Ross with much more details on the revenue sharing.
- Thread starter DesotoCountyDawg
- Start date
The settlement wording is 22% of Revnue. So there is a cap. However each schools revenue share payout will different.
Example being in 2023, Alabama revenue is approximately $200million. OM is approximately $133 million. Where as ours is, approximately $115 million. So their 22% to share will be larger than our shared amount.
But I agree with your overall point. We will share more money now with athletes. However I have no idea what budget item(s) State will cut to afford that payout.
The agreement outlines a 10-year revenue-sharing plan that is transformative for college sports. If approved, NCAA member institutions will be allowed to share 22 percent of the average annual power conference revenue, stemming from media rights, ticket sales, sponsorships, etc., with their student-athletes every year―an amount that roughly adds up to $22 million annually in 2025-2026, and which could grow to $32.9 million by the end of the 10-year agreement.
Importantly, the revenue sharing plan is permissive and allows for any and all DI schools to participate if they have the funds. There is no requirement that any DI schools participate. Indeed, the parties agreed that schools can opt into an athlete pay model of sports revenue, with schools able to pay players up to an annual salary cap of about $22 million initially. The cap amount is for all athletes in a school’s athletic program, with schools having discretion in how they allot payments. Additionally, colleges can also directly pay athletes for use of their NIL, though such payments would count toward the $22 million cap. As discussed further below, athletes can continue to sign NIL deals with third parties, and since the school would not be the payer, those deals wouldn’t impact a school’s compliance with the cap.
https://www.duanemorris.com/alerts/...hot_resolving_three_antitrust_cases_0824.html
Importantly, the revenue sharing plan is permissive and allows for any and all DI schools to participate if they have the funds. There is no requirement that any DI schools participate. Indeed, the parties agreed that schools can opt into an athlete pay model of sports revenue, with schools able to pay players up to an annual salary cap of about $22 million initially. The cap amount is for all athletes in a school’s athletic program, with schools having discretion in how they allot payments. Additionally, colleges can also directly pay athletes for use of their NIL, though such payments would count toward the $22 million cap. As discussed further below, athletes can continue to sign NIL deals with third parties, and since the school would not be the payer, those deals wouldn’t impact a school’s compliance with the cap.
https://www.duanemorris.com/alerts/...hot_resolving_three_antitrust_cases_0824.html
Interesting. Took a couple of reads but I think I understand it now. Schools can pay up to a cap of 22% of total revenues to players directly. Then the NIL can pay more on top of that if they want to. That sound right to you?
Correct. And it sounds like we need to be recategorizing as much as possible as “Revenue”.
I don't know how many schools will fund a $40 million dollar addition to their operating expenses even if the fans stay fully engaged.
Oh I know!*. Watch ticket prices and donation requirements double for seats.
NOW THAT, will turn many many people away.
Might wanna pass this along to Mario Nash, ya know -- before he wastes precious time at another school with a Scrooge McDuck sized NIL pool.
Not every change occurring with this new REV share model is bad for MSU. Way to many po ols and just give ups in this fan base.
This will help us in a lot of ways
This will help us in a lot of ways
My guess is golf? I know in the past if a college golfer won 10,000 for a hole in one he/she couldn’t accept it. Now I have no idea how that affects amateur status on the PGA.
Contracts are coming fast and that will settle things a tiny bit. Then collective bargaining hits & we'll see.
This is the part that gives me hope. Teams are going to have the same cap number so that schools like OSU and Bama can't spend 4x what MSU and Vandy are spending. Now, I'm sure they'll still try to funnel their extra expenses through NIL, but at least there's going to be a system where that actually has to be reviewed and approved
Yep, and I have a feeling that they'll be limited to something like a max of a 1 or MAYBE a 2 year commitment, but they've got to be coming
It's 22% of the AVERAGE P4 revenue; not 22% of your school's revenue. The cap is the same for everyone.
What these kids gonna do when programs the could play for no longer can support it. They can't all play for the bamas of the world. TV contracts go up eventually people will stop paying that ****. When there is no sport to play oh well join the rest of us in the real world
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