Image Source: Ross Dellenger
Key Takeaways:
- The University of Miami’s athletic director, Dan Radakovich, suggests that uncapping the market for athlete compensation could be the solution to the current issues in college sports.
- Radakovich believes that the current model is difficult to enforce and that people who want to invest in athletes should have the ability to do so.
- Other athletic directors, such as Ohio State’s Ross Bjork and Notre Dame’s Pete Bevacqua, also support abandoning the roster spending limit.
- The current cap of $20.5 million per school is seen as too low, and many schools are finding ways to exceed it through third-party deals.
- The NCAA’s landmark decision to settle three antitrust cases, known as the House settlement, has led to a new era of revenue sharing in college sports.
Introduction to the Issue
The University of Miami has been at the center of controversy in college sports, with critics pointing to the program’s use of mega-boosters and allegations of tampering with athletes. However, athletic director Dan Radakovich believes that the solution to these issues lies in uncapping the market for athlete compensation. As Radakovich stated, "The idea of capping compensation has never worked in this industry… People who feel like they want to invest should have the ability to invest." This approach would allow the market to dictate the value of athletes, rather than artificially imposing a cap.
The Current State of College Sports
The current model of college sports is in a state of flux, with the NCAA’s landmark decision to settle three antitrust cases, known as the House settlement, leading to a new era of revenue sharing. The settlement established a spending cap of $20.5 million per school, but many athletic directors believe that this cap is too low. As Ohio State athletic director Ross Bjork noted, "We have a soft cap… The 22 percent was settled three years ago. The market went way beyond 22 percent." This has led to schools finding ways to exceed the cap through third-party deals, which are exempt from the cap.
The Case for an Uncapped Market
Radakovich and other athletic directors believe that an uncapped market would allow for more freedom and flexibility in terms of athlete compensation. As Radakovich stated, "Over time, if we have this kind of open system, economics will bring things back to a more normal circumstance." This approach would also allow schools to compete more evenly, as wealthier programs would not be restricted by the cap. However, some critics argue that an uncapped market would lead to a Wild West scenario, where the wealthiest programs would outspend others and create an uneven playing field.
The Impact on Athletes
The current system has also led to a number of issues for athletes, including contracts that prohibit them from using their name, image, and likeness at other schools. For example, Duke quarterback Darian Mensah is planning to enter the transfer portal and sign with the University of Miami, despite being under contract with the Blue Devils as part of a two-year, $8 million deal. This has led to a number of legal entanglements and disputes between schools. As Radakovich noted, "Everyone is looking to get an edge on everyone else as this industry has done forever… They are going to spend X, so we are going to spend 2X."
The Role of the NCAA
The NCAA has been criticized for its handling of the revenue-sharing aspect of the House settlement. NCAA president Charlie Baker has described the revenue-sharing portion of the settlement as a "dramatic departure from the status quo" and has urged stakeholders to be patient. However, many athletic directors believe that the NCAA needs to take a more proactive approach to enforcing the rules and ensuring that schools are not finding ways to circumvent the cap. As Bjork noted, "When you restrict the money, you cause people to do things against the rules, go underground or wire things. We’re hearing all kinds of stories."
Conclusion
The debate over athlete compensation in college sports is complex and multifaceted. While some argue that an uncapped market would lead to a more free and flexible system, others believe that it would create an uneven playing field and lead to a number of issues for athletes. As the NCAA and schools continue to navigate this new era of revenue sharing, it is clear that a solution will not be easy to come by. However, as Radakovich noted, "The model we have right now is really difficult to enforce. People who feel like they want to invest should have the ability to invest." Ultimately, the key to finding a solution will be to find a balance between allowing schools to compete and ensuring that athletes are treated fairly and equally.
https://sports.yahoo.com/college-football/breaking-news/article/is-it-time-to-uncap-the-market-in-college-sports-top-industry-brass-already-pushing-for-major-change-165932566.html