A landmark ruling by the US Supreme Court clears the way for college athletes to get non-cash payments without violating NCAA rules.
The unanimous ruling says the National Collegiate Athletic Association cannot restrict non-education related compensation for athletes. For instance...an athlete who has a scholarship but still doesn't have a computer can now be given one without sanction.
The ruling is, at its heart, about the money involved on collegiate athletics. “At the center of this thicket of associations and rules sits a massive business,” the court writes in a 45 page opinion. “The NCAA’s current broadcast contract for the March Madness basketball tournament is worth $1.1 billion annually. Its television deal for the FBS conference’s College Football Playoff is worth approximately $470 million per year. Beyond these sums, the Division I conferences earn substantial revenue from regular-season games. For example, the Southeastern Conference (SEC) “made more than $409 million in revenues from television contracts alone in 2017, with its total conference revenues exceeding $650 million that year” says the opinion.
So far, universities have been slow to weigh in with reaction. Sports agents, however, are quick to point out student athletes should not be limited while huge amounts of cash are on the table.
“It’s been too long that all these universities are making hundreds of millions of dollars in capitalizing off free talent, free workers” said Aaron Zack, sports agent with Revolving Minds Media. “It’s an opportunity to capitalize on the name on the backs of their jerseys.”
Others are pointing to cases of schools being penalized for athletes who have been capped by a system that limits the amount of money at the cost of an education.
“It’s been really sad to see schools getting trouble for giving a ride to somebody who is without money, without transportation and they get in trouble for doing a favor.” said sports attorney and agent Gary Glick of Synergy Sports.
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The Supreme Court made note of the lush salaries that are tossed about at the collegiate level. “Commissioners of the top conferences take home between $2 to $5 million. College athletic directors average more than $1 million annually. And annual salaries for top Division I college football coaches approach $11 million, with some of their assistants making more than $2.5 million.” the opinion says.
While the ruling does not address cash payments for student athletes, agents say it’s only a matter of time before the issue lands on the High Court’s docket.
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