Episode Transcript
[00:00:00] Speaker A: Revenue sharing and Athlete employment Status the college sports business model will continue to change in 2025. I'm Jim Tarabokia for the retirement radio network powered by Amerilife. Last year, the House vs. NCAA case settlement concluded regarding revenue sharing. As outlined, schools will now be able to pay their student athletes, but the NCAA has garnered more power to control the name, image and likeness marketplace. National college football writer Chris Hummer explains further.
[00:00:27] Speaker B: For football, I think you're going to see the most drastic changes. Athletes straight up are just going to get paid a lot more money. Schools are going to have to pay out essentially 20% of their television revenue to the student athletes every year.
[00:00:37] Speaker A: Following the ruling, each Division 1 school will now have a pool of money, a type of salary cap, and will be obligated to pay all of their student athletes. The cap will begin at around $20.5 million per school and will rise to around 30 million over the next 10 years. Additionally, players can now negotiate deals with schools, coaches, collectives and donors before they step foot on campus. In other words, pay for play. Forbes sports business analyst Kristi Dasch says that these players are entering unchartered territories.
[00:01:05] Speaker C: I think that athletes and their parents and agents, for those who are able to get agents, are going to have a whole new world here because I do not think schools are going to choose to implement revenue sharing at a flat fee. There's some issues with that when it comes to antitrust law, tax professionals tell me there's some potential IRS issues, so I think it's going to be based on market value.
[00:01:27] Speaker A: With the incoming government in 2025, employment status for athletes has lost traction. But the Johnson vs. NCAA case, which argues all D1 athletes are employees, is still pending in federal court. Meanwhile, some are calling for athletes to hold more power at the negotiation table. A possible collective bargaining agreement could be on the horizon. All told, though, there's still a great deal to sort through over the next few years. But you could argue it's never been a better time to be a collegiate athlete in 2025. For the retirement radio network powered by Amerilife, I'm Jim Tarabokia.
