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re: Great story about the transfer portal and nil in general

Posted on 12/25/24 at 11:01 am to
Posted by Cleary Rebels
Member since Oct 2024
2899 posts
Posted on 12/25/24 at 11:01 am to
Bc no one wants to be a loser and lose money from a product. Win and make money, lose and lose money. No one wants to lose. It will only get worse - just look at 2 QB’s this year. One a HS player and the other transferring to Duke. Next year it will be 20 QB’s instead of 2 getting all that money.
Posted by LCTFAN
New Iberia
Member since Mar 2013
2823 posts
Posted on 12/25/24 at 3:46 pm to
quote:

mdomingue


quote:

allowing the NCAA to tame the wild west that is the NIL landscape now.


Great response to a very complex ruling for the NCAA and NIL

Too many different groups to monitor with the bulk of boosters contributing the money



Posted by lostinbr
Baton Rouge, LA
Member since Oct 2017
11668 posts
Posted on 12/26/24 at 7:39 am to
quote:

The rulings that directly address NIL are the ones that they are in the process of settling with the NCAA, as I understand it. The previous rulings that moved the NCAA away from the NIL ban did not directly address that but it was clear from the ruling the court's direction would get us there eventually. Maybe one of our tRant lawyers could clarify this.

Not a lawyer, but have followed this pretty closely for several years. That’s accurate.

California passed the “Fair Pay to Play” act in September 2019. Effective in January 2023, any public universities in California who prevented any athlete from earning income on his name, image, or likeness would be in violation of state law (subject to certain caveats, such as any endorsement that conflicted with existing team contracts).

Colorado followed suit with SB20-123 in March 2020, with their law also set to go into effect in January 2023. Florida became the third state to pass an NIL law with SB646 signed in July 2020. However, Florida’s timeline was much more aggressive - their law went into effect on July 1, 2021.

Meanwhile the NCAA was fighting several court battles. The first big NIL case was O’Bannon v. NCAA. This was the EA Sports lawsuit. EA settled, but the NCAA went to court. They lost in 2015, which led to the “full cost of attendance” being allowed under scholarships, among other things.

Following the O’Bannon decision, there were a number of new lawsuits against the NCAA. Those eventually turned into NCAA v. Alston. Alston went to the Supreme Court, who ruled against the NCAA in June 2021. The Alston decision was focused on compensation for “education-related” expenses that were not included in the “full cost of attendance” calculation. It did not actually address NIL. However, Justice Kavanaugh issued a concurring opinion in the case that blasted the NCAA’s entire amateurism model and made clear that they were fighting an uphill battle in court.

Another lawsuit, House v. NCAA, was filed in 2020 to force the NCAA to allow sharing of broadcast revenue.

The writing had been on the wall for the NCAA since the O’Bannon decision, and they had been on a clock since the California (and then Florida) NIL bills were signed into law. The NCAA spent most of that time lobbying for legislation at the federal level to protect the amateurism model. They failed to get any movement on that front.

By the time the Alston decision came down, something like 12 states had passed NIL laws that were effective July 1, 2021. As of July 1, any public universities in these states would be required to allow NIL compensation. At that point, the NCAA was out of time. The NCAA released their “interim” NIL policy on June 30, 2021.

All of this led the NCAA to settle in the House case, which (once approved) will allow revenue sharing, change the roster/scholarship limits, etc.

There have been a bunch of additional lawsuits over the past 4-5 years related to transfer eligibility among other things, but the ones listed above are probably the most impactful on the NIL front.
Posted by Leon the pro
318
Member since Jul 2014
567 posts
Posted on 12/26/24 at 10:39 am to
This purely a historical hypothetical:
What if the NCAA talked the nfl into allowing high school players to enter the draft after high school? …before all this genie/bottle business. Wanna play for $, take a chance. They also must find nil deals on their own. No school is allowed to take part in player contracts. Would that have slowed this down a little?
Posted by TigerBait2008
Boulder,CO
Member since Jun 2008
35224 posts
Posted on 12/26/24 at 10:48 am to
quote:

PUB



I honestly don't understand how yall function throughout a day..
Posted by lostinbr
Baton Rouge, LA
Member since Oct 2017
11668 posts
Posted on 12/26/24 at 12:44 pm to
quote:

This purely a historical hypothetical:
What if the NCAA talked the nfl into allowing high school players to enter the draft after high school? …before all this genie/bottle business. Wanna play for $, take a chance. They also must find nil deals on their own. No school is allowed to take part in player contracts. Would that have slowed this down a little?

I’m not convinced it would have made a difference. If you look at the recent lawsuits that actually addressed NIL:
- O’Bannon v. NCAA, the case that led EA Sports to drop their NCAA Football and NCAA Basketball titles, was started by a men’s basketball player.
- House v. NCAA, the case that is pending settlement approval for revenue sharing, was started by a swimmer and a women’s basketball player.

The revenue associated with college football has certainly shaped public opinion, but the landmark cases have been about more than just football.

If you really want to look at hypotheticals - go back all the way to 1984 and NCAA v. Board of Regents of the University of Oklahoma. I think if Oklahoma and UGA hadn’t sued the NCAA for control of TV rights back then, things might look a lot different today. Instead of the conferences competing for the biggest TV rights deals, the TV deals would still be managed by the NCAA. The NCAA would still limit the number of TV appearances allowed for each team, and would still distribute TV revenue across Division 1. Instead of an “SEC Network,” “ACC Network,” etc. we might have an “NCAA Network” today.

You would still have disparities in ticket sales, but the NCAA foresaw that teams who were on TV more often would have the advantage of more media exposure on top of more TV revenue. So maybe those disparities would be smaller today. In any case, I think it would at least put a dent in the financial drivers that create a market for stuff like revenue sharing, the facilities war, massive coaching contracts, etc. in the first place.

The flip side is that the sport would probably be less popular, and teams (like LSU) who are in the elite conferences would probably be worse off. But I think it’s interesting to imagine what the landscape might look like.
Posted by QB
Louisiana
Member since Sep 2013
5904 posts
Posted on 12/26/24 at 12:47 pm to
There is one word in that report that made the most sense
This is 'INSANE'.
Posted by chalmetteowl
Chalmette
Member since Jan 2008
51568 posts
Posted on 12/26/24 at 1:27 pm to
quote:

Sports economics are just auctions where players get thrown into the middle of a bidding war, and watch their price go up. That's not how real life works for the rest of us.


It is though… life is a bidding war. Not everyone can make the big money but someone will.
Posted by Gravitiger
Member since Jun 2011
11510 posts
Posted on 12/26/24 at 1:27 pm to
quote:

You missed the Supreme Court part.
The Supreme Court has never ruled on NIL. And the Supreme Court can't stop the House settlement--a freely negotiated and agreed contract between the players and the schools--which includes a FMV clearinghouse for most NIL deals involving boosters and collectives.
This post was edited on 12/26/24 at 1:31 pm
Posted by chalmetteowl
Chalmette
Member since Jan 2008
51568 posts
Posted on 12/26/24 at 1:31 pm to
quote:

Amateur status is now in high school.


There’s basically no such thing as amateur status in any endeavor now. Just like the NCAA cant enforce those rules, neither can the LHSAA or any other state association. Players’ rights supersede those rules according to the courts
Posted by Gravitiger
Member since Jun 2011
11510 posts
Posted on 12/26/24 at 1:32 pm to
quote:

There’s basically no such thing as amateur status in any endeavor now. Just like the NCAA cant enforce those rules, neither can the LHSAA or any other state association. Players’ rights supersede those rules according to the courts
State law can still limit NIL for HS athletes. It does in many states, per the legislature (they could theoretically do it for college athletes, too, but obviously won't). To my knowledge, no court has ruled on a state high school athletic association enforcing NIL rules in accordance with state law.
This post was edited on 12/26/24 at 1:39 pm
Posted by chalmetteowl
Chalmette
Member since Jan 2008
51568 posts
Posted on 12/26/24 at 1:59 pm to
Some HS athletes are over the age of 18 where they’d be subject like college athletes to the same laws allowing NIL for them
Posted by Gravitiger
Member since Jun 2011
11510 posts
Posted on 12/26/24 at 2:17 pm to
NIL laws don't usually make a distinction based on over/under 18. They are usually written specifically for intercollegiate athletes. Some states allow it for HS athletes, but they are in the minority.

Also, I'm not convinced a state high school association (which is a state actor under SCOTUS jurisprudence) would be subject to the same federal antitrust scrutiny as the NCAA (which is not a state actor but rather a voluntary private membership association engaged in interstate commerce).
This post was edited on 12/26/24 at 2:23 pm
Posted by chalmetteowl
Chalmette
Member since Jan 2008
51568 posts
Posted on 12/26/24 at 2:25 pm to
quote:

but rather a voluntary private membership association engaged in interstate commerce).
which describes most high school athletic organizations
Posted by Gravitiger
Member since Jun 2011
11510 posts
Posted on 12/26/24 at 2:32 pm to
quote:

which describes most high school athletic organizations
Not according to the Supreme Court in St. Augustine v. LHSAA or Brentwood Academy v. TSSAA.
Posted by chalmetteowl
Chalmette
Member since Jan 2008
51568 posts
Posted on 12/26/24 at 3:18 pm to
I believe for the LHSAA there was a case after that established it as a “voluntary private organization” and not a “state actor”

But the carve outs specifically for intercollegiate athletes may violate the Equal Protection clause… there are 18 year old athletes at both high schools and LSU and it’s hard legally to tell one they can get NIL and tell the other they can’t.

NIL is built on the right to privacy in contracts. What it really is is a human right to accept compensation without adverse effects from a third party. All human beings should have that right, hence why non-compete clauses are a thing of the past
This post was edited on 12/26/24 at 3:24 pm
Posted by Gravitiger
Member since Jun 2011
11510 posts
Posted on 12/26/24 at 4:09 pm to
quote:

I believe for the LHSAA there was a case after that established it as a “voluntary private organization” and not a “state actor”
If true, then LHSAA is unique from all other state high school associations in that regard.
quote:

But the carve outs specifically for intercollegiate athletes may violate the Equal Protection clause… there are 18 year old athletes at both high schools and LSU and it’s hard legally to tell one they can get NIL and tell the other they can’t.
The distinction is not based on any protected class status, so it should not violate EP. Also, if LHSAA is not a state actor, then EP wouldn't even apply (and LHSAA rules aren't where the distinction is made, anyway). It may seem wrong or "hard" to tell an 18-year-old high schooler they can’t make NIL money and continue to be eligible for HS sports, but it's not necessarily illegal.

All the laws say is basically, "It is illegal for any college/university in this state or governing body of colleges/universities operating in this state to ban college/university students in this state from entering into NIL contracts (with certain limitations)." I don't see how that violates EP.
quote:

NIL is built on the right to privacy in contracts. What it really is is a human right to accept compensation without adverse effects from a third party. All human beings should have that right, hence why non-compete clauses are a thing of the past
No, it's based on state statutes and federal antitrust law. There is no legal "right to accept compensation without adverse effects from a third party." "The right to privacy in contracts" is not even a legal term. You're just putting out amalgamations of random legal words.

Also, non-competes are not a thing of the past (at least not anytime soon). The FTC rule on that was overturned in federal court and is now on appeal and currently unenforceable.
This post was edited on 12/26/24 at 4:30 pm
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