🏅NIL: From "Socialism" to "Meritocracy"?

Hey there,

How are y’all doing? Hope you’re in the mood to nerd out, because today’s all about the business of college sports.

First, we’re hearing that Congress is reluctant to give out an antitrust exemption to the NCAA – even though they had hopes that the new administration could be sympathetic to that cause. Next, Nebraska’s AD explains how rev-sharing takes college sports from a “socialistic” system toward a “meritocratic” one. Oh, and lastly, the Department of Education just walked back their guidance on Title IX and the House Settlement. It’s all coming up right now – let’s do this thing!

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— Cole, Justin and Collin

The Big 3

NCAA isn’t Getting an Antitrust Exemption

For some time now, the NCAA has been lobbying Congress to get a blanket antitrust exemption for the way they handle college sports. It’s the only way their business model can withstand the onslaught of lawsuits that have been waged – lawsuits like the House v. NCAA case, for example.

Well, it doesn’t seem likely that the NCAA is getting that antitrust exemption anytime soon. Despite an increased Republican tilt in Congress, most lawmakers are apparently uninterested in granting the NCAA anything past a half-way bill – even Ted Cruz, who’s been sympathetic to the NCAA in the past. 

“What’s radical [to lawmakers] is not that athletes are being paid,” one source, who’s been a part of these closed-door meetings, said, “What’s radical is that the traditional members of college sports need an antitrust exemption. … That’s the biggest hang-up.” (More)

Nebraska AD Calls Scholarships a “Socialistic” System

Nebraska’s athletic director Troy Dannen thinks the House Settlement is moving college athletics into a “meritocracy” due to rev-sharing. Previously, with every player getting the same amount of money through scholarships, he saw the system as “socialistic.”

Here’s what he means by that. Before players could make money, market value was suppressed and leveled out via scholarship. The best player on the team wasn’t making any more than the worst player who’s also receiving a scholarship. But now it’s a free market, if you will.

When asked whether some of the money will be performance-based, however, Dannen was hesitant to say yes. “I think that line gets very close to employment – maybe too close to employment… Most of these deals will be one year deals, and someone who performs well will see their number go up the following year.” (More)

Dep. of Education Takes Back Title IX Thoughts for House

Perhaps predictably, the Department of Education has rescinded its guidance concerning Title IX and the House Settlement now that Trump has taken office. The guidance was given right as Biden was leaving the Presidency. 

“The NIL guidance, rammed through by the Biden Administration in its final days, is overly burdensome, profoundly unfair, and it goes well beyond what agency guidance is intended to achieve,” the new press release stated, “Title IX says nothing about how revenue-generating athletics programs should allocate compensation among student athletes.”

There’s still questions regarding Title IX and the House Settlement, though, even if the DoE isn’t weighing in. Heck, the DoE may not be weighing in on much of anything pretty soon – there’s rumors the entire department could get shut down. (More)

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ATHLETE SPOTLIGHT

Alyssa Ustby

School: University of North Carolina (UNC)

Sport: Basketball

Position: Guard/Forward

Class: Graduate Student (5th year)

Accolades:

• Three-time All-ACC selection

• First player in UNC women's basketball history to record a triple-double (January 4, 2024)

• Second-team All-ACC honors in 2023-24 season

• First-team All-ACC honors in 2022-23 season

• Career-high 25 points against Wake Forest on February 18, 2024

NIL: Ustby has become a prominent figure in the NIL era, securing partnerships with Good Molecules, American Eagle, Core Hydration, Hey Dude and Ritz Crackers.

Ustby is also part of a unique NIL deal with the N.C. Department of Agriculture & Consumer Services to promote chocolate milk as a sports recovery drink.

NIL BLITZ

♦️ The effects of the transfer portal have now reached high schools

♦️ Joe Burrow tells high school recruits to “go wherever they are paying you the most”

♦️ Ryan Day’s new Ohio State contract has a $80.5 million buyout

♦️ The SEC had a $59 million deficit in 2024 after Oklahoma and Texas’ expansion payments

♦️ Kansas State’s NIL collective brings legendary hooper Michael Beasley back on campus for the first time since his 2008 freshman season

♦️ Dr. Pepper is doubling down on its NIL strategy by investing more than ever 

♦️ A class action lawsuit concerning whether college athletes can accept prize money could extend back to 2020 

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

Can Penn State continue to dominate the wrestling scene without NIL?

• Yes, winning is the best recruiting tool - 49.27%

• No, NIL will have to be a priority - 50.73%