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a sea change in college sports could be put into motion this week. Details from The Athletic:
This week, the NCAA and power conferences are expected to vote on whether to settle a federal class-action lawsuit that would cost them nearly $3 billion in damages and allow power-conference athletes to finally share in annual revenues.
House v. NCAA seeks back pay for Division I college athletes who were barred from earning name, image and likeness (NIL) compensation prior to the NCAA changing its policy in summer 2021, while also pursuing a cut of future broadcast revenues for athletes at power-conference schools.
In addition to more than $2.7 billion in NIL back-pay damages, a settlement would include a system in which roughly $20 million a year can be distributed directly from a power-conference school to its athletes, multiple people briefed on the negotiations confirmed to The Athletic.
A settlement would also address another major NCAA issue by simultaneously resolving other high-profile antitrust cases, including Hubbard v. NCAA and Carter v. NCAA.
Hubbard is similar to House in the sense that it is seeking retroactive damages for education-related Alston payments; Carter argues that rules prohibiting college athletes from receiving “pay for play” violate antitrust law. A House settlement would resolve each of them.
If approved, the power-conference revenue sharing will be optional, and there are no specifications on how the money will be distributed, as long as it stays within the capped allotment.
It’s expected that most if not all power-conference programs will opt in to some degree of revenue sharing in order to remain competitive. But even for a number of the schools at that level, it could be a gradual financial process that requires cuts elsewhere.
What about NIL collectives? A settlement wouldn’t fully address the role of these third-party organizations and the culture of pay for play, though Yahoo Sports reported that the informational documents it obtained mentioned “economic incentives” for athletic departments to bring collectives in-house.
(other issues to be resolved include how Title IX plays into this - and whether athletes would still be able to consider joining unions and seeking collective bargaining of payments/benefits. adjustments could also be made to scholarship rules - so a baseball team with 25 players would receive 25 full scholarships instead of splitting up 12 scholarships among 25 players. this could impact football by essentially doing away with walk-ons.)
How the House v. NCAA settlement could reshape college sports: What you need to know
A nearly $3 billion settlement would offer a plan for revenue sharing and a way forward for college sports, but plenty of questions remain.
www.nytimes.com
This week, the NCAA and power conferences are expected to vote on whether to settle a federal class-action lawsuit that would cost them nearly $3 billion in damages and allow power-conference athletes to finally share in annual revenues.
House v. NCAA seeks back pay for Division I college athletes who were barred from earning name, image and likeness (NIL) compensation prior to the NCAA changing its policy in summer 2021, while also pursuing a cut of future broadcast revenues for athletes at power-conference schools.
In addition to more than $2.7 billion in NIL back-pay damages, a settlement would include a system in which roughly $20 million a year can be distributed directly from a power-conference school to its athletes, multiple people briefed on the negotiations confirmed to The Athletic.
A settlement would also address another major NCAA issue by simultaneously resolving other high-profile antitrust cases, including Hubbard v. NCAA and Carter v. NCAA.
Hubbard is similar to House in the sense that it is seeking retroactive damages for education-related Alston payments; Carter argues that rules prohibiting college athletes from receiving “pay for play” violate antitrust law. A House settlement would resolve each of them.
If approved, the power-conference revenue sharing will be optional, and there are no specifications on how the money will be distributed, as long as it stays within the capped allotment.
It’s expected that most if not all power-conference programs will opt in to some degree of revenue sharing in order to remain competitive. But even for a number of the schools at that level, it could be a gradual financial process that requires cuts elsewhere.
What about NIL collectives? A settlement wouldn’t fully address the role of these third-party organizations and the culture of pay for play, though Yahoo Sports reported that the informational documents it obtained mentioned “economic incentives” for athletic departments to bring collectives in-house.
(other issues to be resolved include how Title IX plays into this - and whether athletes would still be able to consider joining unions and seeking collective bargaining of payments/benefits. adjustments could also be made to scholarship rules - so a baseball team with 25 players would receive 25 full scholarships instead of splitting up 12 scholarships among 25 players. this could impact football by essentially doing away with walk-ons.)