U.S. patent application number 14/329115 was filed with the patent office on 2015-04-09 for amateur athlete compensation product using residual value.
The applicant listed for this patent is FMR LLC. Invention is credited to John McDonough, Dina Sinno.
Application Number | 20150100469 14/329115 |
Document ID | / |
Family ID | 51135769 |
Filed Date | 2015-04-09 |
United States Patent
Application |
20150100469 |
Kind Code |
A1 |
Sinno; Dina ; et
al. |
April 9, 2015 |
Amateur Athlete Compensation Product Using Residual Value
Abstract
A computer-implemented method including, retrieving information
indicative of aggregate income that is attributable to a plurality
of collegiate sports teams and income that is attributable to a
particular collegiate sports team in the plurality, and for the
particular collegiate sports team, determining an athlete residual
value that is at least partly based on the aggregate income that is
attributable to the plurality of collegiate sports teams and the
income that is attributable to the particular collegiate sports
team in the plurality, determining, based on the athlete residual
value, a portion of the aggregate income that is revenue shared
with a particular athlete who is a member of the particular
collegiate sports team, and causing the determined portion of the
aggregate income to be placed in a student athlete retirement trust
for the particular athlete.
Inventors: |
Sinno; Dina; (Cambridge,
MA) ; McDonough; John; (Nahant, MA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
FMR LLC |
Boston |
MA |
US |
|
|
Family ID: |
51135769 |
Appl. No.: |
14/329115 |
Filed: |
July 11, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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14078111 |
Nov 12, 2013 |
8781939 |
|
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14329115 |
|
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|
61886455 |
Oct 3, 2013 |
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Current U.S.
Class: |
705/35 |
Current CPC
Class: |
G06Q 10/105 20130101;
G06Q 40/00 20130101 |
Class at
Publication: |
705/35 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1-20. (canceled)
21. A computer-implemented method comprising: retrieving by a
computer information indicative of aggregate income attributable to
a plurality of collegiate sports team, which is earmarked for
amateur student athletes and a number of amateur student athletes
participating in the collegiate sports teams; determining, by the
computer based on the aggregate income and the number of amateur
student athletes, a portion of the aggregate income for a
particular amateur student athlete; causing the determined portion
of the aggregate income to be placed in an amateur athletic trust
account for the particular amateur student athlete; and upon
receiving a request from the particular amateur student athlete to
access funds in the amateur athletic trust account, determining by
the computer whether the particular amateur student athlete has
amateur status that prevents withdrawal of the funds in the amateur
athletic trust account by the particular amateur student
athlete.
22. A computer-implemented method comprising: retrieving by a
computer information indicative of a designation of a portion of
aggregate income of a college that is attributable to a plurality
of collegiate sports teams and income attributable to a particular
one of the collegiate sports teams; for the particular one of the
collegiate sports teams, determining by the computer an athlete
residual value that is at least partly based on a ratio of income
attributable to the particular one of the collegiate sports teams
to aggregate income attributable to the plurality of collegiate
sports teams; determining, based on the athlete residual value, a
portion of the aggregate income that is revenue shared with a
particular athlete of the particular one of the collegiate sports
teams; and causing the determined portion of the aggregate income
to be placed in a student athlete trust for the particular athlete
with the student athlete trust having amateur status restrictions
that prevent accessing of funds in the trust while a student
athlete.
23. The method of claim 22, further comprising: receiving a request
from the particular athlete to access funds in the student athlete
trust; and determining by the computer whether the particular
athlete has amateur status restrictions that prevent accessing of
the funds in the student athlete trust by the particular
athlete.
24. The computer-implemented method of claim 22, wherein a
condition of the student athlete trust is that a trust beneficiary
who is receiving a partial scholarship may later reimburse the
college from proceeds in the trust for a portion of tuition that is
not covered by the partial scholarship.
25. The computer-implemented method of claim 22, further
comprising: determining an amount of unpaid tuition that is due to
the college by the particular athlete; and causing a disbursement
of funds from the student athlete trust to a financial account of
the college for at least a portion of the unpaid tuition.
26. The computer-implemented method of claim 22, wherein
determining, based on the athlete residual value, the portion of
the aggregate income that is revenue shared with the particular
athlete comprises: computing the aggregate income that is revenue
shared with a particular athlete as an amount of the aggregate
income multiplied by the athlete residual value divided by a number
of athletes on the particular collegiate sports team.
27. The computer-implemented method of claim 22, wherein causing
the determined portion of the aggregate income to be placed in the
student athlete trust for the particular athlete prevents the
particular athlete from being paid for participating in the
particular collegiate sports team until the particular athlete
reaches a specified age.
28. The computer-implemented method of claim 22, further
comprising: detecting that the particular athlete has reached a
specified age; and causing a disbursement of at least a portion of
funds from the student athlete trust to the particular athlete.
29. The computer-implemented method of claim 28, where the
disbursement is a specified amount of funds that is less than a
total amount of funds in the student athlete trust.
30. The computer-implemented method of claim 22, further
comprising: detecting that the particular athlete is not NCAA
eligible; and causing a disbursement from the student athlete trust
to the particular athlete.
31. The computer-implemented method of claim 22, further
comprising: causing an early disbursement of at least a portion of
funds in the student athlete trust to the particular athlete.
32. An electronic system comprising: one or more processing
devices; and one or more machine-readable hardware storage devices
storing instructions that are executable by the one or more
processing devices to perform operations comprising: retrieving
information indicative of a designation of a portion of aggregate
income of a college that is attributable to a plurality of
collegiate sports teams and income attributable to a particular one
of the collegiate sports teams; for the particular one of the
collegiate sports teams, determining an athlete residual value that
is at least partly based on a ratio of income attributable to the
particular one of the collegiate sports teams to aggregate income
attributable to the plurality of collegiate sports teams;
determining, based on the athlete residual value, a portion of the
aggregate income that is revenue shared with a particular athlete
of the particular one of the collegiate sports teams; and causing
the determined portion of the aggregate income to be placed in a
student athlete trust for the particular athlete with the student
athlete trust having amateur status restrictions that prevent
accessing of funds in the trust while a student athlete.
33. The electronic system of claim 32, wherein the operations
further comprise: receiving a request from the particular athlete
to access funds in the student athlete trust; and determining by
the computer whether the particular athlete has amateur status
restrictions that prevent accessing of the funds in the student
athlete trust by the particular athlete.
34. The electronic system of claim 32, wherein a condition of the
student athlete trust is that a trust beneficiary who is receiving
a partial scholarship may later reimburse the college from proceeds
in the trust for a portion of tuition that is not covered by the
partial scholarship.
35. The electronic system of claim 32, wherein the operations
further comprise: determining an amount of unpaid tuition that is
due to the college by the particular athlete; and causing a
disbursement of funds from the student athlete trust to a financial
account of the college for at least a portion of the unpaid
tuition.
36. The electronic system of claim 32, wherein determining, based
on the athlete residual value, the portion of the aggregate income
that is revenue shared with the particular athlete comprises:
computing the aggregate income that is revenue shared with a
particular athlete as an amount of the aggregate income multiplied
by the athlete residual value divided by a number of athletes on
the particular collegiate sports team.
37. The electronic system of claim 32, wherein causing the
determined portion of the aggregate income to be placed in the
student athlete trust for the particular athlete prevents the
particular athlete from being paid for participating in the
particular collegiate sports team until the particular athlete
reaches a specified age.
38. The electronic system of claim 32, wherein the operations
further comprise: detecting that the particular athlete has reached
a specified age; and causing a disbursement of at least a portion
of funds from the student athlete trust to the particular
athlete.
39. The electronic system of claim 38, where the disbursement is a
specified amount of funds that is less than a total amount of funds
in the student athlete trust.
40. The electronic system of claim 32, wherein the operations
further comprise: detecting that the particular athlete is not NCAA
eligible; and causing a disbursement from the student athlete trust
to the particular athlete.
41. The electronic system of claim 32, wherein the operations
further comprise: causing an early disbursement of at least a
portion of funds in the student athlete trust to the particular
athlete.
42. One or more machine-readable hardware storage devices storing
instructions that are executable by one or more processing devices
to perform operations comprising: retrieving information indicative
of a designation of a portion of aggregate income of a college that
is attributable to a plurality of collegiate sports teams and
income attributable to a particular one of the collegiate sports
teams; for the particular one of the collegiate sports teams,
determining an athlete residual value that is at least partly based
on a ratio of income attributable to the particular one of the
collegiate sports teams to aggregate income attributable to the
plurality of collegiate sports teams; determining, based on the
athlete residual value, a portion of the aggregate income that is
revenue shared with a particular athlete of the particular one of
the collegiate sports teams; and causing the determined portion of
the aggregate income to be placed in a student athlete trust for
the particular athlete with the student athlete trust having
amateur status restrictions that prevent accessing of funds in the
trust while a student athlete.
43. The one or more machine-readable hardware storage devices of
claim 42, wherein the operations further comprise: receiving a
request from the particular athlete to access funds in the student
athlete trust; and determining by the computer whether the
particular athlete has amateur status restrictions that prevent
accessing of the funds in the student athlete trust by the
particular athlete.
44. The one or more machine-readable hardware storage devices of
claim 42, wherein a condition of the student athlete trust is that
a trust beneficiary who is receiving a partial scholarship may
later reimburse the college from proceeds in the trust for a
portion of tuition that is not covered by the partial
scholarship.
45. The one or more machine-readable hardware storage devices of
claim 42, wherein the operations further comprise: determining an
amount of unpaid tuition that is due to the college by the
particular athlete; and causing a disbursement of funds from the
student athlete trust to a financial account of the college for at
least a portion of the unpaid tuition.
Description
CLAIM OF PRIORITY
[0001] This application claims priority to U.S. patent application
Ser. No. 14/078,111, filed Nov. 12, 2013 (U.S. Pat. No. 8,781,939),
which claims priority under 35 U.S.C. .sctn.119(e) to U.S.
Provisional Patent Application No. 61/886,455, filed Oct. 3, 2013,
the entire contents of each of which are hereby incorporated by
reference.
BACKGROUND
[0002] This invention relates to financial products, and more
particularly to amateur athlete compensation.
[0003] Amateur athletic programs such as college and university
sports programs, in particular college football and basketball
teams, derive large sums of money per year from various sources,
including but not limited to national and regional broadcast and
cable networks that televise games, local, regional and national
radio networks that broadcast games, ticket sales, and concessions
at stadiums, as well as license fees from collegiate sport branded
merchandise. Various organizations oversee athletic programs of
many colleges and universities. One such organization is the
National Collegiate Athletic Association ("NCAA"). Various rules of
athletic organizations (e.g., the NCAA) prevent and/or discourage
colleges and universities from paying college athletes (aside from
scholarships) direct compensation such as a salary or monetary
bonus, e.g., while a college athlete is still in school, in order
to preserve a student athlete's amateur status.
SUMMARY
[0004] In general, one innovative aspect of the subject matter
described in this specification can be embodied in methods that
include the actions of retrieving by a computer information
indicative of aggregate income attributable to a plurality of
collegiate sports teams and a number of amateur student athletes
participating in the collegiate sports teams; determining, based on
the aggregate income and the number of number of amateur student
athletes, a portion of the aggregate income that is revenue shared
with a particular amateur student athlete; and causing the
determined portion of the aggregate income to be placed in an
amateur athletic account that is held in trust for the particular
amateur student athlete via an amateur athletic trust. A system of
one or more computers can be configured to perform particular
operations or actions by virtue of having software, firmware,
hardware, a hardware storage device or a combination of them
installed on the system that in operation causes or cause the
system to perform the actions. One or more computer programs can be
configured to perform particular operations or actions by virtue of
including instructions that, when executed by data processing
apparatus, cause the apparatus to perform the actions.
[0005] Another innovative aspect of the subject matter described in
this specification can be embodied in methods that include the
actions of retrieving by a computer information indicative of
aggregate income attributable to a plurality of collegiate sports
teams and income attributable to a particular collegiate sports
team in the plurality of collegiate sports teams; for a particular
collegiate sports team, determining by the computer an athlete
residual value for the particular collegiate sports team, the
athlete residual value at least partly based on the aggregate
income that is attributable to the plurality of collegiate sports
teams and the income that is attributable to the particular
collegiate sports team; determining, based on the athlete residual
value, a portion of the aggregate income that is revenue shared
with a particular athlete of the particular collegiate sports team;
and causing the determined portion of the aggregate income to be
placed in a student athlete retirement trust for the particular
athlete. Other embodiments of this aspect include corresponding
computer systems, apparatus, and computer programs recorded on one
or more computer storage devices, each configured to perform the
actions of the methods.
[0006] Implementations of the disclosure can include one or more of
the following features. In some examples, determining the athlete
residual value comprises: determining a first athlete residual
component that is based on a ratio of (i) the income that is
attributable to the particular collegiate sports team in the
plurality, to (ii) the aggregate income that is attributable to the
plurality of collegiate sports teams; determining a second athlete
residual component that is based on a ratio of (i) a number or an
amount of scholarships that is attributable to the particular
collegiate sports team in the plurality, and (ii) an aggregate
number or an aggregate amount of scholarships is attributable to
the plurality of collegiate sports teams; determining a third
athlete residual component that is based on a ratio of (i) a number
of athletes on the particular collegiate sports team in the
plurality, to (ii) an aggregate number of athletes participating in
the plurality of collegiate sports teams; and applying a
mathematical operation to the first, second, and third athlete
residual components. The actions include applying a first weighed
value to the first athlete residual component; applying a second
weighed value to the second athlete residual component; and
applying a third weighed value to the third athlete residual
component; wherein applying the mathematical operation comprises:
applying the mathematical operation to the first, second, and third
weighted athlete residual components.
[0007] In still other examples, the action of applying the first,
second, and third weighted values causes the determined portion of
the aggregate income to be proportionate to the ratio of (i) income
attributable to the particular collegiate sports team, to (ii) the
income attributable to the plurality of collegiate sports teams. In
some examples, the first weighted value has a value of 0.34. In
other examples, the weighted value has a value of 0.30. In still
other examples, the weighted value has a value of 0.36. The action
of determining, based on the athlete residual value, the portion of
the aggregate income that is revenue shared with the particular
athlete comprises: computing a ratio of (i) an amount of the
aggregate income multiplied by the athlete residual value, to (ii)
a number of athletes on the particular collegiate sports team in
the plurality. The action of determining, based on the athlete
residual value, the portion of the aggregate income that is revenue
shared with the particular athlete comprises: determining, based on
(i) the athlete residual value, (ii) an amount of the aggregate
income, and (i) a number of athletes on the particular collegiate
sports team in the plurality, the portion of the aggregate income
that is revenue shared with the particular athlete. The action of
causing the determined portion of the aggregate income to be placed
in the student athlete retirement trust for the particular athlete
prevents the particular athlete from being paid for participating
in the particular collegiate sports team until the particular
athlete reaches a specified age. The actions include detecting that
the particular athlete has reached a specified age; and causing a
disbursement from the student athlete retirement trust to the
particular athlete. The actions include detecting that the
particular athlete is not NCAA eligible; and causing a disbursement
from the student athlete retirement trust to the particular
athlete.
[0008] All or part of the foregoing may be implemented as a
computer program product including instructions that are stored on
one or more non-transitory machine-readable storage media, and that
are executable on one or more processing devices. All or part of
the foregoing may be implemented as an apparatus, method, or
electronic system that may include one or more processing devices
and memory to store executable instructions to implement the stated
functions.
[0009] The details of one or more embodiments of the invention are
set forth in the accompanying drawings and the description below.
Other features, objects, and advantages of the invention will be
apparent from the description and drawings, and from the
claims.
DESCRIPTION OF DRAWINGS
[0010] FIG. 1 is a diagram of a system for determining and
investing a portion of aggregate income.
[0011] FIG. 2 is a block diagram of components of a system for
determining and investing a portion of aggregate income from a
university.
[0012] FIGS. 3 and 4 are flow charts of processes executed by a
system for determining and investing a portion of aggregate income
from a university.
DETAILED DESCRIPTION
[0013] A system consistent with this disclosure promotes revenue
sharing for college athletes (when they are in retirement) and
prevents paying colleges athletes while they are in school.
[0014] In this example, a computerized system maintains information
indicative of the income (derived and attribute to collegiate
sports teams), scholarship quantities (and/or amounts), and number
of student athletes per team and per university. Income earned by a
university from each collegiate sports team may include, for
example, income derived from national or local broadcasting of
sporting events, ticket sales, merchandise sales, and concessions
at stadiums. A university may consist of various higher education
institutes having at least one sports team, e.g., under the purview
of the NCAA.
[0015] Described below are mechanisms that may permit a university
to contribute to the future financial security of their student
athletes via student athlete retirement trusts. The student athlete
retirement trusts may be various investment vehicles that are
managed and controlled by an administrator (rather than the student
athlete) for a predefined investment period, e.g., 5, 10, 15, 20,
25, 30, 35, 40 years, and so forth.
[0016] Various types of financial/legal arrangements can be adapted
to provide a student athlete retirement account. Such a student
athlete retirement account would be one that is maintained by a
fiduciary that has a fiduciary relationship to the student athlete
(or a group of student athletes) calling for the fiduciary to hold
the legal title to assets for the benefit of the student athlete.
An example of such a vehicle is a trust, including, e.g., revocable
trusts, irrevocable trusts. In an example, the student athlete
retirement account is a blind trust where the athlete does not know
the amount of funds that are held in trust. In another example, the
student athlete retirement account can be restricted by various
provisions, e.g., a fund reimbursement provision. In this example,
a student athlete receives a tuition scholarship. In this example,
a condition of the trust is that trust beneficiaries (i.e., the
student athletes) who are receiving less than a full (100%)
scholarship may later reimburse the school for the portion of
tuition that is not covered by the scholarship (e.g., if the
student athlete chooses not to pay the uncovered portion of tuition
through other means). Accordingly, the trust may include a
provision that if the student athlete does not receive an entire
scholarship (e.g., a 100% scholarship) the student athlete would
have to repay any monies he/she owes to the school out of this
account--at a specified time in the future.
[0017] In some situations, accounts such as a life insurance trust,
an annuity trust, an individual retirement account ("IRA"), a
401(k) account, a 403(b) account and so forth may be used. For
IRAs, 401(k) accounts, 403(b) accounts, etc., restrictions would
need to be placed on the athlete's access to the account and
ability to withdraw assets. Such restrictions could include vesting
restrictions and having legal title in a third party similar to a
trust.
[0018] Therefore, described below is a novel financial/legal
arrangement that borrows aspects from arrangements such as trusts.
For the purposes herein this arrangement is referred to as an
amateur athletic retirement trust that is held in an amateur
athletic retirement account. The amateur athletic retirement
account holds shares of a financial vehicle, e.g., a mutual
fund.
[0019] A trust has various parties, including a settlor who
transfers some or all of his or her property to a trustee. The
trustee holds that property for the trust's beneficiaries. In this
example, the college is the settlor and the college transfers part
of its assets (income and/or revenue attributable to collegiate
sports of the college) into a trust that is held for a particular
collegiate athlete and which is administered by a trustee. The
trustee includes an appointed employee of a financial institution
(e.g., a bank, a brokerage institution, and so forth), an appointed
official of the university, and so forth, but not the particular
collegiate athlete. The collegiate athlete is the beneficiary of
the trust. In an example, if the funds are in an approved
tax-deferred arrangement such as an IRA, 401(k) etc. having
restrictions noted above, earnings and capital gains may grow tax
deferred in the student athlete retirement trust accounts until
disbursement, e.g., at a retirement age. In an example, the funds
grow tax deferred during a vesting period and are distributed at
the end of the vesting period, e.g., at a retirement age.
[0020] The collegiate athlete's lack of control over the funds
prevents the collegiate athlete from being paid for participating
on a collegiate sports team, i.e., in accordance with NCAA
guidelines and policies. In an example, a governing body, e.g., the
NCAA, enables and monitors revenue sharing between collegiate
athletes and universities. In another example, collegiate athletes
are engaged, over the course of their lives, in financial education
and planning.
[0021] Referring now to FIG. 1, an example environment 100 for
promoting revenue sharing with collegiate athletes includes client
devices 102, 108, network 110, server 112, and data repository 114.
Client device 102 is used by user 104. Client device 108 is used by
user 106. In this example, user 104 is a collegiate athlete that is
subject to, e.g., NCAA rules regarding compensation, and user 106
is an official of a governing organization, e.g., an NCAA official.
The users 104, 106 may use the client devices 102, 108 to access
server 112 via the network 110. The client devices 102, 108
communicate with each other over network 110 and can run programs
having a client-server relationship to each other.
[0022] In an example, server 112 may be associated with a college
and/or university, e.g., when the college and/or university
performs the calculations that determines amounts of funds to
apportion among collegiate athletes, e.g., to promote revenue
sharing. In another example, server 112 may be associated with a
particular financial institution that is holding and/or managing
the student athlete retirement trust.
[0023] In this example, server 112 obtains, from data repository
114, various types of information, including, e.g., aggregate
income information 124 for a plurality of collegiate sports teams
at a particular college, team income information 116 indicative of
income that is attributable to a specific sports team at the
particular college, aggregate income information 126 indicative of
aggregate scholarship quantities (and/or amounts) that are
attributable to a plurality of collegiate sports teams at the
particular college, team scholarship information 120 indicative of
scholarship quantities (and/or amounts) that are attributable to a
specific sports team at the particular college, aggregate team size
information 128 indicative of aggregate team sizes that are
attributable to a plurality of collegiate sports teams at the
particular college, team size information 122 indicative of the
number of players on a specific sports team, and investment
information 130.
[0024] In an example, the aggregate income is a university's entire
income (university aggregate income). In still another example, the
aggregate income is the income of the athletic department (athletic
department aggregate income). The techniques described herein may
be applied with regard to university aggregate income and/or with
regard to athletic department aggregate income. In some examples, a
user of the system may select which aggregate income (i.e.,
university aggregate income or athletic department aggregate
income) to use in computing athlete residual values.
[0025] In this example, investment information 130 includes
information indicative of various investment vehicles that are used
by the particular college to revenue share income and revenue with
collegiate athletes. For example, investment information 130 may
include a name of an annuity trust that holds funds in trust for a
collegiate athlete and information specifying a name of a financial
institution that holds the trust. Investment information 130 may
also include information specifying an amount of funds that are
held in trust for the student athlete.
[0026] In this example, the server 112 generates a graphical user
interface (not shown), and the users 104, 106 may view the actual
and/or anticipated investments over on the client devices 102, 108.
In another example, server 112 also transmits annuity investment
information related to portions of the aggregate income previously
placed in a student athlete retirement trust, e.g., for a
particular collegiate athlete, particular collegiate team, or
plurality of collegiate teams.
[0027] In an example, an administrator of a particular college may
enter into the data repository 114 the various types of information
116, 120, 122, 124, 126, 128, 130. In another example, server 112
may obtain one or more types of information 116, 120, 122, 124,
126, 128, 130 by accessing NCAA compliance forms generated by
student athletes and participating universities. Server 112 parses
the compliance forms and selects one or more types of information
116, 120, 122, 124, 126, 128, 130. As described in further detail
below, one or more types of information 116, 120, 122, 124, 126,
128, 130 are used by server 112 in determining a portion of
aggregate income information 124 and/or team income information 116
that is held in trust for a particular athlete.
[0028] In the example of FIG. 1, environment 100 also includes
financial institution 140. In this example, user 104 is a NCAA
collegiate athlete and financial institution 140 holds trust 141
for user 104. In this example, the terms of trust 141 specify that
funds held in trust for user 104 are released to user 104 upon
retirement and/or when user 104 reaches a specified age at which
funds from the student athlete retirement trust are disbursed. The
specified age includes a retirement age and an age at which the
particular college athlete is no longer NCAA eligible. For example,
a specified age of the particular collegiate athlete may be 70, 65,
60, 55, 50, 45, 40, 35, and 30 or various years in between these
years.
[0029] In this example, server 112 executes one or more rules
and/or operations that use one or more types of information 116,
120, 122, 124, 126, 128, 130 to determine income portion
information 131, including, e.g., a portion of team income (that is
represented by team income information 116) that is held in trust
for user 104. Following determination of income portion information
131, server 112 (and/or a college) causes a transfer of funds from
the college to trust 141 in an amount that equals an amount
specified by income portion information 131. In some embodiments,
server 112 detects that the user 104 has reached a specified age
and causes a disbursement from the student athlete retirement trust
to the user 104. In this example, the user 104 has reached a
retirement age, e.g., 65, prior to disbursement. In another
example, the user 104 is no longer NCAA eligible, prior to
disbursement.
[0030] In still other examples, various financial vehicles (e.g.,
IRAs, 401(k)s, and so forth) allow for early disbursement, e.g.,
upon satisfaction of various conditions such as hardship and
medical expenses. When the funds that are held for trust (for the
student athlete) are invested in such a financial vehicle that
allows for early disbursement, a student athlete may receive an
early disbursement, e.g., if and when the student athlete is able
to satisfy one or more of the conditions that allows for the early
disbursement. FIG. 2 is a block diagram of components of network
environment 100. In FIG. 2, client devices 102, 108 can be any sort
of computing devices capable of taking input from a user and
communicating over network 110 with server 112 and/or with other
client devices. For example, client devices 102, 108 can be mobile
devices, desktop computers, laptops, cell phones, personal digital
assistants ("PDAs"), iPhone, smart phones, iPads, servers, embedded
computing systems, and so forth.
[0031] Network environment 100 also includes memory 144, a bus
system 146, and a processor 148. Memory 144 can include a hard
drive and a random access memory storage device, such as a dynamic
random access memory, machine-readable media, or other types of
non-transitory machine-readable storage devices. A bus system 146,
including, for example, a data bus and a motherboard, can be used
to establish and to control data communication between the
components of server 112. Processor 148 may include one or more
microprocessors and/or processing devices. Generally, processor 148
may include any appropriate processor and/or logic that is capable
of receiving and storing data, and of communicating over a network
(not shown).
[0032] Server 112 can be any of a variety of computing devices
capable of receiving data, such as a server, a distributed
computing system, a desktop computer, a laptop, a cell phone, a
rack-mounted server, and so forth. Server 112 may be a single
server or a group of servers that are at a same location or at
different locations. The illustrated server 112 can receive data
from client devices 102, 108 via input/output ("I/O") interface
140. I/O interface 140 can be any type of interface capable of
receiving data over a network, such as an Ethernet interface, a
wireless networking interface, a fiber-optic networking interface,
a modem, and so forth.
[0033] Referring now to FIG. 3, server 112 implements process 300
in determining the portion of the university's aggregate income
that is attributable to collegiate sports (e.g., as represented by
aggregate income information 124) to be placed in a student athlete
retirement trust (e.g., trust 141) for the particular athlete. In
operation, server 112 retrieves (302), from data repository 114,
the aggregate income attributable to a plurality of collegiate
athletic teams at a particular university (e.g., as represented by
aggregate income information 124). The aggregate income may
include, for example, monies and barter dollars earned from
broadcasting college sports programs, playing sports at the school,
including but not limited to TV income, ticket sales, merchandise
sales, and concessions at stadiums.
[0034] Server 112 also retrieves (304) information (e.g., team
income information 116) indicative of income attributable to a
particular sports team. Using the aggregate income that is
attributable to the plurality of collegiate sports teams and the
income that is attributable to the particular collegiate sports
team in the plurality, server 112 determines (306) an athlete
residual value. Generally, an athlete residual value is a value
that is used in determining a portion of remaining aggregate income
(income that remains after at least a portion of expenses are
deducted from revenue) that is paid to a particular collegiate
athlete and/or that is paid to a particular team. For example, an
athlete residual value specifies a percentage of sports income that
is shared with a particular sports team. In this example, the
percentage of sports income that is shared with a particular sports
team is evenly allocated among the members of the team.
[0035] Server 112 determines (308) a shared revenue portion (e.g.,
a portion represented by information 131) for a particular athlete
based on the athlete residual value and based on the aggregate
income for collegiate sports. This shared revenue portion for the
particular athlete is referred to as a shared athlete revenue
portion. As described in further detail below, server 112
calculates an athlete residual value for a particular team. In an
example, different teams have different athlete residual values.
That is, the athlete residual value specifies what portion of total
collegiate sports income is attributable or shared with a
particular sports team.
[0036] In an example, a college has three different sports teams,
e.g., Team A, Team B, and Team C. In this example, using the
techniques described herein, server 112 calculates three different
athlete residual values one for each of Team A, Team B, and Team C,
e.g., Athlete Residual Value.sub.Team A, Athlete Residual
Value.sub.Team B and Athlete Residual Value.sub.Team C. In this
example, each of Athlete Residual Value.sub.Team A, Athlete
Residual Value.sub.Team B and Athlete Residual Value.sub.Team C
specifies an amount (e.g., a percentage) of the aggregate sports
income that is attributable to (or otherwise payable to) athletes
on the different sports teams.
[0037] In this example, a sum of Athlete Residual Value.sub.Team A,
Athlete Residual Value.sub.Team B and Athlete Residual
Value.sub.Team C (expressed in percentages) equals a value of one,
as shown below:
Athlete Residual Value.sub.Team A+Athlete Residual Value.sub.Team
B+Athlete Residual Value.sub.Team C=1
[0038] Server 112 determines a team revenue portion (for a
particular team A) that is based on aggregate income for a
plurality of collegiate sports at a university and the athlete
residual value for the particular team, as indicated in the below
Table 1A.
TABLE-US-00001 TABLE 1A Team Revenue Portion.sub.Team A = Aggregate
income * Athlete Residual Value.sub.Team A
[0039] In the example of Table 1A, server 112 determines the team
revenue portion by multiplying the aggregate income by the athlete
residual value for a particular team. In an example, aggregate
income includes an amount of income derived or otherwise
attributable to a sports program at a university. In another
example, aggregate income includes an amount of income that is
designated as being revenue shared with college athletes. That is,
the aggregate income is a portion of athletic department aggregate
income that has been designed for revenue sharing. Server 112
determines the shared athlete revenue portion (per year) for a
particular athlete by dividing the team revenue portion by the
number of athletes on the particular team (as represented by team
size information 122), as shown in the below Table 1B.
TABLE-US-00002 TABLE 1B Athlete revenue portion.sub.Team A = Team
Revenue Portion.sub.Team A/Number of Athletes.sub.Team A
[0040] In this example, Athlete revenue portion.sub.Team A includes
portion 131 (FIG. 1). Server 112 causes (310) the shared athlete
revenue portion for the particular student athlete (e.g., Athlete
revenue portion.sub.Team A) to be placed in a student athlete
retirement trust for the particular student athlete by server 112
causing a transfer of funds in the determined amount from an
account associated with the college to a financial institution that
is holding the funds for the particular collegiate athlete.
[0041] Server 112 determines an athlete residual value (for a
particular team) using aggregate income information 124, team
income information 116, aggregate scholarship information 126
(e.g., an amount and/or a number of scholarships received by a
university for sports programs), team scholarship information 120
for a particular sports team, e.g., an amount and/or a number of
scholarships received by a university for a particular sports team,
and number of student athletes (e.g., team size information 122 and
aggregate team size information 128). In this example, server 112
and data repository 114 is used for tracking of college revenues
and/or income.
[0042] Referring now to FIG. 4, server 112 determines 400 an
athlete residual value. Using retrieved aggregate income and
retrieved income for a particular sports team, server 112
determines (408) an income ratio of the income attributable to a
particular collegiate sports team (e.g., sports team A) to the
aggregate income generated by a plurality of collegiate sports at
the university (i.e., athletic department aggregate income), as
shown in the below Table 2.
TABLE-US-00003 TABLE 2 Income Ratio.sub.Team A = Income.sub.Team
A/Athletic Department Aggregate Income
[0043] In the example of FIG. 4, server 112 also determines (410) a
scholarship ratio of a quantity (and/or amount) of scholarships
provided to a particular collegiate team (e.g., Team A) multiplied
by the aggregate quantity (and/or amount) of athletic scholarships
at the university, as shown in the below Table 3:
TABLE-US-00004 TABLE 3 Scholarship Ratio.sub.Team A = (Team A
Scholarships)/(Total Sports Scholarships)
[0044] In this example, server 112 also determines (412) a team
size ratio the number of collegiate athletes on a particular team
(e.g., Sports A) to the total number of collegiate athletes at the
university, as shown in the below Table 4:
TABLE-US-00005 TABLE 4 Team size ratio.sub.Team A = Team A
Players/Total # Players
[0045] In an example, server 112 applies (414) one or more
mathematical operations to the income ratio, the scholarship ratio
and the team size ratio for Team A. There are various types of
applied mathematical operations, including, e.g., additive
operations. In this example, the mathematical operations define a
relationship among the income ratio, the scholarship ratio and the
team size ratio for Team A, as shown below:
Athlete residual value.sub.Team A=(Income Ratio.sub.Team
A)+(Scholarship Ratio.sub.Team A)+(Team Size Ratio.sub.Team A).
[0046] Based on application of the mathematical operation, server
112 determines (416) an athlete residual value (for Team A) based
on the income ratio, the scholarship ratio and the team size ratio
for Team A. For example, the athlete residual value includes the
sum of the income ratio, the scholarship ratio, and the team size
ratio.
[0047] In another example, before combination, server 112 may
adjust one or more of the income ratio, the scholarship ratio, the
team size ratio, or any combination thereof by a weighted value
that promotes collegiate teams with the greatest income receiving
the greatest shared revenue portion. For example, the weighted
values can be from 0.25 to 0.4, e.g., 0.25, 0.28, 0.3, 0.32, 0.34,
0.36, 0.38, 0.40. In this example, the income ratio may be
multiplied by 0.34, the scholarship ratio may be multiplied by 0.3,
and the team size ratio may be multiplied by 0.36, as shown in the
following athlete residual value formula in the below Table 5:
[0048] In Table 5 below, the athlete residual value is computed for
a particular team, e.g., Team A.
TABLE-US-00006 TABLE 5 Athlete residual value.sub.Team A =
(0.34)(Income Ratio.sub.Team A) + (0.3)(Scholarship Ratio.sub.Team
A) + (0.36)(Team Size Ratio.sub.Team A).
[0049] In some embodiments, server 112 monitors investments placed
in the student athlete retirement trusts and transmits information,
e.g., statements, graphical representations, pertaining to these
athlete retirement trusts over the network 110 to the client
devices 102,108. The users 104, 106 may monitor the student athlete
retirement trusts via the client devices 102, 108. In another
example, statements may be delivered electronically or physically
to the users 102, 106. Monitoring and statements may continue until
the collegiate athlete reaches a specified age, e.g., 65, another
retirement age, and/or until the collegiate athlete is no longer
NCAA eligible. In this example, student athletes will not select or
choose investment vehicles. Rather, the investment vehicles (e.g.,
the trusts) will be placed in managed account by professional who
have plans to mature the accounts by years. In this example, the
funds in the trust will grow tax deferred (e.g., if the funds are
structured within a traditional IRA) but will be taxable to the
student athlete upon disbursement.
[0050] Custody of the determined portion of the aggregate income in
the student athlete retirement trust for the particular athlete
prevents the particular athlete from being paid for participating
in the particular collegiate sports team until the particular
athlete reaches a specified age. Server 112 is configured to
monitor an age of the particular athlete, e.g., by receiving
information from the NCAA or receiving information from a
university specifying an age of the athlete when the athlete
becomes a member of the university's sports program, and so
forth.
[0051] In this example, one of the provisions of the trust (e.g.,
trust 141) is that funds are disbursed to an athlete at retirement
age, e.g., age sixty-five. The server 112 monitors the age of the
particular athlete and when the server 112 detects that the
particular athlete has reached a specified age (e.g., a retirement
age), server 112 causes a disbursement from the student athlete
retirement trust to the particular athlete. In an example, server
112 causes the disbursement by sending a notification and/or
instructions to the financial institution 140 to cause a
disbursement for a specified amount. In an example, the funds in
trust 141 are disbursed in even amounts from the age of retirement
to an expected age of death. In this example, the disbursement
amounts are equal in value. For example, if the retirement age is
65 and an expected age of death is 85, the funds in trust 141 are
evenly disbursed (e.g., on a yearly basis and over a twenty year
period), such that when the athlete reaches age 85 the funds in
trust 141 are depleted.
[0052] In another example, trust 141 is an annuity trust. In this
example, when the athlete reaches the specified age, an annuity
payment (e.g., of a predefined amount) is made to the athlete
annually and until death. Upon death of the athlete, the financial
intuition 140 becomes the owner of any remainder in the trust
funds.
[0053] In still another example, the funds in trust 141 are held
until the particular athlete is not NCAA eligible, e.g., is no
longer a NCAA athlete. In this example, server 112 receives from
the NCAA statements that indicate NCAA athletes and/or statements
that include names of individuals who are no longer NCAA eligible.
Using the statements, server 141 detects that the particular
athlete is not NCAA eligible, e.g., because the particular athlete
is no longer included on the statements. Upon this detection,
server 112 causes a disbursement from the student athlete
retirement trust to the particular athlete.
[0054] Server 112 includes a record keeping system to track data in
a tiered manner, with the lowest level being an individual
contribution record made at least once per year that a student
plays. This record includes an identifier that is associated with
the student. Various types of identifiers can be used including,
e.g., a social security number, an alternative-ID, such a student
ID, and so forth. The record also includes a field for a total
number of units or shares of a fund that are in trust for the
student, a date field and other fields that promote logging and
tracking of the record. The record also includes information
specifying an amount of funds, shares, units or earning segments
that the athlete has earned each year.
[0055] Using contents of the record, server 112 determines an
amount of funds that are available for investment and initiates
purchasing of shares of a mutual fund or a long-term investment
vehicle that a trustee has determined is appropriate to support the
athlete's retirement goals (e.g., a timeframe of retiring at sixty
or seventy years of age). Following the purchase, the record is
updated to reflect an account number for the purchased fund and an
amount of shares purchased.
[0056] Each year a student athlete participates in a collegiate
sport, server 112 generates an individual contribution record for
the student athlete. Server 112 tracks and accumulates these
records over time to reflect equitable ownership rights (i.e.,
equitable title in contrast to legal title) or as an alternative,
actual ownership of shares in a fund of a student. Server 112
aggregates (e.g., rolls-up) the individual records to calculate an
aggregate balance or amount of fund ownership for a student.
[0057] The recording keeping system of server 112 enables a student
account to increase in value by adding more units to the account
(e.g., when the account is a money market fund) or by the units
growing in value (e.g., when the account is a mutual fund).
Additionally, server 112 tracks records for multiple athletes (on a
yearly basis) and for multiple schools. Server 112 aggregates the
records for athletes at a particular school, e.g., to determine an
aggregate balance in the funds that are held by athletes of the
particular school.
[0058] Referring back to FIG. 1, environment 100 also includes a
funding and transfer system 111 for purchasing shares of a fund and
for transferring funds to a financial institution for the purchase.
The funding and transfer system 111 is associated with a trustee
bank and/or a trustee. A university sends funds that are allocated
to various students to a trustee bank that in turn makes the funds
available to the trustee. The trustee causes a transfer of the
funds to the financial institution 140 for purchases of funds. The
trustee coverts the funds to units or shares either at a record
level by student or a master trust per school level, e.g., by using
the funds to purchase units or shares. The record keeping system
tracks the per student level of funds.
[0059] In another example, the techniques and system described
maintain an amateur athletic trust that is held in an amateur
athletic account. The amateur athletic account holds shares of a
financial vehicle, e.g., a mutual fund. In this example, the
amateur athletic account is not a retirement account and the funds
vest after a time period that is independent of retirement. For
example, the funds vest following satisfaction of predefined
conditions, including, e.g., an individual is no longer NCAA
eligible, an individual graduates from a college or university and
so forth.
[0060] In this example, server 112 determines an amount of funds to
be distributed to a particular student athlete on an annual basis.
The determined amount of funds per student athlete are independent
of a residual value and are rather based on (i) an aggregate income
that is derived or otherwise attributable to a sports program at a
university, and (ii) a number of students participating in a
college sports program, as shown below Table 6:
TABLE-US-00007 TABLE 6 Athlete revenue portion.sub.For a particular
Student Athlete = Aggregate Income/Number of
Athletes.sub.Participating in Sports Program
[0061] As shown in the above formula in Table 6, the aggregate
income is evenly distributed among student athletes participating
in the college athletic program (e.g., a NCAA, non-intramural
athletic program). In another example, the aggregate income
includes a portion of the income (i) that is derived from or
otherwise attributable to a sports program, and (ii) that has been
designated as being eligible for allocation to student athletes
(e.g., via various trust vehicles). In this example, even if sports
team A derives more income for a university than sports team B,
each of the athletes in sports teams A and B receive an equal
amount of funds (that are held in trust), when funds are
distributed to student athletes in accordance with the equation
shown in the above Table 6.
[0062] Embodiments can be implemented in digital electronic
circuitry, or in computer hardware, firmware, software, or in
combinations thereof. Apparatus of the invention can be implemented
in a computer program product tangibly embodied or stored in a
machine-readable storage device for execution by a programmable
processor; and method actions can be performed by a programmable
processor executing a program of instructions to perform functions
of the invention by operating on input data and generating output.
The invention can be implemented advantageously in one or more
computer programs that are executable on a programmable system
including at least one programmable processor coupled to receive
data and instructions from, and to transmit data and instructions
to, a data storage system, at least one input device, and at least
one output device. Each computer program can be implemented in a
high-level procedural or object oriented programming language, or
in assembly or machine language if desired; and in any case, the
language can be a compiled or interpreted language.
[0063] Suitable processors include, by way of example, both general
and special purpose microprocessors. Generally, a processor will
receive instructions and data from a read-only memory and/or a
random access memory. Generally, a computer will include one or
more mass storage devices for storing data files; such devices
include magnetic disks, such as internal hard disks and removable
disks; magneto-optical disks; and optical disks. Storage devices
suitable for tangibly embodying computer program instructions and
data include all forms of non-volatile memory, including by way of
example semiconductor memory devices, such as EPROM, EEPROM, and
flash memory devices; magnetic disks such as internal hard disks
and removable disks; magneto-optical disks; and CD ROM disks. Any
of the foregoing can be supplemented by, or incorporated in, ASICs
(application-specific integrated circuits).
[0064] Other embodiments are within the scope and spirit of the
description claims. Additionally, due to the nature of software,
functions described above can be implemented using software,
hardware, firmware, hardwiring, or combinations of any of these.
Features implementing functions may also be physically located at
various positions, including being distributed such that portions
of functions are implemented at different physical locations. The
use of the term "a" herein and throughout the application is not
used in a limiting manner and therefore is not meant to exclude a
multiple meaning or a "one or more" meaning for the term "a."
Additionally, to the extent priority is claimed to a provisional
patent application, it should be understood that the provisional
patent application is not limiting but includes examples of how the
techniques described herein may be implemented.
[0065] A number of embodiments of the invention have been
described. Nevertheless, it will be understood that various
modifications may be made without departing from the spirit and
scope of the invention.
* * * * *