NCAA Proposing New College Sub-division

[TheMoody1]

https://sports.yahoo.com/ncaa-proposing ... 51537.html

Of the many recent changes in college athletics, the most transformative — and revolutionary — may be on the way.

NCAA president Charlie Baker is planning to introduce this week a proposal to create a new subdivision within Division I that grants certain schools more autonomy around policy-making and permits them to compensate athletes in a new and profound way.

In a letter sent to Division I members, and obtained by Yahoo Sports, Baker outlines a groundbreaking and radical change to the NCAA Division I athletics model, describing it as a “new forward-looking framework.”

According to Baker’s proposal, schools that choose to be part of the new subdivision — they can opt in or out — are required to meet a strict minimum standard rooted in athlete investment.

Members of the new subdivision will be permitted to strike name, image and likeness (NIL) deals with their own athletes — a significant move away from the current NIL structure.

However, the most impactful benefit of this new model is a framework in which schools can directly compensate athletes through a trust fund. Schools within the new subdivision will be required to distribute to athletes thousands of dollars in additional educationally related funds without limitation.

There is no cap on the amount of funds that a program can provide an athlete.

It is perhaps the single-most revolutionary concept introduced by a sitting NCAA leader in college athletics history.

“It kick-starts a long-overdue conversation among the membership that focuses on the differences that exist between schools, conferences and divisions and how to create more permissive and flexible rules across the NCAA that put student-athletes first,” Baker writes in the letter. “Colleges and universities need to be more flexible, and the NCAA needs to be more flexible, too.”

How it will work
The proposal is a culmination of a months-long review that Baker and staff conducted — one of his top priorities after taking over for Mark Emmert in March. Several high-ranking athletic administrators were previously briefed on the model but were not provided specifics until the letter arrived.

Entry into the subdivision requires a school to invest, at minimum, $30,000 per year per athlete into what is termed an “enhanced educational trust fund” for at least half of a school’s countable athletes. Schools would determine when athletes receive the amount, which, for four-year athletes, will total at least $120,000. Schools must continue to abide by the framework of Title IX, assuring that 50 percent of the investment be directed toward women athletes.

The new subdivision will remain under the umbrella of the NCAA, and its members will continue to compete for NCAA championships with others in Division I. Under the proposal, the NCAA maintains oversight of the existing national championship model across all Division I sports, except FBS football, which continues to operate under the rubric of the College Football Playoff, Baker writes in the letter.

Schools in the new subdivision would also gain control of decision-making around scholarship limits and countable coaches, the NCAA's way of handing major conference programs the freedom to increase the limits or do away with them altogether.

The model “gives the educational institutions with the most visibility, the most financial resources and the biggest brands an opportunity to choose to operate with a different set of rules that more accurately reflect their scale and their operating model,” he writes.


Why is this needed?
Baker’s model is an anticipated step toward the long-ballyhooed separation of the NCAA’s high-revenue producing athletic departments from their lower-resourced brethren. While all schools are eligible to join the subdivision, the proposal would likely force a formal split within the Football Bowl Subdivision of the Power Five, soon-to-be Power Four, conferences: the SEC, Big Ten, ACC and Big 12.

The proposal is not meant as a final product ready for legislative approval but is more of a conversation-starter to an end product that could look vastly different. The proposal is expected to be a leading topic at a gathering of athletic administrators in Las Vegas this week as well as at the NCAA convention in mid-January. Baker himself is scheduled to speak in Las Vegas on Wednesday as part of the Sports Business Journal’s annual summit.

“The growing financial gap between the highest-resourced colleges and universities and other schools in Division I has created a new series of challenges,” Baker writes. “The challenges are competitive as well as financial and are complicated further by the intersection of name, image and likeness opportunities for student-athletes and the arrival of the Transfer Portal.”

Baker’s model addresses and identifies the continuously growing schism between the major conference schools, a gap that has further widened with new billion-dollar television deals. In many ways, the model is tethered to the evolving situation with NIL, a concept birthed from state lawmakers frustrated that athletes were missing out on the fruits of a multi-billion dollar industry.

The new subdivision provides schools a pathway to an alternative to compensation from the current NIL structure, which is built around third-party booster-led collectives distributing millions to athletes under the guise of endorsement and commercial deals. While the NCAA will still deem “pay-for-play” impermissible, the proposal gives programs more control, lifting the restrictions placed on a school’s involvement with NIL and allowing them to bring NIL within their jurisdiction.

[t4pizza]

And the pathway to another 1AA officially begins with this proposal. Curious to see if there are 3 Div 1 subdivisions now or they just lump it all into 2.

[RadioNeer98]

The way I take this is the power 4 would be their own league and have their own playoff? Which in turn would turn FBS football into a G5 league which (Fingers Crossed) could lead to a G5 playoff? I would love a 12 team G5 playoff! SBC Champ, C-USA Champ, AAC Chap, MAC Champ, MWC Champ, Then 7 At large bids!

[BeauFoster]

And the pathway to another 1AA officially begins with this proposal. Curious to see if there are 3 Div 1 subdivisions now or they just lump it all into 2.

FCS, FBS, and FFS

[canes_mj]

https://sports.yahoo.com/ncaa-proposing ... 51537.html

The new subdivision provides schools a pathway to an alternative to compensation from the current NIL structure, which is built around third-party booster-led collectives distributing millions to athletes under the guise of endorsement and commercial deals. While the NCAA will still deem “pay-for-play” impermissible, the proposal gives programs more control, lifting the restrictions placed on a school’s involvement with NIL and allowing them to bring NIL within their jurisdiction.

Anyone know, if this passes, will athletes be able to still get independent NIL deals, in addition to to the proposed new NIL directly from the schools? Or will it be either/or...as in, if you get NIL money from the school, you cannot get it from outside 3rd parties? I am guessing no....but this past paragraph made me raise an eyebrow that the NCAA and the schools may be trying to Trojan Horse their way into controlling and regulating any and all money to players, when/what/how they can get it.

[ASUTodd]

2 steps forward and 3 steps back.

[AtlAppMan]

What this describes IMO is clearly a new professional league. They need to call it out and there would never be a fair way for the non-professional NCAA divisions to compete against these teams.

It would be NFL lite against college amateur league. Would make no sense to play those games under this model.

Those teams should leave the NCAA to leave no doubt there is no connection to normal college athletics and this new professional league.

[Bigdaddyg1]

How many former FCS schools moved up in the past 10 years or so? Will a Wake remain in the upper tier? Do they really bring in the cash to pay their athletes? Will we see schools like UCF, Cincinnati and Houston who were relegated to G5 then somehow were able to make the magical leap to big boy again? Will all of the major sports be separated? Other than App State I have watched as little college basketball in the past 2+ years as I have my entire life. I have little to no interest now. Sad

[Stonewall]

Title IX will make this interesting. “ A level playing field”.

[Saint3333]

Imagine limiting opportunities for student athletes, this is the path they've chosen.

[t4pizza]

Imagine limiting opportunities for student athletes, this is the path they've chosen.

Not sure it limits opportunities, it may but without reading the entirety I am not sure. I would not be surprised if this is just the NCAA's way of giving the big dogs their bone so they will go quietly and let the NCAA govern the others as they see fit (more stringent NIL regulations, etc). I could easily see the athlete still being able to get outside NIL in addition to what the school provides, otherwise it is still unfair trade and violative of Sherman Anti Trust act. I bet the athletes at the highest level will have all the benefits, scholarship, cost of attendance, school NIL, Private NIL, etc. The NCAA knows that litigation is very expensive and if the top dogs get what they want, the rest of us probably can't finance the years long fight. Plus even if we did, since they would now have a division that gives it all to the student athlete, they could argue the school itself elects not participate in that divisions so it is not the NCAA actions that are violative of anti trust laws. I really think this is the NCAA clearing the field so nobody can challenge their rules over all BUT the largest most powerful schools.

[spacemonkey]

I don't think the p4 will go for this. One thing I hope comes out of this is that if the money is there you are in...you don't need an invite. Looking at ECU and Liberty....maybe App.

I think the P4 will leave the NCAA. The only thing that might keep them in is if leaving causes them to have to pay taxes on income at the college level, not the player level.

[Saint3333]

Imagine limiting opportunities for student athletes, this is the path they've chosen.

Not sure it limits opportunities, it may but without reading the entirety I am not sure. I would not be surprised if this is just the NCAA's way of giving the big dogs their bone so they will go quietly and let the NCAA govern the others as they see fit (more stringent NIL regulations, etc). I could easily see the athlete still being able to get outside NIL in addition to what the school provides, otherwise it is still unfair trade and violative of Sherman Anti Trust act. I bet the athletes at the highest level will have all the benefits, scholarship, cost of attendance, school NIL, Private NIL, etc. The NCAA knows that litigation is very expensive and if the top dogs get what they want, the rest of us probably can't finance the years long fight. Plus even if we did, since they would now have a division that gives it all to the student athlete, they could argue the school itself elects not participate in that divisions so it is not the NCAA actions that are violative of anti trust laws. I really think this is the NCAA clearing the field so nobody can challenge their rules over all BUT the largest most powerful schools.

There will be less overall athletic scholarships 10 years from now if something like this passes. The top athletes will have their nest eggs, but the bottom tier will be left without opportunities.

[hapapp]

I don't think the p4 will go for this. One thing I hope comes out of this is that if the money is there you are in...you don't need an invite. Looking at ECU and Liberty....maybe App.

I think the P4 will leave the NCAA. The only thing that might keep them in is if leaving causes them to have to pay taxes on income at the college level, not the player level.

This keeps them in the NCAA because they can do what they've wanted to do. It gives them control over their programs to spend what they want.

[Mjohn1988]

I’ll offer my summary. NCAA to the P4, please, please, please don’t leave us!!! You can do anything you want and we will help you crush the G5. If the NCAA gave a crap about competition they would be proposing a model in which schools could pay athletes directly but under a model like the NFL has. Salary caps, franchise tags, compensation for portal transfers, etc. If they proceed down this path there will be very little competition. A handful of teams will be able to spend limitless money to dominate and it will kill college football.

[appdaze]

Ive been saying for years they just need to let athletics break away fully from academia and just be lower tier pro leagues that represent a school in name and logo only. Be done with it. Thats where we are heading.

I do not want my tax dollars going to subsidize professional athletes via universities.

At this point its just investment prospects and gambling for the wealthy elite.

[ericsaid]

What this describes IMO is clearly a new professional league. They need to call it out and there would never be a fair way for the non-professional NCAA divisions to compete against these teams.

It would be NFL lite against college amateur league. Would make no sense to play those games under this model.

Those teams should leave the NCAA to leave no doubt there is no connection to normal college athletics and this new professional league.

And therein lies the problem.

1. How could the NCAA require paid employees of the University also be students?
2. How could they cap the number of years that an athlete could play? Why couldn't an athlete also become a Professor and continue playing football? Why are they any different from, say, dining hall staff? They don't cap how long someone can work at the dining hall, how can they do that to paid employees playing football?
3. How can they comply with Title IX requirements if the universities are directly involved in payment? Wouldn't they have to pay female athletes just as much as male athletes? That also means pulling revenue from football to fund all other programs and their salaries.
4. Then who is to say those paid employees can be capped, required to go to class, etc?

If they are paid employees, they need not be students. Any requirement dictating that could easily be challenged in court.

[Rekdiver]

What a joke.... If this isnt racketeering i dont know what is...............

[Stonewall]

Pandora is alive and well .

[hapapp]

What this describes IMO is clearly a new professional league. They need to call it out and there would never be a fair way for the non-professional NCAA divisions to compete against these teams.

It would be NFL lite against college amateur league. Would make no sense to play those games under this model.

Those teams should leave the NCAA to leave no doubt there is no connection to normal college athletics and this new professional league.

And therein lies the problem.

1. How could the NCAA require paid employees of the University also be students?
2. How could they cap the number of years that an athlete could play? Why couldn't an athlete also become a Professor and continue playing football? Why are they any different from, say, dining hall staff? They don't cap how long someone can work at the dining hall, how can they do that to paid employees playing football?
3. How can they comply with Title IX requirements if the universities are directly involved in payment? Wouldn't they have to pay female athletes just as much as male athletes? That also means pulling revenue from football to fund all other programs and their salaries.
4. Then who is to say those paid employees can be capped, required to go to class, etc?

If they are paid employees, they need not be students. Any requirement dictating that could easily be challenged in court.

This proposal doesn't make them paid employees of the university. It simply allows the university to pay for NIL rather than going thru a collective. It doesn't violate Title IX because half of the athletes receiving the minimum of $30,000 have to be female athletes. As proposed, this doesn't affect their status as students. While the proposal gives the participating schools some autonomy, they are still a part of the NCAA and would have to abide by all other NCAA rules.