Assuming the settlement is approved, how is UH going to pay its athletes $20M in revenue sharing, beginning the 2025-2026 academic year? UH Athletics has historically operated at a deficit. Where is the money coming from? I know months ago, Nunez said they were working on different models, but I do not recall them settling on a methodology.
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This yr we made approx 18 mil in the big12 and starting this yr by summer , we will make around 50mil so we use some of that . Nunez does have to get some corporate money which is his task .
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Agree. Last report I saw had UH with around an $80M athletic budget. UH has to find outside money. I am assuming that revenue sharing number will go up, even incrementally, every year. The sourcing of UH’s external money has to be on a multi-year basis, otherwise, UH will be scrambling every year.
With the exception of the top 20 or so schools, everyone will have to make cuts somewhere. Schools were not making big profits off of the athletics department as all or most all the money went back into the programs. Hence revenue sharing and not profit sharing.
I would expect several support staff to lose their jobs and doubling up some work. Several schools will drop some sports. I don’t think UH can drop any as I think they are at the NCAA minimum number for D1. Also expect some of the locker room / training area benefits and maintenance to drop. Some will have to go to the academic side and add fees for more income (I believe it was the Iowa St AD that said they did not have the money for it).
Maybe some boosters can drop donations for facilities and add to paying players.
Some schools may even drop out.
I fully expect this will split D1A into two parts.
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I wonder once they start paying players if title 9 protections of scholarships go away? Will only revenue sports be around?
Also, good chance that student fees will still bail out the athletic department.
Title 9 protections aren’t going away, at least not yet. One reason why many schools aren’t taking the opportunity to bump football scholarships up to 105, which would now be allowable, and holding steady at 85. Adding 20 football scholarships would require adding more in women’s sports as well to comply with Title 9.
Yes, the number is going to rise every year. Expect a rise of a million or so annually.
Some school will challenge it eventually. Once these kids become contracted employees of some kind they will try to omit 85-100 matching scholarships and absorb the cost of that into the payment of players. It is the smart business move, terrible college athletics move.
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The Deloitte clearinghouse will last no longer than a day before it is inundated with lawsuits.
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$20 Million is the max allowed correct?
aren’t we making 40+ million in the Big 12 TV deal?
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Yes 20 mil is max and it’s voluntary.
I actually think this helps UH bc the players will have enough and any extra nil might not be worth messing with their stability at least for many of them. It could have a stabilizing effect.
The AAC is pushing their members to do 9 mil .
So let’s say nothing changes for UH with Nunez getting corporate money, we still have 50 mil minis 20 mil for rev sharing then we have 30 mil leftover. It’s still way better by 3 x than the amount in the aac. So after rev share , we keep 30 mil for the budget and our next tv deal should go up by a lot.
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20.5 million is revshare for this year. Next year will be higher.
There’s no cap on NIL. NCAA is planning to require schools to submit NIL agreements to Deloitte for approval but that’s never, ever, ever going to fly. It’s just another antitrust violation. NIL will remain as is until they make the players employees. The schools with money will still be able to spend as they please.
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The financial stress being imposed on schools and conferences, and I would include the B12 in that category, make the discussion of partnering with a private equity firm relevant again. There are not enough details how that would work at this point to even have an opinion about it.
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Who should I make the check out to…?
HOW? We are going to be making 50 million a year. How is easy, considering the problems we had before Big 12 membership. We wouldnt know what to do with the remaining 30 million, it is so much more than we are used to…Pretty sure we have ways to do that, too.
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I had similar thoughts. I read some other articles where they discussed it disappearing. They gave some vague justifications so do not know how the legality holds up.
Student fees aren’t going anywhere. They better use student tickets since they will be paying for them.
Whole thing is a mess. Athletes made progress to get paid more money and rights to earn more, but no matter what, it is not enough. They need to learn the fable about the goose that laid the golden egg before killing off college football.
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I fully expect NILs to continue for the schools that can afford it. Its another way to separate the haves from the have nots. You’ve got to pay to play for championships.
Can’t the Blaffer auction a couple of paintings for football?
