In a groundbreaking move that could redefine the landscape of college athletics, the SEC and Big Ten Conferences are reportedly at the forefront of developing a revenue-sharing plan involving players.
While there’s still a lot of work to be done, it’s a development that has been long overdue.
The proposal, tentatively named the “Modern Model,” aims not only to share revenue with athletes but also to address ongoing legal challenges, notably the House v. NCAA lawsuit slated for trial in January 2025.
The House v. NCAA lawsuit, a class-action antitrust complaint, alleges that the NCAA and power conferences have colluded to suppress athletes’ compensation.
Settlement negotiations have been complicated by the potential financial burden, estimated to cost universities between $15 million and $20 million.
Athletic directors have grappled with budgetary adjustments in anticipation of a substantial payout.
Reports from ESPN indicated that discussions among the power conferences are intensifying regarding a revenue-sharing arrangement. However, specifics regarding funding sources and distribution mechanisms remain unclear.
The revenue-sharing concept originated from a joint advisory group established by the SEC and Big Ten in February. It comprises university presidents/chancellors and athletic directors, with the group aiming to explore innovative solutions to the massive challenges facing collegiate athletics.
The House lawsuit contends that college athletes are entitled to a share of television revenue and compensation for the use of their likenesses, including in video games.
With damages in antitrust cases potentially tripled, the NCAA could face liabilities exceeding $4.2 billion if the case proceeds to trial and the plaintiffs prevail.
Economics experts estimate that approximately 7,000 current and former athletes could benefit from a favorable outcome in the lawsuit.
The trajectory of college athletics has been tumultuous since the emergence of NIL compensation in July 2021.
While the concept of NIL had been long overdue, the NCAA was caught with their pants down in many ways. By the time the tides changed in college athletics, not just with NIL but also the transfer portal, the NCAA inexplicably had zero guardrails set up – leading to a Wild West atmosphere.
As far as college football goes, the SEC and Big Ten are the unquestioned kings of the sport. While most other conferences crumble around them, the two powers only get stronger and stronger.
Notably, the SEC and Big Ten will take a combined 58% share of College Football Playoff media revenue rights starting in 2026.
Unsurprisingly, teams from those two conferences collectively secured the majority of CFP berths over the tournament’s first decade.
What are your thoughts on the developments?
Do you trust that the NCAA will finally get this problem fixed?
What do you think the perfect solution would be???