Thoughts on CKC

[volfan102455]

NCAA generates over a BILLION dollars in revenue just from media rights. Universities in the Big 10, ACC, SEC etc. ain't offering sports out of the kindness of their hearts. McDonald's does not have to sell hamburgers either but that is missing the point of profit making.

The debate is over revenue sharing and heck yes, athletes and their reps have a place at the table.

The ADs for the majority of universities do not make money and are in the red. So you take money out of that and share it with others - then even more universities are in the red. There is not enough money to go around.

Hypothetical example of how fast the money dries up given that many think because there are billions they should get a millions -

There were 554,298 college student athletes in 2024-2025. If each of them is given 100,000 then there needs to be at least 55.4 billion dollars in profit.

I believe there are approximately 600 or so at UT so that is 60M. 2023 UTK AD generated 202M in total revenue - after expenses there was 11M left. Where is the other 49M coming from?

I get it - some folks see the billions ACROSS THE INDUSTRY and say I got to have some of that not realizing that they are 1 of over a half million student athletes. And if you add up the personal associated with the ADs, media companies, etc. it is probably easily over 2 million folks taking part of the pie.

 

[Amb3096]

You know we haven't talked much about players who don't give effort after getting NIL to play. Can we get a refund? LOL

I don't think NIL compensation comes from the school's coffers, does it? I thought it was sponsors who pay the students for agreed upon promotional deals. I'm sure there are checks being passed around under the table too, but performance guarantees on those would be the equivalent of asking for a refund on a TV that you stole.

 

[volfan102455]

I don't think NIL compensation comes from the school's coffers, does it? I thought it was sponsors who pay the students for agreed upon promotional deals. I'm sure there are checks being passed around under the table too, but performance guarantees on those would be the equivalent of asking for a refund on a TV that you stole.

Yes, NIL is not supposed to be from the schools, but from the "individual" promoting themselves. They are also not employees, and the concept of revenue sharing is normally associated with employees of a corporation / entity.

And if were to become employees, lots of different rules would apply.

 

[volfan102455]

And I personally don't have a problem with the original intent of NIL but that expects the "individual" to prompt their brand.

 

[chuckiepoo]

And if were to become employees, lots of different rules would apply.

Expensive rules to manage. A nice chunk of the pie would vaporize into overhead.

 

[madtownvol]

The ADs for the majority of universities do not make money and are in the red. So you take money out of that and share it with others - then even more universities are in the red. There is not enough money to go around.

Hypothetical example of how fast the money dries up given that many think because there are billions they should get a millions -

There were 554,298 college student athletes in 2024-2025. If each of them is given 100,000 then there needs to be at least 55.4 billion dollars in profit.

I believe there are approximately 600 or so at UT so that is 60M. 2023 UTK AD generated 202M in total revenue - after expenses there was 11M left. Where is the other 49M coming from?

I get it - some folks see the billions ACROSS THE INDUSTRY and say I got to have some of that not realizing that they are 1 of over a half million student athletes. And if you add up the personal associated with the ADs, media companies, etc. it is probably easily over 2 million folks taking part of the pie.

First, my prior post was factually inaccurate since most D1 ADs are technically classified as non-profits (which means they have tax exempt status--think about that for a minute).

Revenue is supposed to be recycled back into their programs.

To your contention about needing $55 billion dollars to make the system, there is a cap set on much $ schools can distribute to athletes, which I believe is 20 million per yer (though it rises by some % each year). So, your $55 billion a year estimate is a very creative fiction)

A lot of people confuse athlete's personal NIL deals with the revenue sharing plan. But if a college athlete cuts a deal with Nike, that $ is not coming from the school. Separate sources. Schools are finding all kinds of ways to offset those revenue sharing costs as well (See link below). Also, the cost of college coaches such as 14 million to Kirby Smart and 12 million to Lane Kiffin (not to mention massive buyout clauses) also comes out of school budget so the arms race in coaching salaries is another factor in the budget stress situation.

College athletic departments need to find every dollar. The search is on for new ways to do it

Exploring new ways to make money in more ways than raising ticket prices is an urgent task for programs looking to keep up with one another.

www.nytimes.com

 

[volfan102455]

To your contention about needing $55 billion dollars to make the system, there is a cap set on much $ schools can distribute to athletes, which I believe is 20 million per yer (though it rises by some % each year). So, your $55 billion a year estimate is a very creative fiction)

20 million for 554,298 student athletes = $36.08 per athlete per year. But I get it, football players will say, that is only for me and when that happens athletes from other sports will challenge and ask for their share.

The creative fiction as you call it - is based on the athletes wanting more than just pocket change.

 

[1reVOLver]

20 million for 554,298 student athletes = $36.08 per athlete per year.

That 20 million is part of a legal settlement that specified spending per school, not
per nation.

A federal judge has approved the multibillion-dollar class-action legal settlement known as House v. NCAA, paving the way for a new era for college sports.

Starting this fall, colleges and universities in the NCAA's top division will be allowed to directly pay athletes for the first time. Payments will be limited by a salary cap set initially at $20.5 million per school.

https://www.npr.org/2025/06/06/nx-s1-5426123/ncaa-settlement-deal-athlete-compensation-judge

 

[volfan102455]

Wait you said per school - so if there are 1000 schools that is 1000 *20M = 20,000,000,000 = 20 billion. So 55B is not as crazy as it sounds.

That would be 36K per student.

And yes there is over 1000 colleges that offer sports in the U.S.

 

[madtownvol]

20 million for 554,298 student athletes = $36.08 per athlete per year. But I get it, football players will say, that is only for me and when that happens athletes from other sports will challenge and ask for their share.

The creative fiction as you call it - is based on the athletes wanting more than just pocket change.

What is happening is what will be happening. The revenue sharing deal now in place allocates 70% of the revenues to men's football and basketball. Schools have discretion on how they allocate the rest.

So, the athlete from the female rowing team will get way less from the revenue sharing than the star QB but she does have some NIL options, at least.

Unfortunately, I imagine that over time a lot of secondary sports will be cut at major D1s and will re-emerge as club programs.

Perhaps you might like to read up a bit on the actual terms of the revenue sharing model before posting about it. Here is one link that breaks it all down pretty clearly and that addresses the financial pressures:

NCAA Revenue Sharing & NIL Estimates 2025

 

[madtownvol]

Wait you said per school - so if there are 1000 schools that is 1000 *20M = 20,000,000,000 = 20 billion. So 55B is not as crazy as it sounds.

That would be 36K per student.

And yes there is over 1000 colleges that offer sports in the U.S.

UP TO 20 million. That is an upper limit. The Alcorn States of this world will not be offering that kind of revenue sharing.

 

[1reVOLver]

Wait you said per school - so if there are 1000 schools that is 1000 *20M = 20,000,000,000 = 20 billion. So 55B is not as crazy as it sounds.

That would be 36K per student.

And yes there is over 1000 colleges that offer sports in the U.S.

No. Please stop speculating and read about the House v NCAA CASE. the $20.5 million number is a permissible maximum for some, not all, colleges and universities.

• Revenue Sharing: Starting July 1, 2025, Division I schools can share up to 22% of the average Power Four conference media revenue with athletes, estimated at ~$20.5 million annually per school.

The world of college sports enters historic new territory after Judge Claudia Wilken granted final approval to the $2.8 billion settlement of the federal class-action antitrust lawsuit House v. NCAA on June 6, 2025.1 Much ink has been spilled about this litigation and the settlement, so we will be brief. The most significant elements of the settlement are as follows:

1. Athletes who competed in 2016-2024 and did not receive NIL (name, image, and likeness) compensation will receive payments totaling $2.8 billion over the next ten years.
2. Colleges and universities can directly compensate athletes roughly $20.5 million per school in 2025-2026, increasing by 4% annually for the next ten years.
3. New rules will limit the number of players allowed to be on team rosters.
4. A new entity, the College Sports Commission LLC (CSC), will be responsible for enforcing the rules relating to revenue-sharing, NIL deals, and roster limits.

Although the full impact of this settlement is uncertain, at least one appeal has already been filed, and additional litigation appears inevitable. On June 11, 2025, eight female athletes filed an appeal arguing that the distribution of approximately $2.8 billion violates Title IX because female athletes will receive less money than men’s basketball and football players.2Under the terms of the settlement, the first payments were scheduled to be made on July 1, 2025. Those payments will now be deferred while the appeal is under review.3

Final Approval for House v. NCAA Settlement Brings New Era, More Litigation

House v. NCAA settlement approved, $2.8B for athletes, new rules, CSC oversight, appeals filed, NIL deals audited, ongoing litigation expected.

www.wilmerhale.com

 

[lfvol]

No. Please stop speculating and read about the House v NCAA CASE. the $20.5 million number is a permissible maximum for some, not all, colleges and universities.

This. Plus clearinghouse approved third party marketing deals. In WBB, those seem most applicable to the best players like Edwards.