ACC votes to settle House case

Expanded Q&A

Ross expands on the twitter threads above in longer but more comprehensive detail. An interesting not is that Iron Dukes contributions are not included in the revenue sharing calculation. I would certainly think that at least as regards ticket holders (I am an Iron Duke but no longer a season ticket holder) that contributions should be included as face value does not represent true market value.

https://sports.yahoo.com/ncaa-settl...re-of-nil-collectives-and-more-125519681.html
 
wilko said:
So I'm only just now paying any attention at all to this..

Are the impacts and ramifications of this better or worse for independents?
Or in other words - is this the leverage we finally needed to make ND join as a Football member?
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Interesting question, but maybe one that will be blown out of the water by bigger questions....

sagegrouse said:
Do we still use flow diagrams that show the groups/entities and what they pay or get? If so, I need one.
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What I want to see is a flow diagram showing the mathematical impact of years of Intense Fan GAF turning into ZFG over the next few seasons, which will be hidden for a couple of years as GAMBLING related viewers fluff up short term TV ratings.
 
wilko said:
So I'm only just now paying any attention at all to this..

Are the impacts and ramifications of this better or worse for independents?
Or in other words - is this the leverage we finally needed to make ND join as a Football member?
Click to expand...

Below is the statement from ND, not sure they are in the mood to join:

Notre Dame. President Rev. John Jenkins:

“The settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics.

"To save the great American institution of college sports, Congress must pass legislation that will preempt the current patchwork of state laws; establish that our athletes are not employees, but students seeking college degrees; and provide protection from further antitrust lawsuits that will allow colleges to make and enforce rules that will protect our student-athletes and help ensure competitive equity among our teams.”
 
pokeresq said:
Below is the statement from ND, not sure they are in the mood to join:

Notre Dame. President Rev. John Jenkins:

“The settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics.

"To save the great American institution of college sports, Congress must pass legislation that will preempt the current patchwork of state laws; establish that our athletes are not employees, but students seeking college degrees; and provide protection from further antitrust lawsuits that will allow colleges to make and enforce rules that will protect our student-athletes and help ensure competitive equity among our teams.”
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ATTN Rev. John Jenkins:

Pandora on line one. You ain't closin' this box now.
 
pokeresq said:
Below is the statement from ND, not sure they are in the mood to join:

Notre Dame. President Rev. John Jenkins:

“The settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics.

"To save the great American institution of college sports, Congress must pass legislation that will preempt the current patchwork of state laws; establish that our athletes are not employees, but students seeking college degrees; and provide protection from further antitrust lawsuits that will allow colleges to make and enforce rules that will protect our student-athletes and help ensure competitive equity among our teams.”
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When the dust clears from this monumental decision- does it make it more likely Notre Dame football joins a conference or continues to stay an Independent ?
 
pokeresq said:
The long thread below from Ross Delenger gives an excellent breakdown of the details and unresolved issues. One of the biggest items unless Congress gives exemption is the "true NIL" limit for actual endorsement value instead of inducement given that such a limit clearly restricts earnings and has been enjoined by Tenn Fed Court. Doing math, back pay in ballpark of $415K per D1 CFB and MBB player (2.77B x .90 /6000 players).

Roster Change
- Eliminates scholarship caps
- Implements new roster limits (not finalized)
- Ability to provide scholarships to entire roster
- Potential football roster reduction to as few as 85 roster spots (on-going discussions)
- Title IX applies
Ross Dellenger
@RossDellenger

Governance/other
- Potential new DI subdivision for increased power conference rule-making
- Flexibility for leagues to set some own rules
- Rev-share model could be extended beyond 10 yrs
- Plaintiffs agreed to lobby on behalf of NCAA’s effort seeking Congressional protections

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

Cap Enforcement
- Court oversight/audits
- Athlete reporting mechanism of 3rd party NIL
- Must be “true NIL” based on developed “fair market value” data
- Enforced thru NCAA/outside entity w/Court backing
- Burden on school/athlete to prove “true NIL"
- No pay-4-play/booster pay

Replying to
@RossDellenger
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)

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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Excellent summary. Thanks for compiling that.

A few thoughts:

How money is allocated will be a huge Title IX fight. Perhaps the courts will someday say whether Title IX covers these kinds of payments and, if so, whether it requires that women get half the money. (I don’t think the plain language of Title IX applies to this money.) Until the courts resolve that issue, some schools will push all that money towards football and basketball, thereby gaining a recruiting advantage, while others will split it more evenly with women.

I wonder if Judge Wilkin will reject the settlement because it bakes in more price-fixing – the salary cap. I’m not an antitrust expert, but I have not heard of an antitrust settlement exception to rules against fixing the price of labor, unlike what is permitted arising from a collective bargaining agreement.

Relatedly, I don’t see how the NCAA can avoid future antitrust challenges to the salary cap made by people who are not yet adults. Indeed, the idea that future generations could opt in or opt out (unclear which it is) of the settlement makes no sense to me. Future generations are not eligible for the damages pool; they are only eligible for the new money spent under the salary cap. Does that mean that if an incoming freshman fails to join the settlement, the university can’t pay any money to that person? I doubt that. It appears the NCAA realizes this antitrust protection is shaky, so it is continuing its futile effort to get a federal law. I see almost no chance Congress will give any protection.

I cannot imagine an effective enforcement regime that can distinguish between “true NIL” and de facto independent contractor compensation. Thus, NIL bribery wars will continue.

My understanding is the revenue share of around $20M is a cap and not a mandatory spending amount. If that is true, then I don’t understand the provision that Alston money and new scholarships “may” count toward the cap. The purpose of a cap is to restrain spending. If you want to spend the maximum permitted under the agreement (to get maximum recruiting advantage), then you don’t want to count Alston money and new scholarships. If that “may” is actually “shall,” that would make more sense.
 
LeadingEdge said:
Excellent summary. Thanks for compiling that.

A few thoughts:

How money is allocated will be a huge Title IX fight. Perhaps the courts will someday say whether Title IX covers these kinds of payments and, if so, whether it requires that women get half the money. (I don’t think the plain language of Title IX applies to this money.) Until the courts resolve that issue, some schools will push all that money towards football and basketball, thereby gaining a recruiting advantage, while others will split it more evenly with women.

I cannot imagine an effective enforcement regime that can distinguish between “true NIL” and de facto independent contractor compensation. Thus, NIL bribery wars will continue.
.
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Vis a vis your two points above:
Someone will demand half the money and base their lawsuit on Title IX, and likely win....which is ironic, because the production of revenue is why we are here.....and that revenue is only NET revenue in two sports, and in some rare cases, a third or fourth (women's hoops, baseball).

And second, your comment about "true NIL" is unavoidably correct. What a mess. At some point the ZFG metric may solve all of it.
 
Title IX workarounds

Prior to this settlement there had been discussions about ways to possibly avoid Title IX exposure by:

-Having conferences distribute tv money to athletes given that the conferences do not receive Federal funding as an educational institution

-Having Collectives administer the revenue with schools ""hiring" the collective to pay for true NIL

In addition to Title IX uncertainty, Wage and Hour and whether players are employees also will continue to loom. Labor law typically does not permit parties to exempt themselves from those provisions.

As the LVCVA offer to pay each of the LV Aces players $100K (more than their salaries in most cases) shows, even with a CBA there can be issues in trying to restrict NIL from a 3rd party. How there can be a restriction on true NIL in light of the AG's lawsuit which has enjoined such restrictions is murky at best?

Berman says he has sued NCAA more than 12 times, and this will end all anti trust claims, but if the Court rejects the revenue share and NIL restrictions or if later separate cases find those provisions unenforceable, he loses nothing while Ncaa and schools find themselves back in Court. Frankly some of the settlement terms sound like a wish list Federal Bill for the Ncaa, which Plaintiff lawyers have agreed to support for what that is worth

Billable hours remain undefeated!
 
pokeresq said:
Prior to this settlement there had been discussions about ways to possibly avoid Title IX exposure by:

-Having conferences distribute tv money to athletes given that the conferences do not receive Federal funding as an educational institution

-Having Collectives administer the revenue with schools ""hiring" the collective to pay for true NIL

In addition to Title IX uncertainty, Wage and Hour and whether players are employees also will continue to loom. Labor law typically does not permit parties to exempt themselves from those provisions.

As the LVCVA offer to pay each of the LV Aces players $100K (more than their salaries in most cases) shows, even with a CBA there can be issues in trying to restrict NIL from a 3rd party. How there can be a restriction on true NIL in light of the AG's lawsuit which has enjoined such restrictions is murky at best?

Berman says he has sued NCAA more than 12 times, and this will end all anti trust claims, but if the Court rejects the revenue share and NIL restrictions or if later separate cases find those provisions unenforceable, he loses nothing while Ncaa and schools find themselves back in Court. Frankly some of the settlement terms sound like a wish list Federal Bill for the Ncaa, which Plaintiff lawyers have agreed to support for what that is worth

Billable hours remain undefeated!
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Prediction: they will never successfully work around Title IX, and never defeat billable hours, not to mention the siren call of mega contingencies in class action suits. Get the popcorn ready.
 
Update: Athlete Advocacy Group opposes settlement: "The National College Players Association said the so-called House settlement aims to eliminate booster-funded collectives that are currently responsible for millions of dollars in payments to college athletes for the right to use their names, images and likenesses."
www.espn.com

Athlete group opposes NCAA's $2.8B settlement

A prominent advocacy group for college athletes opposes the $2.8 billion settlement agreement of antitrust litigation facing the NCAA and major college conferences.
www.espn.com www.espn.com

Can't eliminate the collectives!!

Also hedging in case athletes are determined to be employees: "The NCPA said it opposes the deal because it gives conferences the ability to end proposed revenue sharing if athletes are deemed to be employees with the right to collectively bargain with schools or leagues. That topic is the subject of several fights likely to end up in court, including a unionization effort by the Dartmouth men's basketball team."
 
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