SEC about to impose its own NIL cap, similar to the BIG

[Dawgzilla2]

Yahoo sports

SEC is set to announce an NIL cap of...brace yourselves...$70 MM. That would be a cap for all athletes in all sports, but would exclude third party NIL from entities that are not associated with the school. So collective money, endorsement deals from businesses owned by boosters, vendor deals, media deals, would all fall under the $70MM. Plus, those deals would be exempt from CSC approval, although I'm not sure how the SEC gets NCAA approval for that.

It also looks like the only enforcement intended is a luxury tax of up to $10MM, which doesn't sound like much of a penalty.

Also in this article, the BIG announced a $49MM cap, but their Luxury tax enforcement doesn't actually kick in until $60MM? I can't wait to hear the details of these new rules....

 

[dawgstudent]

Whatever. It's all a joke as far as the payments.

 

[OG Goat Holder]

I still don't understand why folks are gung ho about trying to limit the money. If rich boosters want to pay into this, why stop them? Further, they should just be able to give it right to a player as a gift.

All of our so called 'leaders' really need to be figuring out how to fix the portal. Immediately eligibility is what drives the prices up.

 

[Perd Hapley]

I still don't understand why folks are gung ho about trying to limit the money. If rich boosters want to pay into this, why stop them? Further, they should just be able to give it right to a player as a gift.

They aren’t really trying to limit anything. They are just trying to cap what has to come directly from the school’s coffers, and move that more towards the 3rd party NIL so that the schools and athletic departments can make reasonable year-over-year plans with their budgets, and not have to keep kicking the can down the road on capital expenditures, etc.

The schools are essentially kneecapped right now from being able to do anything long-term….except pay players and pay coaches. They are all trying to change that.

 

[Faustdog]

If it doesn't include third party, it's a bad thing for us.

 

[Xenomorph]

If it doesn't include third party, it's a bad thing for us.

How can they possibly limit 3rd party? Isn’t that the crux of the matter that started this whole thing?

I legit don’t know and am asking.

 

[Perd Hapley]

If it doesn't include third party, it's a bad thing for us.

It’s a non-impact to us either way. Of course it doesn’t include 3rd party.

It couldn’t possibly be bad for us, because right now there is no limit to any of it. In reality, there still isn’t, because nobody is touching $70MM right now even when you include the 3rd party deals.

 

[Called3rdstrikedawg]

If it’s true that our NFL well paid guys stepped up, how did they invest? The word is State signed an agreement with KT. Did the pro guys give directly to the University or is 1878 managing this pot of Monopoly money that kept KT in Maroon & White?

 

[OG Goat Holder]

They aren’t really trying to limit anything. They are just trying to cap what has to come directly from the school’s coffers, and move that more towards the 3rd party NIL so that the schools and athletic departments can make reasonable year-over-year plans with their budgets, and not have to keep kicking the can down the road on capital expenditures, etc.

The schools are essentially kneecapped right now from being able to do anything long-term….except pay players and pay coaches. They are all trying to change that.

They already know. 20.5M. The rest is donations.

 

[Dawgzilla2]

It’s a non-impact to us either way. Of course it doesn’t include 3rd party.

It couldn’t possibly be bad for us, because right now there is no limit to any of it. In reality, there still isn’t, because nobody is touching $70MM right now even when you include the 3rd party deals.

Well, its all conjecture, but The Athetic has done a pretty good job of collecting information and estimating roster expenditures. According to them, Texas is spending about $50MM on its football roster, and over $20MM on its basketball roster. Then they still have every other sport to pay NIL.

I don't know how much of these estimates might include legit third party deals, but clearly some schools are getting close to $70MM

 

[BigDogFan]

Money from outside the schools is going back under the table. The bagmen are back in business full time.

 

[ETK99]

Basically, there's no cap except on the non-blue bloods & the ones with lots of rich folks.

 

[mstateglfr]

I cant keep up.

The constant drama and chaos of an ever-changing landscape just isn't interesting. This has to be like what the 10th season of a Real Wives series feels like.

Ill continue to check back in from time to time to see if there is any actual stability, structure, or rules that schools need to follow. 0 reason to follow it daily though.

 

[Perd Hapley]

They already know. 20.5M. The rest is donations.

That’s over-simplifying it. Donations are a massive source of every athletic department’s annual revenue. And until recently….0% of it was used to pay athletes. Now, it’s more like 0% it is available for anything else except paying players and coaches and buyouts.

These AD’s and presidents all want guardrails here to allow them some liquidity for all the stuff that donations used to cover a large % of, like facilities improvements. It’s a total accounting nightmare what is happening right now.

 

[Perd Hapley]

Money from outside the schools is going back under the table. The bagmen are back in business full time.

There’s no need for it to go back under the table.

Behold the list below of high profile athletes who were deemed ineligible because their 3rd party NIL deals were deemed not legit by the CSC:







/end of list

 

[Perd Hapley]

I don't know how much of these estimates might include legit third party deals, but clearly some schools are getting close to $70MM

If by legit, you mean “CSC approved” 3rd party deals, and Texas no doubt has an absolute shít ton of them.

 

[Dawgzilla2]

If by legit, you mean “CSC approved” 3rd party deals, and Texas no doubt has an absolute shít ton of them.

True third party deals. Not deals coming through the collective, or with alumni run businesses, or with businesses associated with the university as sponsors, vendors, media partners, etc.