SEC Proposes $70M Salary Cap in New Rumors on Potential CFB Rule Changes, Financial Penalties

The SEC is reportedly one step closer to implementing a pro sports-style salary cap and luxury tax.

Per Yahoo Sports' Ross Dellenger, the conference proposed a new cap policy that would penalize schools that spent over the $21.6 million House settlement revenue-share cap.

The proposal features escalating fines of more than $10 million for schools that spent more than $70.5 million on their rosters.

According to Dellenger, some third-party NIL deals that are school-affiliated would be considered "institutional pay" under the new proposal, which would implement previously unenforced terms of the House settlement.

"The headline here is that the new cap would basically be $70 million," one power conference athletic director told Dellenger.

The SEC shared details of the penalty structure with "dozens of administrators" this week. According to Dellenger, the structure is as follows:

• Less than 1 percent for schools spending below $50.5 million
• 1 percent for schools spending $50.5 to $60.5
• 3 percent for schools spending $60.5 to $70.5
• 10 percent for schools spending more than $70.5 million

The financial penalties for each tier would also increase in each new cap year. Dellenger noted, however, that it remains unclear where the fine money will be distributed.

The proposal comes two weeks after the Big Ten announced that it would implement a $49 million NIL spending cap for all of its schools. Unlike the SEC's proposal, the one from the Big Ten is designed to mirror the one proposed in the Protect College Sports Act, which is currently awaiting a vote in the House of Representatives.

The Big Ten's policy caps revenue-sharing at $21.6 million and third-party NIL spending at $27.5 million.

The SEC's proposed cap system has a retroactive implementation date of Oct. 1, according to Dellenger.