Beyond the Q&A: Addressing Division I Concerns on NCAA’s Proposed Settlement
Originally published on November 18, 2024
On October 28th, the NCAA published their Question and Answer document to provide guidance Division I schools on the status of the proposed House settlement and its potential impact on (and enforcement of) Division I bylaws.
The settlement, which redefines permissible benefits and introduces new reporting requirements, has spurred administrators to evaluate its potential impacts on their institutions and to adapt to the evolving world of Division I athletics.
Many administrators are focused on understanding the scope and structure of the pool payments and additional benefits that institutions can offer under the settlement. While they recognize the potential for enhanced support for student-athletes, some have expressed concerns about managing compliance with the obligations and limitations that accompany these new benefits. Institutions will need to establish effective tracking and reporting mechanisms, particularly as they relate to roster limits and NIL payments — both of which are central components of the settlement.
Key Concerns and Adjustments
The Q&A provides details on several areas.
Financial and Operational Compliance
In addition to the significant financial obligation to Division I institutions, athletic departments are preparing for the increased administrative burden. By requiring all Division I athletes to disclose NIL agreements above $600 and obliging institutions to report benefits offered, the settlement introduces new reporting standards.
Administrators are reviewing existing priorities, current structures and exploring additional internal controls to stay compliant. For many, the need to adhere to institution-wide standards rather than permitting a team-by-team approach means revisiting policies, assessing financial implications and allocating resources accordingly.
Monitoring and Enforcement
The lack of information surrounding the enforcement aspect has left athletic administrators with significant uncertainty. A primary concern is the ambiguity around who will be responsible for enforcing these new rules and how enforcement will be conducted. While some information was touched upon in Judge Wilken’s preliminary hearing in September, there has been little follow-up, and critical questions remain unanswered for those on campus.
Conference-Specific Rules
The settlement allows conferences to set independent rules regarding benefits distribution, which has prompted many administrators to consider how conference policies may diverge. Administrators note that the independence clause could lead to varying approaches among conferences, which could impact recruiting and competition dynamics across Division I. Some administrators commented that this could further the conversation surrounding fewer conferences with multiple divisions in the conference(s).
Student-Athlete Guidance and Support
Institutions are preparing to provide robust support for student-athletes navigating the new NIL reporting requirements. Administrators are also directing athletes to resources like www.collegeathletecompensation.com for information. The new disclosure requirements will be an adjustment for many student-athletes, and administrators are mindful of the potential need for ongoing education, monitoring and assistance.
Future Legislative Implications
The adoption of roster limits and scholarship flexibility as part of the settlement’s terms has sparked controversial discussions about future college athletics. Administrators are preparing for changes in team structures, which influence recruitment and scholarship strategies. They are also monitoring the scheduled events leading up to the final approval hearing in April 2025, including deadlines for objections and claims, as they could impact the final terms of the settlement.
While college athletic administrators are committed to adapting to the proposed settlement’s requirements, they also express a need for more clarity and guidance as they maneuver through this new era in college sports.
The initial NCAA Question and Answer document leaves many with additional questions. Some of the most glaring are (1) will these changes apply if Judge Wilken does not grant final approval, (2) what is and what is not a “direct payment,” and (3) what are the other questions the NCAA has received but have not yet answered and when will they provide those answers?
The settlement represents a significant shift for Division I institutions, and administrators are working diligently to position their programs and student-athletes for success within this evolving regulatory framework. Our collegiate athletics consultants are committed to helping you navigate these complexities with confidence and ensuring that your institution is well-positioned for success in this new era of college athletics.
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