The NCAA is at a crossroads.
College sports’ governing body is in the midst of generational changes to the model it’s tasked with overseeing. That’s led to myriad court challenges to the current structure — including, of all things, discussions at a Dallas airport.
Reports last week surfaced that NCAA lawyers and those on the plaintiff side in the House v. NCAA case met in Dallas-Fort Worth to discuss a settlement that could save the NCAA billions of dollars. What comes next in the case will be crucial in the debate about sharing revenue with athletes.
“There is going to likely be a redirection of funds to athletes,” said Katie Davis, a CPA who works with a number of college clients. “Athletic departments are going to have to look at and rework their budgets to be able to really determine what that looks like for them. … Is this going to apply to all schools? Is it only the Power [Four] schools? It’s still not clear yet on that, either. There’s still a lot of questions.”
The House case, far from the only case related to college sports circulating through the courts, largely centers on whether college athletes should be able to share in the massive revenue streaming into schools. Which revenues actually apply to that may be up for interpretation, though it’s likely to be media rights, ticket sales, and similar buckets.
Most FBS athletic departments have had internal discussions about when, not if, they will have to budget for athlete compensation, while the general consensus is that price tag should land between $15 million and $25 million per year.
“The fact that college sports was not more progressive over the past two decades has put us in this position,” said one Power Four athletic director. “Where things are today, it’s unsettling, it’s not perfect, but it’s still an enterprise and a time in young people’s lives that are captivating and important and will allow college sports to be one of the most popular things in our society.”
What are the next steps? In theory, a settlement would allow the NCAA to make tangible moves toward a world in which athlete compensation can be doled out without fear of further legal actions. Those involved in the talks, however, made clear a settlement is far from a certainty.
“It’s at least a step [toward stability],” said a Group of Five administrator. “Any time you can eliminate some of the chaos is a good thing.”
