The Tigers’ head honcho held a press conference to take questions on the changing landscape of collegiate athletics
After a long wait, Judge Claudia Wilken approved the House settlement June 6 to pave the way for a new era in collegiate athletics.
Schools across the country have prepared for this moment but will still experience bumps along the way and face tough decisions, especially as they begin to share revenue with student-athletes.
Mizzou Director of Athletics Laird Veatch talked to the media Thursday to cover the department’s preparations and next moves as the settlement takes effect.
Notes and Quotes
- Veatch began the press conference with a disclaimer, saying that he was not an expert on every issue or aspect of the settlement. Athletic departments, like reporters and fans, are still adjusting to a new set of rules.
- On the division of revenue sharing among programs: “The bulk of our revenue share funds will go to football and men’s basketball, similar to the conversations you’re seeing across the country, in line with how monies are generated, but also the brand value that those student-athletes bring to Mizzou.”
- Veatch also said that some programs would not receive revenue sharing, but declined to share which specific programs would be excluded. He did mention that the sports that were included in revenue sharing could change from year to year, though.
- When asked why the department decided not to share where scholarships would be expanded while other schools (LSU and Texas A&M were provided as examples in the question, among others): “It’s just a strategic decision that we’ve made at this point, and likely as that comes out in the future, across the board we may change that position.”
- On the new NIL clearinghouse and financial boundaries: “I think it’s good and healthy for everyone to get to a kind of environment where we’re all playing by the same rules and have some consistency there. And I do think it gives us an opportunity to begin to stabilize college athletics. But it’s a step, and it’s not going to be perfect.”
- Veatch confirmed that Mizzou, like many other SEC schools, will set aside $2.5 million of the $20.5 million dollar revenue sharing cap to use for new athletic scholarships. He also said that the decision was a mutual commitment made by the schools in the conference.
- In total, the department intends to spend $3 million on new athletics scholarships – a number that includes the $2.5 million above.
- On the 2 to 1 ratio of the new scholarship going to women’s sports: “I think we have shown that we’re committed to our Olympic sports, inclusive of our female sports, in that as well. We’re having some real success in some of those sports, as you’ve seen with volleyball, gymnastics and others. So it was an important part of that discussion.”
- On the decision making process behind revenue sharing money allocation: “It took a lot of discussion and a lot of thought on a lot of levels, both in terms of the brand value that those student-athletes provide to the institution, our competitive positions, et cetera.”
- On the impact of the new rules surrounding collegiate athletics on Mizzou: “I do genuinely look at this as an opportunity for Mizzou. I think we are uniquely positioned to take advantage of this and continue to elevate.”
- On the challenges surrounding the new rules: “There’s decision that have to be made that can be difficult at times. Those decisions sometimes include taking a step back in areas that we’ve spent, so we’re trying to be much more efficient with our dollars and look at ways where we might be able to pull back in some other areas, so that we can invest those dollars now into rev share or other types of areas that are going to really help us be successful.”
- Veatch pointed to increasing revenue generation through higher ticket prices and altering fundraising, but also cutting some costs surrounding travel, dining and equipment, as ways the department is working to maximize its resources and help fund revenue sharing.
- He mentioned that roughly 85% of football season ticket holders have renewed their tickets for next season.
- When asked if there should be greater transparency about the deals student-athletes receive, “I don’t think we’re there yet, and in large part because we are still dealing with student-athletes, and they are young people with legal protections. Some of those areas have to be worked through, and we have to get advice before we can provide those kinds of specifics. So I could see that happening down the road, and maybe that’s in our future, but I think that’s one of the many questions that has to be answered on the legal front first.”
- On how permanent this new system will be: “This is only gonna be as successful as the members decide to make it, and if we are committed to it and give it a chance, then that’s a starting place. Will there be lawsuits, will there be continued outside pressures? Absolutely, right? And that’s why it is a step, but it’s not the last or final step.”
- Veatch also voiced his view on the issue of congressional action: “It’s also why we need congressional support, why we need to have, at some level, some federal action that gives us a level of protection so we can continue to move forward with the collegiate model.”
- On whether schools and programs will commit to the new boundaries: “We have to get to a point where we’re at least operating from the same set of rules, and I believe we’re all embracing that piece of it. We’re all going to continue to push, and we’re all going to be aggressive, and Mizzou will be too. We’re going to do what it takes to continue to win and be aggressive, but we also have to be committed to being a part of a larger whole.”
- Veatch said that it will now be possible to sign multi-year contracts with student-athletes.
- On the trend of hiring general managers for football and basketball programs – such as Mizzou Hoops’ recent hiring of Tim Fuller: “I think there’s no question that we all have to continue to really invest in this area with people that are focused on maximizing the opportunities that it provides, and have experiences, relationships, knowledge of how to navigate that space. So whether it’s that position in particular, I think you’ll see different schools do it different ways.”
- On the grandfathering of roster limits and how Mizzou’s coaches are dealing with that issue: “They still have the authority and ability to determine their rosters. From a competitive standpoint, they need to be able to do that. And then the specifics of how the designated student-athlete pieces apply to that, that’s something we work with them together on. But we empower coaches to make decisions, and then we support them to help understand the nuances of the settlement and the application of all that.”
- Veatch said the deadline for programs to turn in their designated student-athlete lists are July 6 to comply with the roster limits.
- Once revenue sharing begins July 1, Veatch said that most payments will be made monthly.
- On how his role as director of athletics has changed: “We have to lean in more and more to the business side, the strategic side. I do feel like we’re more and more change managers than we have been in the past, but I think that’s an important opportunity.”
Takeaways
It’s a strange new world in collegiate athletics, and everyone – administrators, coaches, players and fans – is adjusting in real time. There’s a lot to unpack in the House settlement, and even athletics departments that have been preparing for its approval for months don’t have all the answers right now.
But like Veatch strongly believes, there is an opportunity present for Mizzou in the new rules of collegiate athletics.
The Tigers are well positioned with strong resources that top most schools in the country, though they don’t rise to the level of an LSU or Texas. Long-term success will be determined within that group of schools that are not members of the elite but remain highly competitive by their management of resources.
The athletic departments that allocate their resources, revenue sharing or otherwise, most efficiently and effectively to create the greatest positive impact on their programs will rise to the top.
This means allocating the great majority of revenue sharing money to football and basketball, and rightfully so. But there’s a reason why the Tigers are focusing on expanding scholarships in women’s sports, and Olympic sports as a whole.
Mizzou has found great success in volleyball, softball and gymnastics in recent years, and track and field just crowned an individual national champion in Valentina Barrios Thursday night. Meanwhile, baseball and women’s basketball have struggled in recent years but provide tremendous upside for generating revenue.
TV deals in football and men’s basketball alongside the income that the new north end zone at Faurot Field will generate can have a major impact on the athletics department’s bottom line in the coming years, but with women’s sports and Olympic sports on the rise, these programs also present a strong opportunity to increase revenue at a crucial time.
Smaller investments in these sports can also go much farther. Just look at Texas Tech, which reached the Women’s College World Series and made the finals for the first time after signing NiJaree Canady to a major NIL deal.
Athletics departments that strike the right balance between the revenue sports and Olympic sports, and between short-term and long-term success, will set themselves up for the future both in competition and on the balance sheet.
This is the opportunity presented by the House settlement, though the great uncertainty around collegiate athletics will be a major roadblock to all schools racing to get ahead. Now, Veatch and the athletics department will get to work and try to achieve this difficult goal.