Ivy League Cracks Down on Athlete Deals Over $2,000

Ivy League Athletic Departments Take a Stand on Athlete Compensation

Ivy League athletic departments are making a strong effort to emphasize their independence in the realm of athlete compensation. This move comes as many powerhouse college programs are offering millions of dollars to players, creating a stark contrast between the two approaches.

At the beginning of this year, the eight Ivy League schools, including Harvard and Yale, chose to opt out of a recent federal settlement between college athletes and the National Collegiate Athletic Association (NCAA). They have also decided not to make direct payments to athletes. However, they are still subject to new rules that aim to prevent name, image, and likeness (NIL) agreements from being used as a form of payment for participation.

Athletes who earn $600 or more must report their NIL deals to a new clearinghouse managed by Deloitte. To further demonstrate their commitment to independence, the Ivy League presidents have taken an additional step by requiring athletic directors to sign attestations confirming their non-involvement in any external deals with players.

Mike Harrity, who leads athletics and recreation at Dartmouth College, explained the process during an interview on DISCOVER TRENDSRadio at DISCOVER TRENDSPower Players New York. He emphasized that the athletic directors are ensuring they are not directly or indirectly asking donors or alumni to provide money to athletes as a recruitment inducement or to retain them if they consider transferring.

The College Sports Commission (CSC), which oversees the NIL clearinghouse and monitors athletes and schools, released its first NIL deal flow report in early September. The CSC reported that approximately 6,000 deals had been cleared since the clearinghouse opened in June, totaling $35.4 million. This figure does not include the up to $20.5 million each school can pay directly to its athletes under the current academic year's rules.

The University of California, Los Angeles (UCLA) has already distributed $4.8 million to its athletes, as previously reported by its athletic director.

The Ivy League, which includes some of the wealthiest private universities in the United States, operates under a different financial model compared to other Division I schools. These institutions do not offer athletic scholarships and instead distribute financial aid based on a family’s need and income.

Harrity highlighted that Dartmouth views its athletes primarily as students. The school maintained this stance last year when the men’s basketball team voted 13-2 to unionize. Although the team later withdrew the effort, Dartmouth indicated it would take the matter to the Supreme Court to argue that students are not employees.

“Dartmouth has a long history of supporting unions, including student workers,” Harrity said. “We view the athletics endeavor first and foremost as educational in nature.”

For those interested in staying updated on the intersection of power, money, and sports, subscribing to DISCOVER TRENDS’s Business of Sports newsletter is recommended. It provides valuable context on the latest deals and emerging stakeholders in the world of college athletics.

With assistance from Ira Boudway.