As the NCAA continues to make steps toward the expected settlement of the landmark House v. NCAA lawsuit and other related anti-trust cases, there is pushback on how the NCAA plans to pay the expected $2.7 billion in back damages over the next decade, sources told ESPN.
The NCAA sent out a four-page memo to all 32 Division I conferences this week detailing how the organization plans to cut back on distribution to leagues in six annual payout categories in order to pay the proposed $2.7 billion in damages.
The memo detailed how the NCAA could split up an expected $1.6 billion that would come from reductions in NCAA distribution, sources told ESPN. The remaining $1.1 billion is expected to come from NCAA reserves, catastrophic insurance, new revenue and budget cuts, sources said.
Of that $1.6 billion, nearly 60 percent is expected to come from leagues outside the Power 5 leagues that are named in the House lawsuit, according to sources. (The NCAA is named, and all of the schools are members.) The other 40 percent will come from the power conferences.
For example, the cost annually for the Big East Conference is projected at between $5.4 million and $6.6 over the next decade, according to a source familiar with the memo. The West Coast Conference, another successful basketball-centric league, is expected to annually pay between $3.5 to $4.3 million. The lowest level of annual payouts expected to be withheld for smaller leagues is just under $2 million, which is estimated to be more than 20 percent of what those leagues get from the NCAA annually.
This has set off a flurry of upset commissioners and officials in those smaller-revenue leagues, including a series of meetings of the Collegiate Commissioners Association and the CCA22, which are the 22 leagues that don’t have FBS football.
Of the $1.6 billion, the NCAA will be withholding distributions from six funds across its 32 Division I leagues, ESPN has learned. Those include the basketball performance fund (via the NCAA Tournament), grants-in-aid, the academic enhancement fund, sports sponsorships, conference grants and the academic performance fund.
There are three categories of NCAA payments not expected to be impacted: the equal conference fund, the student-athlete opportunity fund and the special assistance fund.
The NCAA does not plan to take money away from its Division II and Division III distributions, sources said. Sources cautioned to ESPN, however, that the numbers are fluid and could change.
There has been a flurry of meetings of the CCA and the CCA22 in recent days, and the tenor of those meetings has been trying to find whether additional models can be proposed that lessen the financial burden. According to a memo obtained by ESPN, the CCA22 plans to send a letter to the Power 5 and NCAA requesting additional payment models.
According to a source, one smaller non-power football league was told in the NCAA memo that it would be expected to pay more than $2.5 million per year to help cover the costs of the settlement. A source in that CCA22 league said that amount is approximately 25 percent of the annual NCAA revenue for the schools in the league.
“We’re not named in the lawsuit,” said a source in a smaller league. “We don’t have a voice in any of this. We’re just being told what our taxation is.”
Added another source in a CCA22 league: “This is incredibly unfair and has a dramatic impact. I’m losing about 10 percent of my operating budget. Do I cut two staff members in order for money to go to Zion Williamson? Ninety percent of the money in the suit projects to go to power five football and men’s basketball players. The 40-percent payment for the power conference isn’t proportionate.”
There’s a counter to those numbers, as nearly 300 schools would be paying for 60 percent of the settlement, whereas 68 power conference schools from the four major football leagues in 2024 would pay for nearly 40 percent.
According to a source, the average overall revenue of non-power-five schools was $27 million in fiscal year 2022. A $330,000-per-school reduction in distribution, according to a source, would come out to 1.2% in the school’s average revenue. (That $27 million is different than the pure NCAA payouts referenced above.)
“The payment of the back damages is only half of the picture,” an industry source told ESPN. “The proposed revenue-sharing arrangement — nearly $20 million per campus for more than 60 campuses — would cost more than $1 billion annually and provide all of Division I protections from future similar lawsuits.”
There is expected to be continued pushback from the CCA22 in the coming days, sources said. That will come amid the backdrop of votes by the NCAA and power conferences on the settlement, widely expected to pass, that are coming next week.
The Ottawa Senators have opened up a nice gap as the first wild card, with 75 points and 26 regulation wins in 65 games. Beyond them, things get interesting.
If it comes down to the regulation-wins tiebreaker at season’s end, the Rangers have an upper hand over all the rest, with 29 in that column, compared with 23 for the Jackets, Red Wings and Bruins, and just 22 for the Habs.
The Canadiens host the Panthers also at 7 p.m. (NHL Network)
The Blue Jackets face the visiting Rangers also at 7 p.m. (ESPN+)
And if they have their sights set on catching the Senators, these clubs are all rooting for the Maple Leafs, who host Ottawa (7 p.m., ESPN+). It’s a great night for multiple streaming devices!
There is a lot of runway left until April 17, the final day of the regular season, and we’ll help you track it all with the NHL playoff watch. As we traverse the final stretch, we’ll provide details on all the playoff races, along with the teams jockeying for position in the 2025 NHL draft lottery.
Points: 62 Regulation wins: 23 Playoff position: N/A Games left: 15 Points pace: 75.9 Next game: vs. WPG (Sunday) Playoff chances: ~0% Tragic number: 22
Points: 45 Regulation wins: 13 Playoff position: N/A Games left: 15 Points pace: 55.1 Next game: vs. WSH (Saturday) Playoff chances: ~0% Tragic number: 5
Race for the No. 1 pick
The NHL uses a draft lottery to determine the order of the first round, so the team that finishes in last place is not guaranteed the No. 1 selection. As of 2021, a team can move up a maximum of 10 spots if it wins the lottery, so only 11 teams are eligible for the No. 1 pick. Full details on the process are here. Matthew Schaefer, a defenseman for the OHL’s Erie Otters, is No. 1 on the draft board.
The Texas Rangers‘ pitching staff took another hit Friday, when right-hander Jon Gray suffered a right wrist fracture.
Gray was struck by a line drive from Colorado Rockies first baseman Michael Toglia to lead off the fourth inning that knocked him out of the game.
“Not good news, not good news,” manager Bruce Bochy told reporters. “It’s terrible. I feel awful for him, to be this close to getting the season going. It’s just not good news. I’ll get back in there and find out more, but right now, there is a fracture.”
Gray’s injury is the third setback for the Rangers rotation this week. The team said Thursday that left-hander Cody Bradford would start the season on the injured list because of soreness in his throwing elbow. Tyler Mahle had been scratched from a start with forearm soreness, but the right-hander returned to pitch in a minor league game Thursday.
Gray went 5-6 with a 4.47 ERA in 23 appearances (19 starts) for the Rangers last season, when he was shut down in September for a foot injury that required surgery. He is in the final year of a four-year, $56 million deal.
Information from The Associated Press was used in this report.
TOKYO — Japanese star Shohei Ohtani showed off some prodigious power in his return to the Tokyo Dome on Saturday night.
In an exhibition game against the Yomiuri Giants, the three-time Most Valuable Player belted a long two-run homer to right field in the third inning to give the Dodgers a 4-0 lead, setting off a roar from the roughly 42,000 fans in attendance.
The Dodgers put on quite a power display in the third with Michael Conforto, Ohtani and Teoscar Hernández all going deep to give Los Angeles a 5-0 advantage.
The Dodgers are playing in Japan as part of the Tokyo Series. The team is playing two exhibition games against Japanese teams before starting the regular season with two games against the Chicago Cubs on Tuesday and Wednesday.
Ohtani became the first player in MLB history to have at least 50 homers and 50 stolen bases in one season in 2024. He played several seasons for the Nippon Ham Fighters in Japan before coming to the U.S. in 2018 with the Los Angeles Angels.