Utah
What financial impact could new NCAA settlement have on Utah?
On Thursday, a huge step was taken to soon make college sports as we know them changed forever.
The NCAA settled three lawsuits, including House vs. NCAA, and agreed to pay a nearly $2.8 billion settlement to athletes from 2016 to 2021 that covers back damages for the athletes who were unable to earn money from their name, image and likeness.
The five power conferences, including the Big 12 and Pac-12, agreed to terms of the settlement on Thursday. Yahoo Sports’ Ross Dellenger reported that if the NCAA lost the case, damages would have been $20 billion, which would have likely led to the NCAA filing bankruptcy, so the conferences felt it was in their best interest to settle and avoid catastrophe.
According to a letter from NCAA president Charlie Baker to member schools, obtained by Dellenger, to pay the $2.776 billion settlement over 10 years, the NCAA will use 42% of its own funds, while 58% will come from a reduction in distribution to its schools.
Power conferences will have about $664 million of distributions withheld over 10 years, per Dellenger.
While the loss of that NCAA distribution — which could work out to a reduction of 0.61% of the average Power Five school’s budget, according to Dellenger — will have some bearing on Utah’s athletic department budget, the real impact will be felt in the new proposed revenue-sharing model that is part of the settlement.
Under the settlement, schools can directly pay players up to $22 million per year, starting in fall of 2025. That number, per Dellenger, was arrived at by “us(ing) an average of power conference revenue streams as a sort-of formula to determine an annual revenue-sharing limit.”
As coaches hit the recruiting trail shortly to find their next class, questions about direct payments will surely be at the top of recruits’ minds, but those questions may not have answers right now.
How does Title IX factor into the payments? It’s not covered in the settlement.
“The settlement will allow, say, Ohio State, to share up to $20 million with its athletes. Which seems like a lot. But schools won’t be able to give all $20 million of it to the football team, lest they themselves want to be sued by their women’s sports athletes,” The Athletic’s Stewart Mandel wrote.
NIL collectives will likely still be in play as well, as the collectives operate outside of schools’ purview.
“Many within the sport believe that schools will keep their collective around for two reasons: (1) circumvent the revenue-sharing cap by using the third-party entity to offer “bonuses,” said one person; and (2) bend Title IX rules as collectives aren’t under the umbrella of the university,” Dellenger wrote.
While there’s no requirement for Utah to spend up to $22 million in paying its athletes, money will certainly be one of the biggest, if not the biggest, factor in recruits deciding where to play, and whether they stick around once they’re at Utah or enter the transfer portal.
Could player payment contracts include multi-year language, like professional sports, and prevent players from transferring before a certain time period?
“Officials are discussing a range of possibilities for athlete contracts, including implementing buyout clauses that are often found in coaching contracts,” Dellenger wrote.
There is still so much to be worked out in the coming months before fall 2025, when the new system is expected to go into effect.
What is for certain is that Utah has to find a lot more money in its budget if it wants to be competitive in this new world of college athletics.
According to financial fillings, Utah’s athletic department had a total operating revenue of $126,256,291 in the 2023 fiscal year with total operating expenses of $124,453,484, leaving an excess of $1,802,807.
Utah has done well to turn a profit at a time where some athletic departments across the country are operating at a loss, but the surplus is still well short of $22 million.
Step No. 1 will be to ramp up fundraising even more. Do fans currently donating to an NIL collective switch to donating to the athletic department to allow them to pay players directly? Will Utah’s athletic department absorb a current NIL program like the Crimson Collective, or will it continue to operate outside of the university in addition to the direct payments?
In addition to a massive uptick in donations, athletic directors across the country will have to start making cuts in the athletic department to free up money to start playing players.
What will happen to non-revenue sports? The revenue from football and men’s basketball currently covers the cost of all of the other sports Utah sponsors.
“There are concerns of the trickle-down effect these new financial requirements will have on athletic departments as well, including the possibility of schools cutting sports, athlete resources or administrative positions at both power-conference and non-power-conference schools,” Nicole Auerbach and Justin Williams of The Athletic wrote.
Cutting sports is a non-starter, though, as NCAA Football Bowl Subdivision rules require each institution to sponsor a minimum of 16 varsity sports, and Utah currently has 20 varsity sports. Even if Utah cut four sports, that’s not going to get them anywhere close to $22 million.
Utah declined to comment on the NCAA settlement at this time.
Utah
911 recordings detail hours leading up to discovery of Utah girl, mother dead in Las Vegas
CONTENT WARNING: This report discusses suicide and includes descriptions of audio from 911 calls that some viewers may find disturbing.
LAS VEGAS — Exclusively obtained 911 recordings detail the hours leading up to the discovery of an 11-year-old Utah girl and her mother dead inside a Las Vegas hotel room in an apparent murder-suicide.
Addi Smith and her mother, Tawnia McGeehan, lived in West Jordan and had traveled to Nevada for the JAMZ cheerleading competition.
The calls show a growing sense of urgency from family members and coaches, and several hours passing before relatives learned what happened.
MORE | Murder-Suicide
Below is a timeline of the key moments, according to dispatch records. All times are Pacific Time.
10:33 a.m. — Call 1
After Addi and her mother failed to appear at the cheerleading competition, Addi’s father and stepmother called dispatch for a welfare check.
Addi and her mother were staying at the Rio hotel. The father told dispatch that hotel security had already attempted contact.
“Security went up and knocked on the door. There’s no answer or response it doesn’t look like they checked out or anything…”
11:18 a.m. and 11:27 a.m. — Calls 2 and 3
As concern grew, Addi’s coach contacted the police two times within minutes.
“We think the child possibly is in imminent danger…”
11:26 a.m. — Call 4
Addi’s stepmother placed another call to dispatch, expressing escalating concern.
“We are extremely concerned we believe that something might have seriously happened.”
She said that Tawnia’s car was still at the hotel.
Police indicated officers were on the way.
2:26 p.m. — Call 5
Nearly three hours after the initial welfare check request, fire personnel were en route to the scene. It appeared they had been in contact with hotel security.
Fire told police that they were responding to a possible suicide.
“They found a note on the door.”
2:35 p.m. — Call 6
Emergency medical personnel at the scene told police they had located two victims.
“It’s going to be gunshot wound to the head for both patients with notes”
A dispatcher responded:
“Oh my goodness that’s not okay.”
2:36 p.m. — Call 7
Moments later, fire personnel relayed their assessment to law enforcement:
“It’s going to be a murder suicide, a juvenile and a mother.”
2:39 p.m. — Call 8
Unaware of what had been discovered, Addi’s father called dispatch again.
“I’m trying to file a missing persons report for my daughter.”
He repeats the details he knows for the second time.
3:13 p.m. — Call 9
Father and stepmother call again seeking information and continue to press for answers.
“We just need some information. There was a room check done around 3:00 we really don’t know where to start with all of this Can we have them call us back immediately?”
Dispatch responded:
“As soon as there’s a free officer, we’ll have them reach out to you.”
4:05 p.m. — Call 10
More than an hour later, Addi’s father was put in contact with the police on the scene. He pleaded for immediate action.
“I need someone there I need someone there looking in that room”
The officer confirmed that they had officers currently in the room.
Addi’s father asks again what they found, if Addi and her mother are there, and if their things were missing.
The officer, who was not on scene, said he had received limited information.
5:23 p.m. — Call 11
Nearly seven hours after the first welfare check request, Addi’s grandmother contacted police, describing conflicting information circulating within the family.
“Some people are telling us that they were able to get in, and they were not in the hotel room, and other people saying they were not able to get in the hotel room, and we need to know”
She repeated the details of the case. Dispatch said officers will call her back once they have more information.
Around 8:00 p.m. — Press Conference
Later that evening, Las Vegas Metropolitan Police held a news conference confirming that Addi and her mother, Tawnia McGeehan, were found dead inside the hotel room.
The investigation remains ongoing.
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Utah
Ban on AI glasses in Utah classrooms inches closer to passing
SALT LAKE CITY (KUTV) — AI glasses could allow you to get answers, snap photos, access audio and take phone calls—and now a proposal moving through the legislature would ban the glasses from Utah school classrooms.
“I think it’s a great idea,” said Kizzy Guyton Murphy, a mother who accompanied her child’s class on a field trip to the state Capitol on Wednesday. “You can’t see inside what the student is looking at, and it’s just grounds for cheating.”
Mom Tristan Davies Seamons also sees trouble with AI glasses.
“I don’t think they should have any more technology in schools than they currently have,” she said.
Her twin daughters, fourth graders Finley and Grayson, don’t have cell phones yet.
“Not until we’re like 14,” said Grayson, adding they do have Chromebooks in school.
2News sent questions to the Utah State Board of Education:
- Does it have reports of students using AI glasses?
- Does it see cheating and privacy as major concerns?
- Does it support a ban from classrooms?
Matt Winters, USBE AI specialist, said the board has not received reports from school districts of students with AI glasses.
“Local Education Agencies (school districts) have local control over these decisions based on current law and code,” said Winters. “The Board has not taken a position on AI glasses.
MORE | Utah State Legislature:
Some districts across the country have reportedly put restrictions on the glasses in schools.
“I think it should be up to the teachers,” said Briauna Later, another mother who is all for preventing cheating, but senses a ban could leave administrators with tired eyes.
“It’s one more thing for the administration to have to keep track of,” said Later.
The proposal, HB 42, passed the House and cleared a Senate committee on Wednesday.
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Utah
Kalshi sues Utah over efforts to stop prop betting in the state
SALT LAKE CITY — A prediction market is suing Utah over plans to regulate proposition betting that it says would run afoul of federal regulations.
Kalshi is a New York-based prediction market that allows users to place “event contracts” on future outcomes and earn a payout if they are correct. Those transactions are regulated through the Commodity Futures Trading Commission.
In a lawsuit filed in U.S. District Court, the company said Utah has plans to prevent the company from offering contracts in the state and asked the courts to block any enforcement that “interferes with the operation and function of plaintiffs’ futures market.”
“Plaintiff KalshiEX LLC believes the governor of Utah and the Attorney General’s Office of Utah will imminently bring an enforcement action against Kalshi with the intent to prevent Kalshi from offering event contracts for trading on its federally regulated exchange,” the complaint states. “Defendants have repeatedly represented that they believe Kalshi is operating unlawfully under Utah anti-gambling laws.”
The lawsuit points to a couple of posts from Gov. Spencer Cox and an op-ed written by Attorney General Derek Brown in the Deseret News on Sunday. After Commodity Futures Trading Commission Chairman Mike Selig announced that his agency would “defend its exclusive jurisdiction” over prediction markets last week, Cox took to X calling the markets “gambling — pure and simple.”
“They are destroying the lives of families and countless Americans, especially young men,” he wrote. “They have no place in Utah. Let me be clear, I will use every resource within my disposal as governor of the sovereign state of Utah, and under the Constitution of the United States to beat you in court.”
He followed that up last Thursday, saying Utah is “ready to defend our laws in court and protect Utahns from companies that drive addiction, isolation and serious financial harm.”
In his op-ed, Brown argued that prediction markets are “the newest iteration of gambling” and said he didn’t see a difference between betting and trading futures.
“Although traditional sports betting apps are illegal under Utah law, these platforms argue that they merely allow users to hedge their risk,” he wrote. “But what is the real risk to hedge when you are simply predicting whether LeBron James will score more or less than another player? It’s simply a bet, dressed up in different clothing.”
The lawsuit also comes as the state Legislature is advancing a bill that would clarify that proposition betting — or betting placed on specific players or events during games — falls under the state’s definition of gambling, which is prohibited by the Utah Constitution. HB243 has passed the House and a Senate committee and is awaiting consideration on the Senate floor.
But Kalshi says its contracts are lawful thanks to a carveout in Utah’s anti-gambling laws that allows for “lawful business.” Its lawsuit claims Kalshi’s attorneys made “multiple attempts” to contact Brown about potential action against the company but were “met with silence, even though the Utah AG had previously been willing to communicate with counsel.”
Asked about the lawsuit on Tuesday, Senate President Stuart Adams, R-Layton, said he is “standing with the governor on this one.”
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.
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