We are officially entering a new era of college athletics, and the future is about as clear mud. College sports is on the verge of changing forever after the NCAA Board of Governors and every P5 conference agreed to eliminate the amateurism title of student-athletes and agree to adopt share revenue with players by settling on a 2.8 billion dollar lawsuit with the NCAA.
In a joint statement by the P5 leaders, they said the following:
“The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come. This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students.”
This lawsuit will change college sports forever, some in a great way and some in a terrible way. Again, nobody has all the answers yet to what will happen, but based on our information, here are the likely winners and losers.
Word on Title IX
![$2.8 Billion Revenue-Sharing NCAA Settlement - Winners and Losers of Landmark Agreement 1 USATSI 23291525 scaled](https://gridironheroics.com/wp-content/uploads/2024/05/USATSI_23291525-scaled.jpg)
Before jumping into the true winners and losers, one group in particular needs to be discussed as their own topic: women’s sports and Title IX. Title IX, according to the US Department of Education and the Supreme Court, says the following:
No person in the United States shall, based on 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.
There are many questions about this. With schools now paying up to $20 million a year, it will be very interesting if the money has to be split up $10 million each or if certain non-revenue sports will get cut, and if they do, will it be equal across both sexes?
There are a lot of questions here, and it will be very interesting to see how Title IX plays into all of this.
Biggest Winners on the Settlement: SEC and Big 10
![$2.8 Billion Revenue-Sharing NCAA Settlement - Winners and Losers of Landmark Agreement 2 Charlie Baker is president of NCAA including college football.](https://gridironheroics.com/wp-content/uploads/2024/02/USATSI_21489039_168400517_lowres-e1706897124310.jpg)
The SEC and Big 10 are about to start cashing in on TV contracts around or just north of $100 million per year. At the same time, the ACC and Big 12 will be in the $30-40 million range, while G5 schools will be well below $5 million per year.
While $20 million will still be a formidable amount of money, it will only take up a fraction of the money that the Big 10 and SEC make, allowing these schools to allocate quite a bit for recruiting, facility improvements, and fan engagement. The ACC and Big 12 will be able to handle the money but be more strapped for cash for those improvements and extra amenities. The G5 schools, on the other hand, are in serious trouble, and some may have to shut down entire athletic departments.
If you thought the gap between P4 and G5 was big now, it’s nothing compared to what it will be.
Biggest Loser on the Settlement: NCAA
![$2.8 Billion Revenue-Sharing NCAA Settlement - Winners and Losers of Landmark Agreement 3 NCAA logo](https://gridironheroics.com/wp-content/uploads/2024/05/USATSI_21946331-scaled.webp)
The NCAA is a huge loser here as they continue to lose more and more power in college sports. Also, even with as much money as they have, $2.8 billion will hurt them quite a bit. Also, the NCAA has been fighting against schools paying players forever, and losing that control may end up being the nail in the coffin that ends all of their control over college sports. Additionally, with the settlement costing as much as it is, watch for the NCAA to lay off some of their employees and function on a much tighter budget.
The one silver lining is that this settlement ties the P4 conferences to the NCAA for at least the next ten years, eliminating the possibility of the P4 breaking away completely and doing their own tournament.
Loser: Mid-Level Employees
We are likely about to find out which employees are actually essential and which ones aren’t. Schools have been hiring analysts, assistants, administrators, and trainers at an unprecedented rate. Many of these jobs are non-essential and can be combined into other jobs or be removed completely. If you’ve looked at a team picture of the Alabama Crimson Tide, you probably know exactly what I mean. There are photos of the team surrounded by dozens of staffers. In fact, in the photo above, there are 61 staffers pictured, with dozens more who could have been included.
Even with the money coming in from TV revenue, some of these employees are surely starting to get a bit antsy and at least updating their resumes just in case. They may be okay at some of the bigger schools in the SEC/Big 10, but just about everywhere else; watch out!
Winner: Boosters and Donors
Athletic departments have depended on boosters to help fund NIL and recruiting. While some schools will still be looking to help with NIL, this lawsuit does at least take the first step toward having salary caps and players less dependent on NIL from other sources.
With the transfer portal being as impactful as it is in college sports, donors have started to get tired of raking in millions of dollars just to try to retain or gain players from the portal. Most donors and boosters prefer to distribute that money to things they can see, such as stadium upgrades, locker room renovations, or building new facilities.
With this settlement, at worst, NIL money will be a smaller fraction, and at best, laws will continue to change so that donations can go where a donor can actually see them for years to come.
The NCAA and its five power conferences reached a deal that includes a settlement of nearly $2.8 billion to be paid to thousands of former athletes — and creates a system allowing D1 schools to pay student-athletes.@RossDellenger breaks down what this means for college sports. pic.twitter.com/rYzOyYgRbj
— CBS Mornings (@CBSMornings) May 24, 2024
Loser: Non-Revenue Sports
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This was mentioned above, but non-revenue sports are now in danger. Many schools are already operating at a negative balance. Even some P4 schools are in the negative as they struggle to fill stadiums while also spending the insane amount of money that other P4 schools are spending to keep up financially.
These schools, as well as many G5 programs, may now be facing the reality of having to cut sports. Think of a school like New Mexico State, which plays in Conference USA along with Florida International, Jacksonville State, and Liberty, all on the East Coast. Football and basketball may be safe, but what about men’s and women’s tennis, golf, or track and field? It’s expensive to fly across the country multiple times per year, so some schools may decide to eliminate some teams.
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