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The last few years have been a massive upheavel in world of college sports, and it looks like more changes are on the way. Brunswick Group has taken a deep dive into the potential of private equity joining the sidelines, and how fans perceive this shift. #sports #collegesports #privateequity #HookEm

In 2021, the Supreme Court ruled that the NCAA’s ban on compensation for college athletes violated antitrust law, forcing the NCAA to allow athletes to profit off their own name, image and likeness, a provision widely known as NIL. Some players have been able to capitalize off of their own successes within the collegiate athletic ecosystem. A federal official said Monday that members of the Dartmouth College men’s basketball team were university employees, clearing a path for the team to take a vote that could make it the first unionized college sports program in the country. Appeals will follow, but the landscape of collegiate athletics continues to evolve as power dynamics shift between individuals, groups, and institutions of higher education. #NCAA #highereducation

🌟 Landmark NCAA Settlements: Perspectives from Nixon Peabody LLP 🌟 🚀 The recent landmark NCAA settlements on Name, Image, and Likeness (NIL) rights are set to revolutionize how student-athletes are compensated, offering them unprecedented financial opportunities. 🔑 Key Highlights: --💰 $2.75 Billion in Damages: Athletes will receive significant compensation over the next decade. -- 🏫 Direct Payments from Schools: Schools can now share a substantial portion of their revenues directly with athletes. -- 📈 More Than Just Scholarships: Enhanced benefits include third-party NIL payments, healthcare, and more. Our cross-disciplinary team at Nixon Peabody (i.e., Education, Labor & Employment, Private Equity, and Entertainment) are at the coordinated forefront of these developments, as reflected by some of their insights: S. Amy Spencer: “[W]ith the degrees of uncertainty and risk for NCAA member institutions, the Title IX issue is likely to land back in federal court, with the House settlement in some way exchanging present antitrust issues for future Title IX issues..” Matthew Netti: “Schools must consider potential ripple effects a settlement would have under the state and federal labor and employment laws, and whether further challenges and union organizing efforts by student-athletes could rise as a result.” Nic Mayne: “We may be closer to a normal athlete endorsement market, with evolving collectives providing additional compensation opportunities.” Ready to dive deeper into what this means for you? Read the full article, stay ahead of the curve, and of course reach out to my above-mentioned talented colleagues if you have any questions. #NixonPeabody #NCAA #NIL #CollegeAthletics #FutureOfSports #LegalInsights #HigherEducation #GameChanger

This is the best article I have found that breaks down the recent House settlement that has already sent ripple effects through the athletic world in the United States. It breaks down all the important information for athletes, coaches, administrators, boosters, collectives, and fans. Little opinion, just facts and potential roads ahead for college athletics. I think it is far too early to throw out "takes" on how the House settlement will positively/negatively impact collegiate athletics and higher education. I would highly discourage listening to anyone who is proclaiming this as either "the end of collegiate sports" or "the best thing ever for collegiate sports". Neither statement is likely true. It's far too early to know the impact this settlement and any future litigation will have, so for now, I will say it's not going to be "good" or "bad", just different. I do think interesting discussions can spring from this. How will the potential impact to certain sport programs affect the future of the sports at the next level in the USA (ie professional leagues and Olympic teams)? How will institutions, athletic departments, and conferences respond to the latest settlement? What future litigation could arise still? How does this impact athletics beyond the college level (both youth and professional)? https://lnkd.in/gSSNdfjR

As private capital investment firms assess the potential opportunities related to the new financial realities surrounding college athletics, it is critical that they understand the risks and sensitivities inherent in investing in these programs. This new proprietary data from Brunswick Group offers fresh insights into how college sports fans perceive these changing dynamics and identifies specific areas where opposition may arise. Our research also shows that clear messaging based on an informed understanding of stakeholders' perceptions can help build support for this necessary evolution of college athletics.

College sports season always sparks lively debate, and this year, a new topic is heating up the conversation: the potential impact of private equity and private credit in college sports. Rather than rely on assumptions about how fans are reacting to the concept, we conducted a study to understand their views. The results reveal that fans are ultimately supportive of the idea and excited about the potential benefits for athletes and athletic programs. However, there are significant concerns, particularly about preserving the educational mission of colleges, maintaining the fan viewing experience, and preventing a wider gap between powerhouse programs and smaller colleges. Winning over loyal fans will require clear communication about how a deal will benefit the whole school and community - not just the players, programs and investors. Read more about Brunswick's new research here: https://lnkd.in/eQ6ia_xj

⚾ 🏀 🏈 🏐 #MediaLaw and #NCAA #NIL Update - We've been watching closely as information surrounding the $2.8 BILLION settlement spools out. As most are aware, this settlement resolves three pending federal #antitrust cases in which it was alleged that the NCAA and the #PowerFive conferences improperly barred student-athletes from profiting from the use of their NIL. By this settlement, former #StudentAthletes will be compensated for past restrictions on NIL earnings. What's more, the settlement establishes some parameters for present and future student-athlete earnings. At this point, we await settlement approval by Judge Claudia Wilken and we also await additional details as to how this settlement will impact smaller, non-FBS (football bowl subdivision) Division I conferences. Another question, concerning #GenderEquity, is whether #TitleIX will apply to the new revenue sharing model. We expect this to be a major focus moving forward, as institutions finalize their revenue sharing structures. Look out, #EPL world, as this sounds ripe for #discrimination claims. For more like this, be sure to follow Kissel Straton & Wilmer LLP. Special thanks to Riley Odell for her assistance in reviewing this matter. #MediaLawyer #MediaLiability #NameImageLikeness #InsuranceLaw #InsuranceLawyer #EmploymentPracticesLiability https://lnkd.in/eFUB7wCs

The State of Virginia yesterday passed a bill that will enable colleges to actively direct and coordinate the administration of NIL money to athletes - decisions that are presently made outside of the university by booster groups and corporations. Such direct involvement by schools presently violates NCAA rules, and the Virginia law purports to make it illegal for the NCAA to enforce such restrictions against athletes or schools in Virginia. Mississippi and Oklahoma have similar bills in the pipeline, and surely others will follow. To me, the omission of any meaningful discussion in this article and in the discourse about this bill of the implications of Title IX on all of this is glaring. It's fair to say many of the most ardent supporters of this bill would not be nearly as excited about it if they learned that bringing this in house will necessarily subject all NIL decisions to Title IX scrutiny. Presently NIL money is doled out disproportionately to male athletes - which escapes Title IX scrutiny because it is all done outside the university. Bringing NIL in house will mean NIL money will have to be distributed in a manner consistent with Title IX. The resulting implications for the economics of big time intercollegiate athletics will be significant. I believe Title IX needs to be an integral part of this discussion now. Ignoring it will only lead to additional chaos in an industry where every week seems to bring new disruptive and existential challenges. https://lnkd.in/eqpXZ4UY

The #Regents of the #University of #California voted on Tuesday to make #UCLA pay #UC #Berkeley $10M per year, for only 3 years, rather than 6 years as earlier suggested for UCLA’s move to the Big 10. When UCLA and #USC left the PAC-12 it caused the collapse of the Conference. UCLA had not requested approval from the Regents to change leagues. Before the move Cal and UCLA’s athletic program had equal TV revenues. The change has left Cal to receive only $11M per year, for 9 years while UCLA will receive $60M per year with its new deal with the Big 10 conference. Over the next 9 years Cal gets $99M on TV money and UCLA gets $540M. The difference is $439M over 9 years. The payment by UCLA amounts to merely 6 months in the difference in the new revenue stream. UCLA won big time, Cal and everyone else lost. The loss of revenue will also mean other sports at CAL and #Stanford will most likely be eliminated. Beyond financial considerations, Cal and Stanford were left with a desparate situation of trying to find a league to join and some schools in the Atlantic Coast Conference did not welcome them. #Florida #State and #Clemson opposed Cal and Stanford joining. Those schools have now sued the ACC. Florida State and Clemson want to leave the ACC, but their exit feeis $572M each. Together, that’s over $1.1B and that’s a bit more expensive than UCLA’s exit payment of $30M. The biggest loss for everyone is the 100+ year tradition of West Coast teams playing each other. The PAC-12 should have had an exit penalty and UCLA should have been required to ask the Regents to leave the league. #Cal #stanford #ucla #washington #washingtonstate #oregon #oregonstate #arizona #arizonastate #pac12 #ncaa #UC #regents #sports #football #fox #espn #abc #nbc #bayareasports #kgo

American college sports is one of the largest industries in the world to operate without a balance sheet, which has become a magnet for private equity investment. However, this sudden influx of capital has generated significant legal and regulatory challenges, according to critics. When you add in record-breaking television contracts and legal sports betting in many states, the numbers go even higher, but questions persist about who is entitled to these new revenue streams. Can universities, student-athletes, the NCAA, and private equity firms work together to ensure a fair and equitable college sports future for all? Luke Goldstein offers a great perspective on the dynamic and evolving business of college sports in The American Prospect. Read more: https://lnkd.in/g_yWqBjS #NCAA #sports #privateequity #media