NCAA to schools: Pay up $30 million *per year* or we go bankrupt - Printable Version

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NCAA to schools: Pay up $30 million *per year* or we go bankrupt - needle - 05-15-2024

Remarkable reporting on what appears to be the NCAA's last best offer to settle lawsuits seeking backpay to athletes:

Docs: NCAA could face $20B in damages, bankruptcy if proposed settlement offer isn't agreed upon

Quote: The settlement, believed to be in the final stages of adoption, consists of three main concepts: billions in back damages; a new compensation model permitting schools to share as much as $22 million annually with athletes in a capped system; and an overhaul of the NCAA scholarship and roster structure.

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Quote: The settlement is expected to provide what the document terms a “release” of antitrust compensation claims from current, former and future athletes for 10 years as part of a “substitution” system for new plaintiffs. In a story on Yahoo Sports earlier this week, such a concept was cited by plaintiff attorney Steve Berman, who said the settlement features a built-in element by which each new class of athletes can opt into the revenue-sharing structure.

Yes, the settlement would, at least in theory, effectively kill booster payments posing as NIL and create a "capped" system of revenue sharing. But the price tag is incredibly high, and there is nothing in the settlement precluding athletes from seeking employee status (which obviously would bring about additional costs to the putative employers).

Of note: 

Quote: As part of the new model, officials plan to lift scholarship limitations and implement roster limits, permitting schools to offer scholarships to an entire roster — a concept to prevent future litigation and one explored in detail in a story last week at Yahoo Sports.

The up to $22M in annual revenue sharing with current athletes + payments from schools for the backpay legal settlement + expanded costs for scholarships under the new roster model = roughly $30 million annually.

Link to today's story:
https://sports.yahoo.com/docs-ncaa-could-face-20b-in-damages-bankruptcy-if-proposed-settlement-offer-isnt-agreed-upon-232315637.html

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