House Settlement

[SayUWantAreVOLution]

Copied the below from the NCAA;s house settlement. Looks like Deloitte is not affiliated with the NCAA but has authority to rule on NIL deals.
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However, the biggest looming uncertainty of the settlement agreement involves a Deloitte-run NIL clearinghouse that must approve all third-party NIL deals of at least The clearinghouse, operated by Deloitte, is charged with verifying the authenticity of these deals using “fair market value” rates, poised to eliminate phony booster-backed compensation agreements so prevalent in the industry over the previous three years.$600 in value. The "NIL Go" clearinghouse is using a fair market value algorithm to create “compensation ranges” for third-party deals.

Deloitte is expected to approve or disapprove deals in as little as one day, and athletes can resubmit rejected deals at least once with alterations suggested by the clearinghouse. For example, Deloitte may deem a submitted $100,000 deal between an athlete and third party to actually be valued at $50,000. The player can alter the deal to align with the clearinghouse’s suggested figure or the school can cover the difference by accepting a reduction against their revenue-pool cap.

Right, but the NCAA using an arbitrary determination by ANYONE that "This NIL deal is legit but that NIL not" will never fly.

The NCAA is going to either disqualify the player or make the school pay the difference and the first kid who gets denied an NIL by the school will sue, as they should.

It's just another way for the NCAA to try to control how much money a kid can make from NIL and they've lost every lawsuit so far where they tried to regulate NIL.

 

[kcvols1]

This settlement includes 2 main components: 1) schools paying for play. This includes an initial cap of $20.5 million per school to pay to players at schools option. Most think that majority of that money will go to football & basketball players, but that will be decided by each school.

2) NIL - players will still be allowed to accept NIL deals.The difference is that there will be a 3rd party “Clearinghouse” that will be set up to review NIL deals to make sure they are “fair market value”. I’m assuming this will do away with the current Collectives. This will be a mess in my opinion.

Collectives are riding this wave with the rest of us.

They’re pretty nimble businessmen and they’ve got a stack of cash, so I’d be shocked if they didn’t adapt effectively.

Hell, they should have been wargaming this since 2021.

 

[kcvols1]

Copied the below from the NCAA;s house settlement. Looks like Deloitte is not affiliated with the NCAA but has authority to rule on NIL deals.
----------------------------------------------------------------
However, the biggest looming uncertainty of the settlement agreement involves a Deloitte-run NIL clearinghouse that must approve all third-party NIL deals of at least The clearinghouse, operated by Deloitte, is charged with verifying the authenticity of these deals using “fair market value” rates, poised to eliminate phony booster-backed compensation agreements so prevalent in the industry over the previous three years.$600 in value. The "NIL Go" clearinghouse is using a fair market value algorithm to create “compensation ranges” for third-party deals.

Deloitte is expected to approve or disapprove deals in as little as one day, and athletes can resubmit rejected deals at least once with alterations suggested by the clearinghouse. For example, Deloitte may deem a submitted $100,000 deal between an athlete and third party to actually be valued at $50,000. The player can alter the deal to align with the clearinghouse’s suggested figure or the school can cover the difference by accepting a reduction against their revenue-pool cap.

Wow.

What valuation methods are they using?

You’d think they’d want to share that to allow for streamlining the process.

 

[OrangeBeachVol]

Right, but the NCAA using an arbitrary determination by ANYONE that "This NIL deal is legit but that NIL not" will never fly.

The NCAA is going to either disqualify the player or make the school pay the difference and the first kid who gets denied an NIL by the school will sue, as they should.

It's just another way for the NCAA to try to control how much money a kid can make from NIL and they've lost everyawsuit so far where they tried to regulate NIL.

Well looks like the NIL will remain the wild wild west. Only controls will be on the school - athlete contracts.

 

[SayUWantAreVOLution]

Well looks like the NIL will remain the wild wild west. Only controls will be on the school - athlete contracts.

As I've said, UT or the State of TN were involved in several of the NIL lawsuits and the multi transfer lawsuits.

It bothers the fans but apparently UT is okay with the wild west NIL and wholesale transfers.

 

[S.C. OrangeMan]

Copied the below from the NCAA;s house settlement. Looks like Deloitte is not affiliated with the NCAA but has authority to rule on NIL deals.
----------------------------------------------------------------
However, the biggest looming uncertainty of the settlement agreement involves a Deloitte-run NIL clearinghouse that must approve all third-party NIL deals of at least The clearinghouse, operated by Deloitte, is charged with verifying the authenticity of these deals using “fair market value” rates, poised to eliminate phony booster-backed compensation agreements so prevalent in the industry over the previous three years.$600 in value. The "NIL Go" clearinghouse is using a fair market value algorithm to create “compensation ranges” for third-party deals.

Deloitte is expected to approve or disapprove deals in as little as one day, and athletes can resubmit rejected deals at least once with alterations suggested by the clearinghouse. For example, Deloitte may deem a submitted $100,000 deal between an athlete and third party to actually be valued at $50,000. The player can alter the deal to align with the clearinghouse’s suggested figure or the school can cover the difference by accepting a reduction against their revenue-pool cap.

No judge had the legal power to give an unaffiliated 3 party the ability to regulate a private business deal between two third parties against their collective will.

As soon as a Deloitte rules against any NILk deal, the lawsuits will be cranked up again, but this time Deloitte will be banned as a co defendant.

 

[volfan102455]

Wow.

What valuation methods are they using?

You’d think they’d want to share that to allow for streamlining the process.

I don't think what they will do will be very different than how other industries determine compensation ranges. As it stands right now, there is not really a centralized entity (other than maybe the IRS) that has a clue as to what the NIL contracts really are. There is a lot of speculation by agents and others about who is getting what - but a lot of it is speculation and I dare say some of the numbers are probably inflated as a method to obtain more.

I suspect they will have access and understanding of all of the contracts and thus be able to effectively compare and create compensation ranges. And there will be a requirement for any entity that offers NIL to participate and supply the necessary information. They will also more than likely have information to understand value in specific parts of the country.

 

[volfan102455]

No judge had the legal power to give an unaffiliated 3 party the ability to regulate a private business deal between two third parties against their collective will.

As soon as a Deloitte rules against any NILk deal, the lawsuits will be cranked up again, but this time Deloitte will be banned as a co defendant.

First statement is interesting because there are third parties that weigh in on mergers of companies and such and can reject / stop such mergers if they feel said situation will be detrimental to the idea of a free market.

NIL is a mess and is not sustainable - uncontrolled it will eventually destroy the college athletic industry by either breaking the bank or creating monopolies where only a few can participate. We already are seeing that with the collapse and consolidation of the conferences.

 

[Woodlawn VOL]

I think you're probably giving the NCAA too much credit in the "thinking ahead" area. Not their forte.

I was referring to congress rewriting the current laws not the ncaa.

 

[SayUWantAreVOLution]

First statement is interesting because there are third parties that weigh in on mergers of companies and such and can reject / stop such mergers if they feel said situation will be detrimental to the idea of a free market.

NIL is a mess and is not sustainable - uncontrolled it will eventually destroy the college athletic industry by either breaking the bank or creating monopolies where only a few can participate. We already are seeing that with the collapse and consolidation of the conferences.

The FTC, a government entity designed to protect competition, can stop mergers via various laws designed to stop monopolistic situations.

Private businesses like the NCAA will get sued AGAIN for attempting to regulate competition via NIL limits. They will lose AGAIN. They have lost every attempt because they have ZERO right to regulate a person's personal business, athlete or not.

 

[SayUWantAreVOLution]

I was referring to congress rewriting the current laws not the ncaa.

You're REALLY giving Congress too much credit for "thinking ahead" about anything. The NCAA has been lobbying Congress for years and years knowing Antitrust issues were coming. Nothing ever happened.

 

[Jackcrevol]

Sounds like another nightmare to me. Kids will be leveraging their pay to play. That’s what needs fixed. Or at least close the transfer portal for good. It ruining the only good sports left.

Agreed, but first and foremost it needed brought in house. The NCAA has to change the porthole winders.

 

[unfrozencvmanvol]

I was referring to congress rewriting the current laws not the ncaa.

Sorry, I misunderstood you. There are several bills in Congress that are in Committee's that amend the Antitrust laws in reference to college sports. I expect they will start gaining momentum once it really starts to dawn on people that the revenue sports are going to have to break away from the Universities and become a true minor league in order to escape the implications of Title IX and without the revenue sports associated with the colleges, the non-revenue sports are going to be kaput. This is what it seems we mostly have to do these days in this country, run a bad idea completely into the ground until people realize its a bad idea.

 

[Firebirdparts]

I'm surprised that somebody really is planning to crack down on fake NIL. I'll have to read that.

Of course, House and Prince personally are not affected by agreeing to that, but still.

 

[UT97Vol]

The question is: what gives the NCAA or SEC or anyone the right to vet an NIL deal?

Deals that aren't related to gambling, etc aren't "casting the sport in a poor light" (morality issues) but you think the NCAA has the right to determine "legit" for a private NIL contract?

Why should they or anyone else get the thumbs up or down on an athlete's private business deals?

I don't believe its just the clearinghouse that's at risk here. I believe even the pay to play entitlement is in jeopardy. Because it is schools and the NCAA that agreed to the limits of how much per school can be paid to athletes. The athletes didn't agree to that deal. That, in and of itself, before we ever start to talk about NIL is wage manipulation and collusion. This whole settlement won't last a day before the first lawsuit.

 

[SayUWantAreVOLution]

I don't believe its just the clearinghouse that's at risk here. I believe even the pay to play entitlement is in jeopardy. Because it is schools and the NCAA that agreed to the limits of how much per school can be paid to athletes. The athletes didn't agree to that deal. That, in and of itself, before we ever start to talk about NIL is wage manipulation and collusion. This whole settlement won't last a day before the first lawsuit.

The $22M figure is arbitrary and there's no collective bargaining, as you say, so it's ripe, IMO, to be legally challenged by the "last player in" who hears "that's all we're allowed."

No other industry in America without a collective bargaining agreement can set a limit that all the industry competitors can spend $XX on payroll and no more. It's far closer to a socialist controlled wage system than an American system of the market setting compensation for a job.

As for NIL, I'm doubtful the Clearinghouse ever gets far off the ground before the courts rule it's an Antitrust violation as they have every other attempt to control NIL. Apparently the "arbitration" ability for players with Clearinghouse denials makes suing more difficult but I'm not an attorney and really don't see why it matters since the players never agreed to arbitration nor the Clearinghouse for their private business deals.

 

[LAVol1]

Until they sue. And they will. And they will win. Because the courts have decided the athletes are in control now

You have to be enrolled in the school to play college sports. There are standards that have to be met to maintain enrollment. Athletes can't force an institution to change their academic standards for their sole benefit. Can't see a reasonable court changing that. Furthermore, the vast majority of athletes want a degree.

 

[LAVol1]

And what happens when schools you are competing with don’t require class attendance

Is class attendance mandatory? If so, I guess they need to revoke my bachelor's degree because I missed a ton of classes. You will still have universities that will have lower academic standards for athletes, but they will still have standards. No way will the majority of university presidents go along with athletes not being academically eligible students.

 

[The Original Fade]

You have to be enrolled in the school to play college sports. There are standards that have to be met to maintain enrollment. Athletes can't force an institution to change their academic standards for their sole benefit. Can't see a reasonable court changing that. Furthermore, the vast majority of athletes want a degree.

It will be challenged. They will argue that demanding that players attend class in addition to playing is an unfair requirement that other employees of the school have to meet. And since they are now employees of the school, they should not be forced to attend class there because other employees, the janitors, food service employees, administration, grounds keeping, etc all do not have to attend class to be employed by the school.

See what a cluster this is? Some of us saw this crap coming from miles away

 

[volfan102455]

I don't believe its just the clearinghouse that's at risk here. I believe even the pay to play entitlement is in jeopardy. Because it is schools and the NCAA that agreed to the limits of how much per school can be paid to athletes. The athletes didn't agree to that deal. That, in and of itself, before we ever start to talk about NIL is wage manipulation and collusion. This whole settlement won't last a day before the first lawsuit.

Interesting concept - I don't get to agree with what my employer pays me. I can take it or leave it though. Why would the same not be true in this situation? Players can take it or go play somewhere else - which could lead to them not being able to play anywhere.

I really don't get the idea that players should dictate what they can paid. How much someone gets paid is generally decided by how much the employer is willing and can pay that person along with the going rates in the market.

Once again some of you act like there is an endless supply of $$'s to be given to these players. There isn't.

 

[SayUWantAreVOLution]

Interesting concept - I don't get to agree with what my employer pays me. I can take it or leave it though. Why would the same not be true in this situation? Players can take it or go play somewhere else - which could lead to them not being able to play anywhere.

I really don't get the idea that players should dictate what they can paid. How much someone gets paid is generally decided by how much the employer is willing and can pay that person along with the going rates in the market.

Once again some of you act like there is an endless supply of $$'s to be given to these players. There isn't.

It's the collusion of all the schools creating a finite amount available to all the employees. That is wage fixing. When the industry gets together and says we will only budget XXX for salaries OVERALL, that essentially fixes the wages available for the employees.

No negotiation. The school has agreed with other schools that no school will use more than $22M for payroll and that's wage fixing by default.

The MARKET should decide how much people can be compensated for a job, not some arbitrary agreement by all the competitors/teams in the market.

 

[volfan102455]

It will be challenged. They will argue that demanding that players attend class in addition to playing is an unfair requirement that other employees of the school have to meet. And since they are now employees of the school, they should not be forced to attend class there because other employees, the janitors, food service employees, administration, grounds keeping, etc all do not have to attend class to be employed by the school.

See what a cluster this is? Some of us saw this crap coming from miles away

And if challenged it will be the death of the college sports - the universities, whether folks want to admit it or not, have a brand as well. They also have a reputation to uphold.

Some days I am thinking that the best solution would be for colleges to just get out of the sports business and concentrate on education. They would save money on facilities, upkeep, event staffs, etc.

Sad part is there would be no more Big Orange, Power T, etc. - as that is a UT brand.

 

[SayUWantAreVOLution]

You have to be enrolled in the school to play college sports. There are standards that have to be met to maintain enrollment. Athletes can't force an institution to change their academic standards for their sole benefit. Can't see a reasonable court changing that. Furthermore, the vast majority of athletes want a degree.

Schools are now going to compensate players for playing athletics. They look a lot like employees at that point.

Once they are legally athlete employees, they'll sue to have the student portion removed because WHY should an employee who is hired as an athlete be forced to go to school?

If they WANT to go to school, that's like anyone else, fine, but don't let it get in the way of your employment.

We see on VN all the time now "they're getting paid so there are expectations that they'll need to meet." Exactly. Those expectations are to be athletes so WHY should school be mandatory?

 

[volfan102455]

It's the collusion of all the schools creating a finite amount available to all the employees. That is wage fixing. When the industry gets together and says we will only budget XXX for salaries OVERALL, that essentially fixes the wages available for the employees.

No negotiation. The school has agreed with other schools that no school will use more than $22M for payroll and that's wage fixing by default.

The MARKET should decide how much people can be compensated for a job, not some arbitrary agreement by all the competitors/teams in the market.

They would then be paid by what each University could afford. I dare say the number of schools that can even afford 22M and maintain the level of sports programs they have is minimal.

Let's just go ahead and crown OSU as the champion for every sport for the rest of time. Let's just go ahead and tell a lot of future players that they no longer have access to education post high school because most schools cannot afford to pay for the scholarships and pay them to participate in sports.

Let's just go ahead and create football minor leagues across the country where players will get paid based on how successful those leagues will be - trust me they won't be as successful as the colleges and the "market" value that you seem to be concerned with will be nowhere near the 22 M per team.

 

[volfan102455]

Schools are now going to compensate players for playing athletics. They look a lot like employees at that point.

Once they are legally athlete employees, they'll sue to have the student portion removed because WHY should an employee who is hired as an athlete be forced to go to school?

If they WANT to go to school, that's like anyone else, fine, but don't let it get in the way of your employment.

We see on VN all the time now "they're getting paid so there are expectations that they'll need to meet." Exactly. Those expectations are to be athletes so WHY should school be mandatory?

I hope the players are stupid enough to do that. And I hope the universities respond by cutting ties with the sports programs and telling the players to find another place to play.

As a graduate of UT, I love the atmosphere of the games - but I despise the greed and non-gratitude of what all is given to these athletes. It is why I now only donate the bare minimum necessary to obtain tickets. That money could be better spent donating to students that want to help with research and work that matters.