While negotiations are active and have been for as many as eight months — not a new revelation within the industry — concepts of the proposed new model are becoming more formalized as leaders work to meet a deadline set by attorneys.
The 10-year settlement agreement could cost each power school as much as $300 million over the decade, or $30 million a year. That figure assumes a school meets what is believed to be: (1) a $17-22 million revenue distribution cap for athletes; (2) at least $2 million in withheld NCAA distribution for back damages; and (3) as much as $10 million in additional scholarship costs related to an expansion of sport-specific roster sizes — a concept previously unpublicized.
The lawsuit House vs NCAA suit was brought by male swimmer Grant House and by a female hoops player, Sedona Prince. That ship has sailed. The claim is during promotions and broadcasts and games, the NIL of the athletes contributes to at least 10% of the revenue.
The complaint in this case was originally filed on June 15, 2020, before college athletes were granted the right to profit from their name, image, and likeness (NIL).
The lead plaintiffs in this case are former Arizona State swimmer Grant House and former University of Oregon women’s basketball player Sedona Prince.
They alleged that the NCAA and the Power 5 Conferences were illegally imposing restrictions on the compensation Division I athletes could receive for the use of their NIL.
Despite the subsequent changes allowing college athletes to profit from their NIL, the House case is still moving forward. The plaintiffs seek back pay for lost NIL wages, including broadcasting revenue, video game revenue, and third-party NIL deals.
Specifically, they claim that 10 percent of broadcasting revenue is attributed to college athletes’ NIL being used in broadcasts.
Additionally, the plaintiffs challenge the rules that prohibit schools from directly compensating athletes
Maybe 48-50 schools can financially afford it. But that doesn’t meant they can be competitive. The revenue and NIL gap between between SEC/B10 and Big 12/ACC is so large that it will mean the P2 will have the money to pay players and arrange huge NIL deals. They’ll get the best players.
A lot will depend on the next Big 12 media deal. How does it compare to what B10 and SEC get. If the gap is more than $20M, the Big 12 won’t be much better than a G5 (relative to the top 2).
IMO, the networks are gonna lowball the Big XII. They overspent on the SEC and B1G and ND. And remember, the PAC couldn’t get sh!t from Amazon or other streamers.
I think we’ll see a slowing of growth for sure. Agreed that it’s possible the Big 12 even sees a reduction.
The networks an overpaying grossly now (for everyone). The ship will righted in the next contracts. Unless there are more media players. Then things will get interesting for sure.
Seriously, if it’s at all possible I would say Big 12 should give all its historical inventory to Amazon, Apple, or YouTube for free now. Build that relationship. Let them see how much interest there is in this content.
I think it may come down to sponsorship dollars and also the final league composition
It will essentially be another pro league
At that point you are better served to be in a market the size of Houston
With not only its fan base but also it’s corporate base the conference goes away and the league of
College football is formed
That should fix the revenue disparity as everyone in the league will get an even split.
100 %. I think there will be a massive re-correction. The BIG contract was overinflated from the pandemic experience. I see networks walking away from that contract when it comes back for renewal.
Espn for a long time refused to pay for the SEC’s 9th conference game after horns and Sooners joined the conference.
The two conferences are at a point of diminishing return in my opinion. I don’t think networks have the appetite to stretch themselves further by adding more schools to their ledgers.
I see the big12 getting a moderate raise, but both the BIG and SEC taking a substantial hit in their next contracts.
The gap between the BIG/ SEC and big12 will substantially narrow.
Agreed, It’s going to be interesting to see. Perhaps there will be a restoration of a west coast based power conference as the revenue glitter diminishes in the BIG.
It mentions increases in scholarship limits. I wonder how many are in football. That would allow the bigger names to hoard more players like they did before the limits were imposed.
There was talk a few months ago on the limits being removed in football.
Nowadays they want playing time and the easy transfer rules will work against hoarding. Teams prob over sign to make sure they have enough in case of transfers.
Have to disagree on this. ABC and Fox aren’t likely to give the Big 12 a bump and reduce SEC/B10.
I think it more likely that there is no or just a moderate increase in the next media deals for SEC and B10.
What happens to the Big 12 media deal is a little more uncertain, but I don’t see that going down either. Maybe it stays fixed, or maybe a slight increase. The days of the massive increases we saw recently are gone.
Actually if you look at the Big 12 deal on a per team basis it has gone down. The 1st year of the new media deal will pay less than the final year of the current deal. The average over the 6 years of the new deal is just slightly higher than the final year of the current deal.
The Coogs are up against Tech for sure and possibly even Oklahoma State. The next 6 years will be critical for all 3.
I said it before (in another topic), something Id seen on the tech247 board. The importance of building a relationship with Texas. The Tech fans there were appalled and not happy that one of their own would dare say something like that, but admitted that it might be a necessary unpleasant arrangement, it it improved Techs chances in the next realignment.