The NCAA is weak, the Power 5 is greedy, and the smaller conferences are paying the price.

[Muda69]

https://www.indystar.com/story/sports/columnists/gregg-doyel/2024/05/20/proposed-house-vs-ncaa-power-5-settlement-unfairly-hurts-small-schools-nil-billion-dollars/73760608007/

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INDIANAPOLIS – Decades of condescending greed from our country’s largest college sports programs, and arrogant incompetence from the organization meant to oversee them — the NCAA — have brought us here, to one of the most condescendingly greedy, arrogantly incompetent, utterly absurd decisions in the annals of NCAA nonsense.

You sitting down for this? There’s a lot here, numbers that will make your eyes glaze and dollar figures that will make your head spin, but don’t worry too much about that. Nobody told you there’d be math, and we’ll keep it to a minimum, but there’s an old saying: Math is logical.

The NCAA, sadly, is not.

The NCAA, a group started in good faith in 1906 to oversee college sports, lost its way along the way as the money grew and problems rose and doing the right thing, every time, became too damn difficult. For years the NCAA has done the right thing only when convenient, much like its largest college sports programs, who have too much money at stake — too many high-paying jobs in too many wood-paneled, brass-trimmed offices — to do the right thing simply because it’s the right thing.

All that history, all that arrogant incompetence from the NCAA and condescending greed from the leaders in this Darwinian clubhouse — what we call the Power 5 conferences — has led us to the point of chaos and the brink of destruction of college sports. But the survival instinct is strong among schools in the SEC, Big Ten and Co., and the obeisance is disgusting in the NCAA offices staining the White River in Downtown Indianapolis, so here we are:

The NCAA is on the verge of settling the landmark House vs. NCAA anti-trust lawsuit — a lawsuit filed after decades of condescending greed and arrogant incompetence — with a final bill projected in the range of $2.8 billion, according to reporting from Yahoo! Sports.

The class-action lawsuit has thousands of plaintiffs and three types of damages, with the overwhelming majority of damages tied to broadcast revenue attributable to Power 5 football and men’s basketball.  Although two other categories of damages are involved (video game NIL and third-party NIL), reporting from Yahoo! Sports and ESPN show the damages are largely connected to revenue from media agreements.  According to expert witness testimony in case filings, approximately 90% of the value of those media agreements is attributable to football and men’s basketball, which means an overwhelming majority (roughly 90%) of damages will be paid to Power 5 athletes.

....

You can imagine the cost for the NCAA and its 60 or 70 largest sports programs to pay up to 90% of $2.8 billion. It would be fair but financially crushing, and if there’s one thing we know about the largest schools in college sports, it’s this: They’re not interested in being financially crushed.

Lucky for them, the NCAA isn’t interested in being fair.

So how to pay off 90% of $2.8 billion?

Send a bill or withhold significant future revenue distributions to the Mid-American Conference and the Horizon League. And the MEAC and Patriot League and all of the 27 conferences that make up the 32-league NCAA — the Power 5, and the Other 27 — and ask those 27 smaller leagues, whose former student-athletes account for a tiny fraction of the plaintiffs in the House class action, to pay nearly $1 billion of the total bill.

Math is hard, but logical. Find a calculator, or just trust me on this: The other 27 conferences are not responsible for 60% (or even half of that) of the damages; 10% of $2.8 billion is $280 million. That’s what the Other 27 ought to be asked to pay.

But the NCAA, along with the Power 5, want the Other 27 to pay closer to $990 million. And that’s not even the full amount due. More on that in a minute.

Just know this: If the NCAA and Power 5 aren’t stopped, that miscarriage of justice will happen in the next few days.

.....

First, the background. That proposed settlement you read, where the Other 27 are being asked to pay nearly $1 billion, was negotiated over the past several months in private. In secret, even. The principal players at the negotiating table were representatives of the NCAA and the Power 5.

 

Guess who wasn’t included?

The Other 27.

Those smaller leagues — places like the Big Sky, Ohio Valley and SWAC — didn’t find out about the proposed settlement, and their nearly $1 billion contribution, until about two weeks ago. After the deed was all but done.

....

The NCAA and Power 5 are hiding behind numbers, mainly this one: The Other 27 conferences, with close to 300 schools total, receive approximately 60% of total NCAA revenue distributions. The Power 5 receives the other 40%. Ergo, by the NCAA’s sense of fair play, the Other 27 should pay 60% of that $1.65 billion.

I know, lots of numbers. Just remember this one: 10%.

That’s how much of the proposed $2.8 billion settlement will likely be earmarked for athletes from Other 27 schools.

In sum: Other 27 conferences pay 60% of $1.65 billion, not to mention a share of the $1.15 billion mentioned in the first bullet-point, despite having athletes who stand to earn roughly 10% of the $2.8 billion settlement.

....

Can IU Indianapolis, Indiana State survive this without cutting sports?

Schools in the Power 5 are all but printing money thanks to TV and other media contracts, to say nothing of the revenue coming from all those big-time football games. Schools from those leagues are making so much money, they’ve agreed since 2022 to pay 10 different (former) football coaches a combined $176 million just to get rid of them. Those buyouts are happening at football schools huge (Texas A&M is paying $76 million to Jimbo Elliott) and modest (IU football is paying $15.5 million to Tom Allen).

Power 5 schools can afford that, just as they’ll find a way to afford whatever hit is coming from House vs. NCAA.

The other 27? They’re lost. The proposed $2.8 billion settlement, with so much of it being asked of the Other 27, will come down to at least $2 million to $3 million a year across those conferences for the next 10 years. For the next decade, that would whittle $20-30 million from conferences and schools like IUPUI and Valparaiso, Evansville and Indiana State.

There’s no more fat to be cut from athletic programs like those, and very little muscle. Next to go will be bones — scholarships being eliminated for young men and women at most places, outright sports being cut at others.

All because the NCAA, and Power 5, want the Other 27 to subsidize a settlement weighted heavily — 90% to 10% — toward plaintiffs from Power 5 schools.

This is neither right nor fair. It’s the Power 5 making up the rules as they go along, and it’s the NCAA doing what the NCAA has done for decades — cowering to schools like Ohio State and Texas, and taking it out on the likes of Southern Indiana and Purdue Fort Wayne.

 

Nice column by Mr. Doyel.  I can see this lopsided settlement being the beginning of the end of the NCAA as we know it. 

 

[BTF]

Athletic facilities at Purdue Fort Wayne already look like a third world country, so I guess that won't change. 

[Muda69]

14 hours ago, BTF said:

Athletic facilities at Purdue Fort Wayne already look like a third world country, so I guess that won't change. 

Within the next decade the Mastodons won't likely have an athletic department, if this court case plays out like expected and the NCAA/Power 5 get their way.

 

 

[Bobref]

25 minutes ago, Muda69 said:

Within the next decade the Mastodons won't likely have an athletic department, if this court case plays out like expected and the NCAA/Power 5 get their way.

Mastodons are supposed to be extinct. It’s nature’s way.

[Bash Riprock]

it stinks what is happening to mid majors as the rich get richer.  If mid major lose some/all of their sports programs, will take away so many opportunities for young people to have a student/athlete experience...and will ultimately prevent many from the opportunities of a college education.  

Its one thing for mid majors to not be competitive...but to not compete at all would be terrible...only for the big to become more wealthy.

[Irishman]

The latest from ESPN. My prediction of college sports lasting 5 years may be too high at this rate. 

https://www.espn.com/college-sports/story/_/id/40206364/ncaa-power-conferences-agree-allow-schools-pay-players 

[Muda69]

9 hours ago, Irishman said:

The latest from ESPN. My prediction of college sports lasting 5 years may be too high at this rate. 

https://www.espn.com/college-sports/story/_/id/40206364/ncaa-power-conferences-agree-allow-schools-pay-players 

But this statement from Notre Dame's Mr. Jenkins:

Quote

 establish that our athletes are not employees, but students seeking college degrees; 

This is blatantly untrue in most D1 athletics. It was untrue 20 years ago and it will be untrue in the future.

 

[Bobref]

14 minutes ago, Muda69 said:

But this statement from Notre Dame's Mr. Jenkins

That’s Father Jenkins to you.

[Muda69]

13 minutes ago, Bobref said:

That’s Father Jenkins to you.

Sorry Bobref, Mr. Jenkins is not my father. 

 

Edited May 24 by Muda69

[CoachGallogly]

Someone with a PHD is not your doctor, but the credentials conferred still connects that prefix to them.  

[Bash Riprock]

52 minutes ago, Muda69 said:

Sorry Bobref, Mr. Jenkins is not my father. 

 

 

[Muda69]

1 hour ago, CoachGallogly said:

Someone with a PHD is not your doctor, but the credentials conferred still connects that prefix to them.  

I don't subscribe to honorifics other that "Mr.", "Mrs." and "Ms.".  Sorry.

 

[Bobref]

4 minutes ago, Muda69 said:

I don't subscribe to honorifics other that "Mr.", "Mrs." and "Ms.".  Sorry.

 

Just Muda being Muda.

[Muda69]

6 minutes ago, Bobref said:

Just Muda being Muda.

I prefer to judge people by the contents of their character, not some flowery word preceding their name.  It is a good practice.

 

[Bash Riprock]

3 minutes ago, Muda69 said:

I prefer to judge people by the contents of their character, not some flowery word preceding their name.  It is a good practice.

 

Evidently, you were never taught to respect those that earned their titles....shame

[Muda69]

1 minute ago, Bash Riprock said:

Evidently, you were never taught to respect those that earned their titles....shame

Yes, and a person that "earned their title" could be a big asshole.  Why should I "honor" that person with an honorific?

 

[Bash Riprock]

On 5/24/2024 at 10:02 AM, Muda69 said:

Yes, and a person that "earned their title" could be a big asshole.  Why should I "honor" that person with an honorific?

 

Could be a big ahole...the same for any Mr. as well...matter off fact, because there are simply many more Mr.'s in the world, guessing that title has many more aholes.

To me, its less than about "honoring" a person..its about showing respect for what they have earned, regardless of their personality.

[Irishman]

21 minutes ago, Bash Riprock said:

Could be a big ahole...the same for any Mr. as well...matter off fact, because there are simply many more Mr.'s in the world, guessing that title has many more aholes.

To me, its less than about "honoring" a person..its about showing respect for what they have earned, regardless of their personality.

The one line from Band of Brothers stands out. When Sobel ignores the salute by Winters, Winters says we salute the rank, not the person. Sobel then stops to salute. Seems to fit here. 

[Muda69]

13 minutes ago, Irishman said:

The one line from Band of Brothers stands out. When Sobel ignores the salute by Winters, Winters says we salute the rank, not the person. Sobel then stops to salute. Seems to fit here. 

That depends on how much personally respect the medical profession,  the legal profession, etc.

 

[Irishman]

Of course it does 🙄

[Bash Riprock]

5 hours ago, Muda69 said:

That depends on how much personally respect the medical profession,  the legal profession, etc.

 

I bet the respect for the medical profession jumps up significantly if one is dependent on them for life saving treatment/procedure for themselves or their family.....

[Muda69]

24 minutes ago, Bash Riprock said:

I bet the respect for the medical profession jumps up significantly if one is dependent on them for life saving treatment/procedure for themselves or their family.....

As I get older and have had to engage more with the medial profession,  either for myself or other family members,  my opinion is basically "meh".  Government regulation and the lack of a true free market alternative regarding insurance has IMHO ruined medicine.

And then you have all out dumbing down of entrance requirements for medical schools, all in the name of DEI.   Like here: https://freebeacon.com/campus/a-failed-medical-school-how-racial-preferences-supposedly-outlawed-in-california-have-persisted-at-ucla/ .

 

 

[Muda69]

More weakness from the NCAA: https://www.cnn.com/2024/05/30/sport/ncaa-drop-transfer-rule-division-i-athletes-justice-department/index.html

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The National Collegiate Athletic Association has agreed to drop a rule making it difficult for Division I college athletes to transfer schools and remain eligible to play following a civil lawsuit by the US Department of Justice and a coalition of states.

The Justice Department, District of Columbia and 10 states involved in the lawsuit announced the proposed agreement with the NCAA on Thursday.

The agreement would end the civil suit against the organization over their transfer eligibility rule, which required student athletes who transferred more than once to sit on the bench for an entire season before being allowed to compete at their new school.

Prosecutors said the rule forced college athletes to either stay in schools they wanted to leave or to transfer and miss out on athletic opportunities. The complaint also alleged the rule “was anticompetitive because it deterred college athletes from challenging anticompetitive rules in court,” a news release from the Justice Department said.

If approved by a judge, the deal would bar the NCAA from enforcing the transfer rule or adopting any similar rules between Division I colleges and universities in the future, the release said.

It would also require the NCAA to issue an additional year of eligibility to certain qualifying college athletes who were previously deemed ineligible to play for any length of time because of the transfer rule.

“Free from anticompetitive rules that unfairly limit their mobility, Division I college athletes will now be able to choose the institutions that best meet their academic, personal and professional development needs,” Assistant Attorney General Jonathan Kanter said in the release. “This resolution is a testament to the benefits of federal and state enforcers working together to ensure free markets and fair competition for all Americans.”

The NCAA’s Division II also had a similar rule but revised it to remove the year requirement for transfers, according to the release.

So what exactly is the purpose of the NCAA anymore?  Hosting a couple of annual basketball tournaments?

 

[Muda69]

https://www.indystar.com/story/opinion/columnists/2024/06/05/indianapolis-ncaa-settlement-nil-college-sports/73971123007/

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The NCAA got off easy settling House v. NCAA for more than $2.7 billion. With as much as $20 billion in penalties on the line, it’s surprising the plaintiffs didn’t go for the touchdown and reject the settlement. A loss would have bankrupted the NCAA, heaped long-denied money on athletes, and opened a new chapter for college sports.

Bankrupting the NCAA would have disbanded the organization’s ineffectual leadership and structure, making way for something that actually serves the needs of athletes and universities. But that’s not what happened. There is a prevailing sense the NCAA is “too big to fail” and that collapse would irrevocably destabilize college athletics.

This fear is shortsighted. If the NCAA disappeared tomorrow, it might disrupt a couple seasons, but the Conferences could quickly fill the void. If one of the major banks had collapsed in 2008, the fear was that the global financial system itself would have disintegrated. That’s why the government stepped in and every step was taken to protect the banks. We’re treating the NCAA the same way now. But does anyone really believe it’s impossible to hold a basketball tournament or a bowl game without the NCAA? Why go to such lengths to protect it?

Unfortunately, too many administrators seem to prefer the status quo to leading.

The settlement accomplishes one thing only: Kicking the can on potential lawsuits. The profound structural problems plaguing college sports remain—an out-of-control NIL marketplace, de facto unlimited free agency on the transfer portal, weak coaching contracts, and a playing field increasingly tilted against smaller programs.

The NCAA will point to the fact that under the settlement, schools may choose to commit up to 22% of their annual revenue — about $20 million at the largest programs — to purchase the exclusive NIL rights of their athletes. They will claim this puts the matter of NIL to bed, levels the playing field between schools, and ensures equity between athletes. In reality, it won’t accomplish any of that.

Critically, the revenue sharing model would be optional. Moreover, the settlement doesn’t stop third party-party NIL payments. This means booster collectives — which generate an average of nearly $10 million per year at Power Five schools, with the bulk going to football — will still be king, especially at major programs.

 

Indeed, this new system may make things worse, potentially allowing coaches to pay their bench from the revenue share while leaning on collectives to land superstar quarterbacks and point guards using third-party NIL deals. Effectively, rather than capping player compensation, the revenue share may give universities greater leeway to pay players while failing to rein in booster collectives. This puts smaller programs at an even greater disadvantage.

Major Power Five programs may have millions to splash out on players via revenue sharing, but for smaller schools like Coastal Carolina University, and conferences, like the Big East, this could be a significant reduction in their overall athletics budgets, forcing institutions to either eliminate other sports in favor of revenue generators like basketball or football, or making them entirely non-competitive, because they won’t be able to afford top talent. The programs with powerful booster collectives will still be able to use those resources to lure top talent.

The settlement also only runs through 2034. Only Congress can provide antitrust protection, a serious risk to the NCAA now, and despite spending millions on lobbyists, the organization has little to show for its efforts.

When the government bailed out big banks in 2008, they followed it up with a series of reforms — the Dodd Frank Act — to fix the underlying problems in the financial industry. This was an incredibly painful process for the firms involved, and not something that any executive would ever want to go through. 

College athletics still need reform

The House v. NCAA settlement leaves us at a similar juncture: College athletics still need to be reformed, and it must be real reform, not merely self-serving protections for the NCAA.

We need clear, consistent, enforceable rules around NIL, which apply to all athletes and athletic programs. 

The transfer portal must be restricted and limited free agency periods introduced to stabilize programs and reduce the auction block dynamic that currently exists. 

We need collective bargaining, so that professional student athletes are bound by contracts and programs meet a minimum set of standards. 

The college football playoff structure must be rationalized. TV rights should be sold as a single package, with revenue shared between schools in such a way as to ensure a competitive landscape.

None of this is impossible. One potential approach is for the major Division I revenue sports — football and men’s and women’s basketball — to be spun off into Professional College Athletics (the PCA), modeled after a successful sports business like the NFL, with collective bargaining, binding contracts, direct payment of players, NIL deals, and more. Amateur College Athletics (ACA) would remain with the NCAA, where the only compensation players could receive beyond a scholarship would be through direct NIL deals with brands, eliminating booster collectives. For example, a top fencer could do an independent deal with a fencing equipment manufacturer, but they wouldn’t be paid by the school in any way.

If a player at the ACA level was a star in a revenue sport, they could transfer to a PCA program. (It’s worth remembering that 95% of college athletes do not get money, even under the current system, and they would need to be recruited by a PCA program.) Finally, D1 schools could collectively designate other sports for inclusion in the PCA if they want.

The NCAA has been dismissive towards any potential spinoff, including a “Super League” proposal for Power Five football. Indeed, that concept reportedly struggled to gain traction among the Power Five, largely because TV rights have been sold years in advance. However, all the deals will have expired by 2034, the same year the NCAA’s settlement agreement runs out.

Coincidence? Maybe.

The silver lining of the settlement may be that it gives administrators some runway to solidify a spinoff and establish a new league for D1 revenue sports.

We can only hope. Players, universities, and sports fans everywhere deserve it.

The NCAA as we know it needs to die.  And this proposal about a PCA and ACA is an interesting one.  

Thought from the GID cognoscenti?

 

[Irishman]

2 hours ago, Muda69 said:

https://www.indystar.com/story/opinion/columnists/2024/06/05/indianapolis-ncaa-settlement-nil-college-sports/73971123007/

The NCAA as we know it needs to die.  And this proposal about a PCA and ACA is an interesting one.  

Thought from the GID cognoscenti?

 

For the D1 level, I agree. For non scholarship schools and non revenue sports, I still see a place for an association to oversee them. One thing that will become an issue as NIL and simply paying athletes to play is going to be staying in compliance with Title IX. The NCAA only has itself to blame for anything that happens now. One other possibility for those sports would be to let the amateur governing bodies direct them. One example, USA Track and Field would run Track and Field at the collegiate levels.