The SEC is considering imposing a luxury tax on member schools that spend more on players than the allotted revenue-sharing cap under the House v. NCAA settlement, sources told ESPN on Friday.
A working group of athletic directors, university presidents and general counsels have been considering the issue the past few weeks, and the league may vote on the issue in the near future, sources said.
The SEC would like to approve the luxury tax before the early signing period for football (Dec. 2-4).
Sources told ESPN that there's still much debate on the issue, but one formula being considered would be to gradually tax schools once they exceed the annual revenue-sharing cap, which was $21.