The judge approved the NCAA settlement, of which major portions are that the NCAA (really its schools) pay $2.8B over ten years to athletes over the prior ten years and can "opt in" to paying athletes going forward (with a cap, per school of ~$20M).
Two questions regarding Valpo:
1. Valpo will ultimately get hit for a portion of the $2.8B since, if I read this correctly, each of the five major football conferences pay $300M over ten years and the remainder is from the other conferences. So, hypothetically, if the remaining $1.3B is spread out evenly across the other 25 conferences and then spread evenly across the MVC, Valpo would be on the hook for roughly $4.3M over ten years. My understanding from the articles is much of the "payment" will come from reduced revenues from things like March Madness. How badly will an estimated budget hit of $430K per year hurt Valpo athletics?
2. Will Valpo opt-in to pay athletes going forward? My guess is that they will not, as doing so creates other issues like roster limits in all sports (Valpo would definitely not want roster limits in football). Further, they would still be able to compensate indirectly using NIL (though that will likely be very small). Any alternative thoughts on this?
At some point I'm going to understand this whole thing at which point maybe I can offer an opinion but right now, I have no idea what the deal is.
As part of the payment agreement, mid-major conferences, especially one-bid leagues, will lose a disproportionate share of NCAA distributions, particularly critical income for their programs. Smaller schools will also be unable to compete in direct revenue payments to athletes, creating a more exaggerated disparity than that already existing. Limited by smaller revenues, mid-majors likely will further find difficulty competing for recruits.
Additionally, the settlement replaces scholarship limits with roster caps, and some mid-majors will lack funding for larger rosters—especially harming sports like baseball, which was limited to 11.7 scholarships and now could have rosters as large as 34 players, all of whom could receive payments. Further, this settlement does not mention Title IX, which requires equitable treatment of male and female athletes. With about 90% of back-pay going to football and men's basketball, law suits can be expected. Plus, going forward direct payments to athletes will be scrutinized for following Title IX and challenged. Moreover, future compliance with Title IX could create a greater gap since mid-major funds would be disproportionally diluted.
The settlement officially ends any pretense of amateur status, as though anybody had a doubt, as well as the traditional student-athlete label. Mid-major colleges and smaller conferences will become casualties in professionalized college sports.
Since the announcement I've researched into the settlement. Here is what I could surmise
NIL
NIL is not going away, but will be subject to more intense regulatory practices. The NCAA will now only be on the hook for concerns regarding eligibility and student conduct. The Power Conferences will be allowed to create rules for the following
- limits to booster and collective payouts
- influence of boosters
- Vetting of the above in addition to any NIL deal exceeding 600 dollars.
- Enforcement of stakeholder relationships
All cases go through Deloitte and their NIL GO service. Bryan Seeley was named the Commissioner of the College Sports Commission, who is taking all these powers from the NCAA. In my eyes, the commission and the NCAA will continue to butt heads until the commission packs up and is used as a launching pad for conferences to leave the NCAA and play under the CSC banner. The enforcement of stakeholder relationships is certainly something to look into. I assume a lot of schools are going to go the route of Kentucky and reorg their athletic depts into LLCs.
Damage Payments
See above. THere is no more information regarding how this is is going to work(and they better find out quicky)
If we want an estimate as to how much money could be lost. Id say a rough estimate is take of 1 million for the 2 million pay out given for tourney units. As for individual athletic departments and how they have to pay. Not many sources delve into this aspect. Instead choosing to focus on the NIL side and the CSC side.
Unanswered Questions
Are Student Athletes employees? This was not on the house settlement case docket. I believe we will see this challenged when schools inevitably try to make athletes sign contracts with buyout limitations in the near future. Maybe even as near as this season post July 1st. Mid major schools will need contracts with buyouts to become the standard to even survive in the modern landscape. That much is certain
How Long can a student athlete play? Horrible that this is even being discussed, but nevertheless.
Title IX? Refer to pal for that one...he beat me to it
Transfer restrictions? The NCAA and power schools are looking to reign in the transfer portal, and wish to do so by being granted antitrust exemptions to create caps on individual player pay and transfer limits. They want the feds to sort this out for them however so don't expect it anytime soon.
The Valpo of it all
How does this work for Valpo? Well that's still uncertain. It's uncertain how the payment is going to shake out. It's uncertain how the MVC is going to handle it. What I do know is the MVCs current position is to figure it out yourself for opt in. Which some schools have done. I don't see a whole lot of small private schools opting in until later though.
It's either advocate for contracts, advocate for transfer limits, or sell out and reorg into an LLC where fans and boosters can buy stock in the teams. Which is also very uncertain how that is going to work out for the Wildcats
“And the NCAA was so angry at Kentucky that they punished them by giving Cleveland State an extra two years of sanctions.”
OK, all joking aside, the NCAA member schools are going to have to begin to think of themselves as sports franchises rather than institutions of higher learning. Everything they do from here on must be done with that in mind. Making money through sports and services rendered must be paramount!!!
For those going to school for school they will need to be either prompted to use online education where little is invested in them or put into new partner apartment complexes designed to eke out the most money.
Partner food and designer clothing sellers need to be a part of these apartment complex villages. Sports venues will need to be a part of this as well. They’ll need to find partners in this too. A ton of investment money will need to be found.
The colleges and universities that can figure this out will succeed may thrive. I’m sure there’s more, but I can’t think about it anymore…
Actually, I think baseball will suffer unless there a baseball infrastructure…like a minor league team nearby, or in the city where the university is located. Not just football and basketball, hockey could be important as well. Other sports may be eliminated or made a sort of club sport.
Everything (money especially) will need to be thrown into especially football and basketball. VU may have to bring their football up out of non-scholarship!!! IDK how this can work, but all of this would be a start…ok, now that’s it…
And upgrades to stadiums/arenas…UGH!!!
Give me a couple weeks and I'll dig into all of this from the Valpo end of it.
There is so much going on with this settlement and I don't know that anyone knows how it will play out.
It is possible that D-1 schools that do not have BCS football will be in better shape than other programs: We know that the Ohio State / Alabama / Clemson of the world will be fine even if large dollars go to football. What will be a challenge is for schools like Rutgers, Wake Forest or Cal who try and compete in conferences with far less resources. Similarly, schools like Buffalo, Fresno State, or Utah State that traditionally have had some success in football are in a tough spot.
Schools like Valpo, Villanova, Lehigh, Dayton or Drake that are not doing BCS football do not have to compete in that space. A school like Gonzaga (with no football team) might be a winner in all of this.
I highly recommend people listen to Jeff Bidwell's Morning in the Valley. He goes into a lot of detail regarding the settlement on today's episode.
One such remark was in regards to how money was how collectives are likely going to change how money gets distributed between sports (particularly womens sports)
There is so much going on with this settlement and I don't know that anyone knows how it will play out.
It is possible that D-1 schools that do not have BCS football will be in better shape than other programs: We know that the Ohio State / Alabama / Clemson of the world will be fine even if large dollars go to football. What will be a challenge is for schools like Rutgers, Wake Forest or Cal who try and compete in conferences with far less resources. Similarly, schools like Buffalo, Fresno State, or Utah State that traditionally have had some success in football are in a tough spot.
Schools like Valpo, Villanova, Lehigh, Dayton or Drake that are not doing BCS football do not have to compete in that space. A school like Gonzaga (with no football team) might be a winner in all of this.
The Big Ten and SEC programs are going to be just fine. The money coming into those leagues is astronomical. They'll have a noted advantage over some of the smaller ACC/Big 12 programs.
Yes, it's an advantage for the non-power conference programs who don't have to fund high-level college football...but there's also less money to play with at those programs.
The Big Ten and SEC, predictably, are the real winners here.
Valpo is opting out, its the right decision and will help the school. I have been told "opt in" schools will likely cut sports, and some I have talked to think this could destroy small schools that opt in, even medium size.
For Valpo "opt out" just means the athletes arent paid per settlement terms, they can still collect NIL money and all scholarships are intact.
As one might expect.
Valpo is opting out, its the right decision and will help the school.
Yes, VU has no alternative but to opt out because it cannot afford contributing to the back-pay revenue sharing scheme for the next 10 years nor does the university have a budget to pay athletes directly. Obviously, this will cause an even bigger competitive disadvantage in recruiting and retaining top players contrasted with programs across the country that can pay players. Valparaiso would have to continue reliance on third-party NIL contributions, which are never going to be substantial.
A crucial factor will be whether some universities in the MVC (and other mid-major conferences) decide to opt in and how much of a competitive gap might be created between them and those that opt out. Will this situation establish a permanent chasm in a two-tier conference between those that directly pay athletes and expand rosters under the House agreement rules and those, like Valpo, who do not?
So far Murray, Belmont, and UNI have opted in
Indiana State, Valpo have opted out
Those are the only ones that have anything confirmed from what I could find
Has anyone been able to find an estimate of how much Valpo would owe previous players? I’m guessing it’d be very roughly around $3M ($990M / approx. 290 non-P5 = 3M). This isn’t a perfect estimate. Valpo would most likely only owe men’s basketball so it could be lower. Valpo also most likely wouldn’t owe that much due to less success in the MVC… We would just have to make sure Alec Peters and a few others don’t file for compensation lol. Back-pay dates back to 2016. I found it funny that the power 5 schools (now power 4) owe LESS money than the other 27 conferences do combined. Seems like the NCAA might be cutting the bigger schools another break. If back-pay wasn’t so expensive then I’d be all for it. I think player compensation through the school would be much cleaner than Valpo’s current NIL options.
“Even though the 27 non-Power Five conferences and their member schools were not named as defendants in the House litigation, they are expected to be responsible for about $990 million in costs. Members of the former Power Five conferences, in contrast, will pay around $664 million, with the NCAA paying the remainder.”
I believe schools pay into the $2.8B fund for paying previous players and then the fund pays the previous players. Thus, there is not direct alignment between how much Valpo would pay and how much Valpo's former players would receive. My guess is that Valpo will pay more than what its former players receive.
