College athletes could become university employees

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The Future. If a California judge approves the settlement in House vs. NCAA, college athletes would have more or less completed their transition into full-fledged employees for the schools they play for, clinching the first-ever revenue-sharing agreement between the two. The approval could majorly prepare collegiate athletes for the economic pressures of pro sports… but it could also put unprecedented pressure and attention on high school athletics.

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Are college sports for amateurs or professionals? The answer is about to get even murkier.

  • All Division I athletes (dating back to 2016) can now collect on the $2.8 billion settlement for a portion of the revenue they generated from their name, image, and likeness prior to the rule change three years ago.
  • All D1 athletes moving forward will be able to share 22% of the revenue generated from their NIL (major leagues share roughly 50%), which comes out to about $20 million from each school.
  • But there isn’t a set amount that future players will be paid — it’ll be up to the discretion of each school to divvy out payments based on what sports they really want to invest in (most revenue is generated from football and basketball).

The NCAA believes that $2.8 billion is a lesser evil than the nearly $4 billion it might have had to pay if the case had gone to trial. But it’s still only a temporary fix.

Universities are now calling on Congress — which has mostly stayed out of this debate — to pass legislation that excludes the NCAA from antitrust rules, determines that players are not employees, and gives the league more wiggle room to oversee financial agreements between players and schools.

Maybe now’s a good time to go back to school.

David Vendrell

Born and raised a stone’s-throw away from the Everglades, David left the Florida swamp for the California desert. Over-caffeinated, he stares at his computer too long either writing the TFP newsletter or screenplays. He is repped by Anonymous Content.


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