ATHENS — Georgia athletics will soon be adding some 100 scholarships across its 21 sports and paying $20.5 million to its student-athletes.
The NCAA and its power conference reached a revenue-sharing agreement last May, with final approval of House v. NCAA expected April 7 and terms taking effect Aug. 1, and UGA has a plan in place.
Fifth-year Georgia athletic director recently Josh Brooks shared how the Bulldogs plan to share the revenue across, primarily, the revenue sports.
“We’re still working through the conference seeing if there will be a standard, set amount for the conference,” Brooks said at the school’s Feb. 25 board meeting. “But ours is going to be very close to the formula which was created for the back pay (in the NCAA settlement case), which is 75 percent (football), 15 (-percent men’s basketball) and 5 (-percent women’s basketball).
“There will be some variances in there, but that’s a good starting part, with us working through those final percentages.”
To be clear, that’s strictly the payout money distributed from the university from the $20.5 million “cap” schools will allowed to distribute.
“The impact will be known in a year or two,” Brooks said, “as some programs grow, and some do not.”
Student-athletes can also make money from NIL deals that are deemed valid by Deloitte, a third-party arbitrator that will act as a clearinghouse of sorts — approving or disapproving deals.
The first $2.5 million out of the allotted $20.5 million will go to the new scholarships Georgia has added, which is working off a House vs. NCAA antitrust settlement.
Kirby Smart said on Tuesday he will continue to oversee the UGA football spending cap, which will be managed by UGA director of player personnel Will Myers and chief of staff Mark Robinson.
“We’ve got a lot of people in charge of roster management, including myself, including our football office staff is involved,” Smart said, asked by AJC-DawgNation on Tuesday about his role in the future of NIL and roster management . “Our operations slash player development, player personnel staff, everybody gets involved in that. It’s a team effort. So, we reorganize and restructure some things in terms of what falls under whose duty and whose aspects.
“But at the end of the day, I’m not ready to run off and go hire somebody that’s just going to make all the decisions for what goes on the football field. I think I’ve got to stay involved in that heavily. We’ve got the capacity and the quality of people in the areas that I think we need. So, I think we’ll be fine in that world as it changes.”
Steven Drummond, the deputy athletic director, will work in collaboration with the NIL deals, which will also involve the Classic City Collective now headed by former UGA in-house NIL staff member Tanner Potts.
It’s a fluid and complex time in college athletics with the new NIL and salary cap models evolving, the promise of lawsuits and challenges ahead at most every turn.
Here’s what we know at the moment, of how this new model is currently intended to work, and what still lies ahead:
1. Can boosters contribute money directly to players outside of the salary cap?
It depends. Anyone considered an associated entity with the university — say, a booster with a business — will be evaluated by the Deloitte clearinghouse to substantiate the legitimacy of the dealing.
The clearinghouse would determine the legitimacy of the business as well as the business’ intent.
If it’s a national company without an association or tie with the university, there’s not a need for the Deloitte clearinghouse involvement.
2. Do NIL deals negotiated outside of UGA affect the salary cap?
Again, it depends on the ruling of the third-party clearinghouse party. If it’s a legitimate exchange of business services for usage outside of the student-athletes Name Image and Likeness, it would count outside of the $20.5 million cap.
Schools will want to determine quickly if the NIL deal is “approved” in that fashion — as an outside deal — to keep as much of the $20.5 million the university is paying out available.
Should the deal not pass the clearinghouse, it would count against the $20.5 million cap.
3. Is the Classic City Collective considered an outside entity as it relates to NIL funds and the salary cap?
No, it’s not, But they will be able to go find the sort of outside deals that do not count against the school’s $20.5 million cap.
The same rules apply to the deals the Classic City Collective secures, in terms of what would apply if the sponsor is considered an an associated entity of the university and if the legitimacy of the business transaction is validated.
4. Will UGA secure its own NIL deals to distribute within the allotted salary cap number?
The school can and will, and such deals could be applied outside the cap or inside the cap (provided they meet third-party approval).
Where does the money going into the sports’ scholarship cap come from?
Anywhere and everywhere. Georgia, like all schools, is trying to grow revenue, contain its expenses and operations budgets, in an effort to be as efficient as possible.
“Every lever is getting pulled,” per one SEC administrator.
5. Where will the new 100 athletic scholarships be distributed among the UGA sports?
It’s fluid, but the tentative plan at Georgia is to spread those scholarships across the majority of the school’s 21 NCAA-sponsored sports.
There are no scholarship limits anymore, but there are roster caps, and each school can do what they want in terms of the number scholarships they offer.
The value of the added scholarships is of particular interest to non-revenue sports where full scholarships are not always common.
Often times the scholarships are split between athletes. Baseball, for example, has 11.7 scholarships between 40 student athletes.
The added scholarships will give UGA the advantage of being able to offer full scholarships in sports, giving them an advantage over schools from other conferences that may not have the resources to add scholarships.
The average value of athletic scholarships at Georgia is approximately $20,000 to $40,000, depending on if it is an in-state scholarship or out-of-state scholarship.
The value of scholarships fluctuates from school to school
6. Can schools get players to sign contracts to aid in managing the salary cap?
That will happen eventually, organically, and it would be in the best interests for athletic departments if multi-year contracts with student athletes were to happen across the board in all conferences.
The reason this is important, is it would likely curb the number of transfers, as school’s recruiting players from other programs would have to consider liquidated damage charges that could affect their salary cap.
The reason it’s important to curb spending is so that schools’ don’t end up sacrificing with cuts in other sports to come up with the skyrocketing football expenses — which many experts have said is not sustainable at its current rate.
7. How or where does Title IX legislation fit into the new model?
Again, a fluid topic. The goal for every institution is to provide equal opportunity for women, but there’s the reality of what the market bears, in terms of the value of men’s or women’s sports.
Ultimately, it’s likely there will be lawsuits challenging whatever statutes get put into place.
