Title IX New Ruling Changes NIL Payments for Athletes

[hall4cy]

https://sports.yahoo.com/title-ix-memo-throws-wrench-013625235.html

First, I am in favor of creating a salary cap for college athletes and NIL. Right now many college athletes are earning much more than they will earn in their professional careers post-college due to the lack of rules around NIL.

A new decison was made yesterday (2 weeks before settlement) that NCAA Athletics will need to make proportionate payments to Male and Female athletes for future NIL payments.

How can this be justified?

Title IX in itself has caused many cutbacks within athletic programs mainly because of football taking up so many scholarships. Now this landmark decision will also sink additional funding and payments to sports that are a "cost net-negative" to the universities. Schools like Iowa State will eventually lose "The Athletic Arms Race" due to TV contracts and conference alignment. Does this put even more pressure on non BIG10 and SEC schools?

If the NCAA is a business (which we all know it is), this sure seems like a poor business plan.

 

[CascadeClone]

I guess it depends how you define "proportionate". If it is based on headcount, it's a big problem. If it's based on revenue per sport, it's no problem. Its certainly implied that they mean the former.


The other thing I thought was interesting:
But, the guidance said, “it is possible that NIL agreements between student-athletes and third parties will create similar disparities and therefore trigger a school’s Title IX obligations.”

So KSU would have to rectify Hawkins' $2M NIL deal, by coming up with $2M of its own for someone (or someones) on the women's golf team? That seems like quite a burden to put on the university, when they aren't the ones spending/directing the NIL money (yet, anyway). Feels like making me pay a fine because someone else is jaywalking.

 

[AuH2O]

I've been saying this for a long time that Universities getting involved in NIL directly, or having employees of the university talk to donors about redirecting money that would've otherwise been to the AD in the past to collectives was absolutely going to run into this problem.

You have University employees (coaches, ADs, doesn't matter) telling donors not to donate to the organization they work for, and instead donate to a third party organization. A direct result of that is funds getting concentrated to men's sports and athletes when they otherwise would've been subject to Title IX.

I have always just thought that there are lawyers waiting for this to reach some significant dollar levels, then get a bunch of female athletes together and sue the **** out of schools for basically skirting a federal law.

 

[Clonehomer]

I've been saying this for a long time that Universities getting involved in NIL directly, or having employees of the university talk to donors about redirecting money that would've otherwise been to the AD in the past to collectives was absolutely going to run into this problem.

You have University employees (coaches, ADs, doesn't matter) telling donors not to donate to the organization they work for, and instead donate to a third party organization. A direct result of that is funds getting concentrated to men's sports and athletes when they otherwise would've been subject to Title IX.

I have always just thought that there are lawyers waiting for this to reach some significant dollar levels, then get a bunch of female athletes together and sue the **** out of schools for basically skirting a federal law.

I feel like this memo was intended to avoid those lawsuits.

As far as the 3rd party NIL deals, I’ve gotta imagine this will be scrutinized based on whether deals are made over actual NIL and are based on commensurate advertising deals, or if they’re deemed a pay for play deal. The P4P deals I can absolutely see falling under the guise of Title IX. The advertising deals I have a harder time seeing how that would work. But, it does seem like the advertising deals are much more evenly balanced with men’s and women’s sports than the P4P.

 

[buf87]

How many scholarships are at Iowa State from men and how many for women?

How many females are on rosters at Iowa State and how many men?

 

[CascadeClone]

I feel like this memo was intended to avoid those lawsuits.

As far as the 3rd party NIL deals, I’ve gotta imagine this will be scrutinized based on whether deals are made over actual NIL and are based on commensurate advertising deals, or if they’re deemed a pay for play deal. The P4P deals I can absolutely see falling under the guise of Title IX. The advertising deals I have a harder time seeing how that would work. But, it does seem like the advertising deals are much more evenly balanced with men’s and women’s sports than the P4P.

Butbutbutbutbut... there's no P4P deals! Those aren't allowed!

One interesting thing. There ARE some female athletes that can and will make bank with NIL. There have always been a handful of (pretty) female athletes that get a lot of media buzz. That softball player Jenny Finch years ago, the gymnast at LSU. They have potentially large NIL deals as influencers pushing sportsbras, tennis racquets, makeup, whatever. But that is "real" NIL and probably will never reach the P4P levels of Ohio States $50M roster etc.

 

[FriendlySpartan]

I guess it depends how you define "proportionate". If it is based on headcount, it's a big problem. If it's based on revenue per sport, it's no problem. Its certainly implied that they mean the former.


The other thing I thought was interesting:
But, the guidance said, “it is possible that NIL agreements between student-athletes and third parties will create similar disparities and therefore trigger a school’s Title IX obligations.”

So KSU would have to rectify Hawkins' $2M NIL deal, by coming up with $2M of its own for someone (or someones) on the women's golf team? That seems like quite a burden to put on the university, when they aren't the ones spending/directing the NIL money (yet, anyway). Feels like making me pay a fine because someone else is jaywalking.

I really don’t think that third party thing will come into effect. I just don’t see how if a program like Nike wants to sign a future star to a huge deal why the university or company would have to pay up for equal payments for a women’s player.

University money I totally agree with but third party will be fought hard in lawsuits and with the massive backlash to DEI this is the environment where that will get shot down.

 

[FriendlySpartan]

https://sports.yahoo.com/title-ix-memo-throws-wrench-013625235.html

First, I am in favor of creating a salary cap for college athletes and NIL. Right now many college athletes are earning much more than they will earn in their professional careers post-college due to the lack of rules around NIL.

A new decison was made yesterday (2 weeks before settlement) that NCAA Athletics will need to make proportionate payments to Male and Female athletes for future NIL payments.

How can this be justified?

Title IX in itself has caused many cutbacks within athletic programs mainly because of football taking up so many scholarships. Now this landmark decision will also sink additional funding and payments to sports that are a "cost net-negative" to the universities. Schools like Iowa State will eventually lose "The Athletic Arms Race" due to TV contracts and conference alignment. Does this put even more pressure on non BIG10 and SEC schools?

If the NCAA is a business (which we all know it is), this sure seems like a poor business plan.

Why do you care if athletes are making more now then they would in their professional or post grad careers? That just seems like a weird stance to take

 

[Clonehomer]

Butbutbutbutbut... there's no P4P deals! Those aren't allowed!

One interesting thing. There ARE some female athletes that can and will make bank with NIL. There have always been a handful of (pretty) female athletes that get a lot of media buzz. That softball player Jenny Finch years ago, the gymnast at LSU. They have potentially large NIL deals as influencers pushing sportsbras, tennis racquets, makeup, whatever. But that is "real" NIL and probably will never reach the P4P levels of Ohio States $50M roster etc.

My understanding is that there will be scrutiny for P4P NIL deals going forward by the NCAA. I have little faith they’ll enforce anything, but the idea being P4P comes from the school and endorsements from collectives. At least that according to the article I read about it a while back.

So, pretending that’s true for a second, this memo will have a huge impact on that $50M roster. It’d be tough for the collectives to justify a $3M NIL deal based on autograph appearances. But again, this is the NCAA, so it’ll probably be allowed.

 

[FriendlySpartan]

My understanding is that there will be scrutiny for P4P NIL deals going forward by the NCAA. I have little faith they’ll enforce anything, but the idea being P4P comes from the school and endorsements from collectives. At least that according to the article I read about it a while back.

So, pretending that’s true for a second, this memo will have a huge impact on that $50M roster. It’d be tough for the collectives to justify a $3M NIL deal based on autograph appearances. But again, this is the NCAA, so it’ll probably be allowed.

Also the NCAA is currently powerless. The moment they try to go after a power program about this will be the first step to getting rid of the NCAA.

You need the P4 to agree on some sort of regulation and enforcement around it, if the NCAA tries it without that by in, well nothing will change

 

[Drew0311]

https://sports.yahoo.com/title-ix-memo-throws-wrench-013625235.html

First, I am in favor of creating a salary cap for college athletes and NIL. Right now many college athletes are earning much more than they will earn in their professional careers post-college due to the lack of rules around NIL.

A new decison was made yesterday (2 weeks before settlement) that NCAA Athletics will need to make proportionate payments to Male and Female athletes for future NIL payments.

How can this be justified?

Title IX in itself has caused many cutbacks within athletic programs mainly because of football taking up so many scholarships. Now this landmark decision will also sink additional funding and payments to sports that are a "cost net-negative" to the universities. Schools like Iowa State will eventually lose "The Athletic Arms Race" due to TV contracts and conference alignment. Does this put even more pressure on non BIG10 and SEC schools?

If the NCAA is a business (which we all know it is), this sure seems like a poor business plan.

I like the salary cap idea. I am not sure how it would work. However, NIL deals should be required to be NIL deals and not just here is 12 million dollars. Also, we lost the Arms race years ago unless the Arms race you speak of is between us and other schools a lot like us. Like Okie State and Kansas State

 

[AuH2O]

I feel like this memo was intended to avoid those lawsuits.

As far as the 3rd party NIL deals, I’ve gotta imagine this will be scrutinized based on whether deals are made over actual NIL and are based on commensurate advertising deals, or if they’re deemed a pay for play deal. The P4P deals I can absolutely see falling under the guise of Title IX. The advertising deals I have a harder time seeing how that would work. But, it does seem like the advertising deals are much more evenly balanced with men’s and women’s sports than the P4P.

Direct advertising deals shouldn't be a problem where a company goes to the student athletes and signs an NIL deal for advertisement or whatever. That's not the problem. The issue was actual universities, including coaches and ADs openly steering donors away from the organization they represent and toward a collective. And the dumb thing is some of these idiots were out there publicly talking about "reallocating."

This is absolutely an intended action to keep this kind of lawsuit from happening. But there's been a lot of it that's already occurred. So a lawsuit could happen now.

When you have money going to a collective and being distributed on a pay for play basis, that's an obvious problem if the university is involved in any way in donor interaction. Hell, even if the collectives are steering money in exchange for advertising opportunities, the root cause here is a Government entity steering blatantly trying to steer more money to male athletes that otherwise would've been subject to a federal law.

 

[AllInForISU]

I like the salary cap idea. I am not sure how it would work. However, NIL deals should be required to be NIL deals and not just here is 12 million dollars. Also, we lost the Arms race years ago unless the Arms race you speak of is between us and other schools a lot like us. Like Okie State and Kansas State

Salary cap likely won’t happen without a labor union and collective bargaining, and I’m not positive, but that likely can’t happen without antitrust exemptions.

All of this is also unlikely because college athletics are governed under different conferences that all play by different rules.

Basically, it’s a giant crap show and since people in power are making money, they likely will be resistant to any changes in the current structure.

 

[AuH2O]

Also the NCAA is currently powerless. The moment they try to go after a power program about this will be the first step to getting rid of the NCAA.

You need the P4 to agree on some sort of regulation and enforcement around it, if the NCAA tries it without that by in, well nothing will change

This really isn't about the NCAA. This is mostly about universities violating Title IX, which is a federal law that has zero to do with the NCAA.

The NCAA mentions in the article are not really relevant to the ruling or overall theme, which is schools violating a federal law.

 

[ISU_Guy]

pretty soon it will just be mens football and basketball at places like Iowa state.

NCAA will have to start sanctioning super cheap sports to run for women like eSports and Bowling.
that would take care of 20 scholarships with little investment and upkeep.

 

[FriendlySpartan]

This really isn't about the NCAA. This is mostly about universities violating Title IX, which is a federal law that has zero to do with the NCAA.

The NCAA mentions in the article are not really relevant to the ruling or overall theme, which is schools violating a federal law.

I was addressing the comment about the NCAA scrutinizing 3rd party NIL deals, nothing about title 9 in my comment about it.

 

[farcyted]

This is not law. It's an administrative decision. It's a last gasp political statement made by the outgoing administration. It could be reversed in a month. Will likely be in court for years eventually,

Money making mens sports have paid for women's scholarships for years. Now that the money making athletes get a share of what they produce, they are supposed to share it with women ???

 

[Drew0311]

Before I die I immagine college athletics to be set up like the premier league. Like 14 teams at the top, Then if you cant compete you get relegated down a level and the next team jumps into the premier league. Mostly it will be SEC and big ten teams in the top tier and someone like Iowa State or Arizona State can pop up and make a two year run before getting dropped back down.

 

[FriendlySpartan]

I like the salary cap idea. I am not sure how it would work. However, NIL deals should be required to be NIL deals and not just here is 12 million dollars. Also, we lost the Arms race years ago unless the Arms race you speak of is between us and other schools a lot like us. Like Okie State and Kansas State

Why? If it’s coming from a 3rd party org why shouldn’t they just be given the money? Thai whole idea and handwringing about players getting paid is such a weird look.

 

[FriendlySpartan]

Before I die I immagine college athletics to be set up like the premier league. Like 14 teams at the top, Then if you cant compete you get relegated down a level and the next team jumps into the premier league. Mostly it will be SEC and big ten teams in the top tier and someone like Iowa State or Arizona State can pop up and make a two year run before getting dropped back down.

You will never see relegation in American sports. Never. I would love it if it was that way but it will never happen. University’s would never agree to it due to the unknown nature of budgeting