Thanks, BluffHunter, for finding this and posting it.  Zac did a nice job with his line of questioning and Dave provided some insight into the University and Athletic Department's thinking.

DU90 wrote:

What does it mean to "opt in"?  I re-read the article twice and I still don't understand what is meant by opt-in or opt-out, as it is not defined in the article.
 

What is being opted in to is the settlement in the House vs. NCAA case. As Harper said the specifics are still being worked out, but the main point is that the colleges that opt-in will be able to pay athletes directly out of their broadcast contracts. NIL will still exist, but play a much smaller role and finally be regulated.

DU90 wrote:

Thank you lucky!  So, does this mean we will have a revenue-sharing situation similar to MLB to fund our payments in the future?  I am assuming that will be part of it, and another part will be driven by NIL fundraising contributions.

The big schools win again and the rich get richer and there is no level playing field.

I am far from an expert on the subject, but I'll do my best to explain it in more detail. If anyone more knowledgable than I am can correct anything or add to it please do. Every school will likely operate a little bit differently even when the deal is finalized. Ultimately the settlement will do two things which are related, but not exactly the same. The first is to allow universities to directly pay athletes. The second is to regulate NIL payments, which will continue even with direct payments.

When NIL began it was meant to overturn decades of banning college athletes from doing endorsements or getting money from jersey sales and other outlets even though their name was right on the jersey. NIL payments were supposed to be third-party deals with no involvement from the colleges, athletic departments, or coaches. NIL collectives were set up for pretty much every school that were officially not affiliated with the schools to follow the letter of the law. Of course it pretty much instantly became pay-for-play. Even though any contracts were officially with outside entities, the details were usually worked out behind the scenes by coaches and agents. Allowing direct payments is meant to end this game and bring the payments out into the open.

There will be a maximum amount for these payments allowed. The exact figure is one of many details still being worked out, but 20.5 million per year per school has been mentioned enough times that it likely will be the final number. So it will resemble revenue sharing in professional sports like you said. On the other hand there most likely will not be a collective bargaining agreement with the NCAA, so it won't be exactly the same. 

While payments straight from the universities is the part of the settlement getting the most attention, regulating NIL is also an important part. Without regulation it basically turned into whoever raised the most money and pretended it was for endorsements (literally name, image, and likeness) got the best roster. A clearinghouse for NIL payments will be setup and run by an entity outside the NCAA, likely Deloitte. All NIL payments will have to be cleared. There will be no maximum on NIL, but the important part is that it will need to be fair market value and for legitimate NIL. So a booster can no longer make multi-million dollar payments to a high school recruit to sign some autographs that may not even end up happening.

The two goals of the settlement are meant to clean up the shady side of college athletics, but also should level the playing field somewhat. Of course lots of schools won't even approach the 20.5 million dollar maximum, so the bigger athletic departments with more money still win out as you say. The very act of placing a cap (especially one less than many schools bring in) spreads the wealth a bit though.

levon1975 wrote:

Is the projected $20.5 million in direct payments spread across all sports? If a P-4 school had to spread that out over football, basketball, wrestling, baseball etc. it would dilute their payments to a far greater level than for predominantly basketball schools. Football rosters were capped at 105-players, but that would put a big dent in the $20.5 million.

I'm glad you asked Levon, because that's an important piece I left out. The projected 20.5 million dollar cap is for all sports and it will be up to the individual athletic departments how to distribute it among programs and players. 

levon1975 wrote:

Thanks Lucky, also if $20.5 million is the ceiling; is there a “floor,” or a minimum amount that every participating school must spend in order to be included in D-1 athletics?

There is no minimum to stay in division 1; which is why some schools, and in the case of the Ivy League whole conferences, can opt out. I don’t believe there is a minimum even if the school opts in, but I’m not sure of that.

Thoughts imo…
Dave is a bright guy and has a handle on things. We are fortunate that he, the president, and board of directors are supportive. This is especially important since the President is retiring. Father Mac was the last President we had up to now, who was so supportive and in touch with what the landscape is. I hope we get another supportive President like our current one.

Now, in terms of the AD, we are also fortunate regarding his understanding and support.  It helps me overlook that he isn’t the most personal person but I can overlook all of that as I believe he is extremely competent.

FAM wrote:

Now, in terms of the AD, we are also fortunate regarding his understanding and support. It helps me overlook that he isn’t the most personal person but I can overlook all of that as I believe he is extremely competent.

I've never talked with him personally, but I get the impression he is plenty personable, but just plays it close to the vest in interviews. I totally agree about his aptitude as an AD though. To say he's the best AD we've had is almost an insult in comparing him to the others. In saying this I am making a distinction between athletic directors and AD / coaches. He really seems to get Duquesne and does a great job toeing the line of striving for the best without losing track of reality of what we are.