A Tennessee Tech Professor said the $2.8 billion House settlement could fundamentally change the game for college sports.
Assistant Professor of History Dr. Arthur Banton said the settlement allows major colleges to pay student athletes a percentage of a $20.5 million “salary cap” fund. Banton said the already challenging landscape college sports will be further complicated because schools now have to decide who and who not to pay. Benton said the settlement especially impacts smaller schools.
“Just in the last few months, some schools have even dropped some of their athletic programs, or some schools have dropped Division I Sports altogether,” Banton said. “That’s some examples of what we’re going to see in the future.”
Banton said the $20 million dollar fund will be spread across all sports, and most money will go to higher profile sports like football and basketball. Banton said schools will now have to decide how to handle sports that do not generate revenue, like swimming, gymnastics, soccer, and baseball.
Banton said with Title IX rules, schools cutting sports would have to equally cut men’s and women’s sports, putting men’s wrestling, soccer, and volleyball in jeopardy.
Another new hurdle from the settlement is a governing body called the College Sports Commission, which Banton said would determine legitimacy of NIL deals and block any attempts by a school to work around the new rules.
Many colleges have hired general managers to oversee the rapidly changing business side of their athletic programs, so coaches can focus on player performance. Modern recruiting is a blend of both, and Benton said it could become a nightmare under the new settlement.
“When a coach sits down with a player, there’s going to be a hard number that they’re going to have to provide for that player,” Banton said. “And he’s going to have to take it or leave it. This is going to be a very difficult thing for coaches to navigate.”
Banton said some schools simply do not have the additional money to devote to athlete salaries.
“Where is that money coming from, right? There’s obviously going to be some cutbacks.” Banton said. “[Schools] are going to have to take a long look at coaches salaries.”
Banton said some schools, like Oklahoma State, have already asked coaches to take a pay cut. Banton said some coaches, like LSU football coach Brian Kelly, have voluntarily given some of their salaries to help with recruiting.
Banton said some schools may have to look into cutting varsity level sports altogether, since many athletic programs do not make money.
“There are actually only 20 or 30 schools that actually break even or turn a profit,” Banton said. “Now that they have this $20 million plus to pay players, which they don’t have to do, but are going to be required to do to compete, they’re going to have to find that money from somewhere. The only logical places are to increase ticket costs, increase athletic fees, which you’re charging students for, cut back on coach salaries and cut back on scholarships in order to reach that goal.”
The new settlement allows athletes to be paid beginning July 1.
