The $10 million club: College basketball's portal recruiting hits unthinkable levels of financial chaos

rivercatinfl

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I love college sports but I can't help think unless a school subsidizes ticket prices, people will have to pay through the nose to get into a game.
I know very few people who will pay $1000 for a regular season basketball or football game.
 
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know1

Heisman
Dec 8, 2002
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I don't understand why so many people are infatuated and focused on and worried about the money and what we and other teams are paying players. I get that it's a very important part of college basketball now, but it's the comments like Player X isn't worth $X million, or we should play so - and - so $X million, that I don't understand. It's not your money or your decision.

It's also pure speculation since you don't even really know the amounts.
 

UK90

Heisman
Dec 30, 2007
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Semi Pro means you are not ready for the upper league such as the NBA.
No it does not. If that we’re true, then there would be only one professional league in the world.

A semi-pro league, by definition, is one where the players needs a separate job to provide their primary income with the the league being just a part-time side venture providing only a supplemental amount.

Suffice to say, none of our players will be requiring a separate day job.
 
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Spanish Radio

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No it does not. If that we’re true, then there would be only one professional league in the world.

A semi-pro league, by definition, is one where the players needs a separate job to provide their primary income with the the league being just a part-time side venture providing only a supplemental amount.

Suffice to say, none of our players will be requiring a separate day job.
They are full time students or at least pretend to be.
 

rick64

Heisman
Jan 25, 2007
22,987
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Without NIL being 'legal' I wonder what the going rate would be? 😉😂
 

bthaunert

Heisman
Apr 4, 2007
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It will have to eventually get settle some. There is no way that Kentucky can direct $10 million from donors to basketball NIL, another $10 million from donors for football, another $22 million of their annual revenue to revenue sharing and an additional $5 million to the increased scholarship limits and keep their head above water.

In FY24, UK's projected revenue from the K Fund was $32 million. A majority of that $20 million combined NIL is coming from people that usually give that money to the K Fund but are giving to NIL instead, or giving less to K fund than they normally would. Add all of that together and and you're all of a sudden in the hole by $40 to $50 million as an athletic department.

The financial ramifications on big time athletic programs is going to be massive.
 
Nov 29, 2023
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Utterly insane how much the price tags have spiraled in just a couple years.

It’s has to eventually reach a point where this game is no longer economically sustainable, right?
Yeah, it's not sustainable. It can't continue like this. Right now, it's at the mercy of fans and wealthy donors to fund a new roster every single year in football and basketball. Their return? Your favorite team wins?

My love for the sport has nosedived the last several years given the constant roster turnover via one and done and now this, and the constant threes and free throws. It's a **** product.

Every single kid goes into the portal now it seems. You're negotiating and recruiting your own roster over and over again which is what has driven successful coaches out of the sport.

Also the cost is being handed back to the fans, I'm sure like with what Tennessee does. So despite it already being super expensive to go to a game, it's even more expensive now because a 20-22 year old kid wants more money?
 

Blue-ish

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What ticks me off is that college fball and bball operate under Universities that have non-profit tax status with Billion dollar endowments.

UniversityEndowment (approx.)
University of Texas System$44 billion+
University of Michigan$17.9 billion
University of California System$16.5 billion
University of Virginia$13.6 billion
Texas A&M University System$13.5 billion
 

W1LDCAT22

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Utterly insane how much the price tags have spiraled in just a couple years.

It’s has to eventually reach a point where this game is no longer economically sustainable, right?
Yep, there has to be some sort of checks and balances to all this. This "Wild Wild West" type of demands just aren't sustainable.
 
Nov 29, 2023
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It will have to eventually get settle some. There is no way that Kentucky can direct $10 million from donors to basketball NIL, another $10 million from donors for football, another $22 million of their annual revenue to revenue sharing and an additional $5 million to the increased scholarship limits and keep their head above water.

In FY24, UK's projected revenue from the K Fund was $32 million. A majority of that $20 million combined NIL is coming from people that usually give that money to the K Fund but are giving to NIL instead, or giving less to K fund than they normally would. Add all of that together and and you're all of a sudden in the hole by $40 to $50 million as an athletic department.

The financial ramifications on big time athletic programs is going to be massive.
And keep in mind, before the NIL stuff really exploded, there were only like 25 athletic departments that turned a profit from athletics. That number has either dropped or will drop drastically with new rosters every single year.

We are going to have to stop pretending these two sports are producing legit college students. They're not. The overwhelming majority are not doing work themselves that would pass on merit. Make them school employees and get contracts. That's the only way I can see this working.
 

cats#1again

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I love college sports but I can't help think unless a school subsidizes ticket prices, people will have to pay through the nose to get into a game.
I know very few people who will pay $1000 for a regular season basketball or football game.
I know few that would pay 250
 
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catsfanbgky

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It will lower after the new revenue sharing gets signed and implemented. After that goes into effect, there will be detailed monitoring and investigating every contract that is signed to A. make sure Boosters are not working side deals, and B. the players value is not inflated to where he gets paid more than his perceived value. The over paying and shady booster deals will go away.
 

Blue-ish

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It will lower after the new revenue sharing gets signed and implemented. After that goes into effect, there will be detailed monitoring and investigating every contract that is signed to A. make sure Boosters are not working side deals, and B. the players value is not inflated to where he gets paid more than his perceived value. The over paying and shady booster deals will go away.
What organization will be doing the monitoring and investigating?
 

catsfanbgky

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What organization will be doing the monitoring and investigating?
I forgot the name, some clearinghouse company, i will try to find it.

Deloitte is the company that will use their software to track it. They also do the cap software tracker for MLB, NBA, NWSL They will be cap managers and clearinghouse vendors to track and monitor third party NIL deals. The "Settlement Implementation Committee" made up of 10 AD's, 2 from each autonomy conferences. Any player worth $600 or more in NIL value will be monitored to make sure they are paid by the players NIL value guidelines set by Deloitte. There will also be compliance and legal administrators from the 5 conferences also to make sure everything is within the parameters set.
The cap set for teams (all sports) is set at $20.5 million per team.

Here you go :

Committee Announcement Offers Insight into the Future of Enforcement Under the House Settlement​

Holt Hackney labor legal NCAA April 10, 2025 | 0

By Joel D. Buckman, Matthew E. Eisler, Peter S. Spivack, Benjamin Andrew Fleming, and Evan W. Guimond, of Hogan Lovells
As the pending settlement in In re: College Athlete NIL Litigation, Case No. 4:20-CV-03919 (N.D. Cal) (the “House Settlement”) inches toward a final approval hearing before Judge Claudia Wilken on April 7th, a big question facing NCAA Division I institutions is what the enforcement picture might look like in a post-House world. On March 12, 2025, the NCAA and the five autonomy conferences1 announced an important piece to the puzzle: formation of a “Settlement Implementation Committee” (the “Committee”) to oversee the implementation, oversight, and enforcement of the House Settlement.
The announcement of the Committee, which is comprised of 10 athletics directors (two from each autonomy conference) as well as legal and compliance administrators from the autonomy conferences and the NCAA, confirmed reports that enforcement of the House Settlement’s revenue-sharing and NIL regulations will be carried out by a new enforcement entity separate and apart from the traditional NCAA infractions process.

While important details of the new enforcement entity are TBD, the combination of the Committee announcement with the previously-announced roles of LBi Software and Deloitte as cap-management and clearinghouse vendors, begins to bring the post-House enforcement picture into clearer focus. For Division I institutions, it will be critical to have a deep understanding of the new enforcement environment as they learn to navigate the new normal (assuming approval of the House settlement).

What the Announcement Reveals About Enforcement Under House​

Per the terms of the terms of the Settlement and the March 12th Committee announcement, there are five key pillars of the proposed oversight and enforcement structure under House:
  • First, the Committee is responsible for drafting new rules and clarifying existing rules to facilitate compliance with the terms of the Settlement.
  • Second, the Committee will develop a digital cap management and reporting platform to monitor compliance with the Settlement’s institutional revenue sharing cap (roughly $20.5 million per institution for the 2025-26 academic year). The NCAA and autonomy conferences have retained LBi Software, which has served in a similar cap management oversight capacity for professional leagues such as MLB, the NBA, and the NWSL, to develop this platform.
  • Third, the Committee will oversee the creation of a clearinghouse system, operated by Deloitte, to track and evaluate all third-party NIL deals for Division I student-athletes valued at $600 or more. The Settlement requires that student-athletes report such NIL deals to the clearinghouse system, and also requires that all NIL deals with “associated entities and individuals” meet fair-market-value criteria and be in furtherance of a legitimate business purpose.
  • Fourth, the Committee will form a new enforcement entity that will investigate, adjudicate, and punish violations of the Settlement’s terms, in part with assistance from the data collected by LBi and Deloitte.
  • Fifth, although not addressed in the March 12th announcement, the House Settlement provides that the NCAA and autonomy conferences will appoint neutral arbitrators to arbitrate any and all disputes regarding penalties imposed by the new enforcement entity. The Settlement would require that any punishments administered by the new enforcement entity will be arbitrated on an accelerated schedule and completed within 45 days of commencement of proceedings. The NCAA and the conferences have yet to announce details about the arbitration process.
The Committee announcement confirms that enforcement of the Settlement’s revenue sharing and NIL regulations will fall upon the newly created enforcement entity and will not occur within the traditional NCAA infractions process (investigation and processing of alleged violations by the NCAA Enforcement Staff, adjudication by the Committee on Infractions, and appellate proceedings before the Infractions Appeals Committee). The composition of the Committee also suggests that the autonomy conferences, and not the NCAA, will play the leading role in the creation and administration of the enforcement entity. While it is widely expected that the NCAA enforcement staff will continue to investigate and allege violations of the NCAA bylaws in other areas such as academics and eligibility, the creation of the new enforcement entity represents a major change in the oversight of major college athletics.


 
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Someguywhodoesntlikeyou

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And keep in mind, before the NIL stuff really exploded, there were only like 25 athletic departments that turned a profit from athletics. That number has either dropped or will drop drastically with new rosters every single year.

We are going to have to stop pretending these two sports are producing legit college students. They're not. The overwhelming majority are not doing work themselves that would pass on merit. Make them school employees and get contracts. That's the only way I can see this working.

Again, this has always been the case. Nothing has changed. Players always got herded into easy classes, academic fraud always was an issue, players exhausted their eligibility without ever actually receiving a degree etc etc etc.

The only thing that has changed is the economics because the schools and NCAA could no longer collude to suppress a labor market for their benefit.

If the schools (and the media companies) hadn’t gotten greedy then maybe a system could have been constructed that’s more in line with this idea of “ amateurism” that people want to go on about that worked but try telling a kid who comes from dire straights that his basketball program made 35, 40 million dollars last year, his coach is being paid 8 million and he should be thankful he has a one year scholarship that a coach can pull any time he wants.
 
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catsfanbgky

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Takeaways for Division I Institutions​

Division I institutions should prepare for continued uncertainty in an evolving regulatory landscape. The Committee has yet to release details of key components of the planned oversight and enforcement structure, including proposed NCAA and conference bylaws implementing the terms of the Settlement, criteria for what will constitute “fair market value” for third-party NIL deals monitored by the Deloitte clearinghouse, or information regarding the new enforcement entity’s jurisdiction, operating procedures, charging guidelines, and penalty structure. Moreover, some anticipate that the clearinghouse and enforcement entity will be subject to further legal challenge upon implementation. Division I general counsels and athletic compliance officers should continue to closely monitor developments in this area to develop and revise appropriate and effective internal policies and trainings for student-athletes, administrators, and associated entities and individuals.

Additionally, Division I institutions should not wait for a decision from Judge Wilken on final approval to begin preparing for implementation of the Settlement. Institutions should work quickly to develop revenue-sharing agreements with student-athletes that comply with the terms of the Settlement and protect the institution from legal and regulatory risks, such as compliance with Title IX. Division I institutions should also begin to build the infrastructure necessary to educate student-athletes, coaches, administrators, and associated entities and individuals on the requirements of the House Settlement, including NIL reporting requirements and the fair market value/business purpose standard, as soon as feasible. Institutions with collectives also need to think about what can and should remain the same and what may need to change. It is critical to understand that third-party NIL deals will come under scrutiny relatively quickly: any third-party NIL deals executed after final approval of the Settlement (potentially as early as April 7, 2025), or with payments scheduled after July 1, 2025 (if the Settlement is approved prior to that date), will be subject to the clearinghouse’s fair market value/business purpose evaluation.

Institutions should also prepare for more sophisticated enforcement matters. Cases brought by the new enforcement entity will occur on an expedited basis and are likely to involve disputes over complex commercial contracts between student-athletes and third-party entities. Therefore, institutions, student-athletes, and associated third-parties may face expanded discovery obligations under increased time pressure as compared to the traditional NCAA infractions process. Institutions will also need to be prepared to pivot quickly to expedited arbitration hearings in the event the enforcement entity levies penalties against the institution or an institutional student-athlete. We expect this process will look much more like arbitrations and similar proceedings in professional sports, and attorneys from our leading sports disputes practice, are collaborating with our higher education team to monitor developments and help institutions plan accordingly. In sum, given the expedited and complex proceedings anticipated under the new enforcement structure—a move meant to streamline proceedings to emulate those in professional sports leagues—legacy approaches to NCAA enforcement matters may no longer be as valuable.
 

HogFan2012

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May 1, 2024
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I love college sports but I can't help think unless a school subsidizes ticket prices, people will have to pay through the nose to get into a game.
I know very few people who will pay $1000 for a regular season basketball or football game.
This year all season ticket holders at AR BB is being reseated according to your donation level.
This is only to raise more money. I think it's going to backfire on them.
 

UK’98UK’00

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I don't understand why so many people are infatuated and focused on and worried about the money and what we and other teams are paying players. I get that it's a very important part of college basketball now, but it's the comments like Player X isn't worth $X million, or we should play so - and - so $X million, that I don't understand. It's not your money or your decision.

It's also pure speculation since you don't even really know the amounts.
Well in some cases it is our money from contributions to the nil fund but I agree with your points.
 
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UK’98UK’00

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It will lower after the new revenue sharing gets signed and implemented. After that goes into effect, there will be detailed monitoring and investigating every contract that is signed to A. make sure Boosters are not working side deals, and B. the players value is not inflated to where he gets paid more than his perceived value. The over paying and shady booster deals will go away.
I think that’s wishful thinking. College basketball has been shady for a long long time and there will always be ways to subvert the system. Do you honestly believe Kansas will ever be above board?
 
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hotelblue

Heisman
Jul 6, 2006
41,683
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prices should rise as revenue does. use whatever fair-market justification you want. so long as the universities are getting proportionately more than players (combined) from football and basketball, i don’t see the issue.
 

LineSkiCat14

Heisman
Aug 5, 2015
37,318
57,171
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Im waiting for programs to little by little, get burned by paying a guy $3million only to have that player be a title dud, and then skip off to the next school. Not only will those schools start to pull back on those types of offers, but you might see them try and push for *some* sort of performance based pay.
 
Apr 13, 2002
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Utterly insane how much the price tags have spiraled in just a couple years.

It’s has to eventually reach a point where this game is no longer economically sustainable, right?

These donors got rich by making wise moves and investments, so it completely perplexes me how people are convincing these high net worth people to throw money away and get nothing in return.
 

SkyPrince1

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Aug 17, 2004
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These donors got rich by making wise moves and investments, so it completely perplexes me how people are convincing these high net worth people to throw money away and get nothing in return.
Would love to see a big donor sit down for an interview and explain his reasoning for giving millions to NIL.
Also would like to see a players media reported NIL deal vs what is actually turned into the IRS as taxable income or bottom line pay out.
 

OldEvilleCat

Heisman
Mar 1, 2009
4,851
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I pointed this out in the other 10 million thread, but feel it bears repeating.
Only 1 team in the 10 million club that didn't make the NCAA tournament.
Very Funny Lol GIF
 

Spanish Radio

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What happens if Steve Ballmer (Clipper's owner) decides he loves Stanford basketball and decides to bankroll their basketball team?
 
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