California Revenue Sharing Bill

[Duke Humphrey]

California Moves Toward the Next College Sports Disruption: Sharing Revenue With Athletes

The state Assembly has passed a bill that would require schools to pay players, setting off alarm bells for college sports officials around the country.

www.wsj.com

 

[dawgman42]

You quickly lost me at "California..."

 

[OG Goat Holder]

So do the revenue sharing sports have to split with women? That wasn't clear to me after reading another article. Someone claimed that they did, but why would the women abstain from the vote if it did?

 

[Duke Humphrey]

You quickly lost me at "California..."

I get it but California led the way to the current NIL, so unless Congress passes a national standard……

 

[OG Goat Holder]

I get it but California led the way to the current NIL, so unless Congress passes a national standard……

Is this such a terrible thing? It's only 25K per year. Plus it would come from TV money, and cut into what the fans have to raise in the NIL collectives.

Sure some boosters will still try and buy other teams' players in the portal, but it will be greatly reduced.

I mean, seems like is the best way to pay players - the TV money, which is astronomical.

 

[Maroon Eagle]

I get it but California led the way to the current NIL, so unless Congress passes a national standard……

Yep.

The Athletes and California are playing Good Cop-Bad Cop.

The Athletes want suspects folks to be reasonable or otherwise California will do to them what they did to the NCAA…

 

[Pilgrimdawg]

I can’t wait until they fall off in the ocean.

 

[thatsbaseball]

The key words in the future remain the same...Player's Unions

 

[AstroDog]

For the first time in my life, I feel (if I had the money), I could go out to my local high school and offer to pay a prized player to go to my school and totally get away with it. The NIL water is so muddy, nobody is going to see what you do if you really want a great player.

 

[thatsbaseball]

Is it possible that someone finally rationalized that the people paying the players should be the ones actually making money off of them ?

 

[OG Goat Holder]

Is it possible that someone finally rationalized that the people paying the players should be the ones actually making money off of them ?

I applaud the thought, but therein lies the problem. Who are these people? The AD and staff making salaries? Better yet, the coaches making millions?

I do agree that it shouldn’t be fans paying the bill. We pay enough.

 

[IBleedMaroonDawg]

I can’t wait until they fall off in the ocean.

They should just go ahead and make their own country. You know... just like Venezuela that will make everyone there happy.

 

[PhredPhantom]

Maybe it should be set up to pay players and coaches a base salary + a percentage of ticket sales. Base salaries (coaches and players) and performance percentages could vary from school to school.

The better players and coaches would have an opportunity to make more money just like in the real world. Using a percentage of ticket sales would encourage schools to improve facilities (like we have). If a school hosts tournaments, that would increase total ticket sales giving more money to coaches and players.

 

[Seinfeld]

A few random thoughts...

1) The bill seems to clearly state that once the revenue sharing formula is used, it will be split evenly amongst men and women athletes
2) It's important to recognize that the bill calls out revenue-generating spots, not profit-generating sports. MSU had roughly 525 student athletes in 2022 for what it's worth as far as I can tell
3) In 2022, MSU's athletic department had $111.6m in revenue compared to $105.8m in expenses

I don't know where the random $25k figure that's briefly mentioned in the article came from, but even at that rate(which I think is ridiculously low compared to what this group is going to push for), we'd be talking ~ $13m per year for MSU student athletes. So the obvious next question is, what's getting cut to allow for this revenue sharing? Then if you don't want to cut, who's funding the additional expense?

 

[OG Goat Holder]

A few random thoughts...

1) The bill seems to clearly state that once the revenue sharing formula is used, it will be split evenly amongst men and women athletes
2) It's important to recognize that the bill calls out revenue-generating spots, not profit-generating sports. MSU had roughly 525 student athletes in 2022 for what it's worth as far as I can tell
3) In 2022, MSU's athletic department had $111.6m in revenue compared to $105.8m in expenses

I don't know where the random $25k figure that's briefly mentioned in the article came from, but even at that rate(which I think is ridiculously low compared to what this group is going to push for), we'd be talking ~ $13m per year for MSU student athletes. So the obvious next question is, what's getting cut to allow for this revenue sharing? Then if you don't want to cut, who's funding the additional expense?

Sounds like only the 6M left over (or whatever the ‘equation’ says) is what will be split. So it could be zero if they don’t make any money, conceivably.

Pretty good incentive for the AD (and players) to win and provide a good fan experience, if you ask me.

 

[Seinfeld]

Sounds like only the 6M left over (or whatever the ‘equation’ says) is what will be split. So it could be zero if they don’t make any money, conceivably.

Pretty good incentive for the AD (and players) to win and provide a good fan experience, if you ask me.

That would be the logical formula for sure, but then I ask myself, does the $25/hr min wage crowd care about whether their employer is actually turning a profit? Also, what would prevent the AD from finding another $6m in expenses, leaving the revenue pool with zilch?

I agree that some kind of more logical compromise "should" be where this thing winds up, but I don't think the bill pushers give a flying 17 about the details today. They just see the $7b in TV money and want theirs

 

[mstateglfr]

They should just go ahead and make their own country. You know... just like Venezuela that will make everyone there happy.

California on its own would be the 5th largest gdp in the world.
Obviously that isn't all due solely to California, and federal investment has helped that happen, but let's be real here- for decades that place has been a hotbed for technology innovation, money making, and cultural influence.

You may not like the cultural influence, but overall the US has 17ing eaten it up. Decades of this.

Sure though, compare it to Venezuela since that is a common dismissive boogeyman to reference when hating on something without actually having good reason.

 

[onewoof]

They should just go ahead and make their own country. You know... just like Venezuela that will make everyone there happy.

That above was 2013. Now they are moving into 4th place ahead of Germany

Bloomberg - Are you a robot?

 

[vhdawg]

Is this such a terrible thing? It's only 25K per year. Plus it would come from TV money, and cut into what the fans have to raise in the NIL collectives.

BUT THEN HOW WILL WE PAY FOR THE WATERFALL IN THE FOOTBALL COMPLEX?

 

[HumpDawgy]

So do the revenue sharing sports have to split with women?

They are considered all the same these days.

 

[OG Goat Holder]

They are considered all the same these days.

Well in that case this may not move the needle too much. NIL will still flow to the best players (and the hottest chicks).

 

[BoDawg.sixpack]

In other California news..

Insurance costs

 

[FQDawg]

In other California news..

Insurance costs

Problems in Louisiana, too.

Nearly one in five Louisiana homeowners has had their insurance policy canceled

I can see both sides of this. On the one hand, insurance is generally a public good and helps people get back on their feet (though I could have a very long, separate discussion about insurance companies putting profits over people). On the other, if you live in an area that's prone to natural disasters, how many times should you be able to ask others to help you rebuild without bearing more of the cost yourself.

 

[mstateglfr]

In other California news..

Insurance costs

Yeah, its like homeowners insurance in Florida.

 

[BoDawg.sixpack]

Yeah, its like homeowners insurance in Florida.

Except Florida's average statewide premium is much higher than California. So there's a disconnect going on there.

Click me for info

 

[mstateglfr]

Except Florida's average statewide premium is much higher than California. So there's a disconnect going on there.

Click me for info

Oh, I was just trying to say that insurance companies have clearly stated they dont want to insure parts of Florida, and multiple companies exited the Florida homeowners market in '22. I was comparing that to the CA news with State Farm.

Yes, many other companies have chosen to stay in Florida and just jack up premiums. That could be what happens in CA too- companies stay and just increase premiums to ensure they make money.

Wild stat that is semi-related- I read that 79% of all insurance lawsuits filed in the US are over policies in Florida. The rest of the country only accounts for 21%.

 

[IBleedMaroonDawg]

California on its own would be the 5th largest gdp in the world.
Obviously that isn't all due solely to California, and federal investment has helped that happen, but let's be real here- for decades that place has been a hotbed for technology innovation, money making, and cultural influence.

You may not like the cultural influence, but overall the US has 17ing eaten it up. Decades of this.

Sure though, compare it to Venezuela since that is a common dismissive boogeyman to reference when hating on something without actually having good reason.

I never said it would be easy. Maybe it would just make everybody else happy. Anyway, it doesn't matter how much money they have if they keep giving it all away.

It may be a shock, but I'm not serious. Just checking.