B1G/SEC Developing Plan to Share Revenue with Players

Submitted by TheCool on April 29th, 2024 at 11:50 PM

The SEC and B1G are developing a plan to share revenue with players.

 

The SEC and Big Ten are at the center of developing a revenue sharing plan with players that would redefine college athletics for the future, CBS Sports has learned.

 

http://www.cbssports.com/college-football/news/sec-big-ten-developing-plan-to-share-revenue-with-players-in-potential-landmark-change-to-college-athletics/

JetFuelForBreakfast

April 30th, 2024 at 12:11 AM ^

Just to be clear, what I've got so far is:

  1. McDonald's bags = GOOD
  2. Cheeseburgers = BAD
  3. FBI Wiretaps = Hear (Self) Say
  4. SEC is cheating so bad that even Kentucky can steal from the B1G and still be irrelevant
  5. The B1G is collaborating with the SEC "for the benefit of student athletes" and the PAC 12 is gone...let that sink in.

     

MEZman

April 30th, 2024 at 12:31 AM ^

I can't remember where I heard it (Matt Brown or Cover 3 maybe?) but it was mentioned that players could be employees of the conferences to avoid Title IX issues since the conferences are separate entities from the Universities. Wonder if that's part of why it's being worked on at the Conference level. 

snarling wolverine

April 30th, 2024 at 12:19 PM ^

That could backfire.  Not sure how strong fans’ appetite is to support collective action when the players are now getting NIL and have the right to transfer without penalty, in addition to their scholarships.  

College athletics has always been a different beast than the pros.  The less it differentiates itself from the pros, the more the fans are likely to see it as an inferior version of the latter, and potentially tune out.  

Michigan Mizo

April 30th, 2024 at 8:41 AM ^

*not a lawyer, genuinely curious if anyone knows the answer - the courts have already established that different responsibilities of university employees can lead to different pay without violating Title IX (for example the men's and women's basketball coaches don't make the same salary).  Why couldn't that same argument be applied to revenue vs. non-revenue sports?  Maybe some amount would have to be shared but the majority generated by football/men's basketball could stay with those programs no?

MEZman

April 30th, 2024 at 8:44 AM ^

Coaches aren't students and the schools don' receive Federal funding for them I would assume is why it's not a problem. Need to receive Federal funding for the Federal government to have jurisdiction generally (same thing in Healthcare if you don't take Medicare/caid funding you're not subject to HIPAA for example).

massblue

April 30th, 2024 at 9:50 AM ^

I have a copy of Title IX on my wall.  It states:

No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance.

I do not believe revenue sharing, tied to the revenue generated by the sport, will violate Title IX.  For example, WBB players could get paid while men tennis players will not.  If that is tied to the revenue generated by those two sports, Title IX will not be violated.

MEZman

April 30th, 2024 at 10:46 AM ^

But if you can no longer afford to offer scholarships to non-revenue sports due to revenue sharing it would. I think that was part of the point. The scholarships (or whatever replaces them) would be paid via the conferences and there would no longer need to be matching scholarships in non-revenue (or we can just say women's sports since that's what would really be at issue) sports.

massblue

April 30th, 2024 at 2:09 PM ^

I am not sure that will violate Title IX.  Let's say we do away with scholarships, and athletes become responsible for all their expenses. In return, there will be revenue sharing linked to the revenue generated by the sport.  This would be terrible for college sports, but in my opinion, it will not violate Title IX.   This is similar to different departments on campus receiving different levels of funding. For example, nursing or psychology (having many female students) could get less funding compared to engineering as long as there is a legitimate reason not related to sex.  At our institution, departments' fundings depend on a number of factors, including size, external grants, national rankings, etc. No one has mentioned that we violate Title IX.

MEZman

April 30th, 2024 at 3:09 PM ^

Yeah, dunno for sure as it was just a comment that going through conferences as the employer of the athletes might be the best way to go. The mentioned issues with Title IX and scholarships but didn't get into it much more than that. Probably helps with other stuff like contracts not being subject to FOIA at state schools and whatnot as well.

wesq

April 30th, 2024 at 10:17 AM ^

  1. It violates the mission of most public universities

We are way beyond that. And not just the swamp that is major college athletics, when these schools collectively have put multiple generations in crushing debt with it’s ever growing costs. It is what it is that’s life but miss me with that sancity of the college mission bs. 

Amazinblu

April 30th, 2024 at 9:48 AM ^

If student athletes become University employees - doesn’t the value of their scholarship become a taxable benefit?

And, if it is taxable - it’s a liability of about $80K / year - since - I believe - Michigan’s policy is to pay the University out of state tuition for all student athletes.

Would the Athletic Department also pick up the tax liability for the scholarship?

Needs

April 30th, 2024 at 11:02 AM ^

GSIs at Michigan are employees of the university who receive full tuition remissions, which are not taxed, so too do doctoral students on fellowships. I assume that would be the same in this case, even though it would mostly be undergrad, not grad tuition. 

 

MEZman

April 30th, 2024 at 11:03 AM ^

Congress can always rejigger this or change how tuition reimbursement works in this type of circumstance. Since it seems to be a bipartisan issue in not siding with the NCAA I wouldn't be surprised if they make carve outs for whatever is agreed to in the end. 

Or the employee could always just be grossed up to cover the taxes as well.

Casco Goat

April 30th, 2024 at 1:06 AM ^

"Redefine" in a very positive way, I'm sure.

 

I'm all for college kids getting paid for something they spend a lot of time on, but this is going to be NIL on Tony Mandarich-level steroids. And it's going to further separate the haves (those two conferences) and the have-nots (literally everyone else).

4godkingandwol…

April 30th, 2024 at 1:22 AM ^

So now, there will be revenue sharing, and then the boosters will pay on top of that to pull guys to their teams. This effectively gets players well payed, but doesn’t solve the challenges with keeping donor money out of the picture. 

Blinkin

April 30th, 2024 at 5:51 AM ^

Maybe the conference payouts can be designed in such a way that they include contract agreements to clamp down on the constant transfer portal tampering.  If the player is contractually bound to 2 or 3 years at a school, then that gets rid of at least a substantial component of the "re recruit your whole roster every year" problem. 

Carpetbagger

April 30th, 2024 at 2:10 PM ^

Contracts can't be broken? By whom? Either side? That won't be abused by both sides, no sir. 

Everyone thinks they have a great solution the current mess. Which was created by all those same geniuses who had solutions to the old mess.

Unbalanced systems change organically over time. And all systems are unbalanced. Michigan is always going to be one of those places that follows the explicit current rules and not the unwritten implicit rules. Just the way it is and has been. Accept that and be glad we get to win a championship every 25 years or so.