NCAA President Charlie Baker sent a memo to members of the NCAA on Friday, and he stated the settlement of the House v. NCAA, Hubbard v. NCAA and Carter v. NCAA cases will help “in our ongoing effort to create a stable, sustainable and equitable model for the future of college sports.” The Ohio State athletic department published the memo, and a full read of it is below.

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The NCAA and each of the Power 5 conferences jointly announced Thursday that schools can share “up to $22 million with student-athletes per year.” Baker acknowledged there will be future compensation for Division I student-athletes and back damages, though, he thanked everyone within Division I for their “dedication and hard work in getting us to this point.” Baker stated “there is still much work to be done” and NCAA members’ “continued support and collaboration will be crucial.”

Baker stated the “nearly $2.78 billion” in back damages from the settlement will be split 42% paid by the NCAA and 58% among the Division I conferences “based on their distributions over the past nine years.” It will be paid over 10 years, about $280 million per year.

“This will be funded through careful expense management, new revenue initiatives and the use of reserves,” Baker stated.

Baker bulleted three “specific contributions” from a trio of sources, as outlined below.

• Football Bowl Subdivision conferences: $95 million annually (33%).
• Football Championship Subdivision conferences: $37 million annually (13%).
• Nonfootball Division I conferences: $34 million annually (12%).

Had the settlement not happened and trials unfolded, Baker stated the NCAA could have been on the hook to pay potentially $9 billion in “treble damages,” which he stated “would be financially devastating and unsustainable.”

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Baker also listed “several critical objectives” reached through the settlement, as outlined below.

1. It replaces potentially crippling lawsuits with a negotiated settlement and a 10-year injunction.
2. It enables student-athletes to receive up to 22% of the average DI Power 5 athletics revenues — in addition to tuition and other benefits currently provided. Adding all these benefits together, many A5 schools would be devoting nearly 50% of athletics revenue to student-athletes. 
3. It ends decades of antitrust litigation, stabilizing college sports while permitting conferences and the NCAA to enforce rules that set a level playing field and emphasize the educational mission of college athletics.
4. It binds DI together, enabling the NCAA to contribute $120 million annually for 10 years toward back damages.

While Baker stated in closing that the settlement is “a massive step forward for student-athletes and college sports,” he accompanied that sentiment by acknowledging “it does not address every challenge.” Baker stated pending legal issues “such as those related to employment with the NLRB and the Johnson case” are among the obstacles still in need of a solution.

There is the possibility that “if the NCAA outperforms revenue projections and has unplanned surplus net assets, there will be an opportunity to determine how those additional assets can be used to offset the local impact of the damages payment,” Baker stated. 

The NCAA aims “to provide more direct benefits to student-athletes,” and Baker stated “this is a vital opportunity to positively reshape the future of college sports” amid the challenges ahead.

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Here is Baker’s full memo, via Ohio State.

“Good afternoon,

“I would like to share an update on an important step forward in our ongoing effort to create a stable, sustainable and equitable model for the future of college sports. We have now reached a proposed settlement in three major cases — House, Hubbard and Carter — involving back damages and future compensation for Division I student-athletes. 

“I want to extend my heartfelt thanks to all of you in Division I for your dedication and hard work in getting us to this point. Your efforts have been instrumental in negotiating this complex settlement and in shaping a more stable future for Division I college athletics. We acknowledge that there is still much work to be done, and your continued support and collaboration will be crucial as we implement these changes.

“The media has covered these lawsuits extensively, with varying degrees of accuracy. The plaintiffs’ demand for back damages is substantial. In the House case alone, the plaintiffs sought approximately $3 billion. If the NCAA were to lose at trial, the courts could impose “treble damages,” potentially resulting in a $9 billion judgment. Such a verdict would be financially devastating and unsustainable.

“The lawsuits address three main issues: compensation for academic-related expenses; name, image, and likeness opportunities; and restrictions on scholarships. We have managed to negotiate the total back damages for these cases down to nearly $2.78 billion, to be paid over 10 years, equating to approximately $280 million annually.

“To address this obligation, we have developed a plan where the NCAA will contribute $1.2 billion over 10 years, representing 42% of the total back damages. This will be funded through careful expense management, new revenue initiatives and the use of reserves.

“The remaining 58% will be distributed among the Division I conferences based on their distributions over the past nine years. This translates to an annual contribution of $165 million, or a 20% total reduction in distributions.

“Specific contributions are as follows:

• Football Bowl Subdivision conferences: $95 million annually (33%).
• Football Championship Subdivision conferences: $37 million annually (13%).
• Nonfootball Division I conferences: $34 million annually (12%).

“While these contributions represent only 1%-2% of total revenues for FCS and nonfootball conferences, individual conferences will need to manage these contributions based on their members’ budgets. I understand this change will not be easy to manage, but given the challenges facing college sports over the last few decades, change is inevitable. I believe the change before us now presents massive new opportunities for student-athletes and all of Division I. 

“And to be clear, the financial estimate is just that. If the NCAA outperforms revenue projections and has unplanned surplus net assets, there will be an opportunity to determine how those additional assets can be used to offset the local impact of the damages payment (e.g., supplemental, pay down).

“Additionally, the forward-looking aspect of this settlement includes a revenue-sharing model allowing schools to provide more direct benefits to student-athletes, including for NIL. This model, starting in the 2025-26 fiscal year, proposes that 22% of average Autonomy 5 revenues can be shared with student-athletes, potentially amounting to $1 billion to $1.5 billion annually.

“This settlement achieves several critical objectives:

1. It replaces potentially crippling lawsuits with a negotiated settlement and a 10-year injunction.
2. It enables student-athletes to receive up to 22% of the average DI Power 5 athletics revenues — in addition to tuition and other benefits currently provided. Adding all these benefits together, many A5 schools would be devoting nearly 50% of athletics revenue to student-athletes.
3. It ends decades of antitrust litigation, stabilizing college sports while permitting conferences and the NCAA to enforce rules that set a level playing field and emphasize the educational mission of college athletics.
4. It binds DI together, enabling the NCAA to contribute $120 million annually for 10 years toward back damages.

“This is a massive step forward for student-athletes and college sports, but it does not address every challenge. There are still pending legal issues, such as those related to employment with the NLRB and the Johnson case. 

“While challenges remain, this is a vital opportunity to positively reshape the future of college sports. In the weeks ahead, the DI governance team will be working through all relevant committees to discuss next steps with you all. 

“There is a lot of work to be done, and we look forward to getting it done with you in the coming months. 

“Sincerely,

“Charlie Baker”

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NCAA President Charlie Baker and each of the Power 5 conferences — the Atlantic Coast, Big Ten, Big 12, Pac-12 and Southeastern — jointly announced Thursday that they’ve agreed to settlement terms regarding antitrust and class-action lawsuits. According to Ralph D. Russo of The Associated Press, the NCAA and Power 5 will pay nearly $2.8 billion, expected to be paid over 10 years, to settle several antitrust claims, notably House v. NCAA, Hubbard v. NCAA and Carter v. NCAA, and the joint statement claimed it “is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come.”

Among the longstanding aspects that made up the foundations of the NCAA is set to change: schools can directly pay players.

Here is the full joint statement from Baker, ACC commissioner Jim Phillips, Big Ten commissioner Tony Petititti, Big 12 commissioner Brett Yormark, Pac-12 commissioner Teresa Gould and SEC commissioner Greg Sankey.

“The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come. This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students. All of Division I made today’s progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our various student-athlete leadership groups to write the next chapter of college sports.”

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Notre Dame President Rev. John I. Jenkins, C.S.C. also reportedly released a statement, calling the settlement “necessary to avoid what would be the bankruptcy of college athletics.” Here is his full statement according to Ross Dellenger of Yahoo! Sports.

“The settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics. To save the great American institution of college sports, Congress must pass legislation that will preempt the current patchwork of state laws; establish that our athletes are not employees, but students seeking college degrees; and provide protection from further antitrust lawsuits that will allow colleges to make and enforce rules that will protect our student-athletes and help ensure competitive equity among our teams,” Jenkins stated via Yahoo! Sports.

Among the expected outcomes from the settlement include the NCAA and universities sharing revenue directly with student-athletes. There could be “millions of dollars” paid to players as soon as fall 2025, according to the AP.

The model for revenue sharing with student-athletes “will cost major conferences a cumulative $1 billion-plus annually,” according to Yahoo! Sports, and schools can share up to $22 million with student-athletes per year — a figure that “was derived from 22% of an average of power conference revenues” and subject to change and exceptions.

According to Dan Murphy and Pete Thamel of ESPN, any Division I athlete dating back to 2016 is eligible to receive a share as part of the settlement class. These athletes therefore drop their claims in three antitrust lawsuits — House v. NCAA, Hubbard v. NCAA and Carter v. NCAA — and cannot sue the NCAA for other antitrust-related reasons.

Roster size could also be affected as a result of the changes expected after the settlement. According to Yahoo! Sports, scholarship restrictions could be eliminated while roster limits would be implemented.

Bankruptcy was reportedly at risk had the settlement not been reached among the NCAA and Power 5 regarding the lawsuits.

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The ability for student-athletes to profit from their name, image and likeness began when the NCAA implemented policy in July 2021. Since, college athletics has seen a flurry of changes in almost the past three years, including in areas such as the conference realignment and the transfer portal. Texas senator Ted Cruz hosted an NIL roundtable on Capitol Hill in March discussing its impacts and urging Congress to pass college athletics legislation.

According to Yahoo! Sports, there is likely a five-to-eight month time period before finalization of the settlement to account for official filing, judge approval and individual plaintiff objections among other things.

Final details will be submitted to the court and Judge Claudia Wilken in the next 30 days, according to ESPN.

The post NCAA, Power 5 announce settlement agreement, plan to pay student-athletes appeared first on Saturday Glory.

Baker released a statement Wednesday calling for sportsbooks to discontinue prop bets within college contests. He stated “the NCAA is drawing the line on sports betting to protect student-athletes and to protect the integrity of the game.”

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“Sports betting issues are on the rise across the country with prop bets continuing to threaten the integrity of competition and leading to student-athletes and professional athletes getting harassed,” Baker stated. “The NCAA has been working with states to deal with these threats and many are responding by banning college prop bets. This week we will be contacting officials across the country in states that still allow these bets and ask them to join Ohio, Vermont, Maryland and many others and remove college prop bets from all betting markets. The NCAA is drawing the line on sports betting to protect student-athletes and to protect the integrity of the game – issues across the country these last several days show there is more work to be done.”

Baker is the latest leader to put in question prop bets, which some states already disallow including Maryland and Ohio.

Irregular betting patterns have become a popular topic in recent years as mor states legalize sports gambling. Prop bets are unique because bettors gamble on outcomes unrelated to the final score.

According to Ralph D. Russo of The Associated Press, there are 38 states that allow some form of sports betting.

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The NCAA also “has partnered with a data science company called Signify, which also works with the NBA Players Association and WNBA, to identify online threats made to athletes during championship events that are linked to wagering,” according to the AP.

Here are where some states stand on sports gambling, according to the AP:

Arizona, Colorado, Massachusetts, New York, Oregon and Pennsylvania “have rules prohibiting prop betting on college athletes that predate the NCAA’s recent push.”

Connecticut, Illinois and Iowa “do not allow college athlete prop bets involving in-state teams.”

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Kansas, Louisiana, Michigan and Wyoming “allow bettors to place prop bets on college athletes regardless of where they play.”

Ohio, Maryland and Vermont “have removed prop betting on college athletes online and in sportsbooks.”

Baker figures to lead an important effort to remove prop betting on college competition from sportsbooks. There have been instances around the NCAA, such as when a Temple men’s basketball regular season game was flagged by U.S. Integrity “for wagering irregularities,” according to the AP.

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According to multiple reports, U.S. District Judge Clifton Corker made the decision to grant a preliminary injunction that will last the duration of the Tennessee and Virginia lawsuit.

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Corker stated “the NCAA’s stance likely violates antitrust law with Congress so far unwilling to give the association an exemption,” according to Teresa M. Walker and Ralph D. Russo of The Associated Press.

It’s a decision that will likely shake up the college football world for the time being, at least the time it takes for the Tennessee and Virginia lawsuit to complete.

And it’s a monumental decision that will, for now, likely have an impact on recruiting. Because of the hold on the NCAA’s ability to enforce its regulations surrounding NIL, the possibility of third parties reaching out to recruits about possible NIL deals becomes more of a reality.

The NCAA is expected to appeal the decision, according to the AP.

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The attorneys general of Tennessee and Virginia filed a lawsuit Jan. 31 in response to the NCAA launching an investigation into the Volunteers’ program over NIL violations, and they’re challenging the NCAA’s rules over the prevention of NIL compensation in the recruitment of college athletes.

According to Pete Thamel of ESPN, the NCAA stated after the preliminary injunction that “the NCAA fully supports student-athletes making money from their name, image and likeness and is making changes to deliver more benefits to student-athletes but an endless patchwork of state laws and court opinions make clear partnering with Congress is necessary to provide stability for the future of all college athletes.”

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NCAA president Charlie Baker told ESPN “the restriction on recruiting inducements was written because the association wants athletes to choose their future schools based on the best educational opportunities rather than where they could make the most money,” according to Dan Murphy of ESPN.

According to the AP, the NCAA is defending at least six antitrust lawsuits. This latest one remains integral to the application of one’s NIL, and it could be one that impacts the foundation of the NCAA itself.

The post Judge grants injunction in Tennessee lawsuit, prohibiting NCAA from enforcing NIL rules appeared first on Saturday Glory.

The NCAA reversed course and ruled the North Carolina wide receiver immediately eligible for this season after “important information” was provided that wasn’t previously, according to NCAA President Charlie Baker and Division I Board of Directors chair Jere Morehead stated via Pete Thamel of ESPN. 

“I’m so excited and thankful that the NCAA has granted my eligibility to play this season,” Walker stated in a release. “This hasn’t been easy, but I’m looking forward to putting this in the past and moving forward. I always knew UNC was a special place, but it’s proved it over and over again throughout the last few months.”

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The NCAA originally ruled Walker ineligible for the season on Aug. 8, and North Carolina appealed the ruling. 

Walker was then denied eligibility again Sept. 7 after the subsequent appeals. 

“It is unfortunate that UNC failed to provide this important information previously,” Baker and Morehead stated. “While we must be careful not to compromise a student-athlete’s right to privacy when it comes to sensitive issues, we want to assure the Division I membership and everyone watching how the new transfer rules are applied, that this meets the new transfer waiver standards. UNC’s behavior and decision to wage a public relations campaign is inappropriate and outside the bounds of the process UNC’s own staff supported. Had the UNC staff not behaved in this fashion and submitted this information weeks ago, this entire unfortunate episode could have been avoided.” 

North Carolina head coach Mack Brown and athletics director Bubba Cunningham released strong statements in response to Walker’s additional denied appeals for eligibility in early September. 

Cunningham released a statement Thursday in response to Walker’s immediate eligibility ruling. 

“We are happy that Tez Walker is now eligible to play and enjoy doing what he loves to do,” Cunningham stated in a release. “However, the justification provided by the NCAA today is not accurate. The University submitted all necessary information and documentation as it was made available to us at the time and we still believe Tez met all standards for the waiver in early August. It is not clear why the NCAA delayed making the correct decision then, but we are pleased to get to the appropriate resolution now.” 

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North Carolina chancellor Kevin Guskiewicz also issued a statement after Walker was rule immediately eligible. 

“We are elated at the resolution for Tez walker and for all who supported him here at UNC-Chapel Hill,” Guskiewicz stated. “We know that he has been throguh a lot as we pursued numerous appeals with the NCAA. UNC provided all available information at every step of the process. I want to thank everyone at Carolina who worked in support of Tez. In our stated effort to exhaust all avenues, new information about this matter came to our attention and we immediately gathered and submitted it for consideration. The NCAA reached the right decision that restores Tez’s experience as a student-athlete and a Tar Heels. 

The post Reports: North Carolina’s Walker ruled eligible for 2023 season by NCAA  appeared first on Saturday Glory.