Last week, the NCAA settled a $2.7 billion lawsuit with former student-athletes, setting a precedent for future revenue sharing with players beginning in the 2025-2026 school year. While the majority of that revenue is generated through college football and the NCAA men’s basketball tournament, the NCAA women’s tournament hit record numbers last year, outpacing the NBA, which is on the verge of a $7 billion media rights deal. This has given NCAAW players a significant seat at the table. Additionally, women’s basketball (WBB) is going to be the first to benefit through Title IX if it is applied to the $22 million a year that Power Four (P4) schools have to distribute to their players. A few questions arise, which I discussed informally on Twitter, and I think WBB prospects need to be aware of these moving forward.
What Happens to Previously Negotiated NIL Agreements and Collectives?
This $22 million or 22% of media rights, fundraising, and ticket sales essentially replaces the bulk of the collective money that was being given to players. There will be offshoots for the top 1% of players, but ultimately, the majority of football and basketball players will be taken care of through the 22% payments. So, what happens to players who had previous agreements for certain amounts over previous years? First, I think this new agreement supersedes anything previously agreed upon and will reset what a player’s deal is going forward with their school. Additionally, any other NIL outside of the 22% from the schools will likely need to be negotiated completely independently of the school or coaching staff, making it more challenging to secure.
How Is the $22 Million Per Year Per School Going to Be Split Among Its Current Athletes?
You have to wonder if this money will be distributed like the NBA or like teachers. Many schools already have a base amount of NIL collective money every player receives, similar to a league minimum or how a teacher’s salary would work. However, there is some theory that the coaching staff will have access to a sum of money and will be able to issue amounts and contracts to individual players in recruiting, similar to professional contracts. The amount of jealousy over who gets the most tweets and shots is already at an all-time high. What happens when a player is known to be getting more money than another player? How does a coach manage team dynamics in that environment? Will there be multi-year deals to keep players out of the transfer portal, and player options or team options to extend their contracts? The key to this answer will likely be determined by whether NCAA players are allowed to unionize and collectively bargain. The absence of this early on will cause more problems as schools with no experience or knowledge in this matter try to figure it out.
What Happens to Schools Outside of the Power Four (P4)?
I asked an Atlantic 10 (A10) head coach and a Big East head coach how this would impact them, and they felt financially prepared to do well with this new model. Most of these schools do not have high-revenue football and are extremely committed to men’s basketball. For them to invest in men’s basketball, they will also have to invest in women’s basketball. It’s hard to believe they will be at the same level as the P4 conference schools, but it seems there will be a significant gap over schools that are not participating at all or have no large revenue base. The Big East, Conference USA, American Athletic Conference, and A10 will have a strong base of either some football revenue and TV contracts in addition to the NCAA tournament money they receive each year as well.
The Biggest Issue Right Now?
Coaches have no clue what is going on or what these numbers will look like. A few coaches I spoke to mentioned impending meetings with their athletic director and/or collective to figure out what is next. With the class of 2025 less than six months from signing day, players and their parents need to start asking these questions and seeing who has the answers because plenty of folks have been misguided through the NIL process over the last several years.
