MLB Agreement Big News For College Baseball

When the NCAA legislative process is wound into high gear, it’s natural for compliance offices to take notice. Obviously if something changes in the book we use everyday, we need to know that and be ready for it.

Major league collective bargaining negotiations would seem to have a lot less impact on college sports. But the changes made in them can have a big impact. Normally those changes are small in the grand scheme of things. A two-year age limit in the NBA is considered a footnote to a negotiation that centers on revenue splits and free agency mechanics, despite the impact is has on the NBA’s talent pipeline.

By contrast, Major League Baseball’s quick and quiet negotiations made spending on new players who are or might be in college a major issue. After recommended signing bonuses for players failed to curb spending on incoming talent, the union and the owners have agreed to significant penalties for teams who do not follow MLB’s slotting system.

A luxury tax threshold will be set based on a team’s recommended bonuses for the first 10 rounds of the draft. Exceeding the recommended bonuses by even 5% requires payment of a 75% tax. Penalties escalate quickly; teams exceeding the tax threshold by 15% pay a 100% fine and lose two first round draft picks.

In addition, the signing deadline was moved up a full month. Instead of being in mid-August, right before school started, it will be in mid-July, moving around based on the All Star Game.

All of this is a gigantic win for compliance professionals and the NCAA Eligibility Center. With less wiggle room allowed (and small commissions available), agents acting as advisors to players have less incentive to take a hands-on approach to negotiations, meaning fewer violations of Bylaws 12.3.2 and 12.3.2.1. The shorter negotiating window also means amateur status can be settled sooner, reducing the number of Eligibility Center investigations which stretch into the school year.

In the medium-to-long term, it should improve other aspects of the recruiting and initial eligibility process. Baseball should settle into a pattern, like the NBA did, where draft position largely dictates whether a prospect will attend college. This means prospects who are not projected high enough will need to take academics more seriously. A worldwide draft, rumored to be a possibility as soon as 2014 would push even more prospects toward college.

Whether it turns out to be a win for college baseball as a whole remains to be seen. Baseball has struggled to attract athletes, and now large amounts of money available early in an athlete’s career will no longer be available. How much? In 2011, just three teams (Pirates, Royals, and Nationals) spent more than $25 million over slot on draft picks covered by the new regulations. The top three picks received bonuses that were roughly double MLB’s recommendation. Those bonuses alone would have trigged the steepest penalties in the new draft luxury tax system.

The fear is that while more of the best baseball players will likely end up in college, fewer of the best athletes(subscription req’d) will still be playing baseball when it comes time to make the choice.

This is the part where MLB tells talented young amateur athletes – who, by the way, aren’t union members and had zero voice in these negotiations – that baseball is a lousy avenue for them to take, at least financially, and they should probably check out other sports.

Getting more of the best players does not help the game if the talent level of the entire player pool is significantly lower.

The uncertainty also comes from the NCAA’s side of the equation, since no sport is as greatly impacted by the Presidential Retreat reforms as much as baseball. The $2,000 miscellaneous expense allowance may change how coaches distribute their 11.7 scholarships. Length of scholarships will be a key concern, especially for parents of top pitchers. And the new academic requirements will have a noticeable effect in baseball, which has many junior college transfers and has struggled with below average APR scores.

College baseball is just starting to hit its stride as a potential revenue sport. As a spring sport with lots of games, it fills a huge programming need for conference or institutional TV networks. The Division I Baseball Tournament is reported to turn a profit for the NCAA. Attendance is up as well. Despite the struggles, most notably the geographic divide of Southern and Western haves vs. Northern have-nots, the sport is as healthy as any in college athletics. Whether these new changes, the second round to hit baseball in four years fuel more growth or hit the brakes remains to be seen.

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office.

About John Infante

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office. If you’re a coach, do not attempt to contact the author looking for a second opinion. If you’re a parent, don’t attempt to contact the author looking for a first opinion. Compliance professionals are by their nature helpful people generally dedicated to getting to the truth. Coaches should have a bit of faith in their own, and parents should talk to one directly.

Different Country, Same Questions

One of the biggest recent successes of the NCAA is that the message is finally getting across that there is no such thing as “The NCAA”. There is an organization headquartered in Indianapolis with those initials. But when it comes to how college athletics is regulated and controlled, the national office is just one part of a larger network that is populated largely by member schools but which also includes conferences and coaches associations.

Now that the NCAA has convinced many to zoom in and take a closer look at the actual structure of college athletics, the next goal for the NCAA should be to convince the public to zoom out and look at the NCAA as simply one part of an even larger system. That system, messy at its best and corrupt at its worse, is the one that takes millions of children from their first experience playing sports and eventually produces a few hundred or few thousand world class athletes.

Plans for significant NCAA reform generally make two assumptions. First, that college athletics should continue as the primary method for developing professional or Olympic athletes. And second, that the effect of changes in college athletics on youth athletics can or should be ignored. The result is that many reform plans are like engineers tasked with making a car go faster, but only by focusing on the engine, not the entire vehicle.

College athletics, as currently constructed, has a lot of advantages. It broadens the talent base. It requires athletes to make progress toward a career as a non-athlete. It funds a high level of coaching and support for many athletes through university subsidies and fan interest that is unrivaled in what is ultimately a U–23 youth league.

It has its drawbacks though. Mixing class and practice limits the amount of time athletes can train. Those large subsidies come at a time when many universities are strapped for cash. Scholastic and intercollegiate sports are almost universally tied to a system of amateurism as well.

Because the NCAA is often viewed as representative of all athletic development in the US, a lot of the failings of our development system are attributed to our peculiar attachment to high-level sports run by schools and the traditional attachment to amateurism that has come along with it. But across the pond they’re struggling with the same issues.

The Football League has agreed to adopt the Elite Player Performance Plan, which was developed by the Premier League (they are actually separate entities). The plan takes the current two designations of youth football teams (Academy and Centre of Excellence) and breaks it into four levels. Level 1 will require a budget of at least £ 2.5 million and 18 full-time staff members. In exchange for that investment, clubs have no limits on the time young players can spend in training (currently limited to 3–5 hours per week) and no limit on where players can come from (currently limited to within a 60–90 minute commute from the training ground).

That comes along with a standardized compensation system when youth players move to new clubs, with much lower initial payments and higher payments if the player becomes a productive professional for the first team.

The plan was initially met with a furious reaction from the smaller clubs, who described a parade of horribles that should sound familiar to college sports fans. Bigger clubs would gobble up all the young players, either by scouring the country for schoolboys or poaching players from the smaller clubs on the cheap. Getting passed over by a big club early would be more harmful to a youngster’s pro prospects, so the fear is agents will become prevalent for nine and ten year-olds. And a valuable source of income for some teams will go away as it will be much harder to be a feeder club, one that develops good young pros, then selling them to the richer teams.

The questions are the same in England and the US. Where should potential pros get the bulk of their playing time? Should talent be widely distributed or concentrated in a few large organizations? Is playing for a local team in meaningful games better for development that the advantages that the big boys can provide? What is the appropriate time for young athletes to start thinking about agents and contracts, salary and bonuses?

All those questions need to be asked here directly instead of through coming up with ideas about how the NCAA should operate. The NCAA is just one piece of the puzzle in the career of an elite athlete. It is time to think about that whole career and the NCAA’s place in it. Or at the very least to think about how changes to the NCAA affect the rest of that path.

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office.

About John Infante

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office. If you’re a coach, do not attempt to contact the author looking for a second opinion. If you’re a parent, don’t attempt to contact the author looking for a first opinion. Compliance professionals are by their nature helpful people generally dedicated to getting to the truth. Coaches should have a bit of faith in their own, and parents should talk to one directly.

The Delicate Balance of Amateurism and Education

Both Jay Bilas in his call for the NCAA to reform itself (subscription req’d) and John Gasaway in his article on amateurism in the NCAA (purchase req’d) argue for the same thing. Ignore all the fluff in the two articles. At the core, the two pieces argue the same three points.

  1. The NCAA’s view of amateurism is based on a historical ideal with elitist roots.
  2. The place in the world for the NCAA’s version of amateurism has been under attack if not gone from the moment the NCAA was formed.
  3. Allowing student-athletes to receive compensation from third parties and have agreements with agents would not further damage the NCAA’s amateur principles.

The first point is at the very least useful for the NCAA and its member institutions to keep in mind. However, the fact that the world that existed when the principle was created was much different from the world that exists now is not sufficient reason to throw away the principle. I disagree with Gasaway’s characterization of amateurism as a simple state of being though. To me the NCAA promoting their version of amateurism is no different than the Salvation Army promoting their version of generosity. The issue is whether you agree with the mission of the organization promoting the virtue.

The second point in both article ignores an important caveat. It’s legitimate to question whether the NCAA’s view of amateurism holds water … in a world where the NCAA is the de facto final developmental step for two major professional sports leagues. Or worse, it assumes that the NCAA desires or created that condition. I would agree however that some of the NCAA rules, much like the critics of those same rules, don’t seem to take into account that very important fact.

I have a great deal of disagreement with the third point, the solution that Bilas and Gasaway both propose. Part of that comes from the fact that the argument assumes that the NCAA should not be an idealistic organization. In fact, it would be the height of hypocrisy if the NCAA, a non-profit entity, was not striving for some version of a better tomorrow, whether you agree with it or not.

This is where Bilas’s version of the argument runs off the rails. If the NCAA’s principles are “intellectually dishonest” and “fairy tales,” then why does Bilas present what purports to be a passionate defense of the organization? If one of the chief means of promoting and enforcing those principles is “profoundly immoral,” why does the Association deserve to be rescued from the brink? And how is the NCAA saved at all by eliminating or drastically changing one of its core principles?

If a critic of the NCAA believes the organization has outlived its usefulness, then they should argue for the abolishment of the NCAA. Because while arguing for reform of this degree sounds like preservation, if the NCAA adopted such a reform, it wouldn’t be the NCAA anymore. Sure, the letterhead might say “National Collegiate Athletic Association,” but the substance of that organization would be something totally different.

The two core principles of the NCAA, amateurism and education, also cannot be divorced from each other. Amateurism helps allow for education and education is the reward offered for choosing amateurism. That’s where Gasaway’s idea of “doubling down” on academics, namely requiring increased academic standards in exchange for deregulating agent agreement and benefits misses the mark.

It’s not that allowing agents and outside compensation just ruins the amateurism ideal. Whether student-athletes are truly amateurs still is a point on which reasonable people can differ. The same goes for a debate about the degree to which welcoming third parties into the structure of the NCAA would further damage efforts to promote the amateur ideal.

It’s that allowing, even legitimizing third parties who seek to make a quick buck by getting an athlete to leave school early, the ability of the NCAA and its member institutions to promote a college education is also harmed. And while paternalistic arguments are tougher to defend, its important to note that many times the student-athlete leaving based on the advice of those people is to their detriment.

The NCAA has a principle regarding education, just like it has a principle regarding amateurism:

Bylaw 2.2.1 – Overall Educational Experience.
It is the responsibility of each member institution to establish and maintain an environment in which a student-athlete’s activities are conducted as an integral part of the student-athlete’s educational experience. (Adopted: 1/10/95)

Over all those principles hangs the general principle of the Association:

Bylaw 2.01 – General Principle
Legislation enacted by the Association governing the conduct of intercollegiate athletics shall be designed to advance one or more basic principles, including the following, to which the members are committed. In some instances, a delicate balance of these principles is necessary to help achieve the objectives of the Association.

Just as you can’t separate amateurism from education, you can’t separate education from amateurism. Total deregulation of agents and outside compensation is not a tweak, it is a major philosophical change. And even if that deregulation promoted amateurism, it is anything but delicate. But just as Bilas and Gasaway pointed out that the NCAA’s vision of amateurism has its roots in the early 20th century, so too does the NCAA’s vision of education.

Back in that time, a postsecondary education was for the learned professions and the sciences. Undergraduate education was still firmly rooted in the liberal arts, and was a very elitist institution. It was not until the middle of the 20th century that college shifted toward what it is today, where it’s a virtual requirement for most white-collar professions and there is a struggle to provide access to college for as many people as possible.

The rules could be updated to address this change by expressly allowing, even promoting two majors: sport performance and sport education (i.e. coaching).

Such a move would reinforce the idea that college should prepare you for a professional career. It would acknowledge the idea that professional athletics is a viable career, even if only for a minuscule portion of the student-athlete population. The relatively small number of graduates making a living as full-time artists, musicians, or philosophers has not killed off those majors.

It would also promote the idea that the study of athletic performance is a meaningful academic endeavor, just as the study of musical or artistic performance is. That would open an avenue for increased study of issues like concussions and overtraining. And it would provide a new source of professionally trained coaches, particularly needed as specialization, injuries, and money continue to grow at the youth level.

Courses in a sport performance major could include the type of education that elite athletes have needed, such as courses on personal investing and accounting, public relations, and media training. Schools that already have or choose to develop a sports management program could teach student-athletes the business of the professional leagues they are entering. Not to mention some sort of credit for practicing and playing the student-athlete’s sport. The coaching major would be similar, but with more education mixed in.

There would be a host of details to be worked out, from how classes fit into practice limits and whether funneling of students to such majors needs to be watched to how coaches fit into the faculty structure of a university and who accredits these programs. It’s a move for the small minority of student-athletes who will be going pro in sports, in some fashion. But it even as it clearly stakes out territory for the NCAA and its member institutions in preparing students for professional athletics, it also ties the athletic department closer to the university and potentially increases faculty control of athletic department spending and policies.

Preparing student-athletes to make a living playing their sport or teaching it to others reinforces the principle of education to help train athletes for a potential professional career or to help them use their athletic skill in a related field. It assists amateurism by striking a better bargain for athletes and providing a place for the individualized instruction necessary to help athletes make good decisions about their professional careers. And it does a better job striking that delicate balance than simply throwing the doors open to anyone who wants in.

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office.

About John Infante

The opinions expressed on this blog are the author’s and the author’s alone, and are not endorsed by the NCAA or any NCAA member institution or conference. This blog is not a substitute for a compliance office. If you’re a coach, do not attempt to contact the author looking for a second opinion. If you’re a parent, don’t attempt to contact the author looking for a first opinion. Compliance professionals are by their nature helpful people generally dedicated to getting to the truth. Coaches should have a bit of faith in their own, and parents should talk to one directly.

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