Grant House Settlement Changes College Athletic Pay

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Transcript

00:00I want to talk about the recently developed House settlement. You've probably seen a lot of news

00:06regarding it. Nothing to do with politics. It's not the House of Representatives. This has to do

00:12with Grant House, a former Arizona State All-American swimmer. This is a legal situation

00:19that's been going on for a while. The landmark decision came down recently, and the decision was

00:27that schools can now officially pay student-athletes. Amateurism is dead. The divide

00:34between the haves and the have-nots have never been bigger. It will continue to get big. I want to

00:40discuss here who are the winners from this settlement, who are the losers, and what can

00:45we expect moving forward? First off, the big winners are obviously athletes from the revenue-generating

00:53sports. We're talking football, men's basketball, to a lesser extent women's basketball. Now there's

01:00a pipeline up to $20.5 million. Universities can pay student-athletes in aggregate. So that is

01:09all student-athletes. It's a deal, Scott, that will run for the next 10 years with escalators. I believe

01:15it's 4% a year. So by the end of the 10 years, we could be talking about $30 million that could

01:22be laid out to student-athletes. Again, this NIL has not gone away. In theory, I'll believe it when

01:30I see it, it's going to be more transparent. We'll see what happens with that. But now there is a steady

01:36revenue pipeline for the biggest producing athletes in college sports. Those are the biggest winners.

01:42And secondary to that, there's going to be a back pay, $2.8 billion has to be paid to student-athletes

01:52from 2016 to 2024. Hasn't been decided yet exactly how that's going to be paid out or distributed,

02:00but you have former athletes that will be paid as well. Here's a sneaky big winner. If you're an alum,

02:07like myself, I'm a graduate of Seton Hall, of a school that has a prominent basketball

02:12program, but no football program, major winner. You now no longer have to distribute that money

02:18to football players. You could put that all into basketball. If you're Xavier, St. John's,

02:24Gonzaga, major win for those basketball programs. Now the losers from the house settlement,

02:29no big surprises here. If you're a G6 program, it's going to be tough to compete. They're really

02:36going to handle the disproportionate burden of that $2.8 billion back pay. And then non-revenue

02:43generating sports. A lot of these sports are going to have roster limits, have a difficult time

02:48surviving. If you're a swim team member, soccer, it's going to be difficult. So a lot to really deal

02:55with. We'll be covering it moving forward. The changes are going to be coming in the future.