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NIL going forward….sorry if you all knew this already

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bearcat
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8:20a, 11/5/24
I went to a Texas Tech football "state of the union" event last week. Friend was speaking and hey it's a free lunch with "football" talk. Anyway it gave me a lot of clarity on where we were with all sports in college when it pertains to NIL and "salary cap".

Cap….. $21.7 million is amount all schools are able to pay athletes. They believe only 40-50 schools will be able to hit this mark with their budgets. In Tech's case, they will use roughly $15 million on football, 3.5 on basketball, and a little over 1 million on baseball leaving just $2 million on all other sports.

NIL….will not be what it is now. It will be a true NIL, where verified companies give an athlete an NIL deal and it will be tested for legitimacy. No more collectives. This does not start until May 2025. There will be a free for all this offseason on NIL deals. Collectives will be exhausted by then at all schools. Gonna be a lot of money thrown around the next 6 months.

Transfer portal…..this part was a little confusing. The way I understood it was that it went hand in hand with the salary cap. Example: if Ole Miss wanted Walter Nolan and we were paying Nolan $750k. Ole Miss would have to pay us $750k plus pay Walter whatever his asking price was. Let's say that was $1 million. Nolan would then count 1.75 million against their 21.7 million.

Scholarship limits….for football the limit is 105. However any scholarships over 85 would count against the $21.7 million. Assume an average scholarship is worth $25k so if a team gave out 105 scholarships then 20 x $25k =$500k less on your allotted 21.7 million cap


At the end of the day, I think this will send college football back to recruiting being important and have a feeling it will be similar to 5 years ago.
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Milwaukees Best Light
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8:24a, 11/5/24
AG
Who will govern this? The NCAA still?
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Ragnar Danneskjoldd
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8:26a, 11/5/24
AG
seems like it would take mutual agreement from programs for whom it wouldn't benefit. If the state the football program is in allows whatever the activity is it seems unlikely the NCAA has the ability to reign it in, right?
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Flashdiaz
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In reply to Milwaukees Best Light • 8:26a, 11/5/24
AG
Milwaukees Best Light said:
Who will govern this? The NCAA still?
exactly! we're going to be in the same boat as before where they'll look the other way for certain schools while coming down on the rest.
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StinkyPinky
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In reply to Flashdiaz • 8:29a, 11/5/24
AG
Flashdiaz said:
Milwaukees Best Light said:
Who will govern this? The NCAA still?
exactly! we're going to be in the same boat as before where they'll look the other way for certain schools while coming down on the rest.
Yep, money will be funneled back under the table again.
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90ags
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8:36a, 11/5/24
So Bama, LSU, tu, Aub, tOSU, etc. ... all the old blue bloods will then benefit as they owned the under the table pay structure prior...it made them blue bloods...watch out for SMU
______________________________________________________ Play for the name on the front of your jersey, not the back...
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NyAggie
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In reply to StinkyPinky • 8:37a, 11/5/24
AG
StinkyPinky said:
Flashdiaz said:
Milwaukees Best Light said:
Who will govern this? The NCAA still?
exactly! we're going to be in the same boat as before where they'll look the other way for certain schools while coming down on the rest.
Yep, money will be funneled back under the table again.


Yep

Collectives will just become slush funds for paying players under the table
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aglaes
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8:46a, 11/5/24
AG
I thought the scholarship limit was 85. When did it go up to 105?
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ccolley68
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8:50a, 11/5/24
AG
Doesn't this only count as applied to the 'payroll' the schools have for players as employees of the school? Like an NFL players contract with their team? But if I own Big City Mattress Emporium and I want to pay Johnny Quarterback $8,000,000 to come out one Saturday and sign autographs and pay him myself, I am still perfectly allowed to do that? Like an NFL player and their endorsement deals? How could the school or NCAA have any oversight of that?
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BMX Bandit
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In reply to bearcat • 8:53a, 11/5/24
Quote:
Transfer portal…..this part was a little confusing. The way I understood it was that it went hand in hand with the salary cap. Example: if Ole Miss wanted Walter Nolan and we were paying Nolan $750k. Ole Miss would have to pay us $750k plus pay Walter whatever his asking price was. Let's say that was $1 million. Nolan would then count 1.75 million against their 21.7 million.
first I have heard of this. and I don't see anything in the settlement on this. do you know where it came from?

I don't think collectives are going anywhere. even the judge in this case that is approving the settlement knows this cap on NIL from outsiders has lots of legal problems.
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QB1
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9:03a, 11/5/24
AG
you saying there is a cap coming starting in May of 25??????
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Farmer_J
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9:14a, 11/5/24

I don't see how they reign this in. If a college athlete can send sell his NIL, how can the NCAA limit it?

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Panama Red
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In reply to Farmer_J • 9:23a, 11/5/24
AG
Farmer_J said:

I don't see how they reign this in. If a college athlete can send sell his NIL, how can the NCAA limit it?

They are going to try, but at this point they really can't. As BMX said, the Judge in this case has even pointed that out.

This is all geared towards the inevitable new legislation from DC to have a new college sport oversight and regulations. DC usually makes things worse than better, so I am not confident this will be any different.
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Kozmozag
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9:34a, 11/5/24
Well the nil and portal hasnt helped us. We are the same team we have always been. 12th best talented just smoked us the 3rd best.
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revvie
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9:38a, 11/5/24
AG
Sounds like more litigation is in the future for NCAA. Especially from athletes in non revenue sports. Do you think LSU would give Olivia Dunne $2+ million in their NIL allotment.
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BMX Bandit
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In reply to revvie • 9:47a, 11/5/24
revvie said:
Sounds like more litigation is in the future for NCAA. Especially from athletes in non revenue sports. Do you think LSU would give Olivia Dunne $2+ million in their NIL allotment.
there is definitely more litigation coming, both on the title IX issues and NIL issues

but this deal would not limit what Dunne is making. she is getting legitimate market value NIL.
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revvie
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In reply to BMX Bandit • 9:55a, 11/5/24
AG
This is where it gets confusing....So they are going to cap the collectives associated with the school, but not monies from businesses. NIKE and Oregon would have an advantage to name one instance. Guess we need to start Gig 'Em shoe company.
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AggieDub04
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9:57a, 11/5/24
AG
If the schools are paying $20M then they will likely have the players sign a contract with restrictions on NIL. In this case they are receiving consideration for giving up their freedom on NIL which the courts would probably allow. The NFL has restrictions on what type of NIL deals players can do so in theory this could work.
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BMX Bandit
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In reply to AggieDub04 • 10:06a, 11/5/24
AggieDub04 said:
If the schools are paying $20M then they will likely have the players sign a contract with restrictions on NIL. In this case they are receiving consideration for giving up their freedom on NIL which the courts would probably allow. The NFL has restrictions on what type of NIL deals players can do so in theory this could work.
that is not going to happen or work.

this settlement says in pertinent part:

NIL from outside source must be "for a valid business
purpose related to the promotion or endorsement of goods or services
provided to the general public for profit, with compensation at rates and
terms commensurate with compensation paid to similarly-situated
individuals with comparable NIL value who are not current or prospective
student-athletes at the Member Institution; provided, however, that the
NCAA or conferences will provide for neutral arbitration, as described in
Article 6, Section 2 of the Injunctive Relief Settlement, for any Member
Institution or student-athlete to contest any discipline sought to be
imposed on them for receiving payments in violation of these rules;"

in other words, if Red's auto wants to pay a player $1 million to show up at a weekend car show, they will have to show that is commensurate with the going rates for such an appearance by athletes. It creates an even bigger mess IMO.




the NFL has a collective bargaining agreement, so that is a huge difference.
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Farmer_J
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In reply to Panama Red • 10:06a, 11/5/24
Panama Red said:
Farmer_J said:

I don't see how they reign this in. If a college athlete can send sell his NIL, how can the NCAA limit it?

They are going to try, but at this point they really can't. As BMX said, the Judge in this case has even pointed that out.

This is all geared towards the inevitable new legislation from DC to have a new college sport oversight and regulations. DC usually makes things worse than better, so I am not confident this will be any different.


So the salary cap isn't what the school is paying but what the player is making independently...? What a cluster.



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greg.w.h
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In reply to Milwaukees Best Light • 10:10a, 11/5/24
AG
Milwaukees Best Light said:
Who will govern this? The NCAA still?
The court.
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Heineken-Ashi
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10:30a, 11/5/24
wrong board
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JJxvi
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In reply to aglaes • 10:38a, 11/5/24
AG
aglaes said:
I thought the scholarship limit was 85. When did it go up to 105?
As described the scholarship limit is still 85. You have 85 "free" scholarships to give out. 105 is a paid roster limit. You can choose to pay 20 extra "walkons" (misnomer) out of your salary cap.
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Panama Red
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In reply to Farmer_J • 10:42a, 11/5/24
AG
Quote:
So the salary cap isn't what the school is paying but what the player is making independently...? What a cluster.
The cap is on the money school pays. It is 22% of athletic revenue.

There is no cap on the amount from outside sources, it just has to be "commensurate with compensation paid to similarly-situated individuals with comparable NIL value who are not current or prospective student-athletes at the Member Institution" Whatever the hell that means.
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Farmer_J
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In reply to Panama Red • 10:49a, 11/5/24
Panama Red said:
Quote:
So the salary cap isn't what the school is paying but what the player is making independently...? What a cluster.
The cap is on the money school pays. It is 22% of athletic revenue.

There is no cap on the amount from outside sources, it just has to be "commensurate with compensation paid to similarly-situated individuals with comparable NIL value who are not current or prospective student-athletes at the Member Institution" Whatever the hell that means.


So then there really is no salary cap. Let's say a school is at their cap. What's stopping a local car dealership from giving money to a player?

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BMX Bandit
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In reply to Farmer_J • 10:51a, 11/5/24
nothing
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Panama Red
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In reply to Farmer_J • 10:51a, 11/5/24
AG
Quote:
What's stopping a local car dealership from giving money to a player?
Nothing really.
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LuoJi
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10:56a, 11/5/24
OP only refers to what schools can pay athletes directly. Any person (including athletes) can earn whatever they want from whoever they want.
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phatbeast
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11:02a, 11/5/24
AG
I'm on the faculty senate for my university. What we've been told is that the $21M is revenue sharing. That number is an estimate and it's a cap on what the school has to pay out to players as a portion of its revenue. It's not a cap on what players can get from NIL.

Edit: just noticed someone else has already pointed this out.
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Dank
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In reply to bearcat • 11:04a, 11/5/24
AG
bearcat said:
In Tech's case, they will use roughly $15 million on football, 3.5 on basketball, and a little over 1 million on baseball leaving just $2 million on all other sports
Thanx for the info, it's interesting...does A&M hold these types of sessions? QB clubs maybe?

I don't understand how this will work w/Title IX. NIL deals are essentially exempt, nothing says JFF's NIL deal has to equal anyone else including XYZ soccer player.

However, once it's the schools paying the players then Title IX comes into play. If ~$20M is spent on men's sports, won't schools need to spend the same on women's sports?

There's another major issue I think with state schools and how that possibly makes players "employees" with restrictions/benefits like public position postings, worker's comp, insurance, and retirement benefits. I "think" they'll get around this by having players be "contractors" instead of employees, but that doesn't come free (anyone want to partner up and start an athlete contractor service?)
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Farmer_J
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In reply to LuoJi • 11:04a, 11/5/24
LuoJi said:
OP only refers to what schools can pay athletes directly. Any person (including athletes) can earn whatever they want from whoever they want.


That's why I don't see collectives going away. They'll just form as an entity not associated with the university.

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greg.w.h
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In reply to AggieDub04 • 11:05a, 11/5/24
AG
AggieDub04 said:
If the schools are paying $20M then they will likely have the players sign a contract with restrictions on NIL. In this case they are receiving consideration for giving up their freedom on NIL which the courts would probably allow. The NFL has restrictions on what type of NIL deals players can do so in theory this could work.
The House settlement is for school NIL usage that was unfairly not compensated.. they will not defiantly restrict non-school payments other than demonstrating it isn't a naked payment by a booster. The NCAA has had its hand slapped on anti-trust violations regarding student athlete lack of educational benefits (NCAA v. Alston 9-0 SCOTUS) and now the three cases combined in the House settlement.
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2ndGen87
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11:47a, 11/5/24
AG
This seems egregiously unconstitutional and ripe for courts to throw out. This isn't the NFL with a union and a collective bargaining agreeement.
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Krazykat
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12:28p, 11/5/24
AG
Why are there scholarships if they are getting paid?
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MaxPower
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In reply to bearcat • 12:41p, 11/5/24
So we are just back to $100 handshakes to get around the budget? Got it, Sherwood Blount has been reactivated.
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