It's just a cap on direct revenue sharing with the University.
If anyone thinks "mega boosters" will suddenly stop looking to gain validation through propping up college athletics - I got a bridge to sell you.
They will continue to subsidize college athletics in all ways they currently do.
Let’s see what happens. I don’t think that’ll prove accurate. If that was the plan there would be no point in hiring Deloitte to implement this.
Understand that this change didn’t happen because the NCAA forced it. It’s being implemented because Alabama and the blue bloods want it. They don’t want SMU type money bags on an equal playing field. And this is the only way to stop that. Get it? Thats why my bet is on this being somewhat legit.
Now make no mistake, there will be some loopholes but it’ll be harder than you think. A donor may have unlimited funds to funnel into NIL but structuring it into a package where Deloitte approves the valuation will not be easy for SMU type schools at all. It’ll only be easy for the blue bloods with rich branding where the appearance of stars in local commercials can undeniably be justified to be worth a lot of money. Ironically, Rutgers might be well positioned in the longer term by going back to its roots. Nice sized valuations could’ve been justified for kids like Geo and Ron to appear in Jersey Mikes type commercials as seniors. Thats how I see this working in practice. The donors go to Jersey mikes and offer a bunch of money to them to propose a commercial deal. Deloitte approves the valuation on the deal.
The deal has to add real value though to get approved. That’s the tricky part. It’s not going to be so easy for smaller private schools without a big following to come up with things that will value out high.