SWAC Commissioner Unveils Vision: Financial Strength And NIL Strategy

Dr. McClelland shares the pros and cons ahead for the SWAC.

Dr. Charles McClelland - SWAC Commissioner / Credit: SU Board Meeting

"The Southwestern Athletic Conference (SWAC) is strong today as it has been in quite some time," Commissioner Dr. Charles McClelland stated in a presentation to the Southern University Board members. He presented to them the 'State of the SWAC' and how the conference will navigate NILs after the season.

The SWAC's leader presented an extremely optimistic perspective to the committee, however he cautioned about how the House of Representatives' NIL settlement will affect the league's members.   

Jackson State Tigers' running back Irv Mulligan (5) runs the ball during the game against the Florida A&M Rattlers in Jackson, Miss., on Saturday, Oct. 19, 2024. / Lauren Witte/Clarion Ledger / USA TODAY NETWORK via Imagn Images

SWAC Facing Pro And Cons From NILs

Once struggling to cover basic operational costs, McClelland points out how the SWAC stands among the nation's most financially robust FCS conferences.

"I'm pleased to say that we are now in a position where the SWAC is the most funded FCS conference in the nation. In addition, we were able to distribute back to the institutions over the past 2 years a little more than $28,000,000, which is more than any other FCS conference in the nation."

This financial strength has translated into increased national prominence. For the first time in over two decades, SWAC has representation on the Division I NCAA Board of Directors, giving the conference a voice in every significant NCAA decision.

Florida A&M quarterback Daniel Richardson (10) looks to throw a pass during the Cricket MEAC-SWAC Challenge NCAA college football game against Norfolk State in Atlanta on Saturday, Aug. 24, 2024. / Joshua L. Jones/Athens Banner-Herald / USA TODAY NETWORK

NIL Regulations: A Game-Changer for Student-Athletes

The recent Name, Image, and Likeness (NIL) settlement has introduced a new paradigm in college sports. Key changes include:

• Institutions can now directly compensate student-athletes
• A $2.8 billion settlement, primarily benefiting FBS Power 4 schools
• SWAC's $30 million contribution to the settlement

Despite these changes, SWAC will face financial and process challenges. For example, "Southern University's portion of that is going to be $3,000,000 over the next 10 years," McClelland noted to the Southern University Board.

Coach Terrence Graves / Credit: Kyle T. Mosley, HBCU Legends

SWAC's Strategic Response to NIL

McClelland explained, "You're now getting ready to compete in the recruiting, and you're going to need to be able to have some name, image, and likeness dollar set aside."

To remain competitive, SWAC is leveraging its financial and administrative growth:

• Leading in attendance records
• Maintaining a strong fan base
• Focusing on internal NIL dollars for recruiting top talent
• Adapting to new scholarship and roster limit rules

"At least this gives us an opportunity to get into the game and get those resources to the student-athletes that are deserving," Dr. McClelland emphasizes the importance of unity within SWAC to outmaneuver FCS competitors.

Andrew Body Sidelined For Rest Of The Season / Credit: ASU Athletics

SWAC's Future Challenges and Opportunities

"Some of the revenue that you've gotten from the NCAA is going to go away. So, I'm here to say there's going to be some challenging times from a financial standpoint."

While optimistic, SWAC faces several challenges:

• Financial strain from NIL commitments and NCAA settlements
• Potential tax implications if student-athletes become formal employees
• Possible loss of financial aid for student-athletes

Dr. McClelland underscored the importance of having NIL dollars dedicated internally to ensure SWAC schools remain competitive in recruiting top talent, particularly as they face more competitive recruitment phases than other FCS institutions.

"From a revenue standpoint, we're going to be just fine, but it is going to take some additional effort. We're going to have to have some name image and likeness dollars on the inside. We'll work with you to help develop that, but make no mistake about it. We are on top, and we're going to continue to stay on top," the Commissioner remarked.

Moreover, abolishing scholarship limitations in favor of roster limits — 105 for football and 35 for baseball — opens new avenues for the member schools. This flexibility will allow institutions to manage their resource allocations better while attracting talented athletes.

"The name, image, and likeness process is probably the best process for the student-athletes, but the employee piece of it is something that we're still gonna have to vet and try to work out because there are just so many unintended consequences that we're looking at."

SWAC's resilience and forward-thinking approach under Dr. McClelland's leadership positions it well for the future. By embracing NIL regulations and maintaining financial stability, SWAC is poised to continue its legacy in HBCU athletics for years to come.

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