Almost sounds like the old reserve clause in pro sports contracts.
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Yep, or what soccer was like pre Bosman ruling.
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@DFresh11 any companies that produce brown paper bags that I should invest in?
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I, for one, am shocked that the schools, with their well-compensated legal teams, are trying to exert leverage over the teenagers whom they wish to exploit for huge TV revenues.
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Iād say itās locked in that the first lawsuit around the NIL clearinghouse is gonna come from a collective (or all the collectives): New NIL enforcement targets collectives, deals must serve āvalid business purposeā - The Athletic
Guidance issued Thursday by the College Sports Commission said that āan entity with a business purpose of providing payments or benefits to student-athletes or institutions, rather than providing goods or services to the general public for profit, does not satisfy the valid business purpose requirement set forth in NCAA Rule 22.1.3.ā
It then cited as an example a collective that āreach(es) a deal with a student-athlete to make an appearance on behalf of the collective at an event, even if that event is open to the general public, and the collective charges an admission fee (e.g., a golf tournament).ā And, āThe same collectiveās deal with a student-athlete to promote the collectiveās sale of merchandise to the public would not satisfy the valid business purpose requirement for the same reason.ā
That sounds like every single collective-held event, lol.
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The clear goal of the new āstructureā is to wipe out collectives. Which Iāve thought has been pretty clear for a while.
The goal seems to be to get collectives out of being payors. They can facilitate third party deals, etc., but they canāt actually do a deal.
Iām a bit surprised by the final example: which seems to say they canāt sell merch, make $$, and give some of that money to the players. But I can see why theyād take that stand. Plus, if itās an actually profitable piece of merch, presumably some non-collective merch provider would sell it and pay the athlete for the licensing.
Now, cards on the table, I happen to think that the collective model was really dumb, and I wonāt shed a tear if it goes the way of the dodo bird. However, over the past couple years, the collectives themselves became entrenched interests, and as with any entrenched interest, they probably wonāt go away quietly.
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All sounds a lot like limiting a workerās earning power without them having collectively bargained for that limit to me!
Who cares where the money comes from!
Iāve honestly come around to the (likely insane) opinion that we actually just needed to let this play out for a few more years. They would have found an equilibrium eventually. Donors would have realized 18 year olds are bad investments and found more reasonable working market prices for them. We are now short-changing the price discovery process under the weight of an arbitrary cap and moving any of those learnings about the true price of a college athlete into a black market.
It feels like weāre just about to undergo wholesale changes to the system at the mercy of lawsuits every year or so until we end up back where we started-- an effectively unregulated free market or a collective bargaining agreement.
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Iād love to watch the timeline where this just plays out. It was fun, like watching a train crash in slow motion. I suspect it would end like the Cold War did: eventually Alabama spends so much that Auburn literally cant keep up and so throws in the towel. Repeat all around the country until youāre left with 4 or 5 regional powerhouses that no one else can beat, and the overall NCAA loses the competitiveness that made the sport fun (and brought in the dough). Maybe that leads to a boom and bust cycle. Like I said, fun train crash.
But not to worry, this timeline still provides loads of entertainment for disaster-loving rubberneckers.
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I just wish I knew how to create those AI images because Iād have one with Bruce Pearl with a Gorbachev birth mark shaking hands with Nate Oats, who has a Ronald Reagan haircut and smile.
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Not really NIL related, but you can just enroll in a new school and play? Why the hell does the NCAA even exist?
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Something similar has happened already this offseason:
Alsoā¦there are some extenuating circumstances with this particular situation with him being on track to be suspended for an Honor Code violation
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It is the weird BYU honor code. We donāt need to go into the specifics because this is a family-friendly site, but itās not like he was cheating on a test or stealing stuff.
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He was knee deep in the roast beef
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Dellenger now has another article up saying the House plaintiffs attorneys object to this statement, saying itās not consistent with the settlement. Fun times for those of you who love the sound of attorneys arguing as a side dish for your college hoops fandom.
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This is the sound of Bruce Pearlās lawyers firing up a lawsuit for your comments
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Smooth- brained lawyer stuff from Kessler / Berman.
We couldāve saved everyone some time and state that collective deals have no valid business purpose. Instead, theyāll make them go thorough lots of paperwork to determine that 99.999% of collective deals have no valid business purpose.
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Awesome!