Really great stuff here from Ross:
"If they reject a proposed settlement offer, officials from the NCAA and power conferences stand to face a catastrophic $20 billion in back damages as well as risking a bankruptcy filing, according to documents obtained by Yahoo Sports."
"Industry leaders describe the next two weeks as, perhaps, the most consequential in college athletics history."
Cliffs:
~ New documents specify that total amount in back damages owed to athletes for use of NIL before NCAA lifted probibitions in 2021 is $2.776 billion, which the NCAA will be responsible paying off over 10 years
~ As a result, power leagues are expecting a $1-2 million reduction per year in distribution (could be larger with a shorter timeline if a loss in court)
~ Estimated $20 billion would likely be payable "immediately" after final judgement and not 10 years, which could result in NCAA filing bankruptcy
~ Court is expected to reaffirm the NCAA's rules around compensation. Collectives won't be eliminated, but schools will have incentive to bring them inside University
~ Settlement develops a new "enforcement infrastructure", which targest pay-for-play rules, potentially resolving the "Wild West" environment in athletics
~ As part of terms, plaintiffs will agree to cooperate with NCAA's effort "regarding antitrust exemption", NCAA and conference leaders hope that Congress will codify or at the very least grant the NCAA protection to enforce its rules and deem athletes as students and not employees
~ Settlement still leaves open the possibility of athletes being deemed employees later on
~Document reveals details around an annual revenue-sharing cap that schools are permitted to distribute to athletes (22% of average power conference school's media rights, ticket sales and sponsorships)
~ Projected revenue cap in Year 1 (2025) is $21 million
~ Document isn't perfect, doesn't protect NCAA from future lawsuits
~ Title IX "remains at the campus level to be applied"
~ As much as $300 million per school over the 10-year settlement agreement
~ As part of new model, officials plan to lift scholarship limitations and implement roster limits (schools can offer schollies to entire roster)
~ A trial that results in an NCAA loss will be catastrophic
