Breaking Down the $2.8 Billion NIL Settlement for College Athletes

It's that time of year where so many key sporting events are taking place.

The NBA Finals and the Stanley Cup are in full swing.

While the Youth Open got underway yesterday and will run through Sunday, it seems like the only thing we're missing is football.

And along those lines, college football is roughly around 7 days.

70 days from kickoff and legislation on name, image and likeness for college athletes is being considered on Capitol Hill.

Now this is centered on creating a single national framework for compensation and protecting the NCAA from further antitrust litigation.

Well joining me on this Friday morning is Rick Hoillo of Horror sports ventures.

Happy Friday, Rick.

Great to have you here.

Thank you so much for joining me.

So first and foremost, let's start out by talking NBA Finals.

The Oklahoma City Thunder were heavy favorites to win the finals over the Indiana Pacers, and they do find themselves trailing 2 games to 1 ahead of Game 4 tonight.

So are they still favorites?

Well, they're favored by me.

Look, this is a, it's a long series.

It's not over.

It's been an amazing week.

I've been in Oklahoma City.

I've been in Miami for that finals.

We've got the US Open.

I've been there, going to the Montreal Grand Prix.

It's not a travel log, I know that, but the Thunder thought they would have a cakewalk.

Some people said.

And they didn't, but the bottom line is these are two of the smallest markets in the NBA with two of the most dynamic ownerships, the Thunder at about 2.5, 3.5 billion, and the Pacers right behind about 202, 23rd respectively.

These are two small markets, but the NBA is selling a master partnership with two MVP candidates.

That's the key to this series.

And as I said, all right, I'm thinking Oklahoma City in 6.

That's pretty bold, but you heard it here.

Well, Rick, we can't have a conversation about sports without taking a look at athletes, and I understand last week a judge ruled on a name, image and likeness settlement for college athletes.

The NCAA and its Power Five conferences will pay approximately $2.8 billion in back pay damages to current and former Division I athletes who competed from 2016 onwards.

So can you walk us through this?

I'll try to.

It's a very complicated settlement, by the way, but it will define the future of college sports.

The judge signed off with an amalgamation of cases.

What it means is $2.8 billion in back pay for the NIL over 10 or under 10 year athletes.

Second, there is a cap rising cap. on expenses that Division I programs $28.5 billion now and more in the future can pay.

And third, scholarships for individuals, the limits are placed placed by team scholarships.

There's a clearinghouse, a Deloitte-based lead clearinghouse over $600.

Everybody has got to go to them for future vetting.

Everything hasn't been solved.

What about smaller niche sports?

What about women's sports?

What about athletes and employees?

There are more questions than answers, but this settlement goes a long, long way toward certainty, which is what everybody wants.

And the world's number one golfer Scotty Scheffler, had an off day in round one of the US Open yesterday.

So Rick, can you take us through the tournament that's underway in Pennsylvania?

Yeah, I was there.

First of all, give the guy a break, OK?

I mean, he's got a great, he's got 3 more rounds to catch up, so we're not pushing the panic button on him yet. $21 million purse, the most ever of the four majors, $4.3 million to win.

Hospitality at Oakmont off the charts, $26 million in hospitality and activation.

Great for corporate sponsors.

NBC USA Network, Peacock deploying 300 hours of of.

Programming comprehensive coverage, a Rolex hour which is at the end of the event to boost interest and watching and by the way, the commercial integration of live golfers for the first time, LIV golfers warmly embraced, at least embraced anyway, really important because after 2026 there's a whole new ballgame with the US Open and a new TV deal, so they've got to start negotiating now.

And Rick, before I let you go, I do want to ask you about hockey.

So 4 games already down and Lord Stanley's Cup and the Florida Panthers and Edmonton Oilers are tied 2 to 2.

Meanwhile, Sony and the NHL have formalized a global tech partnership on immersive visualization tool.

So what's going on there?

Gary Bettman, the commissioner, incredibly creative down in Miami for two of those games.

Incredible buzz.

It's the Edmonton Oilers #6 in value against the Florida Panthers, #26 in value.

The Panthers are at the back end of a Florida dynasty with Tampa Bay and Florida.

The Canadian NHL teams haven't won almost since the turn of the last century.

NHL $6.6 billion in revenue.

The Sony deal is just part of that.

So hang on to your seats.

This playoff series is far from over either, and it's 2 to 2.

And Rick, you're joining us from Montreal, so I do have to ask you about the Canadian Grand Prix in Montreal this Sunday.

So tell us about this event featuring fast cars.

Fast cars, fast economics, 300,000 spectators, economic boost of about $160 million Canadian.

The event is on the Formula One calendar through 2031 by contract, so they're doing well.

Formula One itself $2.9 billion in sponsor.

Ship up 10%.

Michael Schumacher, Lewis Hamilton won seven of those events combined.

Montreal Grand Prix.

By the way, the average hotel room nearly 3 or 4 grand.

If you want a decent suite, it's going to cost you $80.

So if you want to join me in Montreal, you better pick another hotel.

Well, Rick, it sounds as though that is costing you a pretty penny, but I'm sure you're going to have a great time this weekend.

Thank you so much for joining us as always.

We're going to be OK.

I'll talk to you later.

I'll talk to you next week.