NCAA Threatens California Schools

[aujeff11 6,243]

with championship bans if state likeness/ compensation bill passes.

NCAA president Mark Emmert suggested that if a California bill allowing in-state college athletes to be compensated passes, schools could potentially be barred from competing in NCAA championships, a letter sent to the chair of two State Assembly committees last week said.

A bill asserting that athletes at California schools could earn compensation for use of their own name, image or likeness, beginning in 2023, easily passed in the state Senate last month, 31–4.

A hearing and vote by the Assembly's Arts, Entertainment, Sports, Tourism and Internet Media Committee focused on the bill will be conducted on Tuesday. The bill could next be reviewed by the Higher Education Committee and would need to be approved by July 11 in order to remain alive this year.

Emmert has asked that committees postpone their evaluation of the bill as the NCAA examines rules regarding athletes making money for their names, images and likenesses.

“We recognize all of the efforts that have been undertaken to develop this bill in the context of complex issues related to the current collegiate model that have been the subject of litigation and much national debate,” Emmert said in his letter. “Nonetheless, when contrasted with current NCAA rules, as drafted the bill threatens to alter materially the principles of intercollegiate athletics and create local differences that would make it impossible to host fair national championships. As a result, it likely would have a negative impact on the exact student-athletes it intends to assist."

Twenty-three NCAA Division-I schools stand to be impacted by the bill potentially passing, including four Pac-12 programs.

 

https://www.si.com/college-football/2019/06/24/ncaa-postseason-ban-california-schools-compensation-bill?xid=socialflow_twitter_si&utm_medium=social&utm_campaign=si-ncaabb&utm_source=twitter.com

 

[WarDamnEagleWDE 12,737]

Here we go.

[Auburn2Eugene 2,317]

I hope the players eventually do get to be paid for their likeness. 

Then we can have a new NCAA Football game. 

[aujeff11 6,243]

54 minutes ago, Auburn2Eugene said:

I hope the players eventually do get to be paid for their likeness. 

Then we can have a new NCAA Football game. 

As an addendum, I hope for all of this without actually negatively impacting the game. There is a reason why people don’t like the NBA and the NFL after all.  Hopefully the NCAA doesn’t turn into the schools with the fattest cows performing the best. 

[AUcivE09 582]

I like the idea and agree on the principle - but then it becomes a matter of where an athlete can go and make the most money. Even if you cap it or apply some kind of limitation you know a handful of schools will take up the southwest conference model. I do not know if there is a good answer to this topic.

[McLoofus 35,182]

If you look at the top 13 schools on this list, you'll notice that there is very little fluctuation between the most recent ranking and the 4-year average rankings. After those 13 teams, there is a pretty steep dropoff, but still the next 3-4 teams are pretty much who you'd think they'd be. Meaning: the rich are already richer and name programs are already dividing up all the best talent among themselves. 

It's already a story of the haves and have-nots. Might as well let the kids in on the action. 

 

[Gowebb11 9,301]

Chaos is beginning and that’s what it will take to reshape college athletics. Emmert and the NCAA can’t fight 50 states and he knows it. I, for one, am happy to see this. 

[aujeff11 6,243]

3 minutes ago, McLoofus said:

It's already a story of the haves and have-nots. Might as well let the kids in on the action. 

Which kids are you trying to look after? The  super stars? What about the senior backup linebacker? None of that seems fair to me. 

 

Maybe the senior backup linebacker will be convinced to go to Jacksonville State so that he can make a dollar.

 

[Mikey 16,544]

At Auburn for example, I can see Spencer Nigh having to sift through Derrick Brown's garbage hoping to find a left over slice of pizza. The idea sucks.

[Gowebb11 9,301]

2 hours ago, Mikey said:

At Auburn for example, I can see Spencer Nigh having to sift through Derrick Brown's garbage hoping to find a left over slice of pizza. The idea sucks.

I agree that this specific idea isn’t the best. But I am glad people are rising up against the NCAA. I’m hoping it brings them off their high horse and forces them into a comprehensive overhaul of college athletics. There is a lot about the current model that is unsustainable. 

[around4ever 4,139]

You're opening up a Pandora's Box when you start paying the athletes in this manner.  Boosters will be funneling money through people like TTown Menswear to players.  It won't be just UAT, it will be everybody.  

[McLoofus 35,182]

3 minutes ago, around4ever said:

 It won't be just UAT, it will be everybody.  

So then what's the problem?

[abw0004 10,102]

This is purely just my opinion but I am not for paying college athletes unless it is paying them for their likeness.  Right now college athletes are allowed to have stipends from the university.  What they do with this money is up to them.  It is intended to cover rent, food, and utilities.  Now not every university gives out stipends as big as the Auburn's of the world though so making the stipend mandatory across the country would be good.  In my eyes, the education should be worth it.  I know athletes most times do not care, but that is on them.  Professional careers do not last forever.  Baseball careers last an average of 90 pitches and NFL careers last an average of 3-4 years.  What about after that?

Bruce Pearl gave a great argument in one of his post game speeches during March Madness how colleges do increase players' value through exposure and development.  And there would be a bidding war for players with easy access for taking advantage of the system.  And I do not see universities being willing to pay all athletes the same.  Do you see volleyball players being paid the same as football players?  They work just as hard.  What about the marching band?

What I would like to see happen if players are paid is a mandatory personal finance class they must pass every semester to qualify for the upcoming semester's payment.  Because what I do see happen all of the time is people who are not financially literate blow any sum of money given to them because they are not used to this kind of income.  This is the exact reason my firm does not take on professional athletes barring special circumstances - majority of athletes are broke within 5 years of retirement.  Another example is after Hurricane Katrina, I went with my church to volunteer to repair houses.  What did I see in the yard of the house I was fixing?  A brand new Lexus RX350.  Where did it come from?  The $60,000 FEMA gave to each resident of the neighborhood for home repair.  Need to educate, educate, educate.  Need to know how to save, invest, and understand cash flows.

Giving 18 year old players a lot of money is a disaster waiting to happen if not set up correctly.  I do believe players should be allowed to hold outside jobs, like that kicker who had to quit the team because the NCAA wanted him to take down his lucrative YouTube channel.  

[aujeff11 6,243]

1 hour ago, abw0004 said:

This is purely just my opinion but I am not for paying college athletes unless it is paying them for their likeness.  Right now college athletes are allowed to have stipends from the university.  What they do with this money is up to them.  It is intended to cover rent, food, and utilities.  Now not every university gives out stipends as big as the Auburn's of the world though so making the stipend mandatory across the country would be good.  In my eyes, the education should be worth it.  I know athletes most times do not care, but that is on them.  Professional careers do not last forever.  Baseball careers last an average of 90 pitches and NFL careers last an average of 3-4 years.  What about after that?

Bruce Pearl gave a great argument in one of his post game speeches during March Madness how colleges do increase players' value through exposure and development.  And there would be a bidding war for players with easy access for taking advantage of the system.  And I do not see universities being willing to pay all athletes the same.  Do you see volleyball players being paid the same as football players?  They work just as hard.  What about the marching band?

What I would like to see happen if players are paid is a mandatory personal finance class they must pass every semester to qualify for the upcoming semester's payment.  Because what I do see happen all of the time is people who are not financially literate blow any sum of money given to them because they are not used to this kind of income.  This is the exact reason my firm does not take on professional athletes barring special circumstances - majority of athletes are broke within 5 years of retirement.  Another example is after Hurricane Katrina, I went with my church to volunteer to repair houses.  What did I see in the yard of the house I was fixing?  A brand new Lexus RX350.  Where did it come from?  The $60,000 FEMA gave to each resident of the neighborhood for home repair.  Need to educate, educate, educate.  Need to know how to save, invest, and understand cash flows.

Giving 18 year old players a lot of money is a disaster waiting to happen if not set up correctly.  I do believe players should be allowed to hold outside jobs, like that kicker who had to quit the team because the NCAA wanted him to take down his lucrative YouTube channel.  

I don’t care if they get paid something or not. It should at least be fair and not provide a competitive advantage. I’m not interested in helping Johnny flipping football earn hundreds of thousands of dollars in autograph money a year before his big contract while his center is only living on the COLA stipend. I’m interested in the financial fitness of a team as a whole. 

If a school has a cash cow so well endowed that everyone (no matter their status on the team) will get money from “likeness”, that school will kill it on the recruiting trail. Even the backup center will be rewarded.

I’ve mentioned doing a set annuity across the board that can be received after graduation. Some drawbacks and stipulations:

-players that get kicked off the team lose their annuity

-players that leave early or transfer only receive a pro-rated portion of their guaranteed amount. 

-players can withdraw early with a penalty attached. 

-Cost of living stipends remain.

-option to receive money even through grad school.

Fair. 

The million dollar question though: who is paying for the annuity? Where is the money going to come from? 

[abw0004 10,102]

7 minutes ago, aujeff11 said:

I don’t care if they get paid something or not. It should at least be fair and not provide a competitive advantage. I’m not interested in helping Johnny flipping football earn hundreds of thousands of dollars in autograph money a year before his big contract while his center is only living on the COLA stipend. I’m interested in the financial fitness of a team as a whole. 

 

If a school has a cash cow so well endowed that everyone (no matter their status on the team) will get money, that school will kill it on the recruiting trail. Even the backup center will be rewarded.

I’ve mentioned doing a set annuity across the board that can be received after graduation. Some drawbacks and stipulations:

-players that get kicked off the team lose their annuity

-players that leave early or transfer only receive a pro-rated portion of their guaranteed amount. 

-players can withdraw early with a penalty attached. 

-Cost of living stipends remain.

-option to receive money  even through grad school as well.

 

Fair. 

I do like the sentiment, but the counter is "But I need the money now to buy food."  "My family needs the money now."  Annuities by definition pay on the back end.

[aujeff11 6,243]

1 minute ago, abw0004 said:

I do like the sentiment, but the counter is "But I need the money now to buy food."  "My family needs the money now."  Annuities by definition pay on the back end.

That’s why I wrote that players players can withdraw earlier with a penalty attached. I don’t really have the specifics all there. Just brain storming. Could maybe do CD’s instead. Instead of significant penalties, they just lose interest. Maybe the school could set aside money for such occasions. Another thing to consider is NFL hopefuls (guys destined for the pros) will probably withdraw their amount early because they believe a bigger paycheck is imminent. 

[DAG 33,954]

5 minutes ago, abw0004 said:

I do like the sentiment, but the counter is "But I need the money now to buy food."  "My family needs the money now."  Annuities by definition pay on the back end.

Well, it is a valid concern. Some of these kids go back home and have nothing all over again. I remember KD saying this on an ESPN 30 FOR 30. He was the best player in the game as a freshman and yet, he would go back home for break to lights off and an empty fridge. However, how much were the power brokers making off of him when he played at UT? I don't know the right answer, but the idea that these kids get free education, and "this should be enough" does not sit right with me. Yes, they get gear. Yes, they get to go to an athletic cafeteria, and I do think some programs give a little bit of a stipend, but this is not near enough for the time they spend on the field and in school.

[abw0004 10,102]

19 minutes ago, aujeff11 said:

That’s why I wrote that players players can withdraw earlier with a penalty attached. I don’t really have the specifics all there. Just brain storming. Could maybe do CD’s instead. Instead of significant penalties, they just lose interest. Maybe the school could set aside money for such occasions. Another thing to consider is NFL hopefuls (guys destined for the pros) will probably withdraw their amount early because they believe a bigger paycheck is imminent. 

Just an educational response if you wanted to know:

Annuities have what is called a very heavy load.  This means they are expensive, and a withdrawal penalty from the company is significant, much less any penalty Auburn would enforce.  Most insurance companies would not give 4-year annuities anyways.  The minimum term is 10 years.

CD's typically lock you up for 6 months to a year with no access, so that would not be ideal.  And the return is small, even smaller after taxing the gain.

What I would do if I went you route is a fund lineup of EFT's.  A low-cost, liquid asset that can be pulled at any time.  Don't do mutual funds that have a high load, especially with A shares.  Put them in a blind trust to limit conflict of interest.

Disclosure:  Insurance products are not bad ideas in the slightest, when used correctly.  So I am not dogging them.  We use life insurance as part of our planning for estate tax purposes.  In this case, you just need a liquid asset that has a light load and lower risk.

[McLoofus 35,182]

41 minutes ago, DAG said:

the idea that these kids get free education, and "this should be enough" does not sit right with me. Yes, they get gear. Yes, they get to go to an athletic cafeteria, and I do think some programs give a little bit of a stipend, but this is not near enough for the time they spend on the field and in school.

I *hate* that people call it a "free" education.

It's interesting to me that so many people are so worried about what the problems might be if a change is made when we all know that there already is a problem and it screws the only people who actually play the games.

And, once again, lol at people saying that some teams are suddenly going to have a recruiting advantage. What the hell have you been paying attention to the last 60 years? Not college football. There is already a small group of schools that spend a lot more money and get better players than everyone else and it's been like that for decades. 

[aujeff11 6,243]

So it appears someone likes to indirectly answer to my talking points while also pretending to ignore me. 

 

Real estate is open. 

56 minutes ago, abw0004 said:

Just an educational response if you wanted to know:

Annuities have what is called a very heavy load.  This means they are expensive, and a withdrawal penalty from the company is significant, much less any penalty Auburn would enforce.  Most insurance companies would not give 4-year annuities anyways.  The minimum term is 10 years.

CD's typically lock you up for 6 months to a year with no access, so that would not be ideal.  And the return is small, even smaller after taxing the gain.

What I would do if I went you route is a fund lineup of EFT's.  A low-cost, liquid asset that can be pulled at any time.  Don't do mutual funds that have a high load, especially with A shares.  Put them in a blind trust to limit conflict of interest.

Disclosure:  Insurance products are not bad ideas in the slightest, when used correctly.  So I am not dogging them.  We use life insurance as part of our planning for estate tax purposes.  In this case, you just need a liquid asset that has a light load and lower risk.

You mentioned Pearl and he mentioned an annuity and I was just adding to that. That’s good information though. One day whenever I decide to start adulting I’ll keep this information in my left pocket. 

 

 

[abw0004 10,102]

48 minutes ago, McLoofus said:

I *hate* that people call it a "free" education.

It's interesting to me that so many people are so worried about what the problems might be if a change is made when we all know that there already is a problem and it screws the only people who actually play the games.

And, once again, lol at people saying that some teams are suddenly going to have a recruiting advantage. What the hell have you been paying attention to the last 60 years? Not college football. There is already a small group of schools that spend a lot more money and get better players than everyone else and it's been like that for decades. 

Are you indirectly referring to my post?

[abw0004 10,102]

12 minutes ago, aujeff11 said:

You mentioned Pearl and he mentioned an annuity and I was just adding to that. That’s good information though. One day whenever I decide to start adulting I’ll keep this information in my left pocket. 

 

No worries.  Just wanted to offer my professional opinion

[McLoofus 35,182]

3 minutes ago, abw0004 said:

Are you indirectly referring to my post?

I didn't read your post.

[aujeff11 6,243]

Just now, abw0004 said:

No worries.  Just wanted to offer my professional opinion

Appreciate it man. You say you go to every game so you must do well.

 I are actually Nigerian Prince seeking asylum in America. I need you to hold my money for a while and I’ll make you too a rich rich man. 

[AU64 10,122]

Amazing number of people with no concept of unintended consequences affecting about 200 schools and tens of thousands of players...just to benefit a dozen or so who can legitimately make money off their likeness. 

This whole scheme is a pathway to corruption .....think basketball has problems?, you haven't seen anything until some alum wants to buy 1000 shirts with a players face or name on them....to give away.