Power of Pre-Settlement NIL Deals...

[WildcatWally-77]

Some serious frontloading here as schools maneuver to spend cash before July 1, when compensation falls under the new cap and enforcement entity.
Deals that are signed before Judge Wilken approves the settlement are not subject to the new enforcement as long as they are paid out by July 1. Deals signed after the judge approves the settlement will be subject to the new cap-based revenue-sharing model and enforcement clearinghouse for third-party deals worth $600 or more.

That’s why you’re seeing some crazy numbers out there, like $4 million for JT Toppin, or the $2.5 million South Carolina coach Lamont Paris said another SEC school offered Collin Murray-Boyles. Toppin is getting $4 million for just one season, during which he can develop further and potentially go even higher in the draft than he would this summer. That money won’t count against the school’s revenue-share pool cap (expected to be $20.5 million in year one) or be subject to the clearinghouse. Collectives, as we know them, only have so much time left to cook.

 

[bucsrule8872]

So buy your title now, if you can.

 

[crawfords corner]

Texas Tech's basketball program, through its athletic department, generated $72.5 million in revenue, incurred $44 million in expenses, and resulted in a net profit of $28.5 million in fiscal year 2024.

Here's a more detailed breakdown:

• Total Operating Revenues: $72,540,767
• Total Operating Expenses: $44,042,646
• Net Profit: $28,478,131
• Student fees: $3,282,974
• University contribution: $2,531,257
• Coaching salary: Grant McCasland's salary is $3.9 million, which puts him in the top 20 nationally and top 5 in the Big 12.
• JT Toppin's NIL earnings: Toppin is expected to make around $4 million for one season, according to CBS Sports.

Just to show that his NIL is 1/7 of what Texas Tech profits(not that it comes from the school). That he's able to get that much compared to what TTech brings profits... amazing. Thats 14th pick money.

 

[Fox2monk]

So buy your title now, if you can.

Teams will find a way, after all there is no cap in NIL. Have them do a 3 million dollar photo shoot for a business in the collective.

 

[UKnCincy]

Teams will find a way, after all there is no cap in NIL. Have them do a 3 million dollar photo shoot for a business in the collective.

Deloitte would block that NIL deal under the new arrangement.

 

[Fox2monk]

Deloitte would block that NIL deal under the new arrangement.

Who’s gonna enforce it though? So far the court have ruled against anything to stop a player from. Making more money, I know the settlement changes some of that but will the allow the NCAA to actually enforce this now? That’s my biggest question and if it comes down to it, teams will go back to a huge briefcase of cash.

 

[BlueBloodKyFan]

Texas Tech's basketball program, through its athletic department, generated $72.5 million in revenue, incurred $44 million in expenses, and resulted in a net profit of $28.5 million in fiscal year 2024.

Here's a more detailed breakdown:

• Total Operating Revenues: $72,540,767
• Total Operating Expenses: $44,042,646
• Net Profit: $28,478,131
• Student fees: $3,282,974
• University contribution: $2,531,257
• Coaching salary: Grant McCasland's salary is $3.9 million, which puts him in the top 20 nationally and top 5 in the Big 12.
• JT Toppin's NIL earnings: Toppin is expected to make around $4 million for one season, according to CBS Sports.

Just to show that his NIL is 1/7 of what Texas Tech profits(not that it comes from the school). That he's able to get that much compared to what TTech brings profits... amazing. Thats 14th pick money.

Wow that’s all I can say good lord

 

[UKnCincy]

Who’s gonna enforce it though? So far the court have ruled against anything to stop a player from. Making more money, I know the settlement changes some of that but will the allow the NCAA to actually enforce this now? That’s my biggest question and if it comes down to it, teams will go back to a huge briefcase of cash.

The new legal entity set up by the power 4 conferences. It will oversee the revenue sharing cap across schools, oversee the NIL clearinghouse run by Deloitte, and investigate tampering and salary cap violations.

If that entity finds that a school has tried to use boosters or collectives to get around the $20.5 million revenue sharing cap, then they can suspend coaches, administrators and/or reduce the amount of revenue a school can share with athletes (ie., limit the ability of the school to attract new players by limiting the size of their player contracts).

 

[bthaunert]

Texas Tech's basketball program, through its athletic department, generated $72.5 million in revenue, incurred $44 million in expenses, and resulted in a net profit of $28.5 million in fiscal year 2024.

Here's a more detailed breakdown:

• Total Operating Revenues: $72,540,767
• Total Operating Expenses: $44,042,646
• Net Profit: $28,478,131
• Student fees: $3,282,974
• University contribution: $2,531,257
• Coaching salary: Grant McCasland's salary is $3.9 million, which puts him in the top 20 nationally and top 5 in the Big 12.
• JT Toppin's NIL earnings: Toppin is expected to make around $4 million for one season, according to CBS Sports.

Just to show that his NIL is 1/7 of what Texas Tech profits(not that it comes from the school). That he's able to get that much compared to what TTech brings profits... amazing. Thats 14th pick money.

Wherever you found that, I have a really hard time believing that is anywhere remotely close to what it actually is. As a comparison, UK’s operating revenue for basketball is $33 million and expenses are $17 million.

At another glance…you used football nimbers, not basketball.

Here is basketball:

Revenues: $15,593,072.
Expenses:$13,086,403.
Net: $2,506,669.

Numbers are from this article (towards the end):

Texas Tech financials

 

[Fox2monk]

The new legal entity set up by the power 4 conferences. It will oversee the revenue sharing cap across schools, oversee the NIL clearinghouse run by Deloitte, and investigate tampering and salary cap violations.

If that entity finds that a school has tried to use boosters or collectives to get around the $20.5 million revenue sharing cap, then they can suspend coaches, administrators and/or reduce the amount of revenue a school can share with athletes (ie., limit the ability of the school to attract new players by limiting the size of their player contracts).

Oh okay well that’s a step in the right direction then. I’d say since we are in the SEC that gives us a small revenue sharing advantage compared to everyone but the Big 10. Traditional powers may benefit from this. Getting rid of a lot of tamoering will help roster continuity.

 

[UKnCincy]

Oh okay well that’s a step in the right direction then. I’d say since we are in the SEC that gives us a small revenue sharing advantage compared to everyone but the Big 10. Traditional powers may benefit from this. Getting rid of a lot of tamoering will help roster continuity.

Only thing I’d add is that this is not yet finalized, so the plans are still tentative. Judge Wilkens asked attorneys to provide the justification for the NIL clearinghouse during Monday’s hearing. Remains to be seen if she’ll approve that approach.

 

[crawfords corner]

Wherever you found that, I have a really hard time believing that is anywhere remotely close to what it actually is. As a comparison, UK’s operating revenue for basketball is $33 million and expenses are $17 million.

At another glance…you used football nimbers, not basketball.

Here is basketball:

Revenues: $15,593,072.
Expenses:$13,086,403.
Net: $2,506,669.

Numbers are from this article (towards the end):

Texas Tech financials

I copy and pasted what it said as you can see. After seeing what you wrote. I went back in and typed in TTech financials and yea, it showed these numbers instead.

In fiscal year 2024, Texas Tech's men's basketball program generated $15.59 million in revenue and incurred $13.09 million in expenses, resulting in a net profit of $2.51 million.

Here's a more detailed breakdown:

• Revenues: The men's basketball program generated a total of $15,593,072 in revenue.
  
  
• Expenses: The program's total expenses amounted to $13,086,403.
  
  
• Net Profit: The program ended the year with a net profit of $2,506,669.
  
  
• Athletic Department Revenue: The Texas Tech athletic department receives $3,282,974 from student fees and $2,531,257 from the university.
  
  
• NIL Revenue Sharing: Over 90% of Texas Tech's projected $20.5 million NIL revenue-sharing budget will go to football and men's basketball.

 

[StubbornPenny]

Anyone got a really detailed and readable link to the new settlement? Figured this board is better than google

 

[BigBlueFanGA]

Some serious frontloading here as schools maneuver to spend cash before July 1, when compensation falls under the new cap and enforcement entity.
Deals that are signed before Judge Wilken approves the settlement are not subject to the new enforcement as long as they are paid out by July 1. Deals signed after the judge approves the settlement will be subject to the new cap-based revenue-sharing model and enforcement clearinghouse for third-party deals worth $600 or more.

That’s why you’re seeing some crazy numbers out there, like $4 million for JT Toppin, or the $2.5 million South Carolina coach Lamont Paris said another SEC school offered Collin Murray-Boyles. Toppin is getting $4 million for just one season, during which he can develop further and potentially go even higher in the draft than he would this summer. That money won’t count against the school’s revenue-share pool cap (expected to be $20.5 million in year one) or be subject to the clearinghouse. Collectives, as we know them, only have so much time left to cook.

How are they capping NIL? I'll believe that if I see it.

 

[UKnCincy]

How are they capping NIL? I'll believe that if I see it.

They aren’t capping NIL. They are prohibiting deals that are labeled as “NIL” but are in reality inducements.

Any deal over $600 has to be submitted to a new clearinghouse run by Deloitte. Deloitte will review the deal to confirm that it serves a legitimate business purpose and that the value is consistent with the fair market value associated with whatever activity the athlete would perform.

So athletes will still be able to earn as much from endorsement deals as they can. What will get blocked are things like an NIL collective paying an athlete $3 million to do a handful of public appearances.

But this is all still tentative at the moment. It won’t happen unless Judge Wilkens approves it as part of the House settlement.

 

[UKfan215]

They aren’t capping NIL. They are prohibiting deals that are labeled as “NIL” but are in reality inducements.

Any deal over $600 has to be submitted to a new clearinghouse run by Deloitte. Deloitte will review the deal to confirm that it serves a legitimate business purpose and that the value is consistent with the fair market value associated with whatever activity the athlete would perform.

So athletes will still be able to earn as much from endorsement deals as they can. What will get blocked are things like an NIL collective paying an athlete $3 million to do a handful of public appearances.

But this is all still tentative at the moment. It won’t happen unless Judge Wilkens approves it as part of the House settlement.

The collectives will find a work-around. I suspect they'll simply funnel the money to these various businesses in which to make the NIL deals. Anyone that so much as runs a lemonade stand will be given the funds to make NIL arrangements with players. Nothing will change, but the people involved will have to get a bit more creative.

 

[BigBlueFanGA]

They aren’t capping NIL. They are prohibiting deals that are labeled as “NIL” but are in reality inducements.

Any deal over $600 has to be submitted to a new clearinghouse run by Deloitte. Deloitte will review the deal to confirm that it serves a legitimate business purpose and that the value is consistent with the fair market value associated with whatever activity the athlete would perform.

So athletes will still be able to earn as much from endorsement deals as they can. What will get blocked are things like an NIL collective paying an athlete $3 million to do a handful of public appearances.

But this is all still tentative at the moment. It won’t happen unless Judge Wilkens approves it as part of the House settlement.

I know, I was questioning the others who keep confusing revenue sharing, which is paid directly by the schools, and current NIL opportunities. Deloitte and the NCAA will struggle to get this scheme past judicial review. I dont believe the simple value of the deal will be enough to make SCOTUS happy.

I doubt seriously that any other college kids are held to such a standard. A brilliant bio-researcher for example. All students will need to be treated similarly. We'll see what happens when the inevitable lawsuits are filed.

 

[bigblueinsanity]

Texas Tech's basketball program, through its athletic department, generated $72.5 million in revenue, incurred $44 million in expenses, and resulted in a net profit of $28.5 million in fiscal year 2024.

Here's a more detailed breakdown:

• Total Operating Revenues: $72,540,767
• Total Operating Expenses: $44,042,646
• Net Profit: $28,478,131
• Student fees: $3,282,974
• University contribution: $2,531,257
• Coaching salary: Grant McCasland's salary is $3.9 million, which puts him in the top 20 nationally and top 5 in the Big 12.
• JT Toppin's NIL earnings: Toppin is expected to make around $4 million for one season, according to CBS Sports.

Just to show that his NIL is 1/7 of what Texas Tech profits(not that it comes from the school). That he's able to get that much compared to what TTech brings profits... amazing. Thats 14th pick money.

Wherever you found that, I have a really hard time believing that is anywhere remotely close to what it actually is. As a comparison, UK’s operating revenue for basketball is $33 million and expenses are $17 million.

At another glance…you used football nimbers, not basketball.

Here is basketball:

Revenues: $15,593,072.
Expenses:$13,086,403.
Net: $2,506,669.

Numbers are from this article (towards the end):

Texas Tech financials

Agree there is no way their, or any, basketball program generated that net revenue. Sounds like football numbers, which drives revenue everywhere even at crap programs.

Only thing I’d add is that this is not yet finalized, so the plans are still tentative. Judge Wilkens asked attorneys to provide the justification for the NIL clearinghouse during Monday’s hearing. Remains to be seen if she’ll approve that approach.

Imo the only variable is if she will have the clearinghouse or push that to the schools to do the compliance.

The school's are currently doing it but only followed the no pay for play rules for about 5 seconds.

Imo the schools dont want to do it because they want a bad guy to blame for kicking nil deals to avoid souring relationships with players.

 

[sosoblue]

Texas Tech's basketball program, through its athletic department, generated $72.5 million in revenue, incurred $44 million in expenses, and resulted in a net profit of $28.5 million in fiscal year 2024.

Here's a more detailed breakdown:

• Total Operating Revenues: $72,540,767
• Total Operating Expenses: $44,042,646
• Net Profit: $28,478,131
• Student fees: $3,282,974
• University contribution: $2,531,257
• Coaching salary: Grant McCasland's salary is $3.9 million, which puts him in the top 20 nationally and top 5 in the Big 12.
• JT Toppin's NIL earnings: Toppin is expected to make around $4 million for one season, according to CBS Sports.

Just to show that his NIL is 1/7 of what Texas Tech profits(not that it comes from the school). That he's able to get that much compared to what TTech brings profits... amazing. Thats 14th pick money.

Great insight and data but the basketball and football profits go to the other non profitable programs such as swimming, gymnastics, volleyball erc... Some people think that all the profits go back into that specific program. No it's often shared across other athletic programs.

 

[bigblueinsanity]

Great insight and data but the basketball and football profits go to the other non profitable programs such as swimming, gymnastics, volleyball erc... Some people think that all the profits go back into that specific program. No it's often shared across other athletic programs.

Especially at uk, which needs to change. It needs to be sport specific revenue sharing. Wont willingly happen under Mitch though.

 

[bthaunert]

Especially at uk, which needs to change. It needs to be sport specific revenue sharing. Wont willingly happen under Mitch though.

If you mean that all the revenue generated by football and basketball would stay within football and basketball, that wouldn’t happen under any AD at any university. Especially football in power conferences. It will always pay the bills.

 

[bigblueinsanity]

If you mean that all the revenue generated by football and basketball would stay within football and basketball, that wouldn’t happen under any AD at any university. Especially football in power conferences. It will always pay the bills.

Not all revenue. All revenue sharing. Those are two different things.

 

[HogFan2012]

A lot of misinformation about profit sharing.

It has nothing to do with NIL money only school money.

 

[Someguywhodoesntlikeyou]

A lot of misinformation about profit sharing.

It has nothing to do with NIL money only school money.

That’s because people only read the headlines and whether it confirms or denies their bias is the only thing that matters

 

[bthaunert]

Not all revenue. All revenue sharing. Those are two different things.

So, you're talking about the $22 million. I agree completely. Men's basketball and football are about $129 million (individual sport revenue plus media rights) of department revenue and the remaining sports are about $1.2 million Even if you took the media rights out, you're talking $88 million for basketball and football and $1.25 million for all remaining sports. Or about 1.4% of revenue comes from sports outside of men's basketball and football. If the 10% that we are hearing is correct (and this is not just a UK thing), then about $2.2 million of the $22 million is going to those other sports. If they followed the true revenue lines, about $300,000 would be designated for the other sports. If they included media rights, then the revenue sharing allotment would be about $212,000 for all other sports and $21.8 million for basketball and football.