NCAA Votes to Pay Athletes as part of Antitrust Settlement

[Pape]

MSN

As part of on-going litigation, the NCAA & the 5 big boy conferences reached an agreement, and will offer to settle the case (or cases)... basically it means colleges will start revenue sharing with the student athletes... If the plaintiffs agree to the settlement voted on by the NCAA

from the MSN article linked above

The NCAA and its five power conferences completed voting Thursday night to approve a settlement agreement that paves the way for universities to pay athletes directly, according to multiple people familiar with the matter, a change that would crush any last notions of amateurism in major college sports.

Amateur Athletics is dead


further reading, from pft

NCAA, five major conferences agree to pay players as part of massive antitrust settlement

The reckoning has finally taken root.

www.nbcsports.com

 

[archstanton543]

Just create a developmental AAA league and get it over with.

 

[neuronet]

Pandora what have you done

 

[BTTA]

Still so many crazy factors in play: revenue vs. non revenue sports allocations, what players' pay rates are based on (recruiting ratings, seriously?), how to set pay rates for players transfers from schools that stick with the old scholarship approach, how (or if) NIL gets rained in, value calculations based on importance to a school (star QB at UNC like Maye, vs. star QB at Alabama, for example).

Seems like this is a starting point for some crazy negotiations on a huge range of issues, with each decision being challenged by someone who doesn't like how it turned out.

 

[Pape]

Really gotta wonder how well a solid first round draft pick will react if he has to take a pay cut after he's drafted....

Potential far reaching impacts abound...

 

[jmt57]

Nothing of substance is going to change.

The 'Haves' are going to continue to rake in big bucks. This will just be one more expense that their business model can easily absorb.

The 'Have Nots' will drift further away from the pack. At what point will the Alabamas and Michigans of college football no longer have use for the Vanderbilts and Northwesterns, and boot them out of their conferences so that they can keep that much more broadcast money for themselves?

 

[ahmed]

Just create a developmental AAA league and get it over with.

Would not work. People have affinity with their colleges which is the main reason for popularity.

Amazing to see how much things have changed over the last few years. About time too but will take some time to iron out everything.

 

[Pape]

Who gets paid? How much? What to know about the landmark NCAA settlement

The historic settlement that has been approved by the NCAA and the nation’s five largest conferences is a historic step toward a more professional model for college sports.

apnews.com

 

[BTTA]

Nothing of substance is going to change.

The 'Haves' are going to continue to rake in big bucks. This will just be one more expense that their business model can easily absorb.

The 'Have Nots' will drift further away from the pack. At what point will the Alabamas and Michigans of college football no longer have use for the Vanderbilts and Northwesterns, and boot them out of their conferences so that they can keep that much more broadcast money for themselves?

Years ago I proposed an "Academic" conference for schools where kids actually get a quality education and personal growth as part of their experience. Yes, the Boomer in me showing up. Vandy, Northwestern, UVa, Rice...I think there were 9 of them.

 

[Patsfanin Philly]

Just create a developmental AAA league and get it over with.

Works well for hockey and baseball.

 

[gobesmug]

Works well for hockey and baseball.

College football is big money, AAA baseball not so much.

Plus the NFL already tried a developmental league, it was the Euro NFL league and it didn't work.

 

[Patsfanin Philly]

College football is big money, AAA baseball not so much.

Plus the NFL already tried a developmental league, it was the Euro NFL league and it didn't work.

True, but for many minor league cities, especially the lower level ones, baseball is the lifeline that supports their economies. I was thinking more in terms of scandals. Athletes that are not college material can go into minor league hockey and baseball without the sham of being a college student. I know the NBA G league is still in its relative infancy but it may the 3rd sport to develop a viable minor league pathway. Granted it is tougher for football as a 22 year old man is physically different than an 18 year old ( in most cases) but I think the NFL would love for XFL to develop into a minor league pipeline.

 

[1960Pats]

Still so many crazy factors in play: revenue vs. non revenue sports allocations, what players' pay rates are based on (recruiting ratings, seriously?), how to set pay rates for players transfers from schools that stick with the old scholarship approach, how (or if) NIL gets rained in, value calculations based on importance to a school (star QB at UNC like Maye, vs. star QB at Alabama, for example).

Seems like this is a starting point for some crazy negotiations on a huge range of issues, with each decision being challenged by someone who doesn't like how it turned out.

Charlie Baker has it all under control. Look how well he did for the veterans in the nursing homes in MA during the coronavirus.

With the amount of money that schools are making off those young men and women they deserve to be paid.

 

[1960Pats]

Would not work. People have affinity with their colleges which is the main reason for popularity.

Amazing to see how much things have changed over the last few years. About time too but will take some time to iron out everything.

For some reason (I have no idea why) our sons don't feel any attachment to the colleges they attended.

 

[Pape]

For some reason (I have no idea why) our sons don't feel any attachment to the colleges they attended.

Bet they would have loved the respective alma maters if they left with pockets stuffed with cash instead of 100k in student loans

 

[gobesmug]

True, but for many minor league cities, especially the lower level ones, baseball is the lifeline that supports their economies. I was thinking more in terms of scandals. Athletes that are not college material can go into minor league hockey and baseball without the sham of being a college student. I know the NBA G league is still in its relative infancy but it may the 3rd sport to develop a viable minor league pathway. Granted it is tougher for football as a 22 year old man is physically different than an 18 year old ( in most cases) but I think the NFL would love for XFL to develop into a minor league pipeline.

I do think the NFL would love to have something during this time of year. If the XFL can do that, I could see the league buying it out.

 

[lancerman]

Charlie Baker has it all under control. Look how well he did for the veterans in the nursing homes in MA during the coronavirus.

With the amount of money that schools are making off those young men and women they deserve to be paid.

This is how I feel. If schools weren't greedy as **** and making billions off these kids, I'd say that it works better as a purely recreational sport for no pay that fans of the college take an interest in for nostalgia reasons.

Those pigs turned it into NFL Jr, so yeah, pay up you greedy ****s. The schools ruined it, not the kids.

 

[UGAPatsfan]

For some reason (I have no idea why) our sons don't feel any attachment to the colleges they attended.

I’m 44 and don’t either. Went to a small private in New England and have zero attachment. It’s probably the incessant begging for donations…I’m like, “the 6 figures I paid you for a was enough”.

 

[upstater1]

Charlie Baker has it all under control. Look how well he did for the veterans in the nursing homes in MA during the coronavirus.

With the amount of money that schools are making off those young men and women they deserve to be paid.

Schools aren't making any money. The coaches are. This is a money loser for the schools.

 

[upstater1]

It amazes me how the judge in this case and congress got things so badly in reverse.

The schools don't make money on this stuff. It's the coaches and ADs who do. The schools lose in any number of ways.

For one, there are student fees to support these sports and they come from ordinary students. If you took out a loan to attend college, you'll be paying for these players well into the future. It's absurd that some kids are making a couple million dollars a year while part of their support system is being paid for by ordinary students.

The college presidents are not trying to hide the money sports is making from the athletes and the general public. They are trying to hide the losses from the parents. Those extra "fees" over tuition? About half of them go to feeding the sports franchise.

Here are some things that don't appear in athletic budgets (these budgets notoriously have revenue and expenditures meet exactly):

1. Academic support and subsidy.
2. Debt service on stadiums and facilities (Penn State is about to issue $700m in bonds for stadium improvement; think about what it would take to service that jumbo loan in this interest environment).

Here's something that appears in AD revenues that shouldn't appear: Brand royalties (I know sports drive apparel purchases, but even at NYU and Yale you see kids walking around with college sweatshirts).

The vast majority of schools will not be able to afford the extra $20m payout per year, especially since donations have dropped through the floor because of NIL.

Also, the basketball schools got robbed in all this, like the Big East schools, because all the payouts to past football and basketball players are coming from NCAA Tourney revenue. It's bad enough the NCAA takes more than half the tourney money each year and leaves ALL the football money alone, but now they are cutting the payouts in basketball even more in order to pay for the former athletes at the premier schools.

This is a huge ripoff of the academic side... and for what? So that Presidents won't upset boosters, politicians, wealthy alumni. When Texas A&Ms President was told the AD ran up a $30m deficit, she told him to start cutting. He complained to politicians. The President was sent packing, FIRED.

Presidents learned their lesson. They will sell the future health of their schools down the river (like Gordon Gee at West Virginia) if it means they get to stay in their $1m a year jobs longer.

The NCAA schools have incentive to keep the game going as long as possible because they have a huge amount of debt from the stadiums and facilities.