Proposed FBS Subdivision to Directly Pay Players

[Archy1221]

I have always said, pay the kids and make them pay their tuition, room and board.  So yes, the payment has to be higher.  I am not sure how this all gets done, but it is a start.  The NIL things is crazy and is there any transparency?

Agree with this.  Once NIL started, scholarships should go away

 

[hskrpwr13]

Getting close to where universities need to determine if they want to sponsor football as an extra-curricular activity or sponsor a minor league team.

I continue to wonder if the minor league will require players to remain students and if there remains a finite number of years of eligibility. 

 

[BigRedBuster]

I agree, the payments to football players is really low in this proposal. It comes out to barely more than minimum wage. They're essentially trying their best to keep an old athletics model afloat when it shouldn't be kept afloat.

Now, I think that schools are going to come out and widely give this proposed plan praise, because it keeps (mostly) intact business as usual. They don't want to split Football away from the school and they don't want to split 50% of their football revenue with players. 

Eventually, players and certain schools who want to compete will separate football anyway. The University of Miami or Florida State aren't going to sit around and watch while they fall into obscurity; they're going to rid themselves of responsibilities to Title IX and split football off from the school, allowing the players a huge piece of the pie. Even for ACC revenue, the payments per player would still be much higher than 30k per year (it would be closer to 250k per player, per year under their current revenue models).

College Football is heading towards a split from schools anyway, it's dumb to continue to try and hold onto an old way of doing things. Let Football split away, the players deserve the money, and schools will be able to operate just the same as normal with their share of the money.

So, are you saying that you think football programs should just split completely away from the universities they represent and their athletic departments?  They would then just be a minor league system for the NFL that's not associated with any college at all?

That isn't happening so, if that's what you're thinking, it's a waste of time.  And, if it doesn't happen, they have to abide by Title 9.  And, if they have to do that, then this is the type of payments athletes are going to get.  Remember, most of these ADs run in the RED already.  Also, the colleges/Universities are the base of their fan bases.  Fans are fans because many of them are associated, in some way, with the University.  OR...they live around them and feel the team represents their area or state.  With this idea, we all of a sudden will have teams moving just like any other professional team and the fan base suffers.

Also, right now, athletes get tuition, room and board...plus a stipend.  Is that all going away with your idea?

 

[Undone]

It won't matter. NIL can exist outside and on top of any NCAA institutional direct payments.

Is this confirmed information or just assumed to be true?

Could be that the NCAA would make outside NIL against their rules when this rolls out, I'd think?

 

[Crusader Husker]

Getting close to where universities need to determine if they want to sponsor football as an extra-curricular activity or sponsor a minor league team.

I continue to wonder if the minor league will require players to remain students and if there remains a finite number of years of eligibility. 

I think the perspective is tied to, does it cost money?  Is it cost neutral?  Does the academic side make any money?  You would have to start there.

 

[PDXHusker]

The $30,000 doesn’t include the nil money, which would still exist and be directly operated by the schools, and is a minimum. There is no cap on either the trust fund or nil.

Members of the new subdivision will be permitted to strike name, image and likeness (NIL) deals with their own athletes — a significant move away from the current NIL structure.

However, the most impactful benefit of this new model is a framework in which schools can directly compensate athletes through a trust fund. Schools within the new subdivision will be required to distribute to athletes thousands of dollars in additional educationally related funds without limitation.

There is no cap on the amount of funds that a program can provide an athlete.

 

[Undone]

Members of the new subdivision will be permitted to strike name, image and likeness (NIL) deals with their own athletes — a significant move away from the current NIL structure.

Ah, thanks for this! That's what I was looking for.

 

[Dr. Strangelove]

So, are you saying that you think football programs should just split completely away from the universities they represent and their athletic departments?  They would then just be a minor league system for the NFL that's not associated with any college at all?

That isn't happening so, if that's what you're thinking, it's a waste of time.  And, if it doesn't happen, they have to abide by Title 9.  And, if they have to do that, then this is the type of payments athletes are going to get.  Remember, most of these ADs run in the RED already.  Also, the colleges/Universities are the base of their fan bases.  Fans are fans because many of them are associated, in some way, with the University.  OR...they live around them and feel the team represents their area or state.  With this idea, we all of a sudden will have teams moving just like any other professional team and the fan base suffers.

Also, right now, athletes get tuition, room and board...plus a stipend.  Is that all going away with your idea?

The Football Teams will form an LLC. "Nebraska Football LLC" in this example is a private company that employs the football players. The University will license their likeness in the form of logos, colors, etc. and stadium use to this private company. This is of course a simplification of the process, but in essence it's a legal split of Football from the school - ridding them of things like Title IX compliance. 

They'd essentially be a minor league or different professional league with a legal partnership with schools they represent. Now, as part of a CBA, the schools can (and should) negotiate that as part of the agreement the employees (football players) must be students in good academic standing. This would essentially recreate the current structure of the team but with a legal loophole to get the Football players a bigger piece of the pie.

Without being an expert on Title IX, I would guess that the room, board, tuition, stipend etc. would have to go away. But they would more than make up for it in terms of payments. I think it's really obvious that college football is heading in this direction because $30k per player is insultingly low for football players when the real amount they should be making is $650k. 

 

[Mavric]

But I do think that $120k over four years is nowhere near the value the average player brings to a B1G or SEC team. I understand that they're trying to keep a similar model complying with Title IX in order, but that amount is far to low. 

That is just the minimum amount.

 

[JJ Husker]

The Football Teams will form an LLC. "Nebraska Football LLC" in this example is a private company that employs the football players. The University will license their likeness in the form of logos, colors, etc. and stadium use to this private company. This is of course a simplification of the process, but in essence it's a legal split of Football from the school - ridding them of things like Title IX compliance. 

They'd essentially be a minor league or different professional league with a legal partnership with schools they represent. Now, as part of a CBA, the schools can (and should) negotiate that as part of the agreement the employees (football players) must be students in good academic standing. This would essentially recreate the current structure of the team but with a legal loophole to get the Football players a bigger piece of the pie.

Without being an expert on Title IX, I would guess that the room, board, tuition, stipend etc. would have to go away. But they would more than make up for it in terms of payments. I think it's really obvious that college football is heading in this direction because $30k per player is insultingly low for football players when the real amount they should be making is $650k. 

Where/How do you arrive at CFB players “should” be making $650K?

Of course I’m an older curmudgeon but this whole NIL, portal, pay the players thing is seriously turning me off to the whole mess. In just a few short years they’ve already ruined my ideal of CFB. How committed do you expect fans (the people who actually drive the dollars into the sport) to be to teams of unproven overpaid prima donnas? Ya know what, if tuition and an education and a whole bunch of other perks aren’t enough for the players, they can go showcase what they might bring to the table for a potential job in the pros somewhere else.

There already is no longer school pride or interest in player development. It’s already produce at the highest level or GTFO for me. The genie is out of the bottle. CFB has already screwed the pooch….over money that everyone is too greedy to grab. I seriously have no interest in being a rabid fan of an NFLesque college sport. And I don’t care if it isn’t fair that players may be exploited. This whole idea of funneling them their share of pie has it so f#&%ed up I really couldn’t care less how any team or player does in this environment. I don’t see no loyalty, perform of GTFO being a sustainable model for continuing the revenue stream the sport currently has. Maybe I’m weird?

 

[Dr. Strangelove]

That is just the minimum amount.

I see that, but I think that unless the payments are raised significantly, football players are still underpaid? The amount they can make under this proposal is still limited by Title IX considerations. Until schools find a way around Title IX, which I think is only possible if football is privatized, the amount players can make is still much less than their fair market value.

I do think that this proposal is a good start and schools are going to jump onto it as a solution - they don't want to share 50% of their revenue with players - but eventually the Supreme Court is going to rule that players are employees. And once they do the players will unionize. 

 

[307husker]

Is this confirmed information or just assumed to be true?

Could be that the NCAA would make outside NIL against their rules when this rolls out, I'd think?

NCAA v. Alston, ruling in 2021 opened the gates.  NCAA cannot control NIL or it faces antitrust problems.

And there is a class action lawsuit against the NCAA that could be upwards of 4 billion awarded to players in the past.

The genie is out of the bottle.

 

[PDXHusker]

I see that, but I think that unless the payments are raised significantly, football players are still underpaid? The amount they can make under this proposal is still limited by Title IX considerations. Until schools find a way around Title IX, which I think is only possible if football is privatized, the amount players can make is still much less than their fair market value.

I do think that this proposal is a good start and schools are going to jump onto it as a solution - they don't want to share 50% of their revenue with players - but eventually the Supreme Court is going to rule that players are employees. And once they do the players will unionize. 

The schools can do their own nil as well, for this reason.

 

[Dr. Strangelove]

Where/How do you arrive at CFB players “should” be making $650K?

Of course I’m an older curmudgeon but this whole NIL, portal, pay the players thing is seriously turning me off to the whole mess. In just a few short years they’ve already ruined my ideal of CFB. How committed do you expect fans (the people who actually drive the dollars into the sport) to be to teams of unproven overpaid prima donnas? Ya know what, if tuition and an education and a whole bunch of other perks aren’t enough for the players, they can go showcase what they might bring to the table for a potential job in the pros somewhere else.

There already is no longer school pride or interest in player development. It’s already produce at the highest level or GTFO for me. The genie is out of the bottle. CFB has already screwed the pooch….over money that everyone is too greedy to grab. I seriously have no interest in being a rabid fan of an NFLesque college sport. And I don’t care if it isn’t fair that players may be exploited. This whole idea of funneling them their share of pie has it so f#&%ed up I really couldn’t care less how any team or player does in this environment. I don’t see no loyalty, perform of GTFO being a sustainable model for continuing the revenue stream the sport currently has. Maybe I’m weird?

I come to this number pretty easily. Other sports leagues - the NBA, the NFL, the NHL - all have their players form a union. As part of this union, the players negotiate a share of the revenue.

Using the NBA as an example, the players get 50% of the revenue and the owners get 50% of the revenue. Revenue is considered ALL money made, this includes TV rights, ticket sales, licensing agreements for jerseys, concessions at stadiums, parking, etc. Now, under the salary cap structure of the NBA/NFL not each player is paid the same amount. But you get the idea.

For a player at the University of Nebraska, the amount of revenue generated per year is approximately $110 million today. It's hard to say the exact amount, but consider $70 million in tier 1 TV money (the new deal just signed by the B1G). There's also tier 2 TV money via the Big Ten Network. There's bowl money, college football playoff money, Adidas money, ticket sales, concessions at the stadium, etc. All of this adds up and I conservatively guesstimate that the amount is probably around $110 million. In reality, it's probably higher than that.

Once you get to the revenue number generated, the CFB Players Union will likely negotiate a 50/50 split. That leaves $55 million for the school, and $55 million for the players. If each team has 85 scholarship players, divide $55 million by 85 = $647,000 per player, per year. This of course assumes a fixed rate per player (QBs make the same as the second sting punter) but you get the idea.

My opinion on the money they make is simple: if the market determines that the players generate this much money, then they are entitled to it. No different than you are with your company or I am with mine.

 

[307husker]

Where/How do you arrive at CFB players “should” be making $650K?

Of course I’m an older curmudgeon but this whole NIL, portal, pay the players thing is seriously turning me off to the whole mess. In just a few short years they’ve already ruined my ideal of CFB. How committed do you expect fans (the people who actually drive the dollars into the sport) to be to teams of unproven overpaid prima donnas? Ya know what, if tuition and an education and a whole bunch of other perks aren’t enough for the players, they can go showcase what they might bring to the table for a potential job in the pros somewhere else.

There already is no longer school pride or interest in player development. It’s already produce at the highest level or GTFO for me. The genie is out of the bottle. CFB has already screwed the pooch….over money that everyone is too greedy to grab. I seriously have no interest in being a rabid fan of an NFLesque college sport. And I don’t care if it isn’t fair that players may be exploited. This whole idea of funneling them their share of pie has it so f#&%ed up I really couldn’t care less how any team or player does in this environment. I don’t see no loyalty, perform of GTFO being a sustainable model for continuing the revenue stream the sport currently has. Maybe I’m weird?

I couldn't agree more.  

If they want to be minor league pro's, fine, but I'll take my eyeballs and $ to the NFL and watch the real pro's play a much higher level of the sport, with more parity and reasonable rules around $ and it's influence on the game.

College football was special based on intangible relationships between players, fans, and universities.  That's over.

Eventually CFB becomes minor league baseball.  Does any minor league baseball team produce 85k fans for 50+ years?