Introduction to a New Era
This week could mark the beginning of a new era in college athletics, with a final hearing set to take place in a downtown Oakland courthouse to review the NCAA’s landmark settlement of three antitrust lawsuits. If approved, the settlements will launch a new era of college athletics, featuring revenue sharing with athletes, a cap system for athlete compensation, and a new enforcement arm to eliminate donor-backed payments that aren’t true name, image, and likeness deals.
The Settlement’s Basics
The House settlement, which combines three separate cases, would allow schools to pay their athletes directly from a pool that’s tentatively set to start this fall at $20.5 million. Athletes will be allowed to sign legitimate name, image, and likeness deals outside of that framework. Some examples include JuJu Watkins’ deal with Nike or Caleb Williams’ deal with Dr. Pepper. However, any NIL deal that exceeds $600 will soon have to be reported to Deloitte for approval as “real NIL” and must have “a valid business purpose.” This is supposed to prevent thinly veiled attempts at getting around the new salary cap.
The Power Conferences’ Plan
The power conferences have put forth a plan to create their own enforcement arm, outside of the auspices of the NCAA, that will impose long-awaited guardrails on NIL and punish any schools that try to circumvent them. However, this plan may be wishful thinking, as it is begging for legal challenges. Assuming Congress doesn’t act quickly on a college sports bill, all it will take is one compelling antitrust lawsuit for the whole thing to fall apart.
Concerns About the New System
Coaches can already see the cracks in the foundation of the new system. USC coach Lincoln Riley expressed concerns about the legal aspect of the new enforcement arm, stating that it needs to have enough teeth to accomplish what it needs to accomplish and not get run over with people getting sued. Additionally, paying players outside of the rules is not a new concept, and it is unlikely that the genie can be put back in the bottle.
The Rush to Lock in Big Payouts
With potential settlement payment limits incoming, there’s a rush to lock in big payouts right now in the transfer portal. On July 1, deals that haven’t been paid out to athletes will have to be sent to Deloitte for clearinghouse approval if the settlement is approved. But right now, boosters can still pay unchecked amounts to athletes under the guise of NIL, if they please. This has led to skyrocketing paydays in the basketball transfer portal recently.
Impact on USC Basketball
Wesley Yates III’s departure to the portal is a devastating setback for USC men’s basketball. As recently as a few weeks ago, the Trojans’ standout freshman was all-in on staying with USC. But as teams front load their spending, it’s safe to assume offers for Yates’ services went through the roof in recent weeks. USC has no choice but to go back to the portal once again, in search of another difference-maker.
USC Women’s Basketball
Lindsay Gottlieb has a lot of work to do in the transfer portal, with Avery Howell and Kayleigh Heckel out. Losing those two freshmen is a tough pill to swallow, but that’s how it goes these days. Especially when you have a superstar like JuJu Watkins, who siphons up a lot of the scoring and attention. USC’s most pressing need in the portal is the frontcourt, and already, Gottlieb has had one coveted forward on campus.
What’s Next
The future of college athletics is uncertain, but one thing is clear: the new system will face significant challenges. With the potential for legal challenges, schools trying to cheat the system, and the difficulty of enforcing the new rules, it will be a rocky road ahead.
In Case You Missed It
- Professor Pete Carroll finds a rapt USC audience for his ‘Win Forever’ philosophy
- Promising USC guard Wesley Yates III enters the transfer portal
- USC falls to Villanova in College Basketball Crown quarterfinals
- JuJu Watkins becomes first USC player to win AP player of the year
- J’Onre ‘Big General’ Reed brings energy and power to USC offensive line
- Rashaun Agee helps USC men’s basketball beat Tulane in Crown tournament
- How will USC women’s basketball adapt next season without star JuJu Watkins?
- USC women fall again to Paige Bueckers and UConn in Elite Eight of NCAA tournament
What I’m Watching This Week
It’s been a fantastic few months for television, and Apple, fresh off its “Severance” success, has just added another excellent entrant into the small-screen mix. I will generally follow Seth Rogen wherever he might ask me to go, but “The Studio” might be his best work yet as a producer and show creator.
Conclusion
The new era of college athletics is set to begin, but it will face significant challenges. The settlement’s basics, the power conferences’ plan, and the rush to lock in big payouts are all important factors to consider. The impact on USC basketball and women’s basketball will be significant, and the future of college athletics is uncertain.
FAQs
Q: What is the NCAA’s landmark settlement of three antitrust lawsuits?
A: The settlement would allow schools to pay their athletes directly from a pool and feature revenue sharing with athletes, a cap system for athlete compensation, and a new enforcement arm to eliminate donor-backed payments that aren’t true name, image, and likeness deals.
Q: What are the concerns about the new system?
A: The new system may be begging for legal challenges, and paying players outside of the rules is not a new concept. It is unlikely that the genie can be put back in the bottle.
Q: How will the new system impact USC basketball?
A: Wesley Yates III’s departure to the portal is a devastating setback for USC men’s basketball, and the team will have to go back to the portal once again, in search of another difference-maker.
Q: What’s next for college athletics?
A: The future of college athletics is uncertain, but one thing is clear: the new system will face significant challenges. With the potential for legal challenges, schools trying to cheat the system, and the difficulty of enforcing the new rules, it will be a rocky road ahead.
