On3: House settlement hammers home need for collective bargaining agreement
From today's On3 NIL newsletter:
In the wake of the long-form House v. NCAA settlement agreement – submitted to federal court Friday – the need for a fully negotiated collective bargaining agreement for the top-tier of college sports has never been more apparent.
Even with a landscape-shifting revenue-sharing model poised to enter college sports in fall 2025, sources said, the extent to which the NCAA remains hellbent on trying to limit some forms of athlete compensation – and without athletes present at the negotiating table – smacks of the same antiquated thinking that put the NCAA on the wrong side of antitrust law in the first place.
"I really hope this big first step of the settlement that [enables] schools to now share money with athletes has a next phase before next year, when the money starts getting shared, that includes the athletes negotiating for themselves," Jim Cavale, founder of Athletes.org, told On3.
To be clear, if athletes wish to agree to only so-called "true NIL" deals, secured through third-party collectives, in a negotiation process, they have every right to do so. It should be a bargaining chip, one athletes can play at their discretion through collective bargaining.
But for the House case to implement such compensation restrictions – especially without the voice of future college athletes – sources said, serves as an open invitation for more lawsuits and potential athlete opt-outs from the agreement.
"I'm concerned, because the athletes aren't involved in the setting of those terms," Cavale said. "But if the athletes were to agree to that because they felt, as a whole, they were going to recoup that same money plus more guaranteed money because it's coming from the school and not a collective and they were willing to give that up – that would be one thing.
"But just saying 'You're giving that up?' That's not how this works. That's how transfer rules were eliminated, because schools and conferences and the NCAA chose to set them up without the athletes agreeing to it."
Over the last three years, the absence of a clear, enforceable NIL policy has fostered a system in which payments from collectives to athletes – specifically in football and men's basketball – for recruiting and retention efforts have become commonplace.
The effort to eliminate that through the House settlement entails stipulating that all third-party NIL deals of $600 or more be approved through a newly created clearinghouse that will vet the contracts using fair market value standards.
Deals not approved could result in a third-party enforcement mechanism ruling that those affiliated athletes are ineligible and/or fining their schools.
One prominent industry source said to consider where college sports was for decades and where it is going with a more professionalized financial model. Using this settlement to make that monumental transition, they said, is akin to "turning a camper into a houseboat."
"I suppose it could work, but everyone would prefer to have started from scratch and built something made for water, versus form-fitting something not actually intended to be used in this way," the source said.
"My money is still on employment and a CBA at some point in two to five years. I don't see this framework being long term given how it is constructed."
The plaintiffs' attorneys – Jeffrey Kessler and Steve Berman – "did their very best to find a middle ground with the NCAA and power conference commissioners to get revenue sharing to happen, and I'm excited about that," Cavale added.
"But all the things within those terms are things that athletes need to be able to negotiate, not just be told this is how it's going to be now because we're giving you a revenue share." – Eric Prisbell
** Edited by Will Stewart at 7/29/2024, 8:52:43 AM
18 Replies
S
Stech
2y
If this thinking prevails, the nonrevenue sports are in real trouble, high school sports are already shrinking at an alarming rate in this country. You know what is growing, time on the phone. Why didn’t the NFL just start minor league football like baseball and hockey? Because when you have a free ride, why pay for it?
(In response to this post by Will Stewart)
S
Stech
2y
the NFL not having a minor league. It amazes me how something minor I posted creates a whole different path. Maybe I should delete that part, since we all know that train left the station over 100 years ago.
(In response to this post by Stech)
M
Marooned
2y
Let the colleges keep more of their revenues to support their departments/conferences, coaching staffs and the non-revs. The NBA/WNBA should pony up as well to a lesser degree. They should pay for the privilege of drafting college kids who are able to come in and contribute on pro teams. We just need a better gatekeeper than the NCAA to distribute the wealth.
(In response to this post by Stech)
2y
Versus the middle versus the bottom. Some college football programs are barely making a profit if they are breaking even. Others are looking at an $80 million Plus media payment, plus ticket sales from an 80,000 to 100,000 seat stadium, plus parking, concessions, and millions in donations. The NFL couldn't even compete with that for a minor league developmental program.
What has destroyed college football is success. And no Central authority to manage that success properly to keep it from getting out of control.
** Edited by wwhokie1 at 7/30/2024, 11:08:20 AM
** Edited by wwhokie1 at 7/30/2024, 11:10:31 AM
(In response to this post by Marooned)
2y
into the NFL, the G5 is waiting with open arms. Also, you want the wealth redistributed? Really? How about FBS support the FCS financially? What could possibly be wrong with that?
VT is one of the top 67 paid universities in the country - and you guys want the wealth distributed?
We live in crazy times for sure.
(In response to this post by Marooned)
2y
And it is very difficult to run a profitable franchises. The Richmond Flying Squirrels are the profitable exception.
Hockey minor league franchises are usually on a shoe string, with one one foot heading out of town. Very much like Slap Shot.
No way the NFL can develop a minor league program thar can compete with power 5 football.
Where do you get coaching staffs like at UGA or OSU?
Facilities like Bama or Clemson?
Generate fan interest like Oklahoma or Michigan?
At best you end up with the NBA's GLeague, which doesn't compete with Duke, Kansas or Villanova for a Connor Flagg level player?
For the players, the college programs are way better development for the NBA or NFL.
(In response to this post by Stech)
2y
like hotcakes.
(In response to this post by PadrosWindup)
M
Marooned
2y
fan interest in high level college athletics going. Relegation of whole conferences for the sake of creating a monopoly on talent will result in fewer programs that matter and more high caliber players riding the pine instead of gaining game experience. It’s only right for the pro leagues to defray costs to keep the.college game as competitive as possible.
(In response to this post by PadrosWindup)
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Stech
2y
(In response to this post by PadrosWindup)
V
Vippie1
2y
"I suppose it could work, but everyone would prefer to have started from scratch and built something made for water, versus form-fitting something not actually intended to be used in this way," the source said. "
(In response to this post by Will Stewart)
2y
//sarcasm
** Edited by reestuart at 7/30/2024, 9:14:22 AM
(In response to this post by Vippie1)
2y
And to paraphrase Sheldon Cooper
"Boosters be crazy"
When you have billionaires whose idea of fun is to spend $1 million on an athlete for their favorite school, just to hang a banner, no level of regulation will impede them.
These are people used to wrangling with and beating the IRS/OSHA/EPA. The NCAA will be a minor speedbump for them.
Sure we hear about donor fatigue, but as long as there is one donor at one school creative/crazy enough to try something, every other school has to play catchup.
Making athletes employees won't stop boosters from paying the athletes outside the NCAA sanctioned structure. No penalty will stop them, short of the SMU nuclear option. The boosters love the dopamine rush of winning these daily battles way too much to give it up or to let anyone stop them.
(In response to this post by Will Stewart)
2y
The NCAA only has two items of power anymore. The money from the NCAA basketball tournament since they own the contract and the fact that they have tax exempt status and can funnel more of that money to schools.
But if the P4 all decided to take the leap and make their own “league/tournament” for basketball and football separate from the NCAA then they would have all the media negotiating power and could build the rules from the ground up to fit the modern athletics world. I think that is the end game and why private equity is getting interested.
(In response to this post by Will Stewart)
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Stech
2y
Now you could say the courts chopped them because they were not willing to change, but either way the chopping has already been done.
** Edited by Stech at 7/30/2024, 1:23:19 AM
(In response to this post by HokieAl)
2y
aware it has legs.
** Edited by VTreddog at 7/29/2024, 8:50:55 PM
** Edited by VTreddog at 7/29/2024, 8:51:24 PM
(In response to this post by HokieAl)