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Ross Dellinger of Yahoo Delves into the Ways to Beat the Revenue Sharing Cap

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  • Moderator

Thank you, Steven.

I like Ross Dellinger's reporting, but there are a few gaps in this article, beginning with the state of Tennessee. The Tennessee legislature passed a law signed into law by the governor that prohibits the enforcement of the House settlement in the Volunteer State. (Freudian slip? I originally spelled it: Hose Settlement 😁)

Kentucky's athletic department is now a limited liability company (LLC). Except in very rare cases, damages against an LLC are limited to the assets held by the LLC. The university itself, in theory, will not be liable if its athletic department runs amok.

Alabama, among other schools, is holding back NIL information, claiming that doing so would violate the athletes' federal right of privacy. The folks at Bama were not aware of this when their commissioner, Greg Sankey, was touting the settlement. Right?

After a short period of rejecting all NIL collective deals, NIL Go, the review committee, after being reminded by the House plaintiff attorneys that this was not the deal, backed off. NIL collectives and deals arranged by and between members of a collective are not, ipso facto, verboten.

The House settlement provides that all NIL deals with public companies are kosher, except for public companies found to be 'boosters.' Marketing deals with 3rd parties are not new; what is new is the ability via NIL to share the revenue with the players.

In the 12 months from Judge Wilkin's approval of the settlement, $20.5 million is the cap that schools can revenue share with their 'student athletes.' Revenue directly shared with any source cannot go over this limit. Dellinger failed to note this salient fact.

So, many of the defendants, the once Power 5 conferences' subsidiaries, their member programs, had no intention of following the terms of the settlement and were actively planning ways of looping holes in the terms of the settlement before its approval. Maybe the Pac-2's Theresa Gould was not aware of this, but the other commissioners?

Without a collective bargaining agreement between the athletes and 'management,' however defined, the NCAA and its members will not be granted relief from litigation.

The Power 5 conferences and the NCAA could and should have filed for Chapter 11 bankruptcy reorganization and found relief from litigation in a federally approved Plan of Reorganization. The House settlement is one more futile attempt by the NCAA to prevent college athletes from being found to be 'employees', even though they are being paid directly by their respective universities.

It's simply more NCAA Male Bovine Excrement of Form, as defined by the NCAA over Substance as defined by the world at large, including courts of law. The Emperor has no clothes! Rob Mullens and other intelligent ADs, the leaders of universities, and their legal counsel, cannot see this?

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