SEC ADs Fear for Player Holdouts if Contracts Aren't Approved

The NIL era did not end when revenue-sharing began ahead of the 2025 college football season. The House settlement paved the way for schools to compensate players directly. Of the $22 million they can distribute annually, about $13-$15 million is allotted for football programs. Rosters cost a lot more than that.

It varies from one SEC school to another, but Steve Sarkisian believes each school has at least a $30 million payroll, with some reaching near $50 million. NIL is used to cover that gap. Instead of relying on a collective, it’s up to multimedia rights (MMR) partners like JMI or PayFly.

Here’s the problem for SEC schools. There is money in the MMR banana stand to fund these rosters. The issue is getting approval from the College Sports Commission (CSC) clearinghouse. The CSC recently won an arbitration ruling against Nebraska, which blocked millions of dollars distributed from its MMR partner.

In plain language: SEC checks might not clear. In the past, that fell on the feet of haphazardly organized collectives. Now, it’s all on the universities.

There is growing anxiety around the league at the SEC Spring Meetings that if they cannot get deals cleared through the CSC, players will not get paid on time. Then what happens?

“You run through a lot of scenarios in your head of what if in the environment we’re in right now,” Florida athletic director Scott Stricklin told On3’s Pete Nakos. “That’s probably top of mind — what if? I don’t know what happens in that scenario, it’s certainly something you think about.”

What if it happens? Unpaid players could choose to sit on the sideline, rather than suit up for their team.

It’s unclear if money is the motivation, but Tennessee appears to be in a situation like this with their top transfer portal acquisition of the offseason. Chaz Coleman has not reported to Knoxville for voluntary summer workouts. Josh Heupel is not sounding the alarm just yet. “Chaz has been dealing with some things, and we’re here to support him. We’ll continue to go through that process.”

Player holdouts amid contract negotiations are common in the NFL world. Nico Iamaleava abruptly transferred from Tennessee last spring because of contract negotiations. This potential scenario is different. It’s not that players are demanding a higher contract. They just want the money the university agreed to pay them when they signed their contract.

It’s safe to say the SEC has bent rules over the years. They may have to do some more bending around the CSC clearinghouse to get MMR money distributed and ensure players don’t think about holding out when the games begin this fall.

Subscribe to the KSR YouTube Channel for press conferences, interviews, original shows, fan features, and exclusive content.