NCAA Settlement

[PrideandDream]

Thoughts on the NCAA Settlement? Not just for Army but all of the NCAA schools and players?

NPR: The NCAA Reaches a historic settlement to pay college athletes. What to know.


Amazing to me that the non power 5 conferences will pick up 60% of the share. I suppose on a member basis that is correct but it can't be right on a revenue basis I wouldn't think.

Title IX going to be very very interesting.

Revenue sharing at 22% vs the NFL at 50% says a lot.

How long before Collective Bargaining and a Players union? Contracts for players?

This doesn't affect NIL in any way so there will still be outside dollars that can influence the process.

Do players become "employees" and not students?

The talk of Roster Caps will really change things. For example the NFL has a 53 man roster. For no reason other than they don't want to divide up the money any more than they have to. NCAA Football teams have 85 scholarships for football. No way in my mind that stands the scrutiny of a collective bargaining agreement.

Eligibility? If players are employees then do they have to be students? And if they are students do they have to actually be eligible??

Imagine a team with a roster cap of 65 players and no eligibility limitations. A player could be 30 years old and play for a team for 10 years??? What would be the impact on High School sports and recruiting???

Transfer portal essentially becomes free agency and contracts might limit when you can transfer??

I mean this is just scratching the surface. The number of issues right now are mind boggling. All of this and we haven't even begun to get to the details for Service Academies and what this means.

Thoughts??

PD

[westcoastarmyfan]

I have lots of questions—but the Title IX implications have to be considered. I don’t pretend to be an expert on it, but my understanding is that the women get a pro rata share, so if the ratio of male athletes to female athletes is 2:1, then the women get $6.7 million of the $20 million. If the football players think the whole pie is for them, I think they will be sadly mistaken.
Where are the $$$ coming from—the TV contracts? Good luck if your school is trying to get it from the boosters—they have committed huge $$$ to NIL. If it is coming from the TV contracts—well that money has already been budgeted, and those budgets have been signed off by the college President or Board. Even though these budgets may be renewed annually or biannually, some sports may have to take a huge cut if the $$ are from TV.
I’m a CPA so I enjoy following the $$ side of college ball.

[JKillerK]

What are the income tax and social security implications. Who and how will medical be covered?

[wpgrad]

There are lots of things to be worked out on paper and in the courts but....
1) For secondary sports like baseball, you'll see the 11.7 scholarships with a 40 man roster go to 32 full scholarships...but a 32 man roster. This will mean less opportunity to play D1 at the highest level, but should improve lower levels that get those 8 extra players
2) The full scholarships, like NIL money, will be taxed.

To me, all of this leads to the inevitable breaking off of elite D1 football from the NCAA to form a superleague. We'll see no more NCAA but rather governing bodies for each sport.

[westcoastarmyfan]

JKillerK
"What are the income tax and social security implications." If they become employees, they will be taxed just like the rest of us.

[RABBLE]

As an old-timer, I am fed up with all this. I always wanted to make things simple. Amateurs were amateurs and pros were pros.
That is the way it was but no more. I cannot get interested with all this intricate financial machinations of kids getting an education of sorts. I am out of here on all this. I will just enjoy the game itself and leave anything more to the lawyers.

[PrideandDream]

This was inevitable. The clock started on all of this when the first ticket was sold to a game. This lead to hot dogs and concessions, then to merchandise and t shirts, and then to season tickets, suites, and ultimately TV contracts. Which was all fine until the money coming in was exceeding the expenses associated with running the program and the value of the scholarship.

To me, there are a few major inflection points that accelerated us getting here.


1. The CFA (College Football Association) forming in 1977 to negotiate TV deals for Universities

The College Football Association

2. In 1984 the Supreme Court ruled in favor or the University of Oklahoma for TV Rights. The NCAA could no longer dictate to schools regarding their TV Time. So now schools could operate on their own or in collection with a conference to negotiate.

https://en.wikipedia.org/wiki/NCAA_v._B ... velopments

3. Proposition 48 was passed in 1986 and allowed athletes to be eligible to participate in NCAA sports based on fundamental HS requirements. This allowed schools to then admit athletes into school that were at risk and had below average credentials compare to the average student at an institution. This meant the school now had students that might not be able to keep up with the academic rigors of the given school. Which lead to schools looking for ways to then keep these athletes eligible.

NCAA Proposition 48

4. The cheating scandal uncovered at UNC that basically showed that a major university was willing to go to great lengths to keep athletes eligible and one that is thought to be a strong academic school. 200 courses were supposedly questionable. This investigation uncovered massive fraud for years and that players were not doing the course work in many circumstances.

UNC Fraud

Now we could add in all kinds of other things that took place, SMU and the pay for play scandal, Jan Kemp at UGA which dated back to the '70's but was finaized around '88 if I recall, or any of the probations handed down by the NCAA over the years, and lastly the increase in the number of bowl games to over 40 today. All of this had a collective impact.

But the bottom line is this, everything has been about money for years. And once you stopped ensuring standards of entrance and standards of graduation with a degree then you were devaluing the players that were producing revenue. Beyond that as the money got larger and revenue soared past both the cost of expenses and the cost of the education then it was inevitable. Schools were making money on the product produced by players and never sharing it with those that put in the labor other than coaches and staff. All of this was a problem. And it was driven by greed. And while I hate it becuase it is going to ruin college football and college athletics I agree payers should get their cut. Universities put money before academics and education. Many have become a total sham.

PD

[RABBLE]

This was inevitable. The clock started on all of this when the first ticket was sold to a game. This lead to hot dogs and concessions, then to merchandise and t shirts, and then to season tickets, suites, and ultimately TV contracts. Which was all fine until the money coming in was exceeding the expenses associated with running the program and the value of the scholarship.

To me, there are a few major inflection points that accelerated us getting here.


1. The CFA (College Football Association) forming in 1977 to negotiate TV deals for Universities

The College Football Association

2. In 1984 the Supreme Court ruled in favor or the University of Oklahoma for TV Rights. The NCAA could no longer dictate to schools regarding their TV Time. So now schools could operate on their own or in collection with a conference to negotiate.

https://en.wikipedia.org/wiki/NCAA_v._B ... velopments

3. Proposition 48 was passed in 1986 and allowed athletes to be eligible to participate in NCAA sports based on fundamental HS requirements. This allowed schools to then admit athletes into school that were at risk and had below average credentials compare to the average student at an institution. This meant the school now had students that might not be able to keep up with the academic rigors of the given school. Which lead to schools looking for ways to then keep these athletes eligible.

NCAA Proposition 48

4. The cheating scandal uncovered at UNC that basically showed that a major university was willing to go to great lengths to keep athletes eligible and one that is thought to be a strong academic school. 200 courses were supposedly questionable. This investigation uncovered massive fraud for years and that players were not doing the course work in many circumstances.

UNC Fraud

Now we could add in all kinds of other things that took place, SMU and the pay for play scandal, Jan Kemp at UGA which dated back to the '70's but was finaized around '88 if I recall, or any of the probations handed down by the NCAA over the years, and lastly the increase in the number of bowl games to over 40 today. All of this had a collective impact.

But the bottom line is this, everything has been about money for years. And once you stopped ensuring standards of entrance and standards of graduation with a degree then you were devaluing the players that were producing revenue. Beyond that as the money got larger and revenue soared past both the cost of expenses and the cost of the education then it was inevitable. Schools were making money on the product produced by players and never sharing it with those that put in the labor other than coaches and staff. All of this was a problem. And it was driven by greed. And while I hate it becuase it is going to ruin college football and college athletics I agree payers should get their cut. Universities put money before academics and education. Many have become a total sham.

PD

College football will never be the same again. Oh the rah-rah will be there ad the pageantry and the band sand, the traditions will still be there but the NIL and the bouncing from one school to another has taken away a large chunk of the way the game was played knowing that some players will be paid. It has sadly become the NFL prep school for many of the elite players. It is certainly not an education experience much more.

[Armyfaninpa]

Just a couple of basic questions from someone not following all the developments:

Are the band members and cheerleaders now employees of State U Inc. instead of college students?

Are all the players going to be hired guns or will there be some sort of hybrid model where there may actually be some honest-to-goodness degree seeking students thrown into the mix?

if the model moving forward is 100% mercenary, will the teams be run by a GM who can make player trades throughout the year (including in season)?

Just curious to see how far this farce plays out.