🏅The "Loser Tax" is in Full Swing

Hey there,

Today’s the day: in just a few hours, the expanded College Football Playoff will be underway for the first time ever. Until that happens though, we’ve got a few big updates to keep you looped into.

First, the NCAA was just handed another loss in court – one that could completely change how eligibility is viewed soon. Then there’s the “Loser Tax”, a new phenomenon that’s injecting football programs with more money… by taking it out of their coach’s pocket. And lastly – the state of Louisiana just entered into an NIL deal to help stop vaping in the state – that’s the first deal of its kind for a few reasons. Keep reading to catch up on all of it, let’s get going!

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— Cole, Justin and Collin

The Big 3

Explaining the “Loser Tax”

NIL has forced some coaches into paying the “loser tax” – rerouting money away from the coach’s contract and towards the athletic department’s future rev-share efforts. In a sense, it’s the price coaches are paying for underperformance.

In fact, it’s already happened with two massive names. After finishing dead last in the Big 12 this season, Mike Gundy’s contract was just restructured to help land more on-field talent next season. Down at Florida State, the same thing is happening with Mike Norvell, who’s losing out on $4.5 million.

As athletic budgets tighten next year, expect schools to continue this strategy, leveraging the head coach’s job security to secure more rev-share funding. Who knows – it’s been suggested that Ohio State’s Ryan Day may be the next to take that financial hit if the Buckeyes disappoint. (More)

Are JUCO Eligibility Restrictions Done?

With a temporary injunction now in place, the NCAA just lost another battle in court – this time centering around the eligibility of Vanderbilt QB Diego Pavia, a former JUCO player who’s trying to get another year of eligibility.

What’s going on in this case? We broke it down in depth earlier this month for our All-Access subscribers, but here’s the short version: Because the NCAA’s current JUCO eligibility rules would be “restricting” Pavia from potential compensation by staying in school another year, he fought them on the rule. For the time being, it looks like he’s won that battle. 

We mentioned this in our original reporting on the topic, but this stretches far beyond just JUCO eligibility rules. There’s a chance the fundamental logic of Pavia’s case could, theoretically, stretch across all eligibility restrictions in the future. (More)

Louisiana Spends NIL Money to Stop Kids Vaping

The state of Louisiana is utilizing NIL to get kids to stop vaping – seriously. Attorney General Liz Murrill’s new campaign has already paid out $281K to college athletes within the state, and there’s $225K more coming in the next three years. 

The whole campaign comes after E-cigarette company Juul Labs was accused of targeting their products toward underaged kids. Funding for the NIL campaign will come directly out of the $10 million settlement that’s being paid out to the state.

“Paying college athletes with public dollars feels very problematic,” said Peter Robins-Brown, executive director of Louisiana Progress, “I’m having a hard time imagining when it would be appropriate to pay college athletes, especially college athletes at state universities, with public dollars, to be a part of any kind of ad campaign.” (More)

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ATHLETE SPOTLIGHT

Lexi Rodriguez

• School: Nebraska 

• Position: Libero 

• Sport: Volleyball 

• Class: Senior

• Accolades: 

• Academic All-District (2022, 2023, 2024)

•  Academic All-Big Ten (2022, 2023; Beach-2022, 2023, 2024)

• Nebraska Scholar-Athlete Honor Roll (Fall 2022, 2023; Spring 2021, 2024)

• Tom Osborne Citizenship Team (2022, 2023, 2024)

• NIL: Lexi Rodriguez's NIL Value is estimated at an impressive $1 million. This valuation reflects her athletic success and her savvy business and marketing acumen in the NIL era.

NIL BLITZ

♦️ A Players Era women’s basketball tournament is now in the works

♦️ The University of Wyoming is asking the state for $1.5M to help pay back the House Settlement

♦️ Here’s how college football players are using NIL (and Cheez Its) to help give back

♦️ The Athlete Showcase, a combine for transfer athletes, is being cancelled due to logistical problems

♦️ TikTok is converting kids into sports fans

♦️ Ivy League football teams will start playing in the FCS Playoffs next year

♦️ Sometimes not transferring ends up being the best financial move 

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

Will Bill Belichick succeed at UNC?

• One of the greatest coaches ever? Yeah, I think he'll be alright - 44%

• It's a different sport than the NFL, and he could struggle - 56%