NCAA president Charlie Baker is planning to introduce this week a proposal to create a new subdivision within Division I that grants certain schools more autonomy around policy-making and permits them to compensate athletes in a new and profound way. In a letter sent to Division I members, and obtained by Yahoo Sports, Baker outlines a groundbreaking and radical change to the NCAA Division I athletics model, describing it as a “new forward-looking framework.” According to Baker’s proposal, schools that choose to be part of the new subdivision — they can opt in or out — are required to meet a strict minimum standard rooted in athlete investment. Members of the new subdivision will be permitted to strike name, image and likeness (NIL) deals with their own athletes — a significant move away from the current NIL structure. However, the most impactful benefit of this new model is a framework in which schools can directly compensate athletes through a trust fund. Schools within the new subdivision will be required to distribute to athletes thousands of dollars in additional educationally related funds without limitation.The TLDR:
- Schools could directly compensate athletes through a trust fund
- Schools can opt in or out.
- There would be a minimum required investment of $30k per year per athlete for a minimum of 50% of countable athletes. Title IX still applies, so 50% of the investment must go to female athletes
- The implication is this will cause a formal split between the haves and the have-nots; namely, the P5/P4