New Proposed Entity Would Oversee NIL Compensation
The authority and governing power over NIL rights and March Madness might transfer from the NCAA to the Power Four conferences. As reported by Yahoo! Sports, this new governing entity would oversee all NIL matters such as endorsements, salary caps and revenue sharing which has historically been overseen by the NCAA itself. There are now talks to shift that power over to the Power Four conferences, and to create a new system with their own representatives directly involved.
The idea is still in the early stages but would serve as a huge leap towards creating a system much more aligned with how the NBA, WNBA, and NFL operate. The final approval of the $2.75 billion settlement will take place on April 7th. After that, schools of the Power Four will benefit tremendously along with all Division 1 men’s and women’s basketball players and football players that will receive their share of the damages pool.
NIL First, Then The League
While the idea of a new governing entity sound like an efficient way to handle the influx of money and regulating future revenue sharing, the amount of power the top conferences would hold would put them in uncharted territory.
For some perspective, the details of the settlement state that 81% of the damages pool would go to the Power Four conferences, and 19% would go to all Division 1 athletes across men’s and women’s basketball, and football. Smaller schools that don’t qualify are worried that with this transition, more and more athletes will choose schools in Power Four rather than attend their institutions. The possibility of huge amounts of money and a large spotlight would make the draw to those schools bigger than ever. This concern was raised by WCC commissioner Stu Jackson in early January, who released a statement over the possible takeover.
“Assessing the numerous changes in college athletics and their effects, it appears the autonomy four conferences are seizing more decision-making power. It’s vital for the basketball-focused leaders, and a broader group of stakes-holding decision makers across college sports to build engaged and properly weighted representation as we look forward for basketball and Olympic sports in the wake of these discussions. The future of college athletics and the opportunities for the larger pool of student-athletes requires a diverse collaboration of representation focused on the greater good. Opportunities should not be commandeered by a few to dilute the fairest benefit to all.”
At the time, many were confused as to what Jackson was referring to. But lately with the talks of this new entity being created and the large transfer of power that may occur in the wake of this monumental settlement, his concerns may hold a lot more weight now.
March Madness Could Be Next
In another turn of events, a new proposal may shift the authority over March Madness over to the Power Four conferences as well. Some of the major decision makers in the power conferences are already working on a plan that would allow them for a large amount of control over the March Madness format. Essentially, the number of teams allowed to participate would be increased. While this would open the door to better opportunities for smaller programs to get into the tournament, the power conferences would also have more teams able to make it into the playoffs.
ACC commissioner Jim Philips stated that the idea behind all of these changes is to keep up with the evolving landscape of college sports. “To me, this is part of the ongoing evolution of college athletics.” The evolution he is referring to is trending towards the exclusion of many small programs throughout the league, and on a path resembling professional programs.
The settlement benefits all Division 1 athletes but doesn’t provide anything for programs outside of the close circle. Everything that is being circulated leaves all other conferences out of the picture and under new management. Along with changes to the format of March Madness, the selection committee and revenue distribution would also be handed over to the Power Four. Nothing is final yet, but this proposed future of collegiate sports may leave the unrecognizable from where it is currently.
For more stories by Jesse, head to hardwoodheroics.com, or click here.
