Georgia’s Kirby Smart offers his takes on player compensation settlement

The settlement, with terms taking effect July 1, paves the way for schools to directly compensate athletes from a capped pool of an estimated $20.5 million — a number arrived at by taking 22% of what the average Power 4 school’s total revenue was from ticket sales, sponsorships and media rights.

That cap, under settlement terms, is expected to annually increase about 4%.

The settlement also makes allowances for the NCAA to pay some $2.6 billion in damages — back pay — to former Division I athletes dating to 2016 — who were not compensated for usage of their NIL value.

There still has been plenty of talk about Georgia football this spring.

The Bulldogs’ quarterback situation, as is, involves a projected first-year starter in Gunner Stockton.

Georgia’s youth, a result of backups transferring out of the program to find starting jobs and elevated NIL pay in other programs, is another item Smart has harped on.

But those immediate, front-burner issues are only part of the discussions in Butts-Mehre Heritage Hall.

Most fans are more interested in what Smart will have to say about his review of Saturday’s scrimmage and what he’ll look to fine tune with two more practices and Saturday’s G-Day game at Sanford Stadium.

But Smart didn’t lead Georgia football to the top without foresight and knowledge of the system.

In addition to being a former All-SEC safety and team captain as a player at Georgia. Smart was an academic All-American who attained his bachelor’s degree from the Terry College of Business.

Smart, no doubt, has proved a master of the 10,000-foot view, and his ability to modify and manage his program with a pending salary cap expected to go in place this fall will ultimately determine how Georgia football is positioned for success into the near future.

Here’s what Smart said last week about some of the pending changes he anticipates, and the concerns he voiced over the money that have been paid out in anticipation of the cap being applied.

Roster limitations

As part of the House settlement, college football rosters will be capped at 105 players — a reduction of 23 players. Walk-ons essentially will be eliminated as the new revenue-sharing plan incentivizes schools to fund all roster spots.

Smart, like most football coaches, is concerned about his team’s ability to prepare properly with fewer players.

Smart: “Yeah, that’s up in the air. I’m not sure 100% that we have to get the 105 (roster) by (preseason) camp. As we understand it, it’s going to be by the first game, which is a big difference.

“So, we would be able to practice camp like we want to.”

Salary-cap management

Smart has noted how programs are “front-loading” player payments, looking to acquire as much talent as possible before the proposed salary cap kicks-in July. 1.

That has led to agents aggressively recruiting and marketing players with hopes of manipulating the current circumstance and maximizing the commission they receive on each deal.

Smart has noted how that has led to unsettled roster situations and creating salaries that will not be able to be maintained one the cap kicks in.

Smart: “I think everybody’s got to take a big pause right now and say deep breath because of what’s going on with basketball right (elevated free-agent marketing, payment and movement) now is crazy.

And we don’t know everything that’s going to come out with April 7. ... where we get a lot more information. But everybody’s on pins and needles because we don’t know exactly what’s going to come out of this.

“I mean, there’s people (player representatives) reaching out to have a Zoom call and present all the players they represent that are on teams, including our teams, and they want to invite people to the Zoom so they can watch and see who’s going in the portal or shopping who’s in the portal before the portal.

“Do you want to get on the Zoom and look at all these players? I’m like, well, what if some of them are mine? I mean, it could be one of the most legendary moments in all of college sports with what’s coming up on this ruling and how people are going to try to manipulate a cap when all we’re trying to do is make for competitive balance.”

Competitive balance

As much as a universal cap might appear to level the playing field, not all schools are going to be able to take advantage of the proposed NIL legislation on an equal basis.

NIL money can be paid to athletes outside of the schools’ proposed $20.5 million allotment if they come from entities without direct ties to universities who are offering legitimate business deals, as determined by an independent third party (Deloitte).

Texas and Ohio State are examples of powerful college football programs who appear to be better positioned to find corporate deals that can be applied outside of the $20.5 million cap, which would put them at a competitive advantage.

Smart: “I don’t know if competitive balance is going to come out of it. I don’t know if the kids win in this model that we currently have if they win long-term.

“Like long-term, when we have to cut sports and cut other things, are the kids going to be the winners of this? I don’t know, college sports has been around a long time and given many an opportunity. And by all means, I want these kids to make money. But what’s going on right now is not good for anybody.”

Front-loading salaries

Smart and Georgia were very aggressive in compensating freshmen in their most recent signing class, which ranked No. 2 in the nation per the 247Sports Composite.

Georgia football has had a salary structure in place rewarding starters and major contributors, but modifications have been made to remain competitive in building a core group that can grow within the program.

The settlement was to take place Monday and takes effect July 1, but between those dates college football’s second transfer portal window takes place April 16-25.

Smart: The biggest thing going on is you’ve got two dates you’re operating off of. There’s a portal date and there’s a House settlement date, and there’s a lot of people doing not illegal things, (but) they’re just manipulating money things to try to move this, move that, so I can free up this.

“And what’s going to happen, there’s probably going to be a bubble or a spike (in players’ salaries), and then agents are literally trying to take advantage of that every minute they can. They want to get all they can for their client.

“But at the end of the day, it may backfire because there’s going to be a correction in the market at some point when this cap hits.

“If the cap ($20.5 million) is truly what the house settlement wants it to be. If there is truly a cap, if you just keep trying to front load and pay out people and what’s going on in basketball now and football now, people are trying to beat a date, then what’s going to happen when those people expect that same money the next year and it’s not there because you’re in a cap?

There’s going to be a correction eventually, and I don’t think any of us know what’s going to happen.”

Unintended consequences

Smart has been supportive of players being paid, and football players obviously stand to benefit the most as college football programs generate the most revenue.

But athletic administrators and coaches are aware that, as football programs look to remain competitive in the free-agent market, it will be challenging to continue to fund nonrevenue sports’ athletes.

Smart is aware and is sensitive to those issues, which are likely to require further legislation and will surely lead to more litigation.

Smart: “I think players have value, and they should be rewarded for that value. But at the expense of what? At the expense of us having three or four sports that can’t do anything and support anything?

“So, because they get the television revenue and because they raise it, should they get first dibs on all that and just not have other sports? I don’t think that’s right. And there’s a balance to be had.”

Player negotiations

Former Alabama coach Nick Saban noted that prospects who once valued the best opportunities for development are now prioritizing opportunities for immediate compensation.

Smart has dealt with that, too, and takes student-athletics priorities into consideration when evaluating potential scholarship offers.

Smart: “If they come in and say (money is their priority), then I’m going to listen to them and talk to them, but I’m scratching them off the list.

“I’m over that because if that’s all that matters, then you need to send out a bid like they do for jobs and say, supplement your bid, let me take visits, and I’m going to go to the bid and go to the highest bidder.

“I really believe it still does matter of there’s a relationship, and if a relationship doesn’t matter, then I’m probably not going to have a kid that wants to play hard for Georgia. So, relationship matters. Work ethic matters. Like, do you want to be great? Do you have fire, passion, and energy? I’ll pay for that. I’ll pay a premium for fire, passion, and energy because in the market we’re in, there’s a lack of that.”

Consequences of pay, transfer rules

Smart has seen as a player, assistant coach at Alabama and now head coach at Georgia, the value of players handling the adversity and challenges of growing within a program and going from backup to starter.

When backup players transfer out for a less-competitive situation at another school that offers them more immediate financial compensation, there no longer is the same incentive for improvement nor a learned experience of handling adversity.

Smart: “Kids are going to struggle the next 10 years when they look back and somebody says, ‘I’m going to go back and look at this and say, what happened to the kids that went to two and three and four places?’

“I will assure you we will not be happy with where those kids that jumped for greener grass went to. I think the portal is a good thing for a lot of kids that are in their third, fourth, fifth year (at a school and not starting), but it also gives you a way out that I don’t think is good for kids right now.”