$60 Million Sharing Cap
- Thread starter PrimeCy
- Start date
Frankly, they just need to be separated from the university system altogether at this point.
How are you going to tax college teams, the stadiums and arenas owned by the university, therefore tax exempt. The media deals would also fall under that same system, unlike professional sports the athletes are not being paid by the university, so they are not paying SS and other taxes on them, they are not university employees. Most college athletic funds are set up as non profit organizations, and therefore pay very little to none in taxes.
How do you tax a none profit organization?
Interesting article from Heartland College Sports about the Big10 and SEC wanting a $60 million sharing cap.
Can the Big 12 Afford a $60 Million Sharing Cap?
In recent weeks, the Protect College Sports Act, headed for a full Senate vote next month, has stolen the spotlight and understandably so. It’s an important bill, and one that fundamentally reshapes the nature of college athletics, and football in particular, which is the golden goose of revenue...www.heartlandcollegesports.com
One good sign of this that 3rd party NIL endorsements aren't seen as unlimited to the big wigs. They want a $60M cap because they can afford to pay that directly. Apparently they aren't getting from $20M all the way to $60M today, or haven't found a way to shift $40M to third parties for sham NIL deals.
Is this relegation idea plausible?
$60M cap on Revenue sharing but if a football athlete gets Revenue sharing money, they are not allowed 3rd party endorsements (maybe not legal but may be needed)
Champions League - Initially current Big 10 and SEC teams and Notre Dame
Relegation League - Big 12 and ACC
Rebuild League - Everyone else
Football media deals are separated from other sports. There is a separate deal for each league and all teams in that league split revenue equally.
Theoretically lets say Champions League gets $80M per team, Relegation League gets $40M per team, Rebuild League gets $10M per team. Any team in any league can spend up to the $60M cap in revenue sharing.
Bottom 4 teams in Champions League drop to Relegation. Top 4 teams in Relegation go to Champions. Bottom 4 teams in Relegation go to Rebuild. Top 4 teams in Rebuild go to Relegation.
Each team can schedule 2 "friendlies" that don't count towards relegation (to save rivalries). Maybe those games can be sold individually?
10 game regular season within your league only.
Champions League has a playoff for the College Football Champion. They could even have a Play In Tournament to avoid Relegation.
Relegation League as a playoff for Promotion, maybe even a League championship. Play In Tournament to Avoid Relection.
Rebuild League has a playoff for Promotion, maybe even a championship.
Benefits:
1. Maintains rivalries via friendlies.
2. If you get promoted, the bump in media revenue immediately allows you to spend more on players.
3. If you get relegated, your media revenue drops so you can't likely afford to pay as much as players, but you should be in a similar ballpark as others in your league.
4. Because media revenue changes impact what is paid for players (probably), it doesn't impact your athletic department if you drop down.
5. Some promoted schools may choose to not use it all for players but use it for facility upgrades.
6. More teams have something to play for. Not just the college football playoffs, but promotion.
7. The promotion/relegation aspect might mean lower level team's media rights are better than they are today.
8. Its a fun idea. As a long term Iowa State fan, if we were in the Bottom league in theh 90's, how cool would getting promoted be? Insight Bowl with Mac was an awesome feeling. Getting a promotion would have been an even greater feeling.
No way the big 10 and Sec will enforce a hard cap amongst themselves so their word is meaningless. They are born liars.
