What is the House vs. NCAA Settlement?
This link from the NCAA provides the context for where the case originated.
How did $20.5 million get to be the cap for revenue sharing?
This amount was agreed to by the parties to the lawsuit in their settlement discussions, and subsequently approved by the court. It was arrived at by taking 22% of the average Autonomy 5 (ACC, Big Ten, Big 12, Pac-12, SEC) athletic media, ticket and sponsorship revenue. This cap will likely change in the coming years.
Where do the funds come from for the $20.5 million revenue sharing cap?
Over the past year, Arizona Athletics has renegotiated contracts with outside vendors, reduced administrative costs, and pursued travel efficiencies as a way to cut costs in anticipation of the settlement being approved.
Arizona Sports Enterprise is also actively working toward naming rights agreements for Arizona Stadium and McKale Center in addition to corporate sponsorships that can provide additional revenue streams.
The Wildcat Club is also expanding its reach to grow the donor base and provide improved access to current donors. A few examples of the improved access include new courtside seating options in McKale along with field-level suites in Arizona Stadium.
What is the difference between “Revenue Sharing” and “Name, Image, Likeness” deals?
Revenue sharing is money that the school receives via TV deals, ticket sales, sponsorships, which is then shared with the student-athletes
NIL deals come from third-parties directly to student-athletes, often for endorsements or use of a student-athlete’s name, image or likeness (i.e. signing events, commercials, advertisements). This money does not come from the school.
If a team or student-athlete has a revenue sharing agreement with Arizona Athletics, can they still participate in NIL deals?
Yes. Third parties may continue to enter into NIL agreements with student-athletes, regardless of what sport they participate in or whether they have a separate revenue sharing agreement with the university. Such agreements will be subject to review by a Deloitte, a third party clearinghouse, to ensure they are for a valid business purpose and that the student-athlete is compensated within an appropriate range of compensation.
Are there any stipulations that go with NIL deals?
NIL payments by third parties would not apply toward the $20.5 million cap but must be disclosed to a clearinghouse for review to ensure they are for a valid business purpose and that the student-athlete is compensated within an appropriate range of compensation.
How can my business/organization support student-athletes through NIL deals?
Connect with Brian Rooney (brianrooney@arizona.edu) or Sammy Swiger (sammyswiger@arizona.edu) at Arizona Sports Enterprises.
I've read about ‘roster limits’ in the news. What is that?
Under the settlement, there are now limits on the number of student-athletes that can be on the official roster for each sport. Every student-athlete on the roster CAN be on scholarship, but is NOT REQUIRED to be on scholarship. It is up to each institution and coaching staff to determine how to award scholarships within the roster limits.
