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I'm still parsing through articles on the House settlement but one thing I did grab from the Extra Points newsletter is that there is a de facto salary cap in place now at 20.5 million in direct payments to athletes per school per season and that number will slide up every year. The number is based of of something called called the MFRS report
How that's going to hold up in court is anyone's guess because someone will surely sue the CSC or NIL Go over it at some point. The reason it's a de facto cap and not a real hard one is that unlike the NBA or NFL there's no union to negotiate a CBA with and therefore no CBA.
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While the $20.5 million figure is a hard cap on paper, the ability for schools to shift budget allocation year-to-year between teams allows athletic departments to tweak team-wide budgets to account for changing priorities or invest in a team that seems “one piece away.”
These three recalculations will be based on Membership Financial Reporting System (MFRS) reports, which aggregate revenue streams from institutions within the Pac-12, Big Ten, Big 12, SEC, and ACC, including football-independent Notre Dame.2
Given the trajectory of media rights valuations and a heightened focus on revenue generation to offset the burden of athlete compensation, these recalibration years could yield significant spikes to schools' revenue-sharing caps."
How that's going to hold up in court is anyone's guess because someone will surely sue the CSC or NIL Go over it at some point. The reason it's a de facto cap and not a real hard one is that unlike the NBA or NFL there's no union to negotiate a CBA with and therefore no CBA.
"
While the $20.5 million figure is a hard cap on paper, the ability for schools to shift budget allocation year-to-year between teams allows athletic departments to tweak team-wide budgets to account for changing priorities or invest in a team that seems “one piece away.”
These three recalculations will be based on Membership Financial Reporting System (MFRS) reports, which aggregate revenue streams from institutions within the Pac-12, Big Ten, Big 12, SEC, and ACC, including football-independent Notre Dame.2
Given the trajectory of media rights valuations and a heightened focus on revenue generation to offset the burden of athlete compensation, these recalibration years could yield significant spikes to schools' revenue-sharing caps."
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