Andy & Ari On3 - The conferences vote to settle House v. NCAA, so how will college football work now?

Episode Date: May 24, 2024

The SEC and Pac-12 joined the ACC, Big Ten and Big 12 in voting Thursday to settle the House vs. NCAA case. With the NCAA also agreeing to settle, the wheels are in motion for schools to pay athletes directly once a federal judge approves the settlement.(0:00-4:14) Intro(4:15-18:44) Pete Nakos joins to recap the House v NCAA settlement(18:45-25:04) Thoughts of the Collectives(25:05-31:13) Staffs for Football Teams(31:14-39:29) Fontenot v NCAA case(39:30-43:55) Revenue Sharing - Moneyball(43:56-46:02) Basketball Schools(46:03-51:19) Scholarship Limits(51:20-55:02) Jaden Rashada update(55:03-55:19) ConclusionOn3’s Pete Nakos joins Andy to discuss how college sports will work if the settlement goes through. Pete also will explain how a decision in another federal case on Thursday could potentially affect the House settlement.What happens to collectives? How will players get paid? What football programs are best positioned to take advantage of the new world?Andy and Pete may not have all the answers, but neither do the people in charge at the moment.Want to watch the show instead? Head on over to YouTube and join us LIVE, M-F, 8 am et! https://youtube.com/live/AZQnGlPI6FgHost: Andy StaplesGuest: Pete NakosProducer: River Bailey

Welcome to Andy Staples on three. Happy Friday. Hope you are making big plans for your Memorial Day weekend. We got some big plans here at on three for next week. We got our elite series coming up in Nashville. Some of the best recruits in the class of 2025 joining us. You're going to hear from some of those guys on the show next week. Actually next week in the coming weeks gets you excited for a big, big time in the recruiting world.

Because this is when the stuff starts to happen. Now, I think the casual fan who is thinking back to when they were growing up, they're going, Oh, well, I don't even think about recruiting until after the season's over. No, no, no, no. As Kirby Smart will tell you. As Dan Mullen, unfortunately, will not tell you. You've got to think about recruiting all year. It's always time to unofficial visits.

And probably a lot of them will have their decisions made if they're not already made by the end of the summer. And maybe even by the end of June because the coaches like to kind of dip out in July. So you're going to see a lot of decisions made in the month of June. The 2025 recruiting classes will really start to take shape, and you'll have a better idea of where things stand. Of course, how those recruiting classes get signed has a lot to do with NIL, with compensation. That's all part of the game now. That changed dramatically on Thursday. The House versus the NCAA case has not been settled,

but a framework for a settlement is in place. The votes are in. The five, power five, and don't hit the X on me because there are actually still five power five conferences right now because the Pac-12 hasn't officially broken up for another month. They voted to settle the House case. The NCAA Board of Governors has voted to settle the House case. A massive settlement, billions of dollars in back pay for athletes going back to 2016 because they should have been able to do an IL and they couldn't. And then revenue sharing going forward for athletes, 22% of the average power conference revenue allowed to be shared with the athletes. There's a lot to digest here,

a lot to unpack. Why is it such a big deal? Think about how hard the NCAA fought against this, how hard the schools fought against this for so many years. 12 years ago, 13 years ago, they were fighting against giving the athletes an extra 2000 bucks. As recently as 2021, they were fighting against giving the athletes an extra 6,000 bucks. Now the dam is broken. They're going to have to share the revenue with the athletes. This isn't the end of this, by the way. This is still one step in the journey here, but it is a very different world. And I imagine you guys have a lot of questions about what happens now,

because when are they going to start doing this? How are they going to split the money? Does this mean collectives go away? All of these are very relevant questions and very interesting because this will affect everything, but it will not change everything. Not necessarily in the way that the folks in charge of college sports want it to change. For example, does it change how players can move between teams right now? I don't know if it does.

But we're going to bring on somebody who can help answer these questions, even though some of them don't have answers right now, but we can at least guess at what the answers might be in an educated fashion with Mr. Pete Nacos from On3. What's up, Pete? What's up, Andy? How you doing, man? This is a very interesting day. I've been reading a bunch of stories. I just read your story. If you haven't read Pete's story at On3 right now about what this means for collectives, it's very interesting.

And I think that that's what people most want to know. I started out talking about we're having the Elite Series next week up in Nashville. We're going to be talking to some of the top recruits in the class of 2025. This is obviously front and center, very important to them and their families as they figure out how they're going to navigate recruiting, what they're going to do in terms of which school they're going to go to. But I imagine for the average fan, the thought is, okay, how does my team still get the best players? How does that work now? And so let's talk about what this means, what this is going to look like, and then kind of how does it affect football recruiting? So let's start. All right. How is this going to

be structured? How is this settlement structured in terms of like the amount of dollars an athletic department has to share with the athletes? Yeah, so so every collective that not every collective. Sorry, I just wrote a story about every athletic department that opts into this will be sharing roughly 20 to 22 million annually with their athletic programs. And from there, that number could increase year by year just based off of the revenue streams coming in and things of that sort. From there, though, Andy, the big question that everyone wants to know is how does it get split up? And I can tell you from talking to so many industry sources this week that nobody knows the answer to that. Nobody really has the understanding yet of do new scholarships count as part of that $20 to $22 million. No one has the answer of how do you disperse it with taking into account Title IX.

For so long, Title IX has kind of been the clutching of the pearls for the NCAA, you could say, in avoiding this. Well, well now we're here it seems like it's going to happen uh but nobody really has those answers and beyond that we can dig into this I just wrote about it but um there's supposedly going to be a cap on on NIL and things like that well there's not collective bargaining you cannot put a cap on things for athletes unless they're collective bargaining. That's why you're not going to see a change in the transfer portal because that directly impacts athletes, and you can't craft rules that don't really take into account the athlete's perspective

when we're talking about millions of dollars now. So Christopher in the chat goes, won't this kill every other collegiate sport? Okay, here's the deal. The other sports are going to get some of this money too. Yep. Football is going to get most of it because football makes most of it. But the other sports are going to share in this as well. And here's the thing about the other sports.

If your favorite AD said before this, that this will kill all the other sports, they're hoping you bought that they think you're suckers when they say that because if they want the other sports to survive they'll make sure they do they'll raise the money to do it like when stanford was going to cut a bunch of sports a few years ago pete a bunch of people stepped up to endow them yep because they thought it was important it's like anything else like there if you live in big city, there's a ballet in your town because a bunch of people think a ballet is important. Yeah. It's not because the government believes that there should be a ballet. It's not because, you know, they're, they're dancing for the love of, well,

they are kind of dancing for the love of dancing. You don't make that much money, but it exists because people think it's important. There are going to be plenty of people who think volleyball, softball, rowing are important and those sports will survive. Now, will a softball coach make close to a million dollars a year anymore? Probably not, but they probably shouldn't have been making that in the first place. I think beyond that too, a lot of fans want to know right now, like, okay, how does my college football team continue to win on Saturdays? Yes. That's all I care about.

Yes. And for the last three Saturdays, the answer to that was giving not last three, last three years, um, giving cash to collectives was really the the most impactful way we've seen and I understand that no some of the the richest programs right now college sports when it comes to NIL money didn't win championships but I mean Texas Oregon those are two of the top teams heading into 2024 and they're two of the top funded programs in the country. So the answer is you're going to have revenue sharing. That is going to become the new baseline salary in college football. And beyond that, I believe from talking to sources,

collectives are still going to be around to provide that competitive advantage to retain and attract talent. And even if somehow collectives are somehow go away, I had multiple people point out to me that they think corporate sponsorships, just like we saw this week with the Las Vegas aces and the WNBA are going to become even more frequent, right? You saw FedEx strike the $25 million deal, uh, when Memphis over five years, um, and, and the V the Las Vegas aces are going to get a hundred thousand a year through a year through a new deal every play on that team,

that's really going to become frequent in college sports if collectives exit the picture, because that will provide the incentive to go to maybe school X over Y. And that's what's very interesting. And I remember talking to people during the season last year, because the fatigue of asking your donors to to put in more money to the collective was was real and they were getting tired of being hit up because basically being hit up double they're saying you need to donate so that you have the priority points so

you can get the best season tickets but you also need to donate to the collective so we can get players. And a lot of the people, you know, who run college sports, who ADs, the people who advise these people, the collective folks, they're saying corporate money is the next frontier. But the thing is, corporations didn't really want to give to collectives. You know, I live in the state of Florida, Florida, Florida state, Miami. I think all of them partner with Publix in some way, shape or form. Publix is the largest grocery store chain in the state. And everybody's like, well, how come there's no public, you know, Publix didn't given it. Well, for one Publix has to be careful what they give to one collective over another. You don't want to make, you know, make customers mad, but also they're more comfortable dealing with the school.

Yeah. So now if they're dealing with the school, whether that's in a direct or indirect way, that money can get to the players much more easily, I would think, from these big corporations. So that is, to your point, probably how they continue to fund this rather than double charging the donors. Yeah. And we talked about player movement, right? A lot of folks believe that that's not going to change until you get to collective bargaining, because then the NCAA and conferences can say, hey, we'll pay X amount if we only have one window or something like that. Well, one thing that's been talked about in some conversations I was told about is how are these revenue sharing deals actually set up, Andy? Is it a contract? Is it just a monthly payment that shows up in your bank account? Nobody really knows the answer.

They're going to try to make it a trust for when they graduate. Yeah. I mean, there's so many questions to that that remain unanswered, but something that someone floated by me, by no means is this like definitely going to happen, but you look across the pond in the Premier League, there's a transfer fee. Will the transfer fees be a thing where all of a sudden conferences play a

really big role in allowing players to move around? And what if a school has to pay out a transfer fee to get an athlete? I'm not saying any of this is going to happen, but these are things that I know that are being talked about that could be very interesting in terms of how players move around. I think you just made the SEC, the English Premier League and the Big Ten La Ligaiga by the way so great this is yeah but but no i mean that that is something that that needs to be considered the transfer rules need to be considered and i think we should point out so this settlement the way it's structured they're trying to head off any future lawsuits by forcing future players to opt into the settlement. It's a 10-year period.

They can opt in. If they don't opt in, the money that comes from the school, the revenue share from the school is actually a part of the settlement. So if you don't opt into the settlement, you can't get that. But if you don't opt into the settlement, you also can sue however you want but also this doesn't stop state attorneys general from suing and remember you've got tennessee virginia florida i'm missing a few states they're currently suing the ncaa over the nil rules which that case is ongoing now they they may drop it because their schools and their states may say drop this but they might not i think the other thing that you point out too that's really interesting is just like how like a lot of the conversations i've had and i mentioned this in my article is collectives if they stick around andy

could really be more important to the group of five than anywhere else because you look at that group five they're not going to be able to participate in revenue sharing probably right so all of a sudden then it goes to okay do we have collectives that are going to be part of this or does a group of five school just opt into revenue sharing and they only offer up to two million a year like those are questions that we don't know the answer to um i i think in the in the power conferences like they call this a cap, this 22%. I think it's really going to be a floor, like you said. But in the group of five, you could opt in, but because it is considered a cap and not a floor, you don't have to fund all the way up to that. Odin Horns with an interesting question in the chat, 22% of what revenue? What exactly are we splitting up here? Am I correct in this? It would be your TV,

your ticket sales. Is it your corporate sponsorships and your donations though? Is it the full amount of revenue that you would report to the Department of Education or is it something different? From my understanding, the 22% is something that's been agreed on in conversations that like through a formula they decided that like roughly 22 across the board is like 20 to 22 million um yeah that doesn't sound like the most informed take but i i promise you that's what is going on um but the one thing i want to get back to Andy that you mentioned, I talked to some attorneys recently. A lot of people have problems with this idea that athletes who opt in,

they can't sue. What can a lawsuit really put that into place? There's a lot of legal concerns over that. Yeah. So you've got that. And then the Notre Dame president, John Jenkins, released a statement about this saying and said, you know, this is not ideal, blah, blah, blah. And immediately said Congress needs to pass a law. They've not given up on the idea of Congress bailing them out of this.

And I just still don't think this is going to happen. Like 15 bills have been introduced. Not even one has reached a full committee meeting is there any chance because they have the framework of this thing in place that they can now go to congress and say all right we're actually serious about this can you give us some help here would would you be able to create a bipartisan thing that actually allows them to do what they want to do? You know, I had someone ask me last night, like, hey, do you think this is a quid pro quo where Congress said, hey, if you get this done,

we'll help you out? And maybe, but at the same time, you look at the track record, the NCAA has been able to get nothing done. And in that statement from Notre dame andy it also called for uh athletes not to be employees um which may yeah i mean that's been a that's been a slippery slope now for a while that the nlrb is going to decide on um so i think that the short answer is i'm not sure but beyond that i think that this presidential election is coming up

um there's going to be a lot of change in D.C. Nothing. I'd be very surprised if anything happened before November. And so the new Congress next January. Yeah, they can they can start deciding if they want to do anything. And the other the other part of this. So the transfer rules again, that's also still being contested in federal court the plaintiffs are states themselves they're not players and i don't see how they change anything about player movement which because i i look at this as like what do fans see what do they i don't think fans in general

care about the transactions that are going on they don't care how the money flows one way or the other they don't really care how much the players get paid yeah but they do care when their favorite player leaves after a year how does this change that it doesn't seem like there's any way for them to enforce any transfer rules over this no there's there's there's not and um someone made the point last night that recruits are going to be on campuses this fall and want some understanding of what the the future of college football is about to look like and they're not really sure what they're going to tell recruits and that gets to the larger point of i don't think the transfer portal is changing anytime soon um and i i i've asked the ncaa now multiple times for uh the

official transfer portal windows for the 2024-25 academic year haven't gotten those yet but i'm very confident that we're still going to have a winter and spring transfer portal window on college football yeah so like your school's still going to have to do a good job retaining players there and this is where the collectives come in. Now you talk to the folks who run collectives all the time. What do they think is going to happen? And I'm talking about at the highest level, I'm talking to your sec and your big 10 schools that want to compete for national titles.

Your, your big 12 and ACC schools that want to compete at the top of their leagues. How does this work for them are they going to then work in partnership with the athletic department will the person running the collective be hired into the athletic department like how how will that be structured somewhere to a lot in nil it's going to be case by case um i i mean i wrote in the story this morning i've already been made aware of two at least two sec programs that are looking into bringing collectives in house and making them in charge of dispersing the revenue sharing um because they feel like they're they're the boots on the ground and really capable of doing that beyond that though that for the the collectives that don't take over the revenue sharing piece,

I think that the high-functioning ones, the SEC, the Big Ten ones, they will work in conjunction with athletic departments. And that relationship will be really important to retaining and attracting talent. And that's where we get back to talking about corporate sponsorships. Do those relationships carry over? attracting talent. And that's where we get back to talking about corporate sponsorships of does, do those relationships carry over? And then that's how you get corporate sponsorships to the table. The one thing that collectives continue to tell me, Andy,

and it gets back to what you were saying about this past college football season is they do know that donors are very much tapped out and trying to lean on a model where you're calling your top booster two times a month for for some extra cash during the transfer portal season is just not going to be the answer well and i think the solution if you're a school now this isn't this isn't a simple solution because a lot of this is is you're already paying for stuff you've done uh schools always built stuff they they've gutted their football facilities and rebuilt them they've built these you know stupidly

monstrous buildings that they don't need uh they've built palatial facilities for sports that don't make money and they're paying debt service on them now which they're going to feel really stupid about because that money could be going to players. Yeah. Now they're going to have to really cut back. But I think in the future, like you're not going to see a lot of stadium renovation projects. You've seen a few dial back already. Kansas is going through with theirs because it is also a revenue producer. Yeah.

24, seven, three 65. Cause they're putting retail with it. They're putting a hotel with it. They're doing, you know, sort of the,

the urban, urban renewal stuff that you see with a pro stadium. But most places aren't going to do that. Like they're going to go, the money that we put in the stadium, we want to put better players in the stadium with it. Yeah, I mean, Penn State of all weeks announced this week

that they're going to redo Beaver Stadium. And you'd have, I mean, that's a long time coming. And they know that. 700 million at Penn state for that so um well i mean these are decisions that athletic departments are making right now and andy i know texas a&m has been somewhat made of like the the example here of letting go staff but i think i think that's something we're going to have to prepare for and cover in the next few months is staff cuts. Yes. And honestly, staff cuts that may be filled by bringing in cap experts

and general managers. And, I mean, everyone's always called college sports big business. Well, now it's really big business, and they need financial experts to come in and make sure they're running it correctly. Well, I think I said this on somebody else's show the other day. If you're an associate athletic director and you can't describe your job in one sentence, you should be very scared right now because there's a lot of people like that at the bigger schools where, look, they had to give the money to someone because they couldn't give it to the athletes. Right. The staffs got very bloated.

And so you have administrators who don't actually do anything. They're going to be in trouble. Like if you're the CFO, you got a job like you're doing something. Yeah. But if you have some nebulous title and we can't figure out what your job is, you're going to have a problem the other thing i think pete is some of these football buildings are going to get thinned out because a lot of the recruiting apparatus is unnecessary now because the money will do that part for you yeah so i was talking to walker jones right the the collective leader at old miss and he made an interesting point of i mean you look at these salary pools right now in college football and they're not even uh you can't even compare them to the nfl i mean the nfl salary

pool is so less so that probably is going to be cut and then he said he also made a really interesting point of like uh coaches right now are going around trying to get money for players but soon they may have to be start making calls to, to get the extra cash or salary pools because they're definitely be cut. And I mean, Ohio state is like at least three to four assistants. I want to say making a million dollars this year. Yeah. And a lot of times you'd see assistants making money because they're quote

unquote, good recruiters and you're still going to need those people who have good relationships with, with certain high school guys who have high school coaches, good relationships with the seven on seven community, good relationships with the trainers and the handlers and all that stuff, because you need to be able to get in with those players first. You need to be able to develop relationships with the players you want. And honestly, at the top level, the money's going to to be similar so the coach they like the most is still going to be a differentiating factor but there are some coaches and i think you'll you'll be able to tell kind of who they are because you're going to see them not be as as in demand

if you had a coach that you're paying a ton of money and you notice on saturday that when their position group comes off the field they're not meeting with them or anything. Like maybe they're just waving a towel on the sideline or something like that coach is there for recruiting purposes. And they're really there because they're kind of bag man adjacent, or at least were for years and years. That doesn't matter anymore. That person's not useful anymore. So you don't have to pay that person very much. Or the three director of high school recruiting. Yes. Exactly.

Yeah. Yeah. It should be interesting too with this and with the, we we've talked about this, I think this week days are blurring, but we talked about the NCAA allowing more assistance, right? Like the removing this. Yes. Yep. Well, do you like see more assistance, right? Like the removing the assistance cap.

Well, do you like see more assistance, but everyone makes like $75,000? Like, I don't know. We'll have to see how it plays out. Yeah. I still think it'll be a competitive marketplace because like the NFL has done that. The NFL doesn't have a cap on assistance

and their staffs have been growing and growing, but they grow in a different way because they don't care how many people coach on the field. They don't have recruiting, so it doesn't matter to them. And so like they just kind of hire where they want to hire, but they do have to hire competitively. They have to pay competitively to get these folks away from college or away from other NFL teams. And so, yeah, I still think there'll be a fairly competitive marketplace, but you may be right.

That may be the new frontier where the coaches hit up the donors to goose the salary pool. But a lot of that is the school can pay that directly. So a good AD working in concert with their coaches should be able to make all this work? Yeah. Yeah. A hundred percent.

You know, us though. I mean, very interested to see like where things do go wrong. And, and the other thing that I really have an eye on too, Andy is how do like Lane Kiffin has been really open about speaking about how, uh,

and I, and NIL is comparable to like his time with the Raiders and things like that. And what if a donor comes up to him one day and says like, Hey, you have to play this quarterback because we paid X amount of money. Well, now I want to know,

does Lane Kiffin go and hire a general manager who like he reports to almost? It's like, Hey, I just want to coach football. I need you to handle everything else like i truly believe that's where we're headed i think it's closer than people realize and i know people care so much about winning on saturdays and stuff i think that the programs who do that might be setting themselves up for success or complete dysfunction and that's, we have an example of that.

We, cause the NFL is the example of that. And it doesn't like, there's no one size fits all approach. Like the Belichick model, which is more like the traditional college model where the head coach is the GM and the head coach controls personnel with an iron fist. Like that worked as long as he had Tom Brady.

Our pal Jim Harbaugh, who has just gone back to the NFL from college football, the reason he was in college football in the first place is because he got out of sorts with Trent Baalke in San Francisco. Trent Baalke won the power struggle with Jim Harbaugh. And so you have that. But then you also have these situations like the chiefs have a wonderful relationship between their front office and their coaching staff. Like they, they work perfectly in concert. And so I think you've got to, you've got to hire that person correctly,

but I think you're right. I think that is where you're headed. And I was wondering like, if the NIL system didn't change, if it didn't go into the schools, like you were going to have somebody who ran a collective who got sideways with the coach and there was going to be a power struggle and then it was going to get really weird. Yeah. I don't think it'll get as weird. Cause even when you have a situation where the GM and the coach don't get along in the NFL, there's still a team owner that can step in and say, right, knock it off. And yeah,

the AD is that person's net person now. So I think it's, it'll be a little, even if it gets sideways, we'll be a little more harmonious than it would have been. Cause like it would have been super weird if somebody running a collective and said, I don't like this coach anymore.

I'm going to get him fired. Yeah. We haven't seen it. I don't think it will happen because of what happened this week, but we'll have to see. The other thing that you point out is with general managers and things like that, you also start to get into something where there is like in circles right now now and you know this like we have conversations

about okay like we think the market value for a quarterback is one million dollars like is that going to become publicized like it is in the nfl um i don't know we're gonna see i i've had some conversations though where it's like i'm not going to be surprised in the next six months if i'm trying to go get that not six months but the next 18 months where part of my job now is going to be trying to find find out how much is he getting through rev share how much is he getting through endorsement deals and that is like officially someone's salary and it's very much out in the open I I do think it's going to happen like that because remember the NFL doesn't officially publish any salaries.

The teams don't send it out. The league doesn't send it out. But clearly the teams and the agents who represent the players have decided it's important to have the numbers out there so that it can be probably so they can figure out the market and the market is more transparent for them. But I do think you'll probably get something similar here. The, the days of the agent lying to the coach, which still happens now, but like in early NIL,

the lying to the coaches about here's what we've been offered by this other school was rampant. And now they can kind of call bs on it because they've got a lot better idea of what the market is 100 um the yeah the it's still interesting though i mean agents lying to coaches i mean even the spring portal i had coaches calling me saying is this guy really coming to visit us because we didn't know he was visiting us. Yeah, yeah. It is truly amazing how all of this is going to work. So we should point out, there was another piece of news in federal court on Thursday that kind of affects all this. There's a case called Fontenot versus the NCAA,

and it's happening in Colorado. And it's about suing the NCAA over schools not sharing television money, which is somewhat similar to because the House case got settled. The House case has actually been consolidated with some other cases that are settled. They're in the Northern District, California. Judge Claudia Wilkin, who presided over the O'Bannon trial and the Alston trial. She's the one that handles that case. In Colorado, it's a different situation, different judge, different federal circuit. And the judge decided that it's not going to get moved to Northern California. Now, what does that mean going forward?

So Alex Fontenot, former Colorado football football player is like the main plaintiff in this class action lawsuit um so the really interesting thing here is um jeffrey kessler right obviously the lead attorney for house has come out and said like we're not threatened by this we think it's only going to really last for a nanosecond um wilkin has come out and said previously in court hearings that if if the same settlement is like somewhat taking place somewhere else it could be folded in but here's the big thing athletes can now opt out of the house settlement theoretically and opt into this fontanelle case um and and but but the question is is there's momentum and and from my

understanding it doesn't sound like there's a ton of momentum and the reason why is so many of these athletes who never got nil deals are about to get they're gonna get paid so why are they gonna wait for another case and and what if that and what if this fought no case isn't resolved until 2027 right and now you're three years down the road of not getting your cash so there doesn't seem to be a lot of momentum there's still a lot of momentum behind this being folded into this house case and these other antitrust lawsuits we've talked about but obviously still something worth monitoring well and the other part of it is remember the plaintiff's attorneys in the house case jeffrey kessler Steve Berman, that those guys they're incentivized now to help the NCAA because they've

just won one of the big, like they didn't win a judgment and it's a settlement, but this is one of the biggest settlements in history. They've taken essentially taken down amateurism. Yep. Like all of that, they're, they're going to get the credit for that. They don't want somebody else to get the credit for that. No.

So this has to hold for them to get the credit. And I know just speaking with some sources like the Fontenot case is trying to gain momentum. It just doesn't sound like it's really growing. Yeah. And like Jeffrey Kessler, he also said something else interesting because i know a lot of people have questions about title nine jeffrey kessler said on thursday basically title nine all of the issues with how much of this gets paid to who in regard to title nine is going to be decided by the courts so if the schools in nc level i think they're done going

to court they are not like that's going to get settled in the courts as well so this isn't over but jeffrey kessler like for him this is sort of the cherry on top because this is a guy who got the nfl to institute real free agency yeah you know he's he's he's done this with multiple leagues now he uh yeah this is definitely the cherry on top. I mean, this probably will be the biggest win of his career. Yeah, because it's a $2 billion settlement from the NCAA. They and the schools will be paying. But the revenue share is part of the settlement as well.

Now, I don't think the attorneys get the fees from the revenue share. They don't get a cut of the revenue share for the fees, but that's also part of it. So over the course of it, it is 200 to 300 million per school over this 10 years of the settlement. Yeah, that's great. Oh, speaking of numbers and math, and I realize this is a bad at math show, So I apologize to everyone out there when I butcher this, but I think this is interesting. So this 22% revenue share thing, it is the average of the power conference annual revenues. So 22% of the average of the power conference. So like we always talk about the gap growing wider, all this stuff. It's not 22% if you're below the line.

It's not 22% of your revenues. If you're the farthest below the line, if you're the lowest revenue producing power conference school, it's probably like 35% of your revenues. And it's probably like 13% of the number one school's revenue ohio state yeah yeah exactly so it that everybody who thinks and and this is the the thing like all the people in charge like we we want to make it less about money and we don't the most the one who spends the most wins we can't have that you're never going to stop that even even in your solution you've widened the gap and and the other thing too i'll mention is everyone keeps talking about like the 20 million right i think there's going to be some schools who only offer like 14 million in revenue sharing um and and that will also create a divide yeah but the other thing and this is what i point out to people is like the yankees

have not won the world series in a long time yep the dodgers don't win the world series every year that's a major league baseball is an uncapped sport there's no salary cap yet the teams that spend the most money every year don't win every year like the smart teams still win. And I think you're, if you're worried that yeah, Ohio state, Alabama, they're still going to that. Yeah. They are still going to dominate there or they're still going to be in it every year because they can spend, but you can win by being smart. You can win by being different. It's still possible. And now you can, you know, more teams can possible and now you can you know more teams can make the playoffs so just just remember that before you assume oh they can pay more

they're automatically going to dominate and it also always goes back to who's going to win in high school recruiting right i mean right it's really just going to really drive home that that point too and and we'll have to see in the future how the portal works out it appears at this time the portal is not changing um but that kind of seems to be an ever moving target at this point yeah and and i'm fascinated to see how that works in this era like like you said the transfer fee thing like that would be a way to maybe rein some of this stuff in without actually restricting the movement of the players without saying you can't do this because if somebody were to leave vanderbilt and go to georgia and georgia would have to pay a transfer fee to vanderbilt all of a sudden that becomes more revenue it is

uh we've actually had a dear Andy question about this, where the, the, the viewer sent in the question and said, Hey, could this be a way to subsidize those schools? Right. Yeah.

Like it absolutely could. It also makes it worthwhile for the G5 who, who might be training ground stage. I mean, I had some people quote unquote call it a training ground now um i mean that gives them more money in their pocket for for players they lose and also you talk about the the georgia georgia's the ohio states the alabamas of the world they don't have unlimited money in transfer fees either it would really make it much more of a

strategy than like hey like the portal's open let's see who goes in well i had a coach who coaches one of those teams that would be kind of the developmental team and they know this like they understand this but they were excited because their collective basically was tapped dry after the first year and they lost a bunch of players now they they solidified the collective a little bit this year so didn't lose as many players but this coach was saying bring on the revenue sharing he's like because i want to play money ball i feel like i can win playing money ball he's basically this coach told the administration at the school, if you, if you fund me the lowest, I'll get you in the middle competitively.

If you fund me in the middle, I'll get you near the top competitively. And I, I like, I believe there are coaches out there who could pull that off. Yeah. I mean, that's, that's, that's, that's when I talk about general managers, like it's, it's really going to become money ball and excited to cover that part of the sport and how it evolves. I've had a lot of staffs ask about data right now because they're trying to mock up how that all looks like. I don't know if we're really going to have the answer to that until it begins. Yeah, I think the transfer fee thing, I have a hard time seeing the schools agreeing to that yes i do although there are like what's interesting about it is like i mentioned vanderbilt vanderbilt is

getting pillaged by his fellow sec schools in the winter portal these days because the as soon as somebody proves they could play in the sec at vanderbilt somebody big in the sec snaps them up and i think you'll see something similar with Northwestern in the Big Ten, where they're a very good developmental program as well, have been for years, where if you've got a lineman who suddenly has a really good year in year three as a redshirt sophomore, his redshirt junior year, Ohio State, Michigan, Penn State, they're all going to want him. So the transfer fee thing would be really interesting.

Yeah, exactly. Yes. Fellow Big Ten school or got to retrain the brain, got to retrain the brain, Pete. But I do think I think that piece of it would be very interesting if they if they did do that. But that's one of those. I have a hard time seeing your Ohio State's, penn states your organs agreeing to that but yeah the money ball aspect of this is absolutely fascinating and and the one thing that we haven't touched on that not to put

people to sleep here i think it's important the settlement talks about a new enforcement arm of college sports yes some people they it's really clear that schools don't want that to be like a new regime at the ncaa or anything like that so the question is do you have like a nfl or nba front office sort of situation but then the question is like is that run by a court is there a new clearinghouse we don't have the answer a lot of people don't have the answer but it'll be very fascinating in the next six to 14 months to see how that takes shape and and is is there a commissioner of college football like we've been talking about for so long yeah I still am struggling to see Greg Sankey or Tony Petitti giving up their power to somebody else.

But yeah, and I also struggle. They're not deputizing a court to handle the internecine squabbles in this business. It's not going to happen. So they're going to have to figure it out. And again, I know they think they're gonna have to figure that out and and again i know they think they're gonna have rules they're not gonna have real rules until they collectively bargain they eventually will are gonna figure that out but they're not quite there yet that i don't know what what's the push that gets them to there is it is the national labor relations board just saying the players

are employees it's that or maybe it's an expletive of college students who come in with revenue sharing kind of being the standard, and they're like, this isn't enough. This is, we want to actually bargain for our worth. Right, and there's an expiration date on this cap. There is. We already know that. It's just like any TV deal. Yeah, just like any TV deal.

So it should be fun should be the other thing that really jumps out too is like some of these schools that are major players andy right like a kansas like these schools have really been screwed over by some of these nc double not kansas but some other schools have been impacted by nc double investigations and how long they take I know that's something that a lot of people want answers to. If there is a new enforcement arm in college sports, what does that look like? That's not going to be created overnight. Yeah.

And the other thing is, I think you can probably do some stuff through enforcement, but you probably can't do much to the players in enforcement because that that's where you're going to get sued. Ferris with interesting. What are they? Quote unquote basketball school is going to do do they can use the full 20 million for basketball only well i mean i i think you're probably going to have some flexibility about how you want to do it if you'd like to do that i mean you can put together a hell of a basketball team though again pete we we're showing a picture of yukon right now like yeah yukon's not buying

the bet the the the highest price players on the market. They're buying the best players for UConn right now. And that doesn't cost $20 million. No, no. Basketball is really interesting too. I mean, women's basketball is becoming overly more and more popular, right? So then, I mean, look at Iowaowa look at yukon i i think you can make a really good argument that the men's and women's basketball team should receive the

same revenue split um in some instances yeah depending on the place yeah yeah so going to be interesting to see how that works out as well christ Christopher Jordan with a, with a, there's an easy solution here. Offer two, three, and four year deals to high school kids. If you break the contract, you pay the penalty. Negotiate after contract period is complete. Yes, Christopher, that is a very easy solution that would require them to be employees and the schools don't want to do that. So if you would like to call your favorite school president and say here's an easy solution why don't you just do this you wouldn't be the first person but they're not ready to do it yet they will get there but they're not ready yet uh i mean you look at

you just look at too right uh the notre dame statement yet again it goes immediately back to yep hey can can can we make sure athletes aren't employees and it's it goes immediately back to, yep. Hey, can, can, can we make sure athletes aren't employees? And it's like, we're back to right where we were 18 months ago. We, we had a great comment earlier on when you were talking about that. So he said,

Bo Nix would qualify for SSI. Oh, before we go, Pete, I'm sorry. We should have gotten to this earlier because I think the big, one of the bigger changes in this thing that I don't think that the casual fan noticed, but we'll see going forward.

Scholarship limits gone. Roster caps in. So no longer an 85 scholarship limit. The actual roster cap numbers have not been set yet for football they want like 120 or 130 which is about what rosters are right now and so you could conceivably give scholarships to all those people so that will just deepen the sec in the big 10 though again there'll be a lot of movement because there's still only 11 spots on the field. And that's a big question right now. You talk about the additional scholarships.

Does that count towards the revenue sharing? Because obviously you have to pay for the more scholarships. I'm not saying it is or isn't, but I know it's a question that a lot of people want the answer to at the moment. Yeah, that one will be very interesting and that'll be very interesting in other sports because and here's where you'll get you'll you'll catch those ad's in the lie in the all the other sports are going to go away because college baseball not profitable in most places even in the sec where it's very big, not necessarily profitable. They've been operating in a system where they have 11.7 scholarships for 32 roster spots.

So very few players were on full scholarship. A lot of them were on books only. I guarantee you at LSU, at Mississippi State, at Arkansas, at Ole Miss, at LSU at Mississippi state at Arkansas at Ole Miss at Florida at South Carolina, there will be 32 baseball players on full scholarship. The second this starts. Yes. SEC baseball is, is, is on the rise. That's for sure. Yeah. So if they tell you they can't afford this, if they tell you that they can't there's no money for no they'll find the money because they want to win yes i completely agree i i'm very skeptical that's that that sports will be cut too um it's it's there's more than enough money in college sports uh revenue sharing is coming but i mean andy you've seen this over the years too like they're not gonna just cut

title nine is a thing you can't just cut like three women's sports because you don't want to like pay the money for it like that right how college sports works that's not how so yeah anyone telling you they're cutting sports be very skeptical of them yeah and also what they may do with these non-revenue sports is you may see them reorganize into like, they'll be in, they'll be part of their conference, but you may see these giant conferences reorganize into divisions for those sports that make more geographic sense that make travel easier. They may play more tournaments where they all kind of gather in one place and play a bunch of games. There are solutions to these things that don't involve cutting the sport entirely now if you're playing

one of the sports that doesn't make money and you think you're going to get a new stadium soon you're probably not like that's probably not happening andy staples bringing you the news of the day yeah that's exactly right. You're a season ticket holder. Don't expect a new seat in the near future. Yes. You've been waiting for that chair back for a long time. You better keep waiting, buddy, because that money is going to your left guard. The one thing we haven't talked about and the one thing the settlement does not talk about whatsoever,

but I know so many fans want to know, is what does the future of college football look like? I think that in the next two to five years, there's still going to need to be some sort of an answer of does the college football playoff break off on its own is there some sort of a super league don't forget the sec and the big 10 still have a joint advisory group uh those sorts of things i think are really going to be along with collective bargaining are really going to be the things that really make the long-term impact on college football. Exactly. As we leave, let's hear from Kirk in the chat. This is stupid.

It's not college sports. Let's just scrap this mess and move on to something else. It's no big deal. Life existed before college sports and can certainly survive without it. Well, Kirk, I don't know how to break this to you but there are tv networks paying billions of dollars for college football games to be on on saturdays in the fall and they're not going to stop doing that because people seem to like that if you would like to not do it well why are you here 50 minutes into the show talking about college football like i can guarantee you're gonna watch every freaking

game like so stop this stop this like you guys don't actually care how they get paid you just care if the games are on on saturday we know that we've seen it we see your behavior you just want to make sure that drop the charade you just want to make sure that... Drop the charade. You just want to make sure that George is on the SEC title game next year. That's what people care about. Is Garth and Beck good? Is Jaden Rashada a good backup?

Those are the questions people want answers to. I was about to wrap the thing. You mentioned Jaden Rashada. I'm sorry. I'm sorry i'm sorry damn it pete come on all right well all right we do need to we got a couple minutes left so we we are going to we'll we'll address the jayden rashada elephant in the room uh because you and i talked about this earlier this week that's still ongoing we have have not heard from Billy Napier yet,

who got sued by Jaden Rashada. Still haven't heard from Billy Napier. Now, my theory is, whoever is advising him is saying, listen, the SEC spring meetings are in Destin next week. Normally you talk on the Tuesday or the Wednesday of SEC spring meetings. So you're going to talk then. So we'll have a statement ready for you to read before you do that interview. Or we're going to drop it like Tuesday morning at 8 a.m. Just get it out of the way. Yes.

Yes. And then Billy will take no questions on this. Here's what Billy says. I imagine they're trying not to give too much oxygen to this if they can get away with it. Yes. I mean, this has been the story of the week right next to this house case. I mean, and Billy Napier's name is obviously attached to it. So why would Billy Napier come out and add more oxygen so the flames just go higher? It doesn't make much sense from that stance,

but a very interesting to see what he has to say. Still nothing from a booster, Hugh Hathcock or the former staff member, Marcus Castro Walker. Going to be interesting to see how these next few weeks shake out. I can tell you one thing that I've been told and I feel confident in. I don't think this is dying down anytime soon. And I think there is at least

going to be depositions obviously the the defendants are going to try to file a motion to dismiss this um we'll have to see how that goes um but i think this is just the starting point for this lawsuit yeah and here's the thing i keep thinking about this peep like what does jayden rashada have to lose by continuing like there's no there's no embarrassing information that can come out about him or his family in discovery because they've already been the villain in this story yep for a lot of the time like they're we we've already criticized them like we've criticized their agents for even letting him sign that contract in the first place like with such a broad termination clause like we've criticized

everybody on that side of the thing there's nothing that can make any of them look any worse yeah and if you're in your shot why wouldn't you want to drag it out yeah right you obviously file a lawsuit because you're very frustrated with Florida. I mean, yeah. Yeah. Cause they're like the Miami fans hate him for flipping the, the Florida fans hated him for not showing up. The Arizona state fans hate him for elite,

like all of that. Yep. He's not going to take a PR hit any worse than he already has. Oh. And I think that's what they're relying on is if you are Billy Napier, if you are Hugh Hathcock, do you worry about the PR hit more or do you, do you fight this? But yeah, if there's discovery, if there are depositions, get your popcorn ready. And how long does it last?

Probably till he's competing for the starting job next spring at Georgia. And probably I, I, I, I, I'm not trying to disparage anyone here, but probably after he transfers to another school, after he doesn't win the starting job at Georgia.

Have a great weekend folks. I'm just going on the percentages here, Pete, just playing the percentages. Love you. Thank you so much. Everybody have a great Memorial Day. We can be safe, be happy, be healthy.

We love you, and we'll talk to you on Monday. See you guys.