The Mandalay Bay Convention Center teemed with badges and logoed polos as more than 7,000 representatives across all corners of college athletics gathered in Las Vegas for last week’s NACDA convention with ample questions about the future Answers are elusive, but these are a few of the takeaways from discussions:
NCAA, Baker crusade against prop betting
NCAA President Charlie Bakeracknowledged the irony of speaking against gambling in some form or fashion while at a podium. Still, Baker’s message has remained consistent — he wants prop betting on college athletics outlawed nationwide.
The NCAA’s Charlie Baker still has a lot on his plate, including the pitfalls of prop bets. getty images
“We have taken a hard line against prop betting on college sports,” Baker said during his remarks. “Too many student athletes are being harassed by bettors.”
The impetus for Baker’s desires on the prop betting piece is layered. That said, the vitriol and threats directed at athletes combined with the easy access fans have to those players through social media has created a tempestuous environment.
Legislation has been introduced across a handful of states that would bring Baker’s wishes to fruition, but there is still a ways to go.
Employment debate still looming
The proposed settlement in the House, Hubbard and Carter cases remains an ongoing discussion. But, to be clear, this isn't a silver bullet — college sports still have to grapple with whether athletes should be categorized as employees.
“There’s a lot of gaps in [the settlement],” SMU Athletic Director Rick Hart said. “What’s the Title IX deal? What’s the employment deal look like? Is Congress ready and willing to engage with us? … A lot to figure out.”
In the simplest terms, schools would like to avoid the financial strains employment might put on them, among other issues. Still, collective bargaining may be the most likely path toward bringing some kind of stability. That, of course, requires employment status under federal law — or a loophole.
The hope from Baker and others is the House settlement will entice Congress to provide an antitrust exemption of some sort. Plenty within the industry, though, have tempered their belief that those on Capitol Hill will step in.
For now, the waiting game continues.
Private equity hot-button topic
The House settlement could see schools able to share revenue up to $22 million annually. The expectation is most Power Four schools will attempt to fill that bucket quickly. That means departments need money.
There’s been ample talk of how private equity firms could be involved in college athletics. Florida State, for example, is reportedly down the line in discussions with a pair of firms, while the Big 12 may be considering a massive infusion of cash.
What this avenue actually looks like, though, is murky. Private equity firms expect returns on their investments. College sports could use an influx of cash, but marrying that with private capital logistics remains complex.
“As much as it can bring an infusion of capital, which is not free, it’s an investment against the assets that we already have and the revenue already generated,” new AAC Commissioner Tim Pernetti said of how private equity could fit. “But I think there’s 100 ways to cut these things.”
