The NCAA just completed a week of unprecedented change, with its century-old economic model destroyed by the terms of an antitrust lawsuit settlement.
But House v NCAA wasn’t the only news of the last five days.
Here’s a summary of developments impacting schools across the Pac-12 footprint and across the country…
1. Agreement between House and NCAA
The thin one: The NCAA and the five power conferences on Thursday approved settlement terms in a landmark multibillion-dollar antitrust case that ends amateurism in college sports.
The impact: Possibly the most significant change in NCAA history, the House case will result in about $2.8 billion in back pay for former athletes and force schools to share up to $20 million (approximately) in revenue annually with athletes current and future.
Additionally, roster sizes will be expanded in certain sports, adding another $10 million in expenses for athletic departments already struggling to balance their budgets.
The changes could be implemented by fall 2025.
Many unknowns remain, including the impact of the Title IX agreement and how schools will distribute revenue among their sports. (Football and men’s basketball players are expected to receive the majority.)
What is very clear, however, is the additional burden it places on fans.
Because? Because the agreement links the amount of revenue sharing to media rights contracts. As the cash flow flowing from television networks to conferences increases each year, the revenue cap expands. The more money schools contribute, the more they have to share with athletes.
As a result, the price of everything from season tickets to parking spaces will rise as schools scramble to cover the full cost of the deal, which is expected to start at $30 million but will eventually rise.
And since the deal does not affect name, image and likeness (NIL), the booster-led collectives that dominate recruiting will continue to operate and seek cash from donors.
2. Pac-12 financial report
The thin one: The conference released its tax returns for fiscal year 2023 on Thursday. As expected, the results were not good.
The impact: Unlike its peer leagues, which distributed more to their campuses than in 2022, the Pac-12’s payouts actually fell 9.1 percent year over year: from $37 million to $33.6 million.
Meanwhile, the Big Ten paid an average of $60.5 million to its oldest members last year, while the SEC spun off $51.3 million, the ACC paid $44.8 million and the Big 12 They distributed $44.2 million, according to USA Today.
The decline in Pac-12 distributions was the result of Comcast withholding payments to Pac-12 networks to make up for the amount it overpaid over the course of a decade.
In other words, schools suffered because of terrible management at the conference level.
However, the former commissioners did quite well.
Larry Scott received $3 million in severance pay (over two years), and George Kliavkoff took home $4 million in salary, including a $500,000 bonus paid during the calendar year (2022) in which USC and UCLA fled to the Big Ten.
In total, Scott and Kliavkoff received about $57 million in combined salaries over the course of their tenures as they led the conference into extinction.
3. TNT joins the CFP
The thin one: Keynote USA announced Wednesday that it has sublicensed a handful of college football playoff games to TNT, starting with next season.
The impact: The five-year deal does not alter the structure of the expanded playoffs, which will feature 12 teams in the 2024-25 seasons and possibly more starting in 2026, when a new format could be implemented.
However, the partnership brings a second media partner to sports’ biggest event and raises the prospect of a studio show comparable to ‘Inside the NBA,’ with Charles Barkley waxing poetic on fourth-down calls and penalty kills.
TNT will broadcast two first-round matches next season (December 20 and 21) and will eventually show the quarterfinal matchups as well.
4. Fox swallows on Fridays
The thin one: It was easy to miss given all the goings-on, but Fox unveiled an all-star lineup of Friday showdowns for the upcoming season.
The impact: The strategic shift is not optimal for fans who plan to attend games in person due to travel and logistical obstacles. Anyone planning to watch the action at home might welcome the move to weekly broadcasts on Fridays.
As expected, the West Coast teams entering the Big Ten feature prominently: Washington, Oregon and UCLA will play two conference games on Fridays (one home and one away), while USC will play one.
The road challenge is particularly difficult for schools in the Pacific Northwest. The Huskies head to Rutgers six days after their Big Ten opener, at home against Northwestern, while the Ducks visit Purdue after their home game against Ohio State.
Fox’s tactics are clear: fill a gap in the college football viewing calendar and create synergy between Friday night’s game and its marquee matchup scheduled for 12 p.m. ET on Saturday.
5. Physical education comes into play
The thin one: Two private investment firms, RedBird Capital Partners and Weatherford Capital, announced Wednesday the creation of Collegiate Athletics Solutions (CAS), a platform designed to provide cash to financially troubled athletic departments.
The impact: The leader of the operation is former Florida State quarterback Drew Weatherford, who has reportedly presented dozens of schools on the benefits of using private capital.
Weatherford told Yahoo that his company is not seeking ownership of sports departments but, rather, offering a cash infusion; essentially, a loan. In exchange, CAS would receive a percentage of any revenue growth.
The hotline has not confirmed any conversations between CAS and Pac-12 athletic departments, but Colorado and Arizona certainly seem like potential candidates given their heavy reliance on university support. (Arizona President Robert Robbins has acknowledged interest in the option.)
That said, numerous college sports officials are wary of private capital entering the industry.
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