Russ Fulcher Asks Witness If Smaller Schools Can Remain Competitive With NCAA's Revenue Share System

4 days ago

During a House Commerce Committee hearing earlier this month, Rep. Russ Fulcher (R-ID) spoke about the NCAA's revenue share system.

Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:

https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript

Stay Connected
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com

Transcript

00:00And now we'll recognize the Vice Chairman of the full committee and you're uniquely

00:07qualified to ask these questions, being from Boise State.

00:11Thank you very much Mr. Chairman, I appreciate the tie Mr. Whitman has on.

00:17It's Boise State Bronco colors, we're glad to see that, but also Florida colors if I

00:22got that right, and probably Illinois is in there somewhere I'm guessing.

00:28Question for Mr. Egbo, as mentioned, I'm a Boise State University alum, they're in my

00:36district as well as University of Idaho, Idaho State University, but in the football and

00:43basketball arena have been very competitive, but they are not of the same size and scope

00:48of the large schools.

00:51And so I'd like to get your take on this.

00:54Under the House case, the revenue sharing cap is up to $20.5 million, well that's more

01:01than the entire budget for Boise State or University of Idaho or Idaho State, or I am

01:06assuming I believe Christian University.

01:09And so just in terms of scope, how is this going to work?

01:15Is this going to be, can this be fairly applied?

01:19Can the smaller schools maintain their competitiveness with the larger schools under this revenue

01:28share cap system?

01:30If I could get this answer right, I'll probably get a raise for my AD, so, but I think the

01:39first thing is having clear rules.

01:42I think the first step is leveling the playing field as far as what is permissible, what

01:47is not, what is the standard, everybody being on the same page so that schools like schools

01:53you mentioned in our school can sit down and say, okay, this is the standard across the

01:57board and this is what we can kind of build and strategize for how we can compete in this

02:02new age.

02:03But I think with the gray areas that are implemented right now, it's very hard to start that strategic

02:08process.

02:10Thank you, Mr. Agbo and Mr. Beamer, I'd like to go to you.

02:13If you have a comment on that, I would ask for your comment on that same question, but

02:19I'd also like to follow up, I'm going to give you a two-part here and then let you run.

02:24Realizing that the objective of NIL is to recognize and reward some of the student athletes

02:31for their contributions, do you see unintended consequences, and if so, what bothers you

02:39the most about possible unintended consequences of what we're trying to do?

02:46Thank you for the question.

02:48I think NIL as it was initially implemented in 2021, the way it was meant to be, I think

02:57is very good.

02:58I think in a lot of ways what name, image, and likeness has turned into in so many situations

03:03is pay for play, and that's very much because of the fact that it's not as regulated in

03:11my mind as it should be.

03:14There's an issue of agents in the NIL world, that's another issue in regards to how it's

03:22regulated and is everything only up and up.

03:26That's an unintended consequence that I think has come certainly from NIL, without a doubt.

03:33Thank you for that.

03:34I'd like to go to Mr. Whitman, I've just got a little over a minute left, but I'd like

03:38to talk with you and get your feedback on federal preemptive standards.

03:44I've heard from the Idaho schools the concerns over enforcement burdens when it comes to

03:50the patchwork of some of the state and DC NIL laws and the need for federal preemption.

03:57Without a federal preemptive standards, I could see a situation arising where state

04:01law conflicts with the terms of the settlement, which is still pending approval, but how would

04:06an institution have to adjust its strategy if this was the case?

04:11Thank you for the question.

04:16I think you're thinking about it exactly right.

04:18There is that possibility where states will pass legislation that conflicts with the terms

04:24of the settlement in an effort to create competitive advantage.

04:27Again, that's what we've started to see with more frequency across the country is a race

04:32for states to find ways to give their hometown schools an edge.

04:37We've seen that in states like Missouri and Arkansas, where they now allow NIL payments

04:42to high school athletes who have signed letters of intent to compete at in-state institutions.

04:47We've seen it at states where they have offered state tax breaks for student-athlete NIL income.

04:55We've seen it in certain states where they've provided caps on how much money agents can

05:00make from student-athletes, which then disincentivizes the best agents from working in those states.

05:06Ultimately, what we are here to discuss is the role that Congress can play in trying

05:12to create that level playing field and avoid putting schools in situations where they have

05:18to choose between complying with a federal court order and ultimately with a state law.

05:25We understand that in this environment that conflict can arise and ultimately only one

05:31body has the power and the authority to solve that for us and that's Congress.

05:36Thank you, Mr. Chairman.

05:37I do have some follow-up questions.

05:39I'll do that in writing.

05:40Thank you for the time.

05:41I yield back.

05:42Thank you so much.

05:43Appreciate it.

05:44Very good.

Russ Fulcher Asks Witness If Smaller Schools Can Remain Competitive With NCAA's Revenue Share System

Category

Transcript

Recommended