re: Potentially huge NIL/Revenue Sharing news (memo sent out by college sports commision)

What they're doing is trying to keep schools from circumventing the clearing house.

Translation (example):

A school offers a player 250k in NIL to come play ball for said school. That money has to come out of the 20.5 million ncaa cap because the offer is from the school, not 3rd party NIL. Kid accepts the 250k NIL deal from the school. Then lets say a couple weeks after arriving on campus, the school sets up a 3rd party NIL deal with Gordon for the player, valued at 250k. These NIL contracts from the schools state that because the school setup the 3rd party NIL deal, the school doesn't pay the player 250k anymore, Gordon pays it and the school gets to keep their 250k. Now if the school sets up more 3rd party NIL money for the player, the player gets all of it because colleges can only take back what they promised, not more.

What schools were trying to do apparently is say well we never spent 250k of our 20.5 million, now we gonna go out and promise that money to someone else, but according to this guidance, they cannot do that, even though they still have the money.

Also. players are allowed and encouraged to pursue their own NIL deals, which was the whole fking point to begin with. The schools cannot touch that money and has no effect on the NIL money promised by the school.

The work around is just to have the boosters lined up next to the General Managers and have the school NIL offers be low, and accompnay that offer with a contengient NIL from a 3rd party that is only in effect if the school NIL deal is in effect.

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Programs like Texas Tech and Ole Miss will ignore this and dare the ncaa to do anything about it.

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And they will win in the courts every time until collective bargaining on caps occurs.

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This is correct, however the 250k still comes out of the school revenue sharing pool of 20.5 million because they are the ones involved in the NIL deal. If they promise a kid money it comes out of their pool, whether they actually pay that or not is the kicker, their share still drops by 250k in that scenario though

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If it's set up as a 3rd Party deal from the beginning, it doesn't come out of the Revenue Sharing. Revenue Sharing = School's Money; NIL = 3rd Party deals for Name, Image and Likeness. NIL doesn't come from the school any longer. All of the collectives have been shut down.

LSU's Football Revenue Share is 75% of 20.5 million which is a tad north of 15.3 million. The rest (25 million) is 3rd Party NIL. Lane took the job because we had the best setup for everything. They've known about this before December 1st (they have lawyers). We had the best setup then. The setup is Gordon and other business entities funding the NIL portion.

NIL deals aren't able to be credited back to the school's Revenue Sharing pool if any deal was initially funded by Revenue Sharing. That's all the memo is saying.

There is no total cap.

Revenue Sharing deals aren't subject to the clearing house.
3rd Party NIL deals are subject to the clearing house.

Revenue Sharing will be used to sign the big fish, like Texas Tech did with Sorsby. 3rd Party NIL deals will be the fair market value offers to get through the clearing house.

This is so confusing because I was trying to think how is this going to limit the big pocket schools from dropping bags of cash to beat out opponents. A cap of sorts would. So if TT is hell bent on spending 5 million for qb you are capped overall? Closest thing you can get to a salary cap. But it has to be enforced which likely won’t be.

I still don’t understand the point of the clearing house evaluation. From what I understand Sorsby was in the 2-3 million range I would assume. TT almost doubles that and it’s all good. What’s the point of the fair market value?

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If it's set up as a 3rd Party deal from the beginning, it doesn't come out of the Revenue Sharing. Revenue Sharing = School's Money; NIL = 3rd Party deals for Name, Image and Likeness. NIL doesn't come from the school any longer. All of the collectives have been shut down.

LSU's Football Revenue Share is 75% of 20.5 million which is a tad north of 15.3 million. The rest (25 million) is 3rd Party NIL. Lane took the job because we had the best setup for everything. They've known about this before December 1st (they have lawyers). We had the best setup then. The setup is Gordon and other business entities funding the NIL portion.

NIL deals aren't able to be credited back to the school's Revenue Sharing pool if any deal was initially funded by Revenue Sharing. That's all the memo is saying.

There is no total cap.

Revenue Sharing deals aren't subject to the clearing house.
3rd Party NIL deals are subject to the clearing house.

Revenue Sharing will be used to sign the big fish, like Texas Tech did with Sorsby. 3rd Party NIL deals will be the fair market value offers to get through the clearing house.

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So far this seems to be the best explanation. Thx! Someone get Gordon on the phone to confirm!

The players will still be funneled cash under the table just like has happened for the last 60 years.