NCAA set to allow direct payments to athletes

MountainManHawk

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TT has already spent a lot of Pre-House Pay for Play money the past couple of years on their FB and MBB teams as well. The big question is whether they find ways to continue to spend that much starting with the 2026-27 sports calendar year under House Settlement rules. Their Pay for Play contracts are done deals for for 2025-26 for all 3 sports.

As JP recently stated, there are some rich boosters out there who are acting like pro sports owners but without the future ROI of eventually selling the franchise. In this case, it's former TT SB player, Traci Sellers, wanting to see TT win a SB national title and buying players to achieve that goal.

The other thing is for normal people it’s almost hard to wrap your head around how inconsequential these dollar amounts are for a billionaire.

A billionaire spending $5m to buy the best softball team is the equivalent of someone with a net worth of a million spending 5 thousand bucks.

I can guarantee if I was a billionaire I would do a lot more wasteful spending than that.
 

Mr Janny

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cykadelic2

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And so it begins... again

Yeah, the collectives predictably would rather run to the Judge and cry instead of going through the Deal arbitration process and be subject to subpoena. One would hope the Judge would tell them that. The arbitration process was designed to administer the resolution of initially rejected deals.
 

MountainManHawk

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Who could have possibly seen this coming other than everybody?!?!?!?
I’ve always felt like enough donors and teams had a good experience with buying talent that they aren’t going to willingly just give it up. I’m sure the donors at Ohio State think last year was a lot of fun and plan to keep buying teams like that. And if the NCAA does somehow succeed in getting collectives shut down, then the big spending schools will just pay players under the table.


On a related note, the quote at the end of this is funny:

Ohio State made headlines last summer for its $20 million roster, widely believed to be the most expensive roster to date. The Buckeyes will surpass that number with their 2025 team. The Wall Street Journal previously reported Ohio State will spend between $30 million and $35 million this fall. Sources have indicated to On3 that the Buckeyes will be north of the $35 million mark.

Wide receiver Jeremiah Smith is expected to be the highest-paid non-quarterback in college football this season. On3 reported in January that Smith was offered $4.5 million to enter the portal. Sources said he’s expected to make more than that this season at Ohio State.

“I’m not going to lie, we called about him,” a general manager said of Smith. “Reached out to his people. They were like, ‘It’s going to have to be $7 million.’ And I was like, ‘Have a great day.'”


 
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1UNI2ISU

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I’ve always felt like enough donors and teams had a good experience with buying talent that they aren’t going to willingly just give it up. I’m sure the donors at Ohio State think last year was a lot of fun and plan to keep buying teams like that. And if the NCAA does somehow succeed in getting collectives shut down, then the big spending schools will just pay players under the table.


On a related note, the quote at the end of this is funny:

Ohio State made headlines last summer for its $20 million roster, widely believed to be the most expensive roster to date. The Buckeyes will surpass that number with their 2025 team. The Wall Street Journal previously reported Ohio State will spend between $30 million and $35 million this fall. Sources have indicated to On3 that the Buckeyes will be north of the $35 million mark.

Wide receiver Jeremiah Smith is expected to be the highest-paid non-quarterback in college football this season. On3 reported in January that Smith was offered $4.5 million to enter the portal. Sources said he’s expected to make more than that this season at Ohio State.

“I’m not going to lie, we called about him,” a general manager said of Smith. “Reached out to his people. They were like, ‘It’s going to have to be $7 million.’ And I was like, ‘Have a great day.'”


Just that. When you've got the pool of donors that true blue bloods have and the accompanying egos, there is no such thing as donor fatigue. When one guy pulls back, there are 10 others there to kick in more and take his place.

The only way it gets better is legislation followed by another giant round of lawsuits. The lawyers have already made 10 figures and they might make 10 more by the time this is all done.
 

cykadelic2

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And if the NCAA does somehow succeed in getting collectives shut down, then the big spending schools will just pay players under the table.
Collectives aren't going to be shut down nor where they intended to be shut down by the NCAA or CSC. They are now intended to act as RevShare fundraisers and as marketing agencies to assist athletes with NIL opportunities with for-profit businesses. The collectives now crying want to continue their direct pay for play relationships with athletes outside of the RevShare cap.
 
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Mr Janny

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"In the memo sent to schools, the CSC offered an example of a deal that would get denied. The example stated that a collective couldn’t pay a player to appear at a meet-and-greet to which the collective charged fans admission."

Isn't that specifically what name image and likeness is about, though? If We Will wants to facilitate an event where fans can come and meet their favorite players and maybe get some memorabilia signed, and the proceeds go to the players whom the fans are coming to see, they can't? How is that not legitimate? In my mind, that's exactly what NIL is about. Athletes profiting from their own noteriety.
 

1UNI2ISU

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"In the memo sent to schools, the CSC offered an example of a deal that would get denied. The example stated that a collective couldn’t pay a player to appear at a meet-and-greet to which the collective charged fans admission."

Isn't that specifically what name image and likeness is about, though? If We Will wants to facilitate an event where fans can come and meet their favorite players and maybe get some memorabilia signed, and the proceeds go to the players whom the fans are coming to see, they can't? How is that not legitimate? In my mind, that's exactly what NIL is about. Athletes profiting from their own noteriety.
Which is exactly why the courts are going to strike this down HARD.

The collectives shouldn't be treated any different than any other non-profit that would sell tickets to a dinner or auction or event with the promise of meeting a celebrity who is making a paid appearance. Literally the same thing. The collectives have every right to fundraise.
 
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cykadelic2

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"In the memo sent to schools, the CSC offered an example of a deal that would get denied. The example stated that a collective couldn’t pay a player to appear at a meet-and-greet to which the collective charged fans admission."

Isn't that specifically what name image and likeness is about, though? If We Will wants to facilitate an event where fans can come and meet their favorite players and maybe get some memorabilia signed, and the proceeds go to the players whom the fans are coming to see, they can't? How is that not legitimate? In my mind, that's exactly what NIL is about. Athletes profiting from their own noteriety.
The proceeds in this example would be directed to RevShare and athlete compensation would paid of out RevShare. WWC or any other collective can fund raise and pay athletes in this manner.

That is why the Clearinghouse is denying these deal scenarios. Collectives knew this in advance. And Staples is full of crap that collectives would cease to exist. Many are being absorbed into the AD or the AD marketing agency (e.g. ISU and Learfield).
 

Mr Janny

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The proceeds in this example would be directed to RevShare and athlete compensation would paid of out RevShare. WWC or any other collective can fund raise and pay athletes in this manner.

That is why the Clearinghouse is denying these deal scenarios. Collectives knew this in advance. And Staples is full of crap that collectives would cease to exist. Many are being absorbed into the AD or the AD marketing agency (e.g. ISU and Learfield).
Jeffrey Kessler and others are licking their chops. The clearinghouse is just begging to be challenged. This kind of excessive regulation that other students aren't subject to is exactly what Kavanaugh was talking about in the Alston case. And Claudia Wilken, who more than likely will end up presiding, is not exactly known for seeing it the NCAA's way.
 
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CloneJD

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"In the memo sent to schools, the CSC offered an example of a deal that would get denied. The example stated that a collective couldn’t pay a player to appear at a meet-and-greet to which the collective charged fans admission."

Isn't that specifically what name image and likeness is about, though? If We Will wants to facilitate an event where fans can come and meet their favorite players and maybe get some memorabilia signed, and the proceeds go to the players whom the fans are coming to see, they can't? How is that not legitimate? In my mind, that's exactly what NIL is about. Athletes profiting from their own noteriety.
The collective is a non-profit who only exist to pay athletes. Of course that’s not a business purpose by definition. I honestly don’t think this argument goes anywhere because it’s exactly what the settlement was designed to get rid of.
 
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CloneJD

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Jeffrey Kessler and others are licking their chops. The clearinghouse is just begging to be challenged. This kind of excessive regulation that other students aren't subject to is exactly what Kavanaugh was talking about in the Alston case. And Claudia Wilken, who more than likely will end up presiding, is not exactly known for seeing it the NCAA's way.
This will go to an arbitration attorney/panel under the terms of the agreement, not Wilken.
 

Mr Janny

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The collective is a non-profit who only exist to pay athletes. Of course that’s not a business purpose by definition. I honestly don’t think this argument goes anywhere because it’s exactly what the settlement was designed to get rid of.
Why does it matter? We Will is a 501c, legally no different than any other non profit organization. That's ripe for a lawsuit.
 

Mr Janny

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This will go to an arbitration attorney/panel under the terms of the agreement, not Wilken.
The Collectives were not a party to the House settlement, just athletes and schools. A collective bringing litigation against the clearinghouse wouldn't necessarily fall under arbitration. You can bet that any lawyer worth his or her salt would be arguing that point.
 

cykadelic2

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Jeffrey Kessler and others are licking their chops. The clearinghouse is just begging to be challenged. This kind of excessive regulation that other students aren't subject to is exactly what Kavanaugh was talking about in the Alston case. And Claudia Wilken, who more than likely will end up presiding, is not exactly known for seeing it the NCAA's way.
Kessler signed on to the terms of Agreement on behalf of the athletes he represented, including terms related to the Clearinghouse.

Before the Settlement was finalized, there was an adjustment made to the terms of the Settlement that permitted Collectives to be engaged in payments to athletes as long as the deal was for the valid business purpose of a for-profit business. This was clarified by the CSC in the additional guidance they provided last week.

It appears many Collectives (predictably) submitted a high volume of deals to the Clearinghouse that did not meet the for-profit standard as defined in the Settlement. Those deals were initially rejected so instead of Collectives disputing the rejected deals via the Clearinghouse arbitration process (and subjecting themselves to subpoena), they instead went crying to Kessler. And the subpoena requirement will also steer away many large donors from submitting deals to the Clearinghouse if they were attempting to disguise pay for play deal as True NIL.

And Wilken is not the presiding Judge for Settlement disputes.
 

CloneJD

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The Collectives were not a party to the House settlement, just athletes and schools. A collective bringing litigation against the clearinghouse wouldn't necessarily fall under arbitration. You can bet that any lawyer worth his or her salt would be arguing that point.
Exactly. The collectives aren’t party to the agreement and don’t have standing to challenge it. That is why kessler specifically said he’s going to go to arbitration . And athletes going to arbitration won’t have a pot to piss in.

If House is going to have any chance of falling it’s going to have to be through the collective bargaining line of attack.
 
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cykadelic2

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The Collectives were not a party to the House settlement, just athletes and schools. A collective bringing litigation against the clearinghouse wouldn't necessarily fall under arbitration. You can bet that any lawyer worth his or her salt would be arguing that point.
Under the terms of the Settlement, rejected Clearinghouse deals are to be disputed via arbitration with the deal submitter agreeing to subject themselves to subpoena in doing so.

It is obvious rogue collectives don't want be subpoenaed. Instead, they ran and cried to Kessler.