Excellent point. If the NIL's were truly sponsorships not connected to the school, why don't those agreements continue on when players transfer from one school to another? If Tua has a sponsorship with Nike and gets traded to say the Seahawks, does his contract with Nike come to an end?
Nobody doubts they're connected to the football program in some way. After all, the collectives are named after the teams.
But the money doesn't come from the school. It has nothing to do with the revenue from TV contracts, tickets or school donations. It's a third party.
The key is the distinction between
revenue-sharing and
collectives. In the NFL, the teams make hundreds of millions from TV deals, tickets and the like. They split the revenue with the players. The players, through a union, collectively bargain for the split (which is reflected in a salary cap) and rules to avoid circumventing the cap.
None of that is present here. Let's talk about the
House Settlement, which is what Saban wants Congress to codify as law:
- The revenue split is not 50/50 or even 48/52. The players only get 22%. The rest goes to bloated athletic departments.
- There is no collective bargaining and nobody truly representing the players. The terms are negotiated by plaintiff's lawyers, and those terms would bind players currently in Pop Warner.
- NIL money, which boosters are currently willing to pay, would be subject to approval by an NCAA clearinghouse (or a third-party hired by the NCAA). They would be tasked with determining "market value" (whatever that means) and would have the power to reject deals as pay-for-play. The NCAA would grow its enforcement arm which, as we know from our own experience, is hopelessly corrupt and incompetent.
- The end result is that the players get less money because they are cut off from a major money source (boosters), given a paltry 22% share of revenue, and forced to fund every other sport with no corresponding benefit to them.
This is the reality of what Saban is pushing. The judge rejected the
House settlement because the NIL restrictions made no sense. Rather than craft something legal, they are going to ask Congress for an antitrust law exemption that allows the NCAA to enforce their illegal rules with impunity.