Supreme Court Rules Against NCAA Athlete Pay Limitations

[Redbirdwarrior]

So, this, while being the right thing from a human perspective, is going to be an absolute disaster for small schools trying to keep on par with billion dollar athletic programs.

Per the Supreme Court today (9-0), NCAA scholarship athletes can receive tens of thousands of dollars in "additional education related benefits" from any school that can offer it to them. From housing to technology, to food and, presumably, cash for books and other items, NCAA athletes can now go to the highest bidder.

So, to recap, there is no longer any reason to not enter the transfer portal every year and see who bites because there is no loss of eligibility and now a school like U of I, Baylor or North Carolina can come in and just offer these athletes a hundred grand in perks and upgrades that small schools couldn't possibly afford.

Bad news, team.

High court rules against NCAA on compensation

In a ruling that could help push changes in college athletics, the Supreme Court on Monday unanimously sided with a group of former college athletes in a dispute with the NCAA over rules limiting certain compensation.

www.espn.com

 

[isuquinndog]

At this point might as well make the P5 their own division.

 

[TBS_20]

Isu could solidify itself if they chose to do so but they choose not to.

 

[Bird Friend]

At this point might as well make the P5 their own division.

For all sports . . . and for that matter, the P5 could easily cut ties completely with the NCAA to create their own association. They already control the "TV" rights, and have billions in athletic and endowment funds to set up the organization.

If they want to create an incentive for non-P5 programs to compete with them, they could set a relegation system to promote the creme of the lower "league" and demote the crap of the higher "league". Eliminating the conferences and setting up divisions would enable them to lower the costs of conference administration to give them more $$ to pay their already overpaid executives. And if they really want to adopt the European model, they could create partnerships between upper-league and lower-league teams . . . or, gasp, create 2nd-tier teams within each club (I mean university).

If $$ is going to be the now legal incentive for recruiting, might as well make it all formal and go deep.

 

[MadBird]

Wreckin' my goddam college sports. Our. So, I'll have to read the stuff to get it I guess - how can they still have DIII then? Or, what happens with anything? You HAVE to pay college athletes? No more amateur model? I still say, get the money out of it then. Forget the billions and billions. Just let it go.

Right, like that's gonna happen.

 

[dabirds0987]

Will they be considered employees or independent contractors? If they would be considered employees, this will be all very interesting (drug testing, potential unions, and etc).

 

[DWRedbird]

Will they be considered employees or independent contractors? If they would be considered employees, this will be all very interesting (drug testing, potential unions, and etc).

It sounds like this ruling will keep them as students, as the ruling says that the funds they can give athletes is unlimited towards their education, meaning that the big dollars they give out will have to be under the guise of 100k housing stipends, cars to get to and from campus and such.

Future rulings could change this as they move to just flat out paying players with no ties to their education and could lead to them being employees of the university, which I agree changes the landscape entirely.

So, this, while being the right thing from a human perspective, is going to be an absolute disaster for small schools trying to keep on par with billion dollar athletic programs.

Per the Supreme Court today (9-0), NCAA scholarship athletes can receive tens of thousands of dollars in "additional education related benefits" from any school that can offer it to them. From housing to technology, to food and, presumably, cash for books and other items, NCAA athletes can now go to the highest bidder.

So, to recap, there is no longer any reason to not enter the transfer portal every year and see who bites because there is no loss of eligibility and now a school like U of I, Baylor or North Carolina can come in and just offer these athletes a hundred grand in perks and upgrades that small schools couldn't possibly afford.

Bad news, team.

High court rules against NCAA on compensation

In a ruling that could help push changes in college athletics, the Supreme Court on Monday unanimously sided with a group of former college athletes in a dispute with the NCAA over rules limiting certain compensation.

www.espn.com

I believe the no loss of eligibility is for just your first transfer or a transfer with a waiver. This year is different because of all the COVID stuff, they just gave everyone a free year of eligibility regardless of the circumstance, but after this year I believe it goes back to the 5 years to play 4 model.

That being said, there really wasn't any negative to enter the transfer portal anyways. Bigger schools with money are always offering things that the little guy couldn't and persuading kids to go there.

 

[TheTruth]

Isu could solidify itself if they chose to do so but they choose not to.

So much unrealized potential, it's sickening.

 

[topiarydan]

Can't wait to see the tax implications on this one - so its now income - here's your 1099 kid (now go pay your taxes) or if claimed by parents (here's your tax bill). If they go to employee status then shouldn't they then qualify for all the benefits a regular employee does? Are they part-time or full-time? This is gonna be ugly

 

[Adunk33]

It sounds like this ruling will keep them as students, as the ruling says that the funds they can give athletes is unlimited towards their education, meaning that the big dollars they give out will have to be under the guise of 100k housing stipends, cars to get to and from campus and such.

Future rulings could change this as they move to just flat out paying players with no ties to their education and could lead to them being employees of the university, which I agree changes the landscape entirely.

Correct! This is what people are misunderstanding about the current ruling. As you say, schools can now give students unlimited resources towards their education. It's loosely defined but your examples are solid. I was listing to Andrew Brandt yesterday on the Pat McAfee show who indicated sure- schools can give a kid a $3,000 computer, but this is still far from "pay for play" though it is "setting the scene."

 

[CB2K]

So now the money the P5 have been paying for play all these years is now sanctioned. The wording makes it feel like they can now launder funds openly through the ruling and label it however they want. The silent west is now becoming the open Wild West. I agree with others that it is only a matter of time when the P5 leave the NCAA and establish their own association.

 

[jbird]

Isu could solidify itself if they chose to do so but they choose not to.

Isu could solidify itself if they chose to do so but they choose not to.

 

[jbird]

ISU could just declare that it has $5 billion in liquid funds but chooses not to do so.

 

[TBS_20]

ISU could just declare that it has $5 billion in liquid funds but chooses not to do so.

dont let them pull the rug over your eyes. they have he money to compete at a high level if they choose.

 

[Red Rocker]

For all sports . . . and for that matter, the P5 could easily cut ties completely with the NCAA to create their own association. They already control the "TV" rights, and have billions in athletic and endowment funds to set up the organization.

If they want to create an incentive for non-P5 programs to compete with them, they could set a relegation system to promote the creme of the lower "league" and demote the crap of the higher "league". Eliminating the conferences and setting up divisions would enable them to lower the costs of conference administration to give them more $$ to pay their already overpaid executives. And if they really want to adopt the European model, they could create partnerships between upper-league and lower-league teams . . . or, gasp, create 2nd-tier teams within each club (I mean university).

If $$ is going to be the now legal incentive for recruiting, might as well make it all formal and go deep.

Do the band kids get paid for playing their music and entertaining the crowd?

Do women get paid less because their sports generate less money?

I think most non P5 schools will voluntarily form their own division as they simply can’t complete. They can’t bankrupt their schools.

Having a historical “school League” as such with a level playing field would be the structure. It sounds socialistic that the money from sports would be spread across the university, but as a hard core capitalist I see the benefits of a balanced non biased education and associated activities for students such as sports — as a good thing for building better communities and societies. Not all educated people are good decision makers but having an education at least opens the door to the possibility.

The NFL is the top sport because they keep the financial playing field balanced with the cap management. It’s not a perfect system but it works better than others who opt for rich get richer model.

People won’t want to hear this, but sports is not a business, it’s entertainment — or at least it should be. The only winners in business are those who make the most money, but in sports, the winner is generally the team or individual who plays the game the best and is pleasing to watch.

It’s obvious that the mid majors are now out with this money game and the transfer rules. It’s over for these schools. The next shoe to drop is that teams like Ohio St, Florida, and Texas have sports budgets that are 5x that of the UofI. How long before it’s really only 10 schools who are relevant. Maybe we are there.

 

[cicada_jimmy01]

dont let them pull the rug over your eyes. they have he money to compete at a high level if they choose.

Illinois State? They dont have the money to 'pay' students at a level even with the MAC at this point. They would need to get into a bigger conference for football or basketball and tap into bigger TV money to even have the conversation. And trust me i am more aware of their finances than most of the people here.

 

[cicada_jimmy01]

Correct! This is what people are misunderstanding about the current ruling. As you say, schools can now give students unlimited resources towards their education. It's loosely defined but your examples are solid. I was listing to Andrew Brandt yesterday on the Pat McAfee show who indicated sure- schools can give a kid a $3,000 computer, but this is still far from "pay for play" though it is "setting the scene."

Good point and I think it hasn't been emphasized in the media enough. This has long been the IRS' stance in regards to any scholarship dollars rec'd by students - it has to be related to educational expenses or it just becomes regular income. I'm curious what kind of 'stipends' conferences will come up with to avoid calling it income.

 

[TheTruth]

dont let them pull the rug over your eyes. they have he money to compete at a high level if they choose.

Illinois State does not have the money to compete at a high level. They have the potential to generate the kind of revenues needed to compete at a high level, but they have never run the athletic dept that way.

 

[Redbirdwarrior]

Correct! This is what people are misunderstanding about the current ruling. As you say, schools can now give students unlimited resources towards their education. It's loosely defined but your examples are solid. I was listing to Andrew Brandt yesterday on the Pat McAfee show who indicated sure- schools can give a kid a $3,000 computer, but this is still far from "pay for play" though it is "setting the scene."

Well, technically they are not buying them the computer. They are giving them the funds to buy a computer. The most expensive non luxury retail computer I can find in a quick search is about $9,000. So North Carolina gives their basketball team all 9 grand to go out and buy computers, but also gives them a link to buy a $700 computer that will do fine on Amazon. +$8,300.

The athletes will need additional housing assistance. The most expensive home to rent in the area is $4500/Mo. Here is $4500/mo. Oh, you are staying at a $1200/mo campus apartment? +$3300/mo. We know you need a job on campus in the off season. This communications coordinator for the rec position just opened. It pays $63,000 a year.

I honestly don't mind the athletes getting paid, but you have to then be honest about it and stop trying to act like Illinois State/SIU/Bradley and Oregon/U of I/Notre Dame/Texas/USC are somehow in the same recruiting ballpark. You have to find like schools that will set defined limits to spend on things that other schools on a certain level will agree to follow and then only play those schools. As it is, this is just a game of big pocket/little pocket that will result in every 3 and 4 star player who could be an amazing starter at ISU or somewhere else sitting 3rd on a bench in Gainesville or Urbana collecting $80K a year.

 

[CaliRdBrd]

It’s hard not to hate was has become of all sports these days (pro and college). From a fan perspective, I say screw it all and support HS sports...and only HS.