ESPN/NCAA to Share Revenue with Athletes/House vs NCAA Settlement

[The Public Enemy]

From ESPN

The leaders of college sports are involved in "deep discussions" to reach a legal settlement that would likely lay out the framework for sharing revenue with athletes in a future NCAA business model, sources told ESPN.

The NCAA and its power conferences are defendants in an antitrust class action lawsuit, House v. NCAA, which argues that the association is breaking federal law by placing any restrictions on how athletes make money from selling the rights to their name, image or likeness. The case is scheduled to go to court in January 2025. If the plaintiffs win at trial, the NCAA and its schools could be liable to pay more than $4 billion in damages, which has motivated many leaders across the industry to seek a settlement.

Sources indicated that a turning point in the discussions, which have been ongoing, came last week in the Dallas area, where the power conference commissioners, their general counsels, NCAA president Charlie Baker, NCAA lawyers and the plaintiffs' attorneys met. (They chose the Dallas area because they were already there for the College Football Playoff meetings, which were held in that area last week.)

While sources stressed that no deal is imminent, details about what a multi-billion-dollar settlement could look like are expected to be shared with campuses in the near future. There are myriad variables to get to the finish line and still some obstacles and objections at the campus level, but sources indicate that progress has ramped up in recent weeks.

Sources: NCAA in talks to settle NIL antitrust case

The leaders of college sports are involved in "deep discussions" to reach a legal settlement that would likely lay out the framework for sharing revenue with athletes in a future NCAA business model, sources told ESPN.

www.espn.com

 

[Cat06]

College Basketball and Football just really, really suck anymore.

I'm tired of it and am going to look for some Division II teams to support and watch. All we have in the upper echelons now are people playing for the name on the back of the jersey and not the front.

 

[bigblueinsanity]

Going to be interesting to see if it's a fair split or if it's split by sport. I'm guessing the former but that certainly doesn't seem equitable imo

 

[satcheluk]

College Basketball and Football just really, really suck anymore.

I'm tired of it and am going to look for some Division II teams to support and watch. All we have in the upper echelons now are people playing for the name on the back of the jersey and not the front.

I imagine the first generation of plantation owners, after the slaves were freed, had similar feelings. Then the robber Barons during the industrial revolution when labor unions and governments started to enact anti-trust and work safety laws. I'm sorry that fairness enacted for someone other than you ruins your day.

 

[satcheluk]

Going to be interesting to see if it's a flare split or if it's split by sport. I'm guessing the former but that certainly doesn't seem equitable imo

I'm not a labor lawyer, but my layman's view is it would seem difficult to prove major damages if you played a non-revenue sport. I'm sure not allowing them to work, which was a rule when I was there in the 90s, could be a part of this, but tennis players, swimmers etc would have a hard time proving big time damages.

 

[Grumpyolddawg]

This is what a read a couple days ago, kind of depressing. I hope this isn't a too touchy but UGA got a BB kid who was previously committed to UK and unless I misread it the article said he previously played for a pro team. Have we just done away with the concept of a mature sports in college? Can LeBron now enter college with 4 years to play? Now that an interesting concept, play pro ball until your skill level drops and return to college to finish off your eligibility. A 40 year old soph BB player. I am not sure if I am serious or not as crazy as things have gotten.

 

[satcheluk]

This is what a read a couple days ago, kind of depressing. I hope this isn't a too touchy but UGA got a BB kid who was previously committed to UK and unless I misread it the article said he previously played for a pro team. Have we just done away with the concept of a mature sports in college? Can LeBron now enter college with 4 years to play? Now that an interesting concept, play pro ball until your skill level drops and return to college to finish off your eligibility. A 40 year old soph BB player. I am not sure if I am serious or not as crazy as things have gotten.

That's an interesting question. They currently have eligibility restrictions, 5 to play 4, but what about someone who never played college? I remember Chris Weinke coming to FSU to play football after a a 7-8 year pro baseball career. Maybe the lawyers on here would have some insight on how a lawsuit would play out challenging the stopwatch on how many years you have to complete your eligibility.

 

[bigblueinsanity]

I'm not a labor lawyer, but my layman's view is it would seem difficult to prove major damages if you played a non-revenue sport. I'm sure not allowing them to work, which was a rule when I was there in the 90s, could be a part of this, but tennis players, swimmers etc would have a hard time proving big time damages.

No idea why my phone thought I wanted to say flare but whatever.

It isn't about damages really. It's about the flow of money. For example, football players are directly responsible for bowl game revenue. Why should the bowling team get any of that money? Especially when they don't generate any revenue whatsoever.

 

[Grumpyolddawg]

That's an interesting question. They currently have eligibility restrictions, 5 to play 4, but what about someone who never played college? I remember Chris Weinke coming to FSU to play football after a a 7-8 year pro baseball career. Maybe the lawyers on here would have some insight on how a lawsuit would play out challenging the stopwatch on how many years you have to complete your eligibility.

As we are all finding out, NCAA rules mean very little now. But back when they did youe eligibility clock didn't start until you enrolled in college, had nothing to do with getting out of HS. Weinke went to professional baseball and didn't enroll until he was 25, 26 years old, which started his eligibility clock. The exception was church missions which stopped the clock for time of mission, normally 2 years.

 

[Tf2217]

I imagine the first generation of plantation owners, after the slaves were freed, had similar feelings. Then the robber Barons during the industrial revolution when labor unions and governments started to enact anti-trust and work safety laws. I'm sorry that fairness enacted for someone other than you ruins your day.

Everything ain't gotta be racial or political there bud.
College athletics and owning slaves are not even close to the same thing.

Wonder what would happen if schools just said F it were not playing this game and all schools just from top to bottom refused to give anything but a set number Remember the kids are using the school for exposure and help get to the NBA. So it's not like top stars aren't getting anything out of it.

Now let me say I'm not in anyway shape form or fashion anti NIL but paying a portal player averaging 10 points a million dollars is insane. That would be a good price for a John wall, not your average run of the mill guy. Nothing wrong with sports athletes getting a chunk of the pie but some of the pricing is just ridiculous and not sustainable. Have it outlined by performance do something.

 

[bigblueinsanity]

It's insane but people are doing it. Nil will level out because these big donors aren't getting any return on investment. When they pony up a chunk of a coaches contract, in return they get a certain number of guaranteed ads etc. with a player they get zero. Noone even gets to know they were the ones that paid. So that will level off.

I have no issue at all with revenue sharing as long as it's based on net and allocated per sport. Water polo nor women's basketball should get any bowl game money generated by football. I suspect that isn't how it will work, so it will just be just another kind of unfairness.

 

[KYExtemper]

Everything ain't gotta be racial or political there bud.
College athletics and owning slaves are not even close to the same thing.

Wonder what would happen if schools just said F it were not playing this game and all schools just from top to bottom refused to give anything but a set number Remember the kids are using the school for exposure and help get to the NBA. So it's not like top stars aren't getting anything out of it.

Now let me say I'm not in anyway shape form or fashion anti NIL but paying a portal player averaging 10 points a million dollars is insane. That would be a good price for a John wall, not your average run of the mill guy. Nothing wrong with sports athletes getting a chunk of the pie but some of the pricing is just ridiculous and not sustainable. Have it outlined by performance do something.

That's kind of what I wonder. Players get mad and go on strike? Schools could just shrug, cancel their scholarships, cancel their housing, etc. and that would be it.

 

[The Public Enemy]

Update on the situation … From ESPN

The NCAA's national office might be footing the bill for a settlement expected to be more than $2.7 billion in the landmark House v. NCAA antitrust lawsuit in hopes of reshaping and stabilizing the college sports industry, according to multiple sources on Thursday.

Sources told ESPN this week that parties have proposed the NCAA's national office -- rather than its individual member schools or conferences -- would pay for the settlement of past damages over a period of 10 years. The NCAA payments would be paid to former college athletes who say they were illegally prevented from making money by selling the rights to their name, image and likeness.

The settlement would come with a corresponding commitment from conferences and schools to share revenue with athletes moving forward, per sources. The settlement would establish a framework for power conferences to share revenue with their athletes in the future. Sources have told ESPN that schools are anticipating a ceiling of nearly $20 million per year for athlete revenue share moving forward. (That nearly $20 million number is a permissive cap derived from a formula based on each school's revenue, and schools could choose how much they want to spend.)

The dollar value and timing, sources cautioned, is not yet set in stone and could change due to the myriad variables involved in the case.

Steve Berman, co-lead counsel for the plaintiffs, told ESPN he believes the House case is "the difference-maker" after more than a decade of legal battles chipping away at the NCAA's rules. Berman declined to comment on the specifics of the ongoing settlement talks, but said the plaintiffs' leverage is growing as the case moves closer to trial.

"Our leverage is a big cannonball rolling down a hill and picking up speed," Berman said. "The longer they wait, the more they're going to have to pay. It's that simple."

The NCAA declined to comment.

Sources: NCAA could settle NIL cases for $2.7B

The NCAA's national office might be footing the bill for a settlement expected to be more than $2.7 billion in the landmark House v. NCAA antitrust lawsuit in hopes of reshaping and stabilizing the college sports industry, according to multiple sources.

www.espn.com

 

[The-Hack]

I LOVE IT!

Not only will college athletics be lifted above the hypocritical system of payments under the table, but any former jock who has openly bragged about being paid years ago should be excluded from the settlement.

Sorry Rex Chapman!! You’ve made several admissions that you were paid to play, so you’re SOL!!

 

[WildcatofNati2]

No idea why my phone thought I wanted to say flare but whatever.

It isn't about damages really. It's about the flow of money. For example, football players are directly responsible for bowl game revenue. Why should the bowling team get any of that money? Especially when they don't generate any revenue whatsoever.

Fans generate revenue. Without fans, college-football is about as lucrative as college badminton.