The SEC is reportedly considering imposing a luxury tax on teams that spend more players than the allotted revenue-sharing cap under the House v. NCAA settlement.
According to ESPN, a working group of athletics directors, university presidents and general counsels has been considering the issue the past few weeks, and the league might vote on the issue in the near future, sources said.
The SEC would reportedly like to approve the measure before the early signing period for football Dec. 2-4.
While there's still much debate around the issue, a loose framework for the tax has been proposed that would see teams taxed based on how much over the $21.3 million cap they spend on players.
"Some schools want it to be where the penalty is as low as possible, so it's cheap enough to where you're more motivated just to pay it directly and report it, and everybody's on the same page and people stop playing games," a source told ESPN.
The SEC hopes the luxury tax will discourage schools from spending over the cap, while also promoting transparency.
"It's a lot better if we all know what everybody's doing right now," a source told ESPN. "We're living in this world where we have no idea what anybody's spending. Agents can play you all day long because there is no general database. We're starting to get some information, but there's not enough transparency to know what people are really doing."
