There may be a silver lining in an unlikely cloud hanging over the darkened world of collegiate athletics, one that could provide much-needed guardrails on athlete compensation and the transfer portal.
Florida State athletics director Michael Alford dropped the news bomb during the recent Town Hall meeting when he said the House-NCAA settlement, which requires athletic departments to share upwards of $20.5 million of revenue with its athletes as a result of the NCAA vs House Settlement, “is really going to clean up where we've been in this wild west atmosphere we've had the last few years, and I think for the betterment of the student-athlete as well.”
Interesting. How can sharing $20.5 million of revenue with the athletes be a good thing for an athletic department?
House settlement will address the following:
- Establish real market value for athletes to put guardrail cap on NIL payments
- Third party entity (perhaps Deloitte) will run the market analysis and enforce it, not the NCAA
- Penalties could include loss of eligibility, reduction of the $20.5 mill university can share with athletes
- Contract between the athlete and the school for revenue share/NIL with a term of the contract, 1, 2, 3, 4 years with a buyout if the athlete chooses to transfer.
Will this new path face future legal challenges? Experts believe it will but in our estimation, and that of Michael Alford, its a step in the right direction out of the Wild West.
Could the House Settlement help clean up the Wild West?