Texas A&M boosters paying $30M NIL

[upperdeck]

In theory. But if I own a business, I can pay someone whatever I want to endorse my business. And if someone decides to invest in my business so that I can do that, they're allowed to. It doesn't matter that it's bad business. Or if I want to buy 10,000 shirts with my starting QBs name on it and make sure every 5 star QB recruit knows I'll do this for the starting QB of my team, I can.

The athletes own their name, image, and likeness. This was the way it was always going to go. It's no more ridiculous than Lebron James signing the crazy Nike contract he did coming out of high school. The difference here is that it creates/exacerbates competitive imbalance, which is something that should exist to some extent in college sports. I don't like it, but I expected it. I'm surprised anyone has been caught off guard by it. Thinking that these guys were gonna just sign endorsement deals for a few extra bucks with their local grocery stores, was always foolish thinking.

and if you run a business where you pay 1 person 5 million and 75 people nothing you pretty soon will not have a business.. even on the same teams now you have huge disparity.. and are these people gonna spend 30 million every year forever?

 

[DMDMD]

and if you run a business where you pay 1 person 5 million and 75 people nothing you pretty soon will not have a business.. even on the same teams now you have huge disparity.. and are these people gonna spend 30 million every year forever?

That would seem to be a problem that will eventually solve itself.

Though through the NIL collectives, they won't be paying 75 people nothing, boosters will now be essentially saying "your local celebrity as a Sports University player is worth $X0,000 per year so long as you make Y number of in person charity event appearances."

 

[TexanMark]

The schools ought to be offering financial planners on retainer to help the kids not be morons with their money.

The state of Florida is going to be requiring HS kids to take a semester course in financial literacy. Finally...all states should do this.

Ofcourse it'll only help those that want to learn

As for your comment...I agree to a point but part of me also thinks if the players want to be independent operators they can figure it on their own. As cruel as it is...sometimes your own mistakes at 20 teach valuable lessons.

Rationally though I'd make a semester course for all the athletes for NIL and money management. Probably wouldn't hurt to have two separate required courses spread over two different semesters

 

[TexanMark]

Alabama started High Tide Tradition earlier this month which is a third party NIL Collective. I doubt the numbers ever get made public but early rumor is over $40M pledged so far.

Wait until the coming recession gets here...these slush funds will be affected

 

[TexanMark]

I'm curious to know if alums will continue to fund facilities and stadium expansions too or if this is a shift to players.

I've been thinking this is a zero sum game...donations to schools surely will go down.

 

[jgeorge322]

That's fair. But athletes wanted to benefit from their own name, image, and likeness without restriction. And the legal arguments for it were mounting. So this was the waynit was going to go. And the universities still don't have to consider them employees or justify paying football players more than softball players.

Right, but the ncaa was so slow damn to move that this is how it was settled. And im afraid it is not good for college athletics because i think the big public schools will benefit long term.

 

[TexanMark]

Newsflash happening in basketball too.

Nouveau Billionaires and their play money.

 

[All4SU]

In theory. But if I own a business, I can pay someone whatever I want to endorse my business. And if someone decides to invest in my business so that I can do that, they're allowed to. It doesn't matter that it's bad business. Or if I want to buy 10,000 shirts with my starting QBs name on it and make sure every 5 star QB recruit knows I'll do this for the starting QB of my team, I can.

The athletes own their name, image, and likeness. This was the way it was always going to go. It's no more ridiculous than Lebron James signing the crazy Nike contract he did coming out of high school. The difference here is that it creates/exacerbates competitive imbalance, which is something that should exist to some extent in college sports. I don't like it, but I expected it. I'm surprised anyone has been caught off guard by it. Thinking that these guys were gonna just sign endorsement deals for a few extra bucks with their local grocery stores, was always foolish thinking.

Except by your own definition example 1 is a player capitalizing on their own, personal image and recognizability. Example 2 is you using the player to expand your reach beyond his personal value to other prospects.

 

[All4SU]

Right, but the ncaa was so slow damn to move that this is how it was settled. And im afraid it is not good for college athletics because i think the big public schools will benefit long term.

I think the ncaa should have fought harder for the integrity of their member institutions and the concept of collegiate athletics.

 

[jgeorge322]

I think the ncaa should have fought harder for the integrity of their member institutions and the concept of collegiate athletics.

Yep, but there are alternatives way to compensate the athletes without making it free agency, which is what we have now. See my post above with the trust structure.

 

[javadoc]

I'm curious to know if alums will continue to fund facilities and stadium expansions too or if this is a shift to players.

Bingo. No need to pay in kind when it can be direct.

 

[Horn88]

The state of Florida is going to be requiring HS kids to take a semester course in financial literacy. Finally...all states should do this.

Ofcourse it'll only help those that want to learn

As for your comment...I agree to a point but part of me also thinks if the players want to be independent operators they can figure it on their own. As cruel as it is...sometimes your own mistakes at 20 teach valuable lessons.

Rationally though I'd make a semester course for all the athletes for NIL and money management. Probably wouldn't hurt to have two separate required courses spread over two different semesters

Wait until the coming recession gets here...these slush funds will be affected

I think it will be common for coaches to have vetted wealth management resources lined up for their players much sooner than later. It will be just another recruiting tool that is free to the program.

Put a note out to alumni that are CPA’s, insurance brokers, attorneys and wealth advisors that they can come prospect/educate the current players and the line would be a mile long to get in the door.

As far as a potential recession impacting the funds, it’s all relative and is very likely already an input in the process.

 

[upperdeck]

we just had a fball thread about the top 40-50 qbs a few years ago and how few panned out for the team they went too. tons of money being dropped on players when 5-10% play at a level most teams hope for

 

[MSOrange]

Oh, absolutely. I'm referring to the factories. SU is going to be left behind. The chasm will get exponentially wider.

Agree. I think SU's glory days are behind us based on the current environment. Not sure it's such a bad thing either. Priorities are just different at these sports factories schools.

 

[All4SU]

I think it will be common for coaches to have vetted wealth management resources lined up for their players much sooner than later. It will be just another recruiting tool that is free to the program.

Put a note out to alumni that are CPA’s, insurance brokers, attorneys and wealth advisors that they can come prospect/educate the current players and the line would be a mile long to get in the door.

As far as a potential recession impacting the funds, it’s all relative and is very likely already an input in the process.

I am all for young people being educated about finances and money management. But I don’t see how this is within the umbrella of NIL. Do all students have access to these services? If not, is it only for special students who we have decided are worthy of this kind of assistance? The Who thing is too one sided.

 

[0.2 YNdeeR]

This is absolutely ridiculous.

It's a rolling DISASTER with no end in sight. For those of us who saw it all coming, it's been an especially painful journey .. watching the NCAA and a few factory schools tilt the D-1/P5 playing field to suit their own financial needs.

Thanks to more cash, looser rules and the emerging booster collectives, these academic pretenders can now openly purchase "student athletes". Even in basketball, the NCAA gave a pat on the back to a champion coach caught buying a recruit on an FBI wiretap. That's where we are ... watching the NCAA (and the amateur model) rot from the top down.

The good news is that there is still strong interest among most legitimate D-1 institutions - and their fans - for genuine amateur athletic competition. The solution for this silent majority is to let 'Bama, Georgia, Texas A&M and the like (Ky in bb) form their own semi-pro "division". Then they can continue doing what they do - a wink to education, a mafia-like governance structure, and ever-increasing amounts of payola funneled to their 5-stars.

 

[rocklloyd]

Remind me are they getting 1099s. This can’t be tax free, can it?

 

[Horn88]

I am all for young people being educated about finances and money management. But I don’t see how this is within the umbrella of NIL. Do all students have access to these services? If not, is it only for special students who we have decided are worthy of this kind of assistance? The Who thing is too one sided.

I think you’re overthinking it.

What’s the downside to a coach trying to give all of their players personal finance skills? Every coach says in their recruiting pitch that they want to prepare their players for life after their sport. Just bring a trusted, vetted professional in to talk to the whole team. Or have a third party set up a panel for the team off campus. The ones who actually need the help because of NIL will naturally have more in depth private conversations.

 

[kcsu]

and if you run a business where you pay 1 person 5 million and 75 people nothing you pretty soon will not have a business.. even on the same teams now you have huge disparity.. and are these people gonna spend 30 million every year forever?

How about the fact that a kid is being paid 400k and for whatever reason the coach doesnt want to play the kid. How is that going to fly

 

[All4SU]

I think you’re overthinking it.

What’s the downside to a coach trying to give all of their players personal finance skills? Every coach says in their recruiting pitch that they want to prepare their players for life after their sport. Just bring a trusted, vetted professional in to talk to the whole team. Or have a third party set up a panel for the team off campus. The ones who actually need the help because of NIL will naturally have more in depth private conversations.

Maybe. But in the post I was responding to, it sounded like a team of financial advisors available to these kids at all times. Basic instruction? Sure. I’m all for it. Also, no problem with letting an athlete take a credit course in personal finances, as long as the general student population of has access to the same instruction.

 

[kcsu]

This will come to a head within a year. The conf are going to have to put an end to this or they will kill the golden goose

 

[cusefan88]

A massive failure by the NCAA (shocking) and conferences to figure out cohesive and consistent rules and regulations around this. Fools.

 

[sufandu]

A massive failure by the NCAA (shocking) and conferences to figure out cohesive and consistent rules and regulations around this. Fools.

Can there be regulations? If you or I have the freedom to sell our own NIL, it is nobody's right to regulate it. This is no longer an NCAA or conference issue. These athletes now have the right to make money off of themselves. Anybody is allowed to pay them to endorse anything they wish or buy any product they produce that's related to them. As long as it's not pay for play, the only rules they have to follow are income tax rules.

 

[rrlbees]

Agree, a sprawling DISASTER with no end in sight. For those of us who saw it all coming, it's been an especially painful journey .. watching the NCAA and a few factory schools transform D-1/P5 football and basketball into a semi-pro farce.

Thanks to more cash and looser rules, NIL collectives now openly purchase "student athletes", and there's a pat on the back for a champion basketball coach caught buying a recruit on an FBI wiretap. That's where we are ... watching a system built (and legally dependent) on the amateur model rot from the top down.

The good news is that there is still a strong interest among legitimate academic institutions - and their fans - for genuine amateur athletic competition. Let 'Bama, Georgia and Texas A&M (along with Ky in bb) form their own "division" and do what they do - give a wink and a nod to education under a mafia-like governance structure, infused by ever-increasing amounts of payola. No wonder attendance is declining.

What I don’t get is that some schools will benefit while others will get screwed. The ncaa is made up of the schools. Presidents, ADs, past school officials, etc. Why would the ncaa allow schools that make them up get screwed.

 

[kirbivore]

I agree with Dion here. If these are supposed NIL deals where are the ads?