We reviewed college athlete contracts — here’s how performance adjustments, buyouts and bowl incentives work

If the agreed-upon settlement of the House v. NCAA court case is approved in April by California-based Judge Claudia Wilken, it will usher in an era in which schools in the Power Five conferences can directly pay athletes for their name, image, and likeness. It is a progression of the messy post-2021 world of athlete compensation. But how exactly are contracts structured? Nothing in college sports is uniform, and even player compensation structures will vary from school to school.

How Athlete Contracts Are Structured

CBS Sports reviewed four athlete compensation agreements to shed light on how schools are preparing for the coming revenue-sharing reality. Two agreements involve football players at separate Big Ten schools, one at an SEC school, and another at a Big 12 school. These agreements illustrate the differing ways schools are structuring contracts in the new athlete compensation landscape.

Big 12 School: A Two-Part Agreement

The Big 12 school’s agreement is the most straightforward. The player signed two agreements regarding his NIL rights:

One is with the school’s collective through the NIL platform Opendorse, covering compensation through June.

The second kicks in afterward — an agreement between the athlete and the school itself, co-signed by the school’s athletic director. The latter is what the House settlement allows schools to provide.

Both agreements serve as term sheets in lieu of long-form contracts, which will come later. The term sheet signed with the school lays out a payment schedule beginning July 1 and is contingent on the final approval of the House case.

Postseason Incentives & Participation

The Big 12 athlete will receive equal monthly payments from July through November, but the deal is backloaded. In December, he will earn…

Source link : https://www.cbssports.com/college-football/news/we-reviewed-college-athlete-contracts-heres-how-performance-adjustments-buyouts-and-bowl-incentives-work/

Author : Richard Johnson

Publish date : 2025-01-31 14:23:00

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