NIL "salary cap"

1,057 Views | 6 Replies | Last: 27 days ago by 59bear
HungryCalBear
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A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!
6956bear
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HungryCalBear said:

A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!

There is no cap. The House settlement caps direct revenue payments at about $20M annually. But that is just what the school can pay directly. There will be outside collectives still at most schools. Not sure if Cal will continue with that or not. Most schools will be using a distribution model of 75% to football or up to $15M per year.

I think Cal is planning for around $12M in direct revenue payments starting on July 1. That is dependent on the House settlement getting final approval.

Between the House settlement and outside collective most of the big programs will be over $20M in annual payments to players.

The payments from the school are considered direct revenue payments and not NIL. NIL will be all the oustide monies a collective can raise. Those payments are supposed to be reported to an outside clearinghouse that will monitor the payments and the sources. The payments are supposed to be capped at $600 per deal and be a legit NIL source not simply boosters. Good luck getting that to pass muster in court.

Until Congress intercedes and creates some anti-trust exemptions for the schools (NCAA) this will continue to be the wild wild west.

The $20M in direct payments the settlement allows is a cap. Not a floor. So it is up to each school to decide on the level they can afford to pay. Since the ACC and Big 12 receive significantly less TV revenues they likely will have lower budgets. The G5 like Boise State are in a real bind as their revenues are much less than the P4. But since outside collectives will continue to exist the cap is really the 75% in direct revenues plus any oustide collective payments which are capped only by what they can collect in donations and the few legit opportunities they secure.
bencgilmore
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HungryCalBear said:

A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!

'cap' isn't really the right word. currently collectives have... i guess whatever they have/want to spend. at this second there is no limit as far as i know. oregon and ohio state had $20m rosters this season. i believe i saw Cal's was at about $7m

the house settlement sort of suggests a 'limit' of $20m across all sports, but i'm still not totally clear on whether that replaces or supplants the collectives (or if its not really known at this time)
6956bear
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bencgilmore said:

HungryCalBear said:

A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!

'cap' isn't really the right word. currently collectives have... i guess whatever they have/want to spend. at this second there is no limit as far as i know. oregon and ohio state had $20m rosters this season. i believe i saw Cal's was at about $7m

the house settlement sort of suggests a 'limit' of $20m across all sports, but i'm still not totally clear on whether that replaces or supplants the collectives (or if its not really known at this time)
No "cap" is the wrong word. It is what they have to spend. But they can certainly spend more if they had it. The settlement is a cap. The outside collectives can and will still exist. The NCAA is trying to regulate that. It will be unsuccessful almost certainly without congressional intervention.

The collectives, players and player agents will sue. They will win. So the major collectives will continue to pay as the major conference bluebloods can pay the players with TV revenues. Donors can support the collectives and will. The annual cap number set by the settlement is just what the school can pay.

There are no rules. Players get waivers daily to extend eligibility. You can transfer every semester if you want. There will be more lawsuits as the NCAA is unwilling to fight in court any longer. They lose every time and cannot afford the battles.

Absent congressional intervention there will be no limits on what players can receive in NIL. Just what each school can provide through direct revenue payments. Which is a gigantic advantage for teams in the SEC and B1G that receive enormous TV revenues. Everyone else will need to cut programs and staff just to be semi competitive.

HearstMining
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6956bear said:

HungryCalBear said:

A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!

There is no cap. The House settlement caps direct revenue payments at about $20M annually. But that is just what the school can pay directly. There will be outside collectives still at most schools. Not sure if Cal will continue with that or not. Most schools will be using a distribution model of 75% to football or up to $15M per year.

I think Cal is planning for around $12M in direct revenue payments starting on July 1. That is dependent on the House settlement getting final approval.

Between the House settlement and outside collective most of the big programs will be over $20M in annual payments to players.

The payments from the school are considered direct revenue payments and not NIL. NIL will be all the oustide monies a collective can raise. Those payments are supposed to be reported to an outside clearinghouse that will monitor the payments and the sources. The payments are supposed to be capped at $600 per deal and be a legit NIL source not simply boosters. Good luck getting that to pass muster in court.

Until Congress intercedes and creates some anti-trust exemptions for the schools (NCAA) this will continue to be the wild wild west.

The $20M in direct payments the settlement allows is a cap. Not a floor. So it is up to each school to decide on the level they can afford to pay. Since the ACC and Big 12 receive significantly less TV revenues they likely will have lower budgets. The G5 like Boise State are in a real bind as their revenues are much less than the P4. But since outside collectives will continue to exist the cap is really the 75% in direct revenues plus any oustide collective payments which are capped only by what they can collect in donations and the few legit opportunities they secure.
What's the likelihood of a Title IX - type lawsuit demanding that the $20M be equally distributed across men's and women's teams, regardless of how much revenue each team brings in?
6956bear
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HearstMining said:

6956bear said:

HungryCalBear said:

A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!

There is no cap. The House settlement caps direct revenue payments at about $20M annually. But that is just what the school can pay directly. There will be outside collectives still at most schools. Not sure if Cal will continue with that or not. Most schools will be using a distribution model of 75% to football or up to $15M per year.

I think Cal is planning for around $12M in direct revenue payments starting on July 1. That is dependent on the House settlement getting final approval.

Between the House settlement and outside collective most of the big programs will be over $20M in annual payments to players.

The payments from the school are considered direct revenue payments and not NIL. NIL will be all the oustide monies a collective can raise. Those payments are supposed to be reported to an outside clearinghouse that will monitor the payments and the sources. The payments are supposed to be capped at $600 per deal and be a legit NIL source not simply boosters. Good luck getting that to pass muster in court.

Until Congress intercedes and creates some anti-trust exemptions for the schools (NCAA) this will continue to be the wild wild west.

The $20M in direct payments the settlement allows is a cap. Not a floor. So it is up to each school to decide on the level they can afford to pay. Since the ACC and Big 12 receive significantly less TV revenues they likely will have lower budgets. The G5 like Boise State are in a real bind as their revenues are much less than the P4. But since outside collectives will continue to exist the cap is really the 75% in direct revenues plus any oustide collective payments which are capped only by what they can collect in donations and the few legit opportunities they secure.
What's the likelihood of a Title IX - type lawsuit demanding that the $20M be equally distributed across men's and women's teams, regardless of how much revenue each team brings in?
No doubt somebody will go there.
59bear
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HearstMining said:

6956bear said:

HungryCalBear said:

A Boise State coach says their NIL "salary cap" is at $2M; an un-named middle-of-the-pack Big 12 team's cap is at $12.5M. Anyone knows roughly what is it at Cal? I'm very happy to read about all the recent transfers, thanks to California Legends Collective!

There is no cap. The House settlement caps direct revenue payments at about $20M annually. But that is just what the school can pay directly. There will be outside collectives still at most schools. Not sure if Cal will continue with that or not. Most schools will be using a distribution model of 75% to football or up to $15M per year.

I think Cal is planning for around $12M in direct revenue payments starting on July 1. That is dependent on the House settlement getting final approval.

Between the House settlement and outside collective most of the big programs will be over $20M in annual payments to players.

The payments from the school are considered direct revenue payments and not NIL. NIL will be all the oustide monies a collective can raise. Those payments are supposed to be reported to an outside clearinghouse that will monitor the payments and the sources. The payments are supposed to be capped at $600 per deal and be a legit NIL source not simply boosters. Good luck getting that to pass muster in court.

Until Congress intercedes and creates some anti-trust exemptions for the schools (NCAA) this will continue to be the wild wild west.

The $20M in direct payments the settlement allows is a cap. Not a floor. So it is up to each school to decide on the level they can afford to pay. Since the ACC and Big 12 receive significantly less TV revenues they likely will have lower budgets. The G5 like Boise State are in a real bind as their revenues are much less than the P4. But since outside collectives will continue to exist the cap is really the 75% in direct revenues plus any oustide collective payments which are capped only by what they can collect in donations and the few legit opportunities they secure.
What's the likelihood of a Title IX - type lawsuit demanding that the $20M be equally distributed across men's and women's teams, regardless of how much revenue each team brings in?
My impression is that Title IX is largely toothless.Has anysignificant enforcement action ever been implemented under this law?
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