NCAA antitrust settlement

[SeattleJay]

The NCAA is about to agree to pay out $2.7 billion to former athletes and will allow colleges and universities to start revenue sharing. There are lot of questions to be answered. How much do the Power 5 pay versus everyone else? Which athletes get paid and how much? How does this affect title 9? Does this affect the NIL collectives?

I will attach a couple of links in a follow up post.

[SeattleJay]

This is the P5 v everyone else (including the BE)

https://www.espn.com/college-sports/sto ... -5-schools

[SeattleJay]

An earlier article on the settlement:

https://www.espn.com/college-sports/sto ... ources-say

[SeattleJay]

One more good explanatory article:
https://www.espn.com/college-football/s ... ng-players

[WBR Tom]

The Big East is potentially going to be on the hook for $70m of the settlement, and Val is not happy about it. It's all for show, because there's not much leverage for the Big East to use here, but I'm glad she went public with their objections. Because it's a helluva thing the power leagues have orchestrated here: football is the driver of the vast majority of the back payments at the heart of this settlement, yet they're using men's basketball revenue as the formula to decide how much each league pays.

So in essence the Big East is almost being penalized for their success.

Here's the pertinent piece from Ross' article if you don't have time to read the whole thing:

Over a 10-year payback period, the NCAA is responsible for paying 40% of the $2.77 billion with the other 60% coming from a reduction in school distributions. To determine how much each of the 32 Division I conferences contribute, the association created a formula based on the amount of distribution that a league earned over a nine-year period starting in 2016, according to separate documents shared with commissioners. Most of the distribution that the NCAA divides among leagues— more than $700 million annually — is derived from revenues of the NCAA men’s basketball tournament.

Under the formula, the Big East will be responsible for about $5 million to $7 million annually, or as much as $70 million over the next decade — a figure that works out to about $600,000-$700,000 per school per year.

“Based on the numbers we have reviewed, the liability of the 22 non-FBS conferences under the proposed formula appears disproportionately high, particularly because the primary beneficiaries of the NIL ‘back pay’ amounts are expected to be FBS football players,” Ackerman wrote. “I have voiced the Big East's strong objections to the proposed damages framework through recent emails to [NCAA president] Charlie Baker and his counsel and through comments during commissioner calls over the past two weeks.”

[cujaysfan]

The Yahoo guys and pod have done a really good job being all over this. Some good listens.

[WBR Tom]

Marquette website Paint Touches ran the numbers, and it illustrates the chasm here in terms of the impact on Big East schools versus those in the power football leagues.

The proposed deal will cost Power 4 schools 1.5-2% of their annual NCAA Tourney unit payout every year for 10 years -- not nothing, but a fairly small impact on their overall budget. (The numbers in this table show the total payout from the league, including TV revenue).

It will cost Big East schools 12.2% of theirs (or 8.5% under the amended proposal). Either number is seismic.

[SeattleJay]

Interesting article in the WSJ today about a private equity firm planning to invest $50 to $200 million in 5 to 10 colleges in the near future with a primary focus on athletic departments.

[Altmanforprez]

Get ready for the s#*tification of college sports. If you thought it was bad now, this is worse for college sports than almost anything else we’ve seen so far

[WBR Tom]

Here's the NCAA's spreadsheet with the actual settlement numbers. Big East will see their revenue drop by roughly $6m per year for each of the next 10 years. Mostly to pay football players, even though 10 of the 11 schools don't have football teams. Fun!