Big Ten sets caps for schools setting up third-party NIL deals, players’ attorneys issue warning
Trending
ROSEMONT, Ill. (AP) -- The Big Ten approved a first-of-its-kind rule Wednesday limiting its schools to arranging no more than $27.5 million in third-party name, image, likeness deals for players -- a number that matches the amount that would be added to the existing revenue-sharing cap if the Protect College Sports Act becomes federal law.
In a statement, the conference said the rule “not only allows for a much smoother transition into the policies put in place by the act once it passes, but demonstrates our commitment to it.”
But plaintiffs’ attorneys in the $2.8 billion House settlement that set regulations for paying players said the rule violates the landmark agreement.
“Our team is reviewing the rule and intends to fight any proposed limit to what the NCAA and conferences agreed to under the House settlement,” attorney Steve Berman said. “Any cap that would keep schools from facilitating deals is a step in the wrong direction.”
The Senate passed the PCSA in September by a 77-22 margin. It is awaiting action in the House, which comes back into session Nov. 9, a week after the midterm elections next week.
The Big Ten rule limits its 18 schools to no more than $27.5 million worth of arranged third-party name, image and likeness agreements for its athletes and another $22 milion in direct revenue sharing for a total capped at approximately $49 million, reflecting the economic framework outlined in the PCSA legislation. The rule takes effect immediately.
The reason for adding up to $27.5 million under the revenue-sharing cap would be to reduce the amount of third-party NIL that gets brokered by “associated entities” -- organizations that are closely affiliated with the schools or exist specifically to make those deals for the schools. Many view those deals as a way to circumvent the revenue-sharing cap, which stands at $21.5 million this season.
The Big Ten says its new rule is permitted under House, which is geared more toward regulating the NCAA and college sports as a whole, but not individual conferences. The Big Ten said escalating financial penalties and other disciplinary measures will be imposed for any violations.
This policy says athletes are still allowed to pursue NIL opportunities with any businesses on their own, much the same as the PCSA would allow them to find “organic” third-party deals that aren’t brokered by the school or its partners.