State of sports law
Panelists discuss collegiate athletic issues at South Texas College of Law
Jun 25, 2019, 8:53 am
State of sports law
Last Thursday, June 20 the South Texas College of Law hosted a panel conducted by the Jackson Lewis Law Firm discussing some of the recent issues facing collegiate athletics today. John Long is of counsel in Houston at the law firm and conducted the panel which consisted of five members: Gregg Clifton, the Co- Chair of the Collegiate and Professional Sports Industry Practice Group, Taurian Houston, the Associate Athletic Director for Compliance at Rice University, Dr.Trayvean Scott, the Deputy Athletic Director at Southern University, Jake Wonders, the Assistant Athletic Director for Compliance and Academics at Houston Baptist, and Jeff Palmer, the Associate General Council at the University of Houston. All five participants provided unique perspectives on important issues surrounding collegiate athletics currently.
The first issue discussed was the transfer portal now available to student athletes. The portal, which was initiated in the last nine months, is a database for every student athlete who is interested in transferring from his or her current school. It includes every sport, and has been widely used effectively as a "free agency" tracking database that every athletic department, coach and athlete has access to. It is used simply by an athlete going to the school's compliance department and informing them that they would like to be entered in the transfer portal. The athlete then has 48 hours to be entered into the portal, and while the coaching staff and compliance department cannot say no to the athlete, they can delay the request. Panel member Taurian Houston outlined that the portal provides both positive and negative effects for the student athlete if he or she chooses to submit their name. "It now allows freedom for the student athlete to communicate with other institutions without a blockade from a coach saying you cannot talk to other institutions." However he did mention that although this freedom is now available, student athletes must be aware of the ramifications which come from entering your name in the portal. According to Houston, "By entering your name in the portal, the school has the ability to remove you from athletic aid. If you were to submit your name for the fall semester, your current school could remove you from athletic aid for the fall semester." Essentially a student athlete entering his name into the portal is in fact taking a risk. If he or she does not like their current situation, they now have the freedom to try and and be picked up by another institution, however the risk is they may not have a scholarship from their current school if in fact they do not find a fit from the transfer portal. As of right now, the portal is being used heavily. There are over 10,000 student athletes across the board who have used the portal with 1,300 of them being mens college basketball players.
The panel went on to discuss the biggest scandal the NCAA has had to deal with recently. An FBI investigation resulted in an ex - Adidas executive, James Gatto, being sentenced for nine months in prison for bribing the father of a college basketball prospect who attended the University of Louisville. Two other basketball insiders, Meri Code and Christian Dawkins, were sentenced to six months for their role in the scheme. John Long, the panel's conductor, theorized that "Adidas is in effect acting as a booster, a representative of athletics interest, for the institutions for which those companies are attempting to funnel kids." There is a bylaw in the NCAA handbook that does state if corporations or apparel corporations commit a violation regarding interactions with potential student athletes, than the University is in fact on the hook for a violation should that student athlete attend that University. The question for the panel became how to police and enforce these third parties from committing violations for which the University would then become accountable for. Rice University, where Taurian Houston is the Associate Athletic Director for Compliance, is an Adidas school. He said "When I think about a lack of institutional control, we get to the aspect of who's a booster and who's an independent actor? Are they looking at their own independent interests, or in the interests of the corporation." This sometimes can be very hard to decipher for a University, therefore making it more common for violations to occur.
Compliance laws were also discussed by the panel. 30 violations were committed last year in college basketball, 24 of them were done by coaches or assistant coaches. Jeff Palmer, Associate General Council at the University of Houston, talked about how to protect the school from these violations saying "a comprehensive compliance training program is the key." An example was given about a division one swimming coach who simply did not understand compliance protocols and unintentionally committed a violation. Gregg Clifton of Jackson Lewis said two things must be done to prevent coaches from getting a violation. First, when a new coach comes in, they sometimes are not familiar with the law. Each university has to educate their coaches on the laws. Second, universities should be assisting coaches in helping them understand the laws. Violations of all kinds can be avoided with the proper education given by Universities to the coaches.
The final piece of discussion for the panel was pay for play, which is probably the most polarizing issue facing collegiate athletics right now. California has introduced a "Fair Pay for Play Act" which would allow the state's college athletes to be paid for the use of their image, name and likeness. California Senator state senator Nancy Skinner has said "College athletes have been exploited by a deeply unfair system. The NCAA, the universities, the media, they've made billions of dollars on the talent of athletes, while the athletes have not received anything." This has been an ongoing issue, and there could be change coming soon. Taurian Houston said "We have to start having the conversation. I'm not a straight up proponent of paying student athletes because this creates more issues. You deal with title nine, are you going to start taxing scholarships, athletic aid... A lot of student athletes haven't thought of these things. I do think things do need to change though." After the panel concluded I proposed to Taurian that a lack of a unified goal from the "pay for play" crowd may have contributed to a lack of movement on this issue. He agreed and said this will be a step by step process that will probably be an ongoing issue for some time.
The woeful state of the Astros' farm system has made it very expensive to continue maintaining a good team, prohibitively so (in part self-imposed) from having a great team. Even if they re-sign Alex Bregman, trading Framber Valdez and/or Kyle Tucker for prospects could snap the Astros' run of eight straight postseason appearances. But if they KNOW that no way do they intend to offer Framber five years 130 million dollars, Tucker 7/225 or whatever their free agent markets might be after next season, keeping them for 2025 but getting nothing but 2026 compensatory draft picks for them could do multi-year damage to the franchise.
Preliminary Kyle Tucker trade talks between the Astros and Cubs involve both Seiya Suzuki and Isaac Paredes, sources tell @Ken_Rosenthal and me - https://t.co/kIRATDQpEn
— Chandler Rome (@Chandler_Rome) December 11, 2024
The time is here for the Astros to be aggressively shopping both. It doesn't make trading them obligatory, but even though many purported top prospects amount to little or nothing (look up what the Astros traded to Detroit for Justin Verlander, to Pittsburgh for Gerrit Cole, to Arizona for Zack Greinke) if strong packages are offered the Astros need to act if unwilling (reasonably or not) to pay Valdez/Tucker.
Last offseason the Milwaukee Brewers traded pitching ace Corbin Burnes one season ahead of his free agency and then again won the National League Central, the San Diego Padres dealt Juan Soto and wound up much improved and a playoff team after missing the 2023 postseason. But nailing the trades is critical. The Brewers got their everyday rookie third baseman Joey Ortiz and two other prospects. The Padres got quality starter Michael King, catcher Kyle Hagashioka, and three prospects.
Back to Bregman
Meanwhile, decision time approaches for Alex Bregman. He, via agent Scott Boras, wants 200-plus million dollars. Don't we all. If he can land that from somebody, congratulations. The Astros' six-year 156 million dollar contract offer is more than fair. That's 26 million dollars per season and would take Bregman within a few months of his 37th birthday. If rounding up to 160 mil gets it done, ok I guess. Going to 200 would be silly.
While Bregman hasn't been a superstar (or even an All-Star) since 2019, he's still a very good player. That includes his 2024 season which showed decline offensively. Not falling off a cliff decline other than his walk rate plunging about 45 percent, but decline. If Bregman remains the exact player he was this season, six-156 is pricey but not crazy in the current marketplace. But how likely is Bregman to not drop off further in his mid-30s? As noted before, the storyline is bogus that Bregman has been a postseason monster. Over seven League Championship Series and four World Series Bregman has a .196 batting average.
The Astros already should be sweating some over Jose Altuve having shown marked decline this season, before his five year 125 million dollar extension covering 2025-2029 even starts. Altuve was still very good offensively though well down from 2022 and 2023 (defensively his data are now awful), but as he approaches turning 35 years old in May some concern is warranted when locked into paying a guy until he's nearly 39 1/2.
Jim Crane is right in noting that long contracts paying guys huge money in their later years generally go poorly for the clubs.
Bang for your buck
Cleveland third baseman Jose Ramirez is heading into the second year of a five-year, $124 million extension. That's 24.8 million dollars per season. Jose Ramirez is a clearly better player than Alex Bregman. Ramirez has been the better player for five consecutive seasons, and only in 2023 was it even close. It should be noted that Ramirez signed his extension in April of 2022. He is about a year and a half older than Bregman so the Guardians are paying their superstar through his age 36 season.
Bregman benefits from playing his home games at soon-to be named Daikin Park. Bregman hit 26 home runs this year. Using ball-tracking data, if he had played all his games in Houston, Bregman would have hit 31 homers. Had all his swings been taken at Yankee Stadium, the "Breggy Bomb" count would have been 25. In Cleveland, just 18. Ramirez hit 41 dingers. If all his games were home games 40 would have cleared the fences, if all had been at Minute Maid Park 47 would have been gone.
Matt Chapman recently signed a six-year 151 million dollar deal to stay with the San Francisco Giants. That's 25.166 million per season. Chapman was clearly a better player than Bregman this year. But it's the only season of Chapman's career that is the case. Chapman is 11 months older than Bregman, so his lush deal with the Giants carries through his age 37 season.
The Giants having overpaid Chapman doesn't obligate the Astros to do the same with Bregman. So, if you're the Astros do you accept overpaying Bregman? They would almost certainly be worse without him in 2025, but what about beyond? Again, having not one elite prospect in their minor league system boxes them in. Still, until/unless the Seattle Mariners upgrade their offense, the Astros cling to American League West favorites status. On the other hand, WITH Bregman, Tucker, and Valdez the Astros are no postseason lock.
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