According to Axios, "Private equity keeps inching closer to college sports, and now has a bit more certainty around its modeling." They're referring, of course, to the multibillion-dollar legal settlement formally approved just recently. Per ESPN:
Judge Claudia Wilken approved the deal between the NCAA, its most powerful conferences and lawyers representing all Division I athletes. The House v. NCAA settlement ends three separate federal antitrust lawsuits, all of which claimed the NCAA was illegally limiting the earning power of college athletes. . . .
The NCAA will pay nearly $2.8 billion in back damages over the next 10 years to athletes who competed in college at any time from 2016 through present day. Moving forward, each school can pay its athletes up to a certain limit. The annual cap is expected to start at roughly $20.5 million per school in 2025-26 and increase every year during the decade-long deal. These new payments are in addition to scholarships and other benefits the athletes already receive.
According to Axios, while not "a game changer" (due to media rights being negotiated at the conference level), the settlement nonetheless provides economic clarity:
Particularly in better understanding the haves and have-nots, as only a relatively small handful of colleges are likely to spend up to the $20.5 million limit.
Expect a lot of private investment to help finance new facilities and develop luxe fan experiences. Similar to an expanded investment partnership announced yesterday — albeit negotiated prior to the settlement approval — between sports and entertainment agency Elevate, Velocity Capital Management, and the Texas Permanent School Fund.
To hear about predicted changes in the NCAA from sports law and industry expert, Marc Edelman, listen to this wonderful episode recorded last year:
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