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NCAA pitch to let schools pay athletes directly

This Ain't Chopped Liver

This Ain't Chopped Liver

Active Member
www.cbssports.com

NCAA president proposes creation of subdivision allowing schools to directly compensate student-athletes

Charlie Baker's plan is a radical attempt to move the NCAA to the front of the compensation conversation
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NCAA president proposes creation of subdivision allowing schools to directly compensate student-athletes​

NCAA president Charlie Baker has proposed a revolutionary plan that could clear the way for schools to directly compensate athletes through an educational trust as well as name, image and likeness deals, according to a letter obtained by CBS Sports. The proposal would include the creation of a new subdivision of Division I schools for football governance purposes.

Membership in the new subdivision would be voluntary, but would require an investment of at least $30,000 per year into an educational trust fund for at least half of its total number athletes. That would guarantee half the schools' athletes $120,000 over four years of competition. Money distributed by the university would be subject to Title IX requirements, meaning half the allocated money would be required to go to female athletes. In addition to base compensation delivered through a trust, schools could then sign additional NIL deals to augment compensation.

The football-based subdivision would be independent of the FBS and FCS dichotomy. Teams at either level are eligible to opt into the football subdivision. However, teams that opt in will ultimately be able to exist at a different level than the rest of college football. The group could decide different roster sizes, recruitment practices, transfer or NIL rules, even while competing against other members of FBS or FCS working under the existing rules.

Many athletic departments push past 400 scholarship athletes across more than 20 sports at the highest level. Compensating half of those athletes with the base $30,000 per year would cost $6 million annually, signaling a massive investment in athletics. That amount is in addition to the cost of scholarships.
 
Sweat Equity

Sweat Equity

Tier 1
This was a long (short) time coming.

I am certainly no expert, but this is going to go far beyond athletics. Do you want the top entrepreneurs in the Entrepreneurial Program? (Pay them.) Top doc prospects in M.D. school? (Pay them.) Best pianist in the country? (Pay them.)

Unis suck a lot of blood from the work of students and reap rich endowments larger than most private equity funds. The shift is coming. The "What can you do for me?" attitude will certainly unfold before our eyes Uni-wide soon, IMO.

Those in The Pit know I do some work with OpenAI and they are hiring 18yr/olds at $300,000 p/yr. Granted, these are outlier software engineers, but there will be a point of inflection to where the top talent forgoes Higher Ed all together when they can get paid immediately, with confidence, elsewhere. (Or the uni could step up and pay that 18 y/o to run a lab and create some proprietary products which can be licensed for factors more, like Med schools do.)
 
W

Wexahu

Full Member
Sweat Equity said:
In sum and substance, IMO.
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You gotta wonder when/if the demand for what is basically minor league professional sports played by people wearing university jerseys (under an absolutely terrible structure for competitive balance) is going to dry up.

I mean, I get it that the University brands are real strong and people have loved their college football, but damn, do they seem to be taking a lot for granted.
 
This Ain't Chopped Liver

This Ain't Chopped Liver

Active Member
Big Frog II said:
Then they become employees of the school?
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It would be an “educational” trust fund.

“Additionally, the new proposal would allow athletes to be compensated directly from schools without giving them employee status and protections, a key conflict among the NCAA and player activists.”
….
“Baker said in the letter that these new rules will help provide a model to show to Congress in the NCAA's ongoing quest for new federal laws to help in governing college sports. Baker and other NCAA leaders have been asking Congress for three years to create a law that would allow them to keep college athletes from becoming employees, create uniform rules for NIL deals and avoid future antitrust lawsuits. Those efforts have so far failed to gain significant momentum, with several key lawmakers telling the institutions they need to make efforts to solve their own problems before the government intervenes.”
 
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Wexahu

Full Member
This Ain't Chopped Liver said:
It would be an educational trust fund.

“Additionally, the new proposal would allow athletes to be compensated directly from schools without giving them employee status and protections, a key conflict among the NCAA and player activists.”
….
“Baker said in the letter that these new rules will help provide a model to show to Congress in the NCAA's ongoing quest for new federal laws to help in governing college sports. Baker and other NCAA leaders have been asking Congress for three years to create a law that would allow them to keep college athletes from becoming employees, create uniform rules for NIL deals and avoid future antitrust lawsuits. Those efforts have so far failed to gain significant momentum, with several key lawmakers telling the institutions they need to make efforts to solve their own problems before the government intervenes.”
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Seems a little "pot calling the kettle black"-ish here.
 
Paint It Purple

Paint It Purple

Active Member
Quote: "Money distributed by the university would be subject to Title IX requirements, meaning half the allocated money would be required to go to female athletes." NCAA academic socialist drivel.

Quote UT QB Manning: "Why should I take a cut in pay to fund women's lacrosse?"
 
Cougar/Frog

Cougar/Frog

Active Member
Hoosierfrog said:
I heard some wag today saying this is an effort to get rid of the little guys that probably won’t make payroll. Can TCU compete in this scenario? I wonder.

I’m guessing we won’t recognize college athletics in a few years if this kind of crap continues.
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I think that is the goal: make the CFP division too expensive for most G5 and maybe some P5 schools. Those schools that can't afford the cost can have their own playoff, like FCS.

Back 35 years ago, I remember there were only 88 or so IA (FBS) programs. It is now, 138 or something?

If that is the goal, let's drop all games against lower divisions, and stop inflating records with home body bag games.
 
E

Endless Purple

Full Member
Just a way to give more wins to the big names before the season begins.

The $6 million estimate is a minimum, not a unified standard, so big schools will get much much higher. Not going to let the "lower" class school keep up.

"The new rules would also create a new subdivision of Division I schools that would be allowed to create its own set of rules for recruiting, transfers, roster size and a wide range of other policies."

Also the new rules could also include removing roster limits that big school benefited from in the past. UT might now be able to go and pay for 20 more of the top OL to keep other schools from getting them.
 
Palliative Care

Palliative Care

Active Member
Wrapped fish left out in the sun too long. It will never pass the smell test in congress. Lawyers will argue civil rights issues. Courts will go nuts. This well may happen someday but not in this form.
 
TxFrog1999

TxFrog1999

The Man Behind The Curtain
This will be the end of college sports. Small schools won't be able to pay their players enough, the transfer portal will begin to clog with players without a home wanting money that doesn't exist, women's sports will diminish, and eventually schools will start cutting programs.
 
Limey Frog

Limey Frog

Full Member
TxFrog1999 said:
Title IX says hi!
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The proposal seems to distinguish between the basic scholarship trust fund and the NIL deals. I don't see how they can include NIL deals in Title IX, which relates to academic opportunities. There's no way to keep the big football schools within the NCAA structure without triggering Title IX on scholarship costs and direct monetary compensation for enrollment, but it would be madness to force schools to pretend that the name and image of an obscure female swimmer is equal in market value to that of their starting quarterback. Schools don't pay professors, grounds staff, or vendors equally by gender or any other criteria. Why should they pay students who are representing the institution's image in the public eye equally? We'll see, I guess.

At $30K/yr. for at least half your athletes, the basic entry cost is going to be around $3-5M, then you can add on NIL deals for your football and basketball players from there. I think Big 12 schools including TCU are at an obvious disadvantage, but I don't think it's insurmountable. Right now you've got millions being spent on things that make no sense because it's been forbidden to play players directly. We're not actually talking about new money here, we're talking about redirecting it from stupid places, like the pockets of coaches and administrators (especially in sports no one cares about) to the players in the two sports everyone loves. We can do that.
 

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