Revenue sharing with student athletes is coming and could mean sports cutbacks

An LSU athletics administrator predicted there’s a “90% chance” a judge will rule in favor of former student athletes in a case that could result in schools sharing revenue with players.

The federal lawsuit against the NCAA was filed by former college athletes seeking back pay for players’ name, image and likeness (NIL) valuations between 2018 and 2020. Attorneys for the plaintiffs believe the compensation to be worth between $200 million and $1 billion, Front Office Sports reported. 

If the judge were to side with the former athletes, schools will likely shift toward revenue sharing, which could happen within the next few years, Taylor Jacobs, LSU’s Associate Athletic Director for NIL & Strategic Initiatives, told the Baton Rouge Press Club Monday. 

Jacobs said such a shift could mean a reduction in staff or the number of teams a college fields. 

“As a former women’s tennis player, it hurts my heart a little bit because I feel like we are going to see the loss of sports,” Jacobs said. “You’re going to see smaller colleges not be able to sustain that model.”

LSU’s athletic department is currently discussing how to handle that possibility, Jacobs said. Much of the conversation has been about if and how the university can avoid making athletes employees.

The other big topic is where to cut costs if revenue sharing becomes a reality. 

“Does it come from salaries of the employees?” Jacobs said. “Are we going to create much smaller staffs within the athletic department? Where are we going to cut back on what we’re providing for student athletes?” 

LSU already spends an average of $150,000 per athlete annually, Jacobs said, between tuition, room and board, health care, equipment and travel. 

“Obviously, coach’s contracts come into play when you’re having that conversation,” Jacobs said. 

LSU’s head coaches are among the highest compensated in their various sports, and the highest paid state employees, although the bulk of their salaries are not paid with public dollars . Football Coach Brian Kelly earns around $9.5 million annually. Women’s basketball coach Kim Mulkey earns $3.15 million, making her the highest paid coach in women’s basketball. 

Jacobs said NIL is changing the games in other ways, most notably in recruiting. 

While NCAA rules prohibit NIL deals being used as an inducement to attend a particular school, it doesn’t mean coaches can’t discuss it with recruits.

“They all feel that they have to engage in this NIL game to keep up in recruiting and that has been really difficult to navigate,” Jacobs said. 

Jacobs said coaches can tell prospective players about opportunities available if they come to LSU. Coaches are typically aware of the recruit’s NIL valuation based on their social media following, which can be used when talking to recruits. 

Jacobs said she has heard of NIL recruiting violations being turned over to the NCAA, but whether or not it can be proven is a different issue. She added that it’s similar to any other recruiting violation.

Correction: A previous version of this story incorrectly stated that the bulk of LSU coaching salaries is paid by the Tiger Athletic Foundation, a tax-exempt organization. The bulk of the salaries comes from other private sources, such as payments for media appearances.