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.

luckymcd wrote:

Well the settlement was finally approved last week and St. Joe’s sent an email explaining their plans to anyone who has bought tickets through the university. I’m sure I’m not the only one who got it, but it answers a lot of the questions board members had about the settlement. So I thought I’d post it in case anyone still had questions.



Saint Joseph’s Establishes Fund to Drive Excellence for Men’s and Women’s Basketball

On July 1, 2025, college athletics will officially enter a new era with the passing of the landmark House v. NCAA settlement. How and why it got to this point, and what the settlement means to a university like Saint Joseph’s, is extremely complex. Without a doubt, this new era includes both challenges and opportunities. We have been preparing for this for the past 5+ years, and I am confident in the work we have done and optimistic about our ability to succeed.

To help our loyal fans understand this new era, and to discuss how the changes have impacted our men’s basketball program this summer, Men’s Basketball Head Coach Billy Lange and I created an in-depth, 43-minute video.

In brief, a federal court approved the final settlement of a pending lawsuit called House v. NCAA on June 6, and the settlement goes into effect on July 1. House is a collection of antitrust cases in which former student-athletes sued the NCAA and Power 4 conferences – the ACC, Big 10, Big 12, and SEC (“the P4”). Settlement of the House case will impact St. Joe’s Athletics in three primary ways:

Money Damages: Although Saint Joseph’s and other non-P4 schools were not sued, the NCAA and the P4 are requiring all NCAA Division I member institutions to contribute to the agreed-upon $2.8 billion in money damages being paid to former student-athletes over the next 10 years as part of the House settlement. The money damages will result in a loss of revenue normally received by St. Joe’s Athletics from the NCAA as part of its annual revenue distribution plan.

Roster Limits: Pursuant to the House settlement and effective July 1, current limits on the number of athletic scholarships that Division I institutions can provide to each team will be replaced by roster limits. The final settlement offers some protection to current and incoming student-athletes whose roster spots were at risk through a concept called “designated student-athletes.” These designated student-athletes can exceed the new roster limit at St. Joe’s or at any other institution to which they may transfer for the duration of their athletics eligibility.

Direct Institutional Payments to Student-Athletes: Perhaps the most significant aspect of the House settlement is that Division I institutions may now provide “additional benefits” directly to student-athletes – in a maximum amount for all sports up to $20.5 million per year. While the P4 institutions are bound by this new rule, non-P4 institutions like St. Joe’s must decide by June 30 whether to “opt in” to this concept. As previously announced, St. Joe’s will opt-in to provide additional benefits to men’s and women’s basketball student-athletes.

The Question & Answer section that follows will help our fans and supporters understand how the House settlement will impact St. Joe’s Athletics, and how they can help:
Questions & Answers

Why is St. Joe’s opting in?
St. Joe's basketball programs are an enormous part of the history and tradition of the University, and enrich the experience of the entire student body, university community and alumni base. By opting in, we're ensuring that our men's and women's basketball programs can continue competing at the highest levels of the Atlantic 10 and Big 5 by recruiting, retaining and developing outstanding basketball student-athletes.

What exactly are these payments?
These payments are not “wages” and are not considered “pay for play.” Each Division I institution that opts in is handling these payments differently. At St. Joe’s, we are licensing the Name, Image and Likeness (NIL) of our men’s and women’s basketball student-athletes. Meaning, we will provide payments in exchange for them serving as brand ambassadors for Saint Joseph’s University.

What are you doing to ensure that St. Joe’s basketball student-athletes are prepared for this new era?
One of the most important aspects of our culture and mission at St. Joe’s is that we care for and develop the whole person. I can assure you that we have and will continue to provide financial literacy, tax support, and other educational programs to help our basketball student-athletes prepare for this new era in college athletics.

Will St. Joe’s spend up to $20.5 million per year?
Absolutely not! $20.5 million per year is the maximum amount that a Division I institution can spend on all sports. At P4 institutions, most of this money will go to football student-athletes. St. Joe’s will spend a small percentage of the maximum amount for men’s and women’s basketball student-athletes only, in an amount necessary to stay competitive within the Atlantic 10 conference.

How will St. Joe’s fund these payments to our basketball student-athletes?
This is the single most challenging and important aspect of the new era of college sports. Although these direct payments are often referred to in the media and general public as “revenue sharing,” that moniker can be misleading to the extent that most institutions do not have revenue to share (annually, only 15-20 athletic departments in Division I turn a profit). St. Joe’s Athletics will fund these direct payments through donor support, special events like the Players Era tournament, and creative new revenue streams.

How can our fans best support St. Joe’s basketball in this new era?
Quite simply, our passionate donors and supporters will impact our basketball success like never before. Today, we are announcing the launch of the Saint Joseph’s University Basketball Excellence Fund for men’s and women’s basketball. All donations to the Basketball Excellence Fund are tax-deductible. Donors will designate their gift for either men’s or women’s basketball, but may not designate a specific student-athlete. All questions regarding the Basketball Excellence Fund should be directed to Director of Major Gifts (Athletics) Joe Logan at jlogan@sju.edu.

Will the St. Joe’s collective, known as Hawk Hill Alliance, still exist?
In short, no. We will sunset the Hawk Hill Alliance and focus on contributions to the Basketball Excellence Fund to reduce donor confusion and ensure that all donations are tax-deductible.
In addition to the Basketball Excellence Fund, how can I help St. Joe’s Athletics continue to compete and help our student-athletes have an amazing experience?
There are so many ways that you can help our student-athletes:
Make a donation to the Hawk Athletic Club. This long-standing fundraising initiative supports the 21 varsity sports at St. Joe’s and is critical to the experience of all 475+ of our student-athletes.
Contribute to the Maguire Athletic Center as we move toward completing our fundraising campaign for the beautiful new facility that benefits each and every one of our student-athletes. For more information about how to contribute, please contact Director of Major Gifts (Athletics) Joe Logan at jlogan@sju.edu.
Purchase season tickets or single game basketball tickets. Our ticket revenue is a critical part of funding our annual operating budget. In the Atlantic 10, we compete with several institutions that have 10,000+ seat arenas and therefore can generate significantly more revenue. We need to pack Hagan Arena on a regular basis! 2025-26 ticket information is coming soon.
Buy Saint Joseph’s University merchandise, through our campus bookstore managed by Barnes & Noble, or at any retailer selling our licensed gear.
Consider joining our corporate partnership program powered by Van Wagner, through which your company can receive valuable marketing opportunities in partnership with Saint Joseph’s Athletics and our student-athletes. Please contact Kevin Levy, General Manager, at klevy@vanwagner.com.

Saint Joseph’s University is committed to thriving in this new era – in terms of both competitive excellence and development of the leaders of tomorrow – in a way that is true to our institutional values and mission. I acknowledge that this journey asks a lot of our fans and supporters, but I know that we have an incredibly passionate fan base who care deeply about the University. Together, I believe we can create something very special. On behalf of our student-athletes, coaches and staff – thank you for your commitment to St. Joe’s Athletics.

The Hawk Will Never Die.

Jill Bodensteiner

   
Vice President and Director of Athletics & Campus Recreation

Thanks for posting. Very enlightening