“It’s Here: A Pivotal Moment for College Sports,” John Kosner’s Latest SBJ Column with Ed Desser
Original Article: Sports Business Journal, by John Kosner and Ed Desser, April 21st, 2025
“Show me the incentive and I’ll show you the outcome,” said Warren Buffett’s partner Charlie Munger. The next tsunami in elite college sports probably hits July 1, with the anticipated House settlement. We are not college sports administrators, but we do understand sports business. As college athletics becomes more professionalized, we believe athletic directors need to think: vision, best practices and providing the right incentives for their students and institutions.
For starters, the sky isn’t falling. Intercollegiate athletics remains crucial to all who participate, watch and cheer — and consider matriculating. College football is more popular than ever; men’s and especially women’s basketball are ascending, as are women’s sports such as softball, volleyball and gymnastics, which fuel Olympic sports globally. Sports media value and importance continues growing.
Thus, July 1 presents an opportunity to think differently.
A SWOT analysis (strengths, weaknesses, opportunities and threats) is in order. But that begs the question: What is your vision for sports on your campus? Presuming you opt into the settlement, do you plan to follow the guidelines (75% for football, 15% men’s basketball, 5% women’s basketball and 5% to everything else) deploying the $20.5 million revenue-sharing payment cap to athletes? If so, you’re committing to the football arms race, transfer portal, heavy travel and spending the vast majority of your cap on male athletes.
Is that sustainable, especially for leading academic institutions (e.g., Duke, Northwestern, Stanford) that have high admissions standards, aren’t necessarily football-obsessed and worry that the dollars aren’t there to “do it all?” If you are not an athlete, getting admitted to a top school today has never been more challenging. Why not consider using less on football and, over time, create an academic/athletic/commercial balance across more sports that makes the experience of being an athlete at your school unique and rewarding? (Note: Ivy League schools are not opting in). There is potential risk not using substantially all of your cap money for football players. It probably makes qualifying for the College Football Playoff (and its additional payouts) about as likely as being a Final Four Cinderella.
College football is core fabric of university/fan/community life — it will likely endure at a level between Ivy and CFP qualifiers. In the CFP’s 11-year history, only 20 schools have qualified. Now with an expanded field, more can theoretically break through (Arizona State, Boise State, Indiana and SMU did so this year). But in a free-spending era (with NIL, your cap is just the start!), not everyone can be the Dodgers, Yankees and Mets — especially with the ACC’s recent settlement with FSU and Clemson, creating a still-bigger focus around specific TV viewership. Sharing the “House” money more equitably among male and female athletes can build a different set of “Munger” incentives. With the transparent cap, media, students, politicians and alumni will be watching.
Don’t just eliminate nonrevenue sports. Accelerate Equity’s Pamela Seidenman argued in these pages: “Cutting sports provides immediate cost savings; investing in them offers long-term revenue potential, builds the college’s brand, and cultivates a larger base of alumni more likely to support athletics down the road.” We believe more revenue is possible for many Olympic sports, and they matter for Title IX. We also counsel that you not jump into the arms of private equity, or anyone else who wants to buy out your rights, without consideration of the wide-ranging, long-term implications, including significant loss of control and nonaligned priorities. Sacrificing long-term equity to bridge a short-term revenue gap is dangerous.
Instead, we suggest focusing on how your school can thrive. Streamers’ entrance into sports is revealing, prioritizing live events that generate a lot of social media attention. When media rights come up, that could be Nebraska drawing 92,003 for volleyball or frenzied action at the Beanpot hockey tournament. In short, more than football and basketball. Do any new revenue opportunities exist for your school? Where are the gaps in your capabilities? Are there any sacred cows to reconsider?
Above all, we suggest re-envisioning athletics as the hub of the university. In the SWOT analysis, mobilize applicable departments in service of your mission (e.g., business, law, communications and film schools, experts in analytics and finance, production, governance and messaging). Students too! No one understands today’s changing media world better. That includes the shift to streaming, heavy use of social media, gaming, betting, fantasy and AI! Many students are not just passionate about athletics, but also are looking to pursue careers in sports, media and technology. We know this personally! Getting students more involved in the future of athletics is a win-win; at Syracuse, more than 250 already are.
Then, clear communication becomes critical. Use your “owned” media, such as the school newspaper, website, email newsletters, social channels, radio, audio (and video) podcasts and conference network to extend your narrative, including your athletes’ stories. The right approach also can make the coming challenges and opportunities more of a team exercise. Remember, sports really are at the center of the university; the industry has just treated athletics like the toy department for too long.
These are challenging times for college administrators. The changes to come will be the most significant since 1984, when the Supreme Court ruled against the NCAA, opening up televised college football. “You never let a serious crisis go to waste,” said former White House Chief of Staff Rahm Emanuel. “It’s an opportunity to do things you think you could not do before.”
Ed Desser is an expert witness and president of consultancy Desser Sports Media Inc. (www.desser.tv). John Kosner is an investor in digital startups and president of consultancy Kosner Media (www.kosnermedia.com). Together they developed league TV strategy and ran the NBA’s media operations in the ’80s and ’90s.
