal Wednesday, claiming the deal violates Title IX law. Now the roughly $2.8 billion in negotiated back damages will sit while the appeal works through the system."

This is appealing the House settlement past damage allocations on Title IX grounds and will likely stay any payments for class members for those past damages. It is actually good for the defendants in that they do not have to start paying out the +$2B for past damages and at this point they get to take advantage of the other provisions in the settlement.

The actual Title IX lawsuits will be against individual schools for their revenue sharing allocations...starting with the most financially stable schools who have strong women's sports programs...IMO!

 

[Hville]

$2.8B will pay 400,000 former athletes based on average revenue over the last decade. I think it is 80% FB, 10% MBB, 5% WBB, 5% every thing else. Payouts are determined on an individual basis using a formula that takes into account the sport the athlete played, where they played, how many years they played and more. There are also additional sums for athletes who played prior to July 1, 2021 based on what they could have made in NIL deals prior to the rules change. That amounts to an average of $135,000 for football and men’s basketball players who got scholarships at power conference schools. The money will come from NCAA holdbacks of payments to schools and conferences (eg March Madness).

2.8 divided by 400,000 is not an average of $135,000. Its $7,000.

 

[weaver75]

2.8 divided by 400,000 is not an average of $135,000. Its $7,000.

Read closely. The $135k average is of only those relatively few MBB and FB P5 scholarship players. Probably 80% of the $2.8M goes to them, and I would guess that may be about 15,000 former SA’s.

 

[johnrr6]

There is a grandfather clause in the settlement. Current walk ons not on scholarship and current committed recruits without scholarships are not subject to the 105 cap

Buuuuut…

It is up to the school whether they want them.

They can be on the team…. They don’t have to have a scholarship….. The school is not obligated to fund them in any way.

And they can play ball.

What is not clear is how long this grandfather clause lasts.

I would assume a current walk on not on scholarship who the team thinks is valuable could be on the team the rest of his college career.

This was for existing players, so I do not think this would apply to a next year‘s group of walk-ons.

I am sure this is going to get challenged….. The smaller schools will need this.

 

[weaver75]

It applies to

There is a grandfather clause in the settlement. Current walk ons not on scholarship and current committed recruits without scholarships are not subject to the 105 cap

Buuuuut…

It is up to the school whether they want them.

They can be on the team…. They don’t have to have a scholarship….. The school is not obligated to fund them in any way.

And they can play ball.

What is not clear is how long this grandfather clause lasts.

I would assume a current walk on not on scholarship who the team thinks is valuable could be on the team the rest of his college career.

This was for existing players, so I do not think this would apply to a next year‘s group of walk-ons.

I am sure this is going to get challenged….. The smaller schools will need this.

it applies to 2025 recruits if the school designates them as someone they offered and then had to say, so, we don’t have s spot. It would last for their college career. 2026 recruits are out of luck.

 

[johnrr6]

@Kaleb Henry

I assume money to fund the increased number of scholarships athletic department wide does not count against the up to 20.5 million a school can disburse?? Correct?

Also…any inside info on what additional scholarships WILL be funded by NU?

Up to 34 in Baseball has HUGE implications for that sport….
Track and field…wrestling and a bunch of others….the same….

 

[Speedlimit]

It applies to

it applies to 2025 recruits if the school designates them as someone they offered and then had to say, so, we don’t have s spot. It would last for their college career. 2026 recruits are out of luck.

Designated Student Athlete (DSA)

School agrees to grandfather and DSA's do not count against the roster limits (105 for football) for the duration of DSA's eligibility.

I think that is how it works.

 

[...]

@Kaleb Henry

I assume money to fund the increased number of scholarships athletic department wide does not count against the up to 20.5 million a school can disburse?? Correct?

Also…any inside info on what additional scholarships WILL be funded by NU?

Up to 34 in Baseball has HUGE implications for that sport….
Track and field…wrestling and a bunch of others….the same….

Added scholarships count against the $20.5M, up to $2.5M. If Nebraska were to fully fund every sport on campus, that would be more than the $2.5M, but only that amount would count against the cap.

 

[NU_Alum]

This can't be happening! @Hville promised me this couldn't happen!

Hville, please contact these schools and let them know that what they're doing can't be done! Maybe scream Title IX at them, that should help.

 

[TFrazier]