SB 1401 would require California schools to share 50% of annual revenues in football and menās and womenās basketball with the athletes, initiating a new era of āpay for playā ā and what college sports leaders fear would be a doomsday scenario for athletic departments that currently use profits from revenue sports to fund their non-revenue sports programs.
Thatās quite the doozy.
If we can discuss this without the typical partisan spin on everything, thatād be much appreciated.
Itās basically a forced collective bargaining agreement, which on one hand, I get, because the students donāt have the organizational ability (especially with such short careers in college) to negotiate one.
But on the other hand, itās government dictating the precise terms without any feedback from anyone, which seems arbitrary.
Also, this is going to absolutely cripple athletic departments. In the area of unintended consequencesā¦ get ready for many non revenue sports to get cut because they are too expensive.
And how do you figure in Title IX to this proposal? On the one hand, players getting paid, on the other, donāt be surprised if a bunch of womenās sports get the axe?
Finally, can these schools really afford to pay Saban sized salaries to coaching staffs under this rule? If not, what is that going to do to that particular competitive advantage?
Iāve got a feeling that if this passes the final bill will be a good bit different. And if Iām reading it correctly, seems like the only schools affected will be the Pac-12 āGolden State 4ā of Cal-Berkeley, Stanford, UCLA, and USC. Plus, according to fairly recent reports, the Bruins have been hemorrhaging money:
I wonder how many womens basketball teams are actually generating any positive revenue at all.
And are they going to pool the money from all three into a common fund and then distribute it to the same three?
That was not clear.
I donāt hate it. Iād much rather this than NIL. This is related to my suggestion a couple of weeks ago, that if the NCAA would have gotten ahead of this a decade ago by setting up retirement funds, then perhaps NIL would have never came about.
Now, when I say I donāt hate it, I also agree with all of your points. I donāt know what the end numbers should be or how Title XI can work along with this. But in general, I think taking a look at revenue sharing isnāt a terrible idea.
This is going to open up a huge can of worms for the universities.
It says revenue sharing.
How can you share revenue if your not profitable?
Most schools are not profitable, at least in the current iteration.
I realize that there is a lot of funny money accounting going on.
Big issue - what about student fees. If student fees go into the pool of revenue does that get shared??? That is a political atomic bomb. No hydrogen bomb.
Students fees should absolutely be left out of this and if a school starts paying players but also charges fees those should end up in court.
(puts on accounting nerd visor)
Revenues /= Profits.
ārevenue sharingā is sharing a chunk of the ātop lineā revenues.
Yes the math is all fuzzy below the Revenue line of the income statement (actually for a not for profit they are going to probably use a statement of cash flows and fund accounting), but the gross revenues being split I believe is what that bill called for (Iād have to read it again to make sure).
This is why if you ever make it big and ask for (percentage) āpointsā as part of a movie deal, record contract, etc, you make damn sure itās points on total revenues not net income, or else the other party will cook the shit out of the books and report no net income / profit to share with you.
Also, āNot For Profitā doesnāt mean they donāt post a profit or surplus, it just means thatās not their intended purpose, therefore ādonāt tax usā.
Thanks for attending my Ted Talk on accounting crap you never cared to know.
This is the landmine in this whole discussion. If it comes to this, our entire athletics department is FUCKED.
As are most. Student fees keep so many ADs afloat. The students have a solid argument. If there is so much money being made on this why are we paying anything? If revenue sports want to keep all or most of their money to pay back out then basically we will end up with 30 programs they offer just a handful of sports.
I donāt like NIL but I enjoy watching Saban go off the rails because he is losing some of his control.
Sabanās a douche but heās not wrong
Hootieā¦ Please. Do I need to repost that USC forum link where someone tracked down all the expensive cars Sabanās players had magically received after enrolling thereā¦?
I donāt like the buying of players in a no salary cap environment, but the real reason Saban is pissed is because putting it all on the table has removed his competitive advantage in recruiting. He had the best system when it was hush hush. No more.
You misunderstand my meaning. Sure he has his own shit to hide hence the douche comment. But heās saying the NIL shit is out of control and heās absolutely correct.
Weāve all been saying it. Cheating is now legal, players openly can go to the highest bidder now.
Plus pretty good podcast from Forde and Dan Wetzel: