NCAA set to allow direct payments to athletes

[KremitGreens]

If only I was young and talented. Be no reason not to get my bachelors degree and make a **** ton of money in case I fail in the nba. These kids have no clue what they could do with a million bucks and a college degree. In fact, I’d probably have to really weigh my options.

 

[Mr Janny]

No salary cap. Players can transfer at will. Just imagine if NFL players would be unrestricted free agents each year and with no salary cap

In my humble opinion, unless something changes, college sports will lose a lot of viewership within the next 10 years

TV ratings don't seem to agree with you. There's been no drop in ratings since we've entered this "wild west" landscape. People are watching. The precipice, that some folks like to claim we are on, seems to exist mostly in people's minds.

 

[Mr Janny]

Your FMV definition here is overly narrow. It isn't just what someone is willing to pay for services rendered especially when paid by a compulsive booster.

FMV is most commonly used by banking and insurance firms to determine the value of assets to be used as collateral and insurance. The government also uses FMV for taxation and eminent domain where they need a value for an asset. And the IRS uses FMV for charitable donations and other transactions, meaning deals between related parties. The Clearinghouse will apply similar FMV standards in distinguishing pay for play vs True NIL with extra focus on deals registered by athletes with booster businesses.

And to say there is no legislative appetite for an anti-trust exemption and codification of House is inaccurate given the volume of recent bi-partisan US Senate activity that has been reported.

Regarding legislation, I'll believe it when I see it. There have been several other bipartisan bills in the past that were supposed to address this, and none of them have come close to being a reality.

 

[cykadelic2]

Regarding legislation, I'll believe it when I see it. There have been several other bipartisan bills in the past that were supposed to address this, and none of them have come close to being a reality.

The imminent approval of House has fast tracked the legislative process.

 

[jbhtexas]

There is obvious recognition and respect of the upcoming changes by many boosters, collectives, coaches and agents given the mad rush to get insane FB/MBB pay for play deals done before July 1st so they avoid Clearinghouse registration/review.

Of course there is, for now. The Clearinghouse could actually be a thing for a while, until it is taken to court and found to violate the states' NIL laws.

 

[MeowingCows]

No salary cap. Players can transfer at will. Just imagine if NFL players would be unrestricted free agents each year and with no salary cap

In my humble opinion, unless something changes, college sports will lose a lot of viewership within the next 10 years

It all goes on whether or not the NCAA keeps the schools together. The cookie will crumble at the point where, say, the SEC and B1G break off from NCAA entirely and form their own football league. At that point, what you have left is a UFL killer for them and Division 2 for everybody else. Doesn't sound as interesting anymore, huh -- at least not as much for the have-nots.

Those have-nots will also start getting even worse media deals as the leftovers, programs will see their funds shrink, it could slide downhill very quickly.

 

[jbhtexas]

The imminent approval of House has fast tracked the legislative process.

I think the majority of the SEC and Big Ten teams actually like the way things are. They have plenty of AD funds to pay players and plenty of big donors to fund NIL. There will be plenty of behind-the-scenes opposition to any legislation from the rich and powerful supporters of these schools.

 

[HFCS]

I'm curious how this Clearinghouse is going to withstand challenge. I don't know that there's much legal basis for declaring one of these deals invalid, or "not fair market value." I can almost guarantee you that the first time a deal is rejected, a lawsuit will follow almost immediately. In fact, I'm guessing some lawyers will be deliberately attempting to get the Clearinghouse to deny a deal, just so they can sue

How has professional sports had salary caps and marketing deals?

Not being sarcastic but I don’t see how it’s that different. Are NFL players living under evil oppression because of a salary cap? Are there ways they stop rich owners/fans from paying extra over the cap and pretending it’s a marketing deal? Genuinely asking anybody.

 

[isufbcurt]

The Clearinghouse will have an arbitration process.

And Deloitte will have a database full of FMV comps to readily distinguish obvious pay for play from an affiliated booster's illegitimate firm (or legit firm) vs a legit endorsement deal from an established firm that isn't a complete outlier from Deloitte's FMV comps. Any athlete deal from a collective or an individual booster (i.e. pay for play) will be presumably flat out rejected after July 1st by the Clearinghouse which is why there is a current rush to get MBB and FB deals done and paid out (at insane amounts) before then.

But I am sure the Clearinghouse will be sued for an arbitration decision that some lawyer doesn't like. And that is another reason why the P4 Commissioners are seeking a Fed Anti-Trust exemption and Fed codification of House to prevent the lawsuits.

I have a database of information too, that doesn't mean it's the end all be all. Just because D&T has a database doesn't give them standing to decide if someone's NIL is valid or not. As soon as one is declared not valid, it'll go to court and the the player will win.

 

[cykadelic2]

I think the majority of the SEC and Big Ten teams actually like the way things are. They have plenty of AD funds to pay players and plenty of big donors to fund NIL. There will be plenty of behind-the-scenes opposition to any legislation from the rich and powerful supporters of these schools.

Sankey and Pettiti are both openly lobbying for House codification.

 

[beentherebefore]

So it's still the wild wild west? Good for a few, probably not the best for a lot of the athletes.
Well I guess we will watch and see what happens next

And good for a few, but not many, schools.

 

[3TrueFans]

How has professional sports had salary caps and marketing deals?

Not being sarcastic but I don’t see how it’s that different. Are NFL players living under evil oppression because of a salary cap? Are there ways they stop rich owners/fans from paying extra over the cap and pretending it’s a marketing deal? Genuinely asking anybody.

Collective bargaining and anti-trust exemptions

 

[1UNI2ISU]

There is obvious recognition and respect of the upcoming changes by many boosters, collectives, coaches and agents given the mad rush to get insane FB/MBB pay for play deals done before July 1st so they avoid Clearinghouse registration/review.

You bet there is. They know once it gets tied up in the courts that it's going to be a complete mess.

Like I said, I hope I'm wrong on this. I hope you're right and this settlement at least puts a little bit of a cap on it but I'm fully in the 'I have to see it actually work to believe it' mode.

 

[HFCS]

It all goes on whether or not the NCAA keeps the schools together. The cookie will crumble at the point where, say, the SEC and B1G break off from NCAA entirely and form their own football league. At that point, what you have left is a UFL killer for them and Division 2 for everybody else. Doesn't sound as interesting anymore, huh -- at least not as much for the have-nots.

Those have-nots will also start getting even worse media deals as the leftovers, programs will see their funds shrink, it could slide downhill very quickly.

At some point in that worst case decay cycle it will become evident that the real value was not in minor league athletes but from the students/alumni and tax payers who built the brands with their $. I get dumb buttoned every time for this but Josh Dix isn’t 7x more valuable than an Iowa Energy player, he’s worse. The 100ish brands are the only thing keeping all this from being Iowa Energy or Des Moines Dragons.

 

[cykadelic2]

I have a database of information too, that doesn't mean it's the end all be all. Just because D&T has a database doesn't give them standing to decide if someone's NIL is valid or not. As soon as one is declared not valid, it'll go to court and the the player will win.

You obviously don't realize that House approval and/or codification will provide Deloitte that authority.

Deloitte has plenty of experience with FMV comps and have been involved in lawsuits regarding their comps not related to House. Stating the player will win all arbitrated cases is wrong.

 

[jbhtexas]

Sankey and Pettiti are both openly lobbying for House codification.

behind-the-scenes opposition to any legislation from the rich and powerful supporters of these schools.

 

[CloneJD]

I have a database of information too, that doesn't mean it's the end all be all. Just because D&T has a database doesn't give them standing to decide if someone's NIL is valid or not. As soon as one is declared not valid, it'll go to court and the the player will win.

Legal challenges won’t have anything to do whether the valuation is ‘fair’. Follow-up litigation will involve whether the salary-cap violates antitrust law in the first place.

 

[cykadelic2]

You bet there is. They know once it gets tied up in the courts that it's going to be a complete mess.

Like I said, I hope I'm wrong on this. I hope you're right and this settlement at least puts a little bit of a cap on it but I'm fully in the 'I have to see it actually work to believe it' mode.

Individual player arbitration cases over Deloitte FMV rulings being tied up in the courts isn't going to completely invalidate House, especially if it gets codified.

 

[1UNI2ISU]

Individual player arbitration cases over Deloitte FMV rulings being tied up in the courts isn't going to completely invalidate House, especially if it gets codified.

You're right. It's the resulting anti-trust cases that come from a non collectively bargained artificial salary cap that will.

 

[isufbcurt]

You obviously don't realize that House approval and/or codification will provide Deloitte that authority.

Deloitte has plenty of experience with FMV comps and have been involved in lawsuits regarding their comps not related to House. Stating the player will win all arbitrated cases is wrong.

You must work for DT because you are constantly bending over backwards for them on this topic.

If I deem paying Rocco $100,000,000 to advertise for my CPA business then that is the FMV I place on his endorsement to my business. And just because a database doesn't support that amount doesn't make it in-valid.