Latest news with #NCAAHouseSettlement
USA Today
03-07-2025
- Business
- USA Today
Auburn AD John Cohen sheds light on program's approach to revenue sharing, recruiting
What is going on with Auburn football's recruiting woes? AD John Cohen sheds light on the issue. It is no secret that Auburn football is in a rough patch when it comes to recruiting, dropping to No. 89 after being in the top 25 just over a month ago. What is the major source of the issue? Head coach Hugh Freeze and athletic director John Cohen addressed the concern during a speaking event on Wednesday. Cohen and Freeze say the dry spell is due mainly to the new NCAA House Settlement that allows universities to share revenue with their student-athletes directly. It is a new process that the duo is learning to understand the new rules, with Freeze admitting that "it's not really to our advantage right now." Adam Cole of The Montgomery Advertiser reports that it is Cohen's understanding that a program's scholarship offer to student-athletes are purely verbal until Aug. 1 of said student-athlete's senior year, which is the day that student-athletes can receive "financial aid of revenue sharing offers "on paper" from an institution, which won't be sign-able until December's early signing period." Cohen says that he, Freeze, and the rest of Auburn's athletic programs are going to do things the "right way" in terms of navigating the new rules and how it affects recruiting. "There's some really new things on the horizon that have never happened before," Cohen said via Montgomery Advertiser. "And I'm here to tell you, we're going to do this the right way. We're going to do it just like Coach (Hugh) Freeze just mentioned — we're going to be honest, we're going to be forthright and we're looking very much forward to Aug. 1 and dates beyond." Not only will revenue sharing change the recruiting landscape, but third-party NIL deals could affect the salary cap as well, and going over the cap could result in "some pretty harsh penalties." Cohen and Freeze are choosing to play it safe when it comes to offering prospective student-athletes, which they hope will ultimately pay off on early signing day. "We at Auburn are going to take that very seriously. But we're still going to win recruiting battles. We're going to do it the right way," Cohen said. "I can't speak for the rest of the recruiting world, but I can tell you this, Auburn is going to do it the right way." Auburn ranks No. 89 in 247Sports' 2026 recruiting rankings as of Thursday afternoon with six commitments, two of which are four stars. It will be interesting to see how the new settlement helps Auburn in recruiting, especially when the calendar flips to August. Contact/Follow us @TheAuburnWire on X (Twitter), and like our page on Facebook to follow ongoing coverage of Auburn news, notes, and opinions. You can also follow Taylor on Twitter @TaylorJones__
Yahoo
23-06-2025
- Business
- Yahoo
Florida State athletics can fund revenue sharing with new Board of Governors amendment
In the wake of the NCAA House Settlement, Florida State will be able to fund $20.5 million of annual revenue sharing with student-athletes after the Florida Board of Governors approved an emergency amendment on June 18. The board approved the temporary use of auxiliary funds up to $22.5 million, in the form of a loan or funds transfer, to cover the cost of revenue-sharing agreements with state university student-athletes until 2028. The move directly relates to the recently approved House Settlement. Advertisement Auxiliary funds are collected through housing costs, parking, food services and other "service-based" costs on campus. These funds were previously not allowed to be used for athletics, with the state requiring school athletic programs to be self-sufficient. However, with the approval of the landmark House Settlement - it allows schools to pay a maximum share of $20.5 million in revenue directly to student athletes beginning on July 1 - the Florida BOG has granted the temporary use of auxiliary funds to help schools deal with the additional millions of dollars in budget costs brought upon by the settlement until June of 2028. The multi-year agreement requires schools in Florida, like FSU, to "ensure that funds utilized under this provision do not have a material impact on the university's current credit rating or negatively impact any non-athletic auxiliary enterprise." Advertisement Here's how the move impacts FSU. FSU will be able to self-fund revenue-sharing agreements through university expenses In short, FSU's $20.5 million of revenue-sharing will be funded by university costs like housing, food, bookstore purchases, and other service-based expenses. FSU Athletic Director Michael Alford had estimated in a September Board of Trustees' meeting that the Seminoles would need an additional $25 million in annual funding to cover settlement-related costs. With the temporary move to use auxiliary funds, the athletic department is now granted a three-year relief to foot the new $20.5 million bill. Advertisement Of the approved money to be paid to student-athletes, football is the sport expected to receive the largest slice of funding, with most universities expected to set aside anywhere from 60-75% of the $20.5 million for football. Sports like football, men's basketball, and baseball are likely to receive the largest cut of the $20.5 million nationwide, and potentially at FSU, with the full budget to be spread across the 19 varsity sports at FSU. With the temporary agreement, the Seminoles' athletic department will have to develop a plan by January 2026 to "address the elimination of the $22.5 million allowance from non-athletic auxiliary funds in its athletic department by the end of fiscal year 2028." Liam Rooney covers Florida State athletics for the Tallahassee Democrat. Contact him via email at LRooney@ or on Twitter @__liamrooney This article originally appeared on Tallahassee Democrat: FSU to use auxiliary funds to fund new revenue sharing agreements
Miami Herald
15-04-2025
- Business
- Miami Herald
HBCUs to be tested in vulnerable area by NCAA House Settlement
The landmark NCAA House Settlement is poised to redefine the financial and operational landscape of college athletics, with Historically Black Colleges and Universities (HBCUs) facing unique challenges in its wake. Jason Johnston, COO and general counsel at ROY and a legal expert in class action settlements in college sports, broke down what the deal could mean for lower-resourced institutions in an interview with HBCU Gameday. "All the athletes in the past, HBCU athlete has been a Division I athlete going back several years… can come forward now, submit a claim and be compensated," Johnston said, referring to the monetary damages available through the settlement. "But also, it's doing-it's changing the rules moving forward." Among the most significant shifts is the option for schools to participate in revenue sharing with athletes. "All the non-Power Four schools, all the HBCU schools, they have the option of whether or not they want to do revenue sharing with their athletes," Johnston said. "But regardless… there's a couple things that are impacting every Division I school-and it's roster limits and reporting requirements." It's those reporting requirements that may hit NCAA Division I HBCUs the hardest. "Under the new rule, every NIL deal over $600 involving a Division I athlete must be reported to the school or there's going to be penalties," Johnston said. This presents a serious burden for compliance departments at HBCUs and other smaller programs. "Particularly, I think, related back to HBCUs… typically have maybe one person, maybe a couple people in their compliance departments… not Alabama, not Ohio State, where there might be a dozen people," he noted. "That's a big burden on those compliance departments." "The student-athlete must report… If a school doesn't have institutional control… the enforcement action isn't necessarily going to come down to the athlete-it's going to come to the school,' Johnston said. Schools that fail to meet reporting obligations could face suspensions for coaches or financial penalties-an added strain in already tight athletic budgets. "The HBCU is not going to be able to grow their compliance department. That's unrealistic. There's not a budget for it." That financial pressure, combined with new roster limitations and operational obligations, could spark broader institutional questions. "There's a lot of conversation happening now, even like, what does it look like to move down a division?" Johnston said. "I think what we're probably going to see is some schools take approach right now, and over the next several years, you're going to see different schools taking different approaches before you kind of get to sort of a common theme." For some HBCUs already operating on thin margins, dropping to Division II or III could emerge as a survival strategy. "There's no right answer right now," Johnston said. "It's going to be a challenge. But the alternative is a challenge as well." As the June 15 opt-in deadline approaches, HBCUs will face difficult decisions-not just about how to manage NIL and compliance, but whether they can continue to compete at the NCAA Division I level under the new rules of college sports. The post HBCUs to be tested in vulnerable area by NCAA House Settlement appeared first on HBCU Gameday. Copyright HBCU Gameday 2012-2025
USA Today
10-04-2025
- Business
- USA Today
Texas A&M HC Mike Elko comments on House v. NCAA settlement uncertainty
Texas A&M HC Mike Elko comments on House v. NCAA settlement uncertainty Texas A&M's ninth practice of the spring football season took place on Tuesday, and, in regular fashion, head coach Mike Elko and one player representative spoke to the media the following Wednesday to discuss the team's progress, especially in the areas that directly led to the program's five losses last season. Alongside junior defensive lineman DJ Hicks, Elko has plenty to say regarding the everchanging college football landscape, including the historic NCAA House Settlement that, due to U.S. District Judge Claudia Wilken, has not been signed off yet. Here is a rundown of what the settlement entails, provided by USA TODAY writer Steve Berkowitz: "The presumptive agreement's pillars are the payment of $2.8 billion in damages by the NCAA and the conferences that would go to current and former athletes — and their lawyers — over 10 years, and Division I schools would be able to start paying athletes directly for use of their name, image and likeness (NIL) starting July 1, subject to a per-school cap that would increase over time and be based on a percentage of certain athletics revenues." If the changes Wilken has requested come through, Texas A&M and nearly every Power 5 program will work with a set NIL number and must divide the funds for every sport. However, football is king and will use up most of the funds, prompting Gigem247 beat writer Carter Karels to ask Elko about the potential changes coming his way, including having to cut the roster to the 105-player limit. "It is relatively crazy considering we are knee-deep into preparation for the season, and we do not even know what the rules are for the roster for the season we are about to play." This is an issue for every team during the spring season, so until a final ruling is made, Elko and his staff will need to be highly selective in the transfer portal to add depth but focus on keeping the roster at a healthy number to avoid a massive cutdown. Contact/Follow us @AggiesWire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Texas A&M news, notes and opinions. Follow Cameron on X: @CameronOhnysty.
