Interesting. But I am not sure what a clearinghouse will do except approve things that are superficially compliant. It's extremely difficult to prove what arm's length value is; it's very fact intensive. And if they are successful in putting the brakes on NIL deals, under the table money will return.
Why 2025 rosters will be the most expensive in college football history
by:
Pete Nakos•about 2 hours•
https://twitter.com/PeteNakos_
Revenue sharing is not expected to start until July 1. The
House v. NCAA lawsuit that will trigger rev sharing has a final approval hearing set for April 7, the day of the NCAA men’s basketball championship game. But this winter’s college football
transfer portal has been fueled by future revenue-sharing dollars and booster-run
NIL collectives.
For the 2025-26 academic year, schools will operate with a revenue cap of $20.5 million. Roughly $15 to $17 million will be allocated to football. The cap makes up 22% of Power Four revenues from the previous year and has escalators, including a 4% hike in Year Two. The settlement also requires all third-party deals of $600 from boosters or NIL collectives to be approved by an NIL clearinghouse.
Between programs promising dollars tied to revenue sharing and NIL collectives offloading dollars before the clearinghouse begins, more dollars are being spent on college football rosters ahead of the 2025 season than ever before.
“I think a lot of schools, because of the possibility of the
House settlement and this bullshit clearing house, a lot of schools are trying to flood their payroll over the next six months and get as much money invested in the roster before they enter this area of unknown regulation,” a source told On3.
The value of top quarterbacks in this year’s portal nearly doubled. A year ago, transfer quarterback
Cam Ward picked
Miami and landed one of the most lucrative financial packages of the cycle. Sources have said that the deal was valued between $1.5 and $2 million.
A year later, that range was the starting point for most quarterbacks who jumped into college football’s free agency. The top quarterbacks in this winter portal cycle all landed deals worth around $3 million for a year.
Auburn,
LSU and
Texas Tech, among others, have emerged as major spenders in this year’s portal market. The Red Raiders went all-in, tapping into their collective,
The Matador Club, that outspent competitors on top talent while building a roster that will contend for the
Big 12 championship.
But as dollars soar with the transfer portal ahead of the 2025 season and collectives try to outsmart future regulations, it’s also a sign that the market is not slowing. For programs that have chosen to frontload deals, sources have wondered about what the ramifications will be if multi-year deals have to be put in front of a clearinghouse and are denied. Will athletes be forced to sue colleges and collectives for dollars owed by boosters or donor-run organizations?
As the revenue-sharing cap grows, donor dollars will remain imperative to creating a competitive edge. Even with more revenue-sharing dollars poured into college sports, boosters will donate but the amount needed will fluctuate over the next decade.
“There’s a massive rush to spend money to beat the butcher and get ahead of whatever regulation comes our way,” a source said. “I think that schools know now they’re going to be able to spend $20 million in addition to the other supplemental pieces. What was interesting is you had some big blue blood programs that haven’t been spent much come out of the gates early spending ridiculous money.”
Donor cash has fueled the last four seasons of college football. NIL collectives have driven recruiting and the transfer portal, playing large roles in attracting and retaining talent. In the years to come, boosters and their organizations will have to go through a clearinghouse. But that won’t stop anyone.
Ohio State spent over $20 million on the roster that will play for a national title on Monday night in Atlanta against
Notre Dame. If the Buckeyes win their first championship in a decade, it would deliver a return on investment to boosters who have donated in recent years
More evidence that dollars can win championships will supercharge the effort to spend on rosters in the future, especially with more dollars flowing into college sports than ever before.
“That’s never been enough for these competitive schools, boosters and fans,”
Russell White, the president of
The Collective Association, previously told On3. “That’s never been enough. So, whatever that baseline is, there will always be a need for more.”