--NCAA will pay more than $2.7 billion in damages over the next 10 years to current and past athletes (back to 2016).
--Any past NCAA athlete who agrees (settles) forfeits the right to file a future lawsuit against the NCAA.
This feels pretty standard. Of course the NCAA isn't going to open itself up to some 100-year lawsuit where guys like Turner Gill or Tommie Frazier can sue for money decades after they stopped playing.
--Revenue-sharing plan allows each school to share roughly $20 million per year with its athletes.
I'm curious to learn more about the particulars of a revenue-sharing plan. The keyword here is revenue, though, which means that the school's gotta earn that money in the first place. They can't tap into a university endowment or "academic" funding to make this happen. Revenue would seem to indicate that this is money earned by the athletic department.
On that note, Nebraska Athletics (thankfully) is in excellent health, financially. We're one of the few athletic departments in the nation who actually turn a profit. Most run at a deficit and rely on scholarships and donors to keep athletics afloat. Some schools funnel academic-side funding to athletics, because it's basically a big marketing recruitment ad for the university (more tuition from more students, even non-athletes).
NU should be well-positioned here. The Big Ten earns us a pile of money, and we make even more by filling up Memorial Stadium. I can't say that same for Iowa State, Wake Forest, etc. Also note that it's capped at approximately $20m annually. But that's not a massive number when you get $50-60m annually from your TV deal. Schools in the B1G/SEC should be fine. They won't have to decide between paying players -or- building new stadiums. Over time, this will widen the gap, even if the ACC / PAC / XII are too dumb to realize it. Their TV deals hover right around that $20m mark, so it's essentially a wash. They're just left to operate their business off the revenue they make from butts-in-seats. Meanwhile, the B1G/SEC get a free pass to funnel 30% of their TV money to players, keep the remaining 70%, and STILL earn ticket money from fans. If you thought that haves-and-have-nots was bad, just wait 5 years.
According to internet data, Nebraska has about 800 student-athletes. We know the revenue distribution won't be equal (Dylan Raiola will get more than Will Bolt's backup shortstop), but that averages out to just $25k per student, per year. Assuming the guys like Raiola or Tominaga (I know he's graduated) will get more, it probably means the average student athlete would get something like $5k.
It will be interesting to see different school's strategies here. Will Alabama throw all $20m into football? Will Duke throw it all at hoops? What about equal distribution between men / women / Title IX? Is it better to dump a pile of money into a single QB? Or go hire yourself the baddest, fattest, fastest OL in the country?
This adds a completely new angle to strategy - especially at the AD's office. Imagine Rhule, Hoiberg, Bolt, and John Cook all fighting for more cash from Dannen. Will be a totally new dynamic.
--Won't begin until Fall 2025.
--As of now, players will not be considered employees. Probably a 1099 situation for tax purposes.
I can't wait to see the first NCAA player go to jail for tax evasion. Seriously, though, AD Departments will need to start teaching financial literacy to these players. There's a long-established tradition of schools making up useless degree programs and slouch classes for athletes to attend, so we know there's already a portion of student athletes who, frankly, are morons. Vince Young, anyone? The guy scored lower on his Wonderlic than Forest Gump.
In a similar vein, expect a rise in drug use, prostitution, etc. Many student-athletes are serious about their futures, but you have to assume there are some boogers in the bunch. Imagine if Lawrence Phillips got $100k per year in Lincoln. Or if Randy Gregory suddenly had a fat stack of weed money in his pocket. There's yet another angle here in terms of vetting which kids are going to be stupid with their money, and how that reflects on the university. I fully expect schools to have some kind of "honor code" (see: BYU) where kids can forfeit their earnings if they get arrested, make a spectacle of themselves/the school, and so forth.
Brave new world.