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NIL longterm

Nov 1, 2022
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As we watch the new world of college football unfold……. There is one thing to think about. Right now everyone is doing all they can to come up with NIL money. We all know what’s going to happen…… the rich will get richer. Before, the only chance a normal school had, was to do there homework and evolutions better than others. They had to find those diamonds in the rough and develop players. Only problem now……. Once you do that, the big dogs will come calling. Therefore giving the normal schools very little chance. I love Kentucky football. But if all of our star players would of gotten stolen, I could see myself losing interest

That brings me to my point. The reason everyone is able to come up with NIL money, is due to the popularity of the sport. We are all junkies for it. But for most schools, that excitement may be taken away in the near future, due to the inability to afford your payroll. Would the sport losing popularity, dry up the money? I think for most schools it would. Your thoughts?
 
Put the kids on payroll, let them reap some of the billions they bring to these schools, and sign them to multi-year contracts. Let nil do whatever it's gonna do because you can't control that. But you lock players in for at least 3 years, NCAA can set a salary cap. Problem solved. Then nil will turn into "what can you do for my brand?" instead of "come to this school".
 
If Big 10 and SEC shared just 10% of the TV revenue its over for the rest of college football. Big 10 Commissioner already hinted at some TV revenue sharing in the future so my guess is its just a matter of time but not sure how big of a piece it would be.
 
Put the kids on payroll, let them reap some of the billions they bring to these schools, and sign them to multi-year contracts. Let nil do whatever it's gonna do because you can't control that. But you lock players in for at least 3 years, NCAA can set a salary cap. Problem solved. Then nil will turn into "what can you do for my brand?" instead of "come to this school".
Most schools operate in the red. Yeah, brilliant idea.
 
As we watch the new world of college football unfold……. There is one thing to think about. Right now everyone is doing all they can to come up with NIL money. We all know what’s going to happen…… the rich will get richer. Before, the only chance a normal school had, was to do there homework and evolutions better than others. They had to find those diamonds in the rough and develop players. Only problem now……. Once you do that, the big dogs will come calling. Therefore giving the normal schools very little chance. I love Kentucky football. But if all of our star players would of gotten stolen, I could see myself losing interest

That brings me to my point. The reason everyone is able to come up with NIL money, is due to the popularity of the sport. We are all junkies for it. But for most schools, that excitement may be taken away in the near future, due to the inability to afford your payroll. Would the sport losing popularity, dry up the money? I think for most schools it would. Your thoughts?
You are dead on.

1. If you think about it...it's sort of goofy to get all proud over Alabama corralling a ton of 5* or high 4* that even sit behind high rated players on nearly all 22 positions on the starters....is it really a huge accomplishment to win as much as they do? Same for UGA now. Same for Ohio St, Same for Clemson, etc... And a ton of this has been done with $$$ before NIL.
2. But to add to the boringness...if now these super teams can just go shopping for the few spots they have and pick up a teams best player for NIL $$$....what is the point? This is just like a bunch of travel ball teams where it's basically an all star team vs. a bunch of leftover kids...is this really going to even be a sport in a few years? I mean Bama picks up a high level MLB, CB, LT, WR to fill holes they needed on top of all the 5* kids they have to pick from. I mean what is the point as this continues.

The minute a really good UK kid hits portal for pure NIL $$$ to start for a top tier SEC team. I mean will I really invest into UK if we start turning into a AAA farm team for Bama, UGA, etc.... To be honest, I'm not all that enthused with getting a starting QB from NC State, Wisconsin, etc.. We are looking to pick up a LT from Northern Illinois. A starting RB from Vandy, etc...all of which were playing a ton on their teams and have no reason to leave but NIL or higher profile school.

At least with Levis Penn St decided to bench him and that is why he came to UK. But that isn't what is happening anymore. I am personally getting less and less invested. And the thought to ask me for fork up $50 bucks a month to pay for a NIL player on top of asking me to pony up $130 bucks a ticket for a decent SEC game...WTH is that about.
 
Beginning to think the NIL and Transfer Portal will be revisited by the NCAA in short order to make multiple revisions in both programs , the Portal is out of control and causing way too many problems for programs and players especially those not picked up.
 
Beginning to think the NIL and Transfer Portal will be revisited by the NCAA in short order to make multiple revisions in both programs
Agree, but I think it will have to take place on a conference level.

NCAA sticking its head in the sand led us to this point. NCAA signs television contracts for March madness that are worth multi millions of $. SEC and Big10 television contracts generate millions for each school per year. I'm surprised it took this long for lawsuits to occur. How they thought they could generate this kind of $ without paying athletes is crazy. The Supreme Court laughed at NCAA, as they should have.

I think NCAA will continue to stick its head in the sand, but the current system is not sustainable. SEC and Big 10 will soon pull away from NCAA and form their own alliances. Contracts will replace scholarships, or be added to the language. It will be interesting to see what happens in next 2-3 years, but I think AD's and commissioners know this will destroy sports.
 
Agree, but I think it will have to take place on a conference level.

NCAA sticking its head in the sand led us to this point. NCAA signs television contracts for March madness that are worth multi millions of $. SEC and Big10 television contracts generate millions for each school per year. I'm surprised it took this long for lawsuits to occur. How they thought they could generate this kind of $ without paying athletes is crazy. The Supreme Court laughed at NCAA, as they should have.

I think NCAA will continue to stick its head in the sand, but the current system is not sustainable. SEC and Big 10 will soon pull away from NCAA and form their own alliances. Contracts will replace scholarships, or be added to the language. It will be interesting to see what happens in next 2-3 years, but I think AD's and commissioners know this will destroy sports.
Think you are 100% correct about the SEC and Big 10 - this has been brewing for a number of years , eventually one will pull the trigger and the other will follow
 
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A can of worms has been open with the NIL and if the schools and the NCAA don't do something about it CFB & CBB as we know it will be gone in the not so distanced future.
 
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Think you are 100% correct about the SEC and Big 10 - this has been brewing for a number of years , eventually one will pull the trigger and the other will follow
Scuttlebut is SEC and Big 10 were talking about pulling away from NCAA then the OU and Tx announcement ruffled Big10 feathers because they were in the dark until last minute. Big10 getting UCLA and USC balances things back out and I expect them both to add 2 more schools apiece, then pull away from NCAA. I think they want to try to reign in NIL while still taking care of players.

The funny thing is, the straw that broke the camel’s back was NCAA trying to squeeze more $ out of the system by selling to video games WITH PLAYERS NAME ON the game jersies without giving players any of the $. Crazy stuff.
 
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Beginning to think the NIL and Transfer Portal will be revisited by the NCAA in short order to make multiple revisions in both programs , the Portal is out of control and causing way too many problems for programs and players especially those not picked up.
Nope

Ncaa knows it can't close the barn door now. Any move to restrict the freedom of movement or ability to earn outside income will be nuked by the Supreme Court.
 
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Beginning to think the NIL and Transfer Portal will be revisited by the NCAA in short order to make multiple revisions in both programs , the Portal is out of control and causing way too many problems for programs and players especially those not picked up.
The NCAA died the day NIL was approved.

Saw today that a 5* kid wanted something like $1.2m to sign and $800k per year... Best OSU could afford was $750k, so he went to UGA instead.

This is free agency but with no salary restrictions. Not even sure why kids don't just go to the G League at this point...

One year of 8 of the top 20 going the professional route, brand recognition would follow, and then there'd be no point in going to college at all except... Well, ya know.
 
We just barely squeaked in when counting coaches salaries ($192k). Might drop into the red with some of the contract changes in recent years. The thing is though, the school only pays for a small part of the salary. Not sure how they can include that in there. They did add a second chart showing without coaches salaries included and we were at $12 million profit.
 

Ok, but what if nobody gives a shit about the Olympic sports?

You separate football and men's basketball because they actually make money. You put them on payroll because they're bringing money in. The rest of the nonsense that nobody cares about are funded by the absolutely ridiculous tuitions these places are charging and nothing changes for them.

Another fun side effect is coaches salaries would get more reasonable, schools wouldn't be able to afford the dumbass 100 million dollar buyouts, because the money pool for paying the guys nobody tunes in to watch would be smaller.
 
Ok, but what if nobody gives a shit about the Olympic sports?

You separate football and men's basketball because they actually make money. You put them on payroll because they're bringing money in. The rest of the nonsense that nobody cares about are funded by the absolutely ridiculous tuitions these places are charging and nothing changes for them.

Another fun side effect is coaches salaries would get more reasonable, schools wouldn't be able to afford the dumbass 100 million dollar buyouts, because the money pool for paying the guys nobody tunes in to watch would be smaller.
Title IX won't allow that, I don't think.
 
There’s a good Forbes Magazine article from few years ago about “All the Fluff Listed in University Annual Expense Reports.” There are some colleges:universities that go under every year. But, most universities (Private and Public) have enough income to reduce tuition by 50% if they choose to do so. Instead, most inflate their expense reports and keep higher tuition.

Non-Profits have to show their expenses are being expensed out. I guarantee you that SEC athletic departments are not hurting for $. Look at television $ distributed to each school. That $ is about to go higher with next contract. Coaching salaries are through the roof. (Not coaches fault that departments have that much income.) There’s plenty of $ available for the players generating the income. Current model is not sustainable. Contracts and treating players as employees is only way to eliminate current Wild West of college sports.
 
Ok, but what if nobody gives a shit about the Olympic sports?

You separate football and men's basketball because they actually make money. You put them on payroll because they're bringing money in. The rest of the nonsense that nobody cares about are funded by the absolutely ridiculous tuitions these places are charging and nothing changes for them.

Another fun side effect is coaches salaries would get more reasonable, schools wouldn't be able to afford the dumbass 100 million dollar buyouts, because the money pool for paying the guys nobody tunes in to watch would be smaller.
Title IX would like a word. As long as colleges accept government funding they are bound by Title IX. Athletics is a small part of university budgets measured in billions. UK received $600M in research grants, $100s of millions in tuition assistance, $320 million in state appropriations… the entire athletics budget is > $150M. They aren’t forgoing billions for a few million.
 
Title 9 just says you can't discriminate based on sex. Not paying women's volleyball because they don't make any money to pay them with isn't discrimination, it's economics.
Title 9 says you have to offer equitable opportunities and treat all programs equitably.
 
Non-Profits have to show their expenses are being expensed out.
THIS THIS THIS

CPA here, I read financial statements to determine the truth about companies for a living. And it drives me freaking crazy the talk year after year and in articles about "what college athletic department shows a profit???" OMG only 12 or 15 schools that play D1 football 'show a profit, actually they LOSE money OMG!!!

Hello, they ain't SUPPOSED to show a profit, not a one of them. How many of these "OPERATING IN THE BLACK!!" schools have dropped football over the last 30 yrs, hello??? UAB did, for 1 yr, due to pathetic backroom politics by insecure Bama people. Then they came back, better than ever.

One of the sad results of the huge TV money, earned by CFB, gets flooded by every athletic dep to the sports that don't earn a dime. All yall would be shocked if you knew the average salaries in the P5 of gymnastics head coach, swimming coach, volleyball coach, softball coach, shooting coach. Gotta spend it somewhere! Can't pay the football coach $20M, even though that is what they ought to be paid based on the revenue they generate.
 
CPA here, I read financial statements to determine the truth about companies for a living. And it drives me freaking crazy the talk year after year and in articles about "what college athletic department shows a profit???"
I'm semi-connected to institutions of higher education. I think 35 colleges/universities closed up shop in 2021. Most of them were very small private institutions that few of us have ever heard of unless they were in our community or city.

I admit to being a traditionalist. I'm in one of those "tweener" generations. I remember as a young child sitting in the car on Saturday's to listen to a UK game and staying up with Rob Bromley to watch replay after the news. I remember my older brother and I being blown away when we heard about ESPN and an all-sports channel. Then there was ESPN 2! This meant more UK games on television!!!! I was too young to know anything about television revenue. Then .... SEC Network was born in 2013. Suddenly, almost every UK game was on live television.

I don't fault NCAA or any conference for making as much money as possible. I support capitalism. Yet, the thought of revenue increasing at a mind-blowing rate (SEC paid out $10 mil to each school in 2010 and over $50 mil in 2020) while keeping players on just an athletic scholarship, room, and food is laughable in any other industry.

Yes, the thought of paying college players sounded like heresy when I first heard it. I thought schools were not businesses and players were not employees. Free scholarships, roof over their head and 3 squares a day were a dream for most college students. I don't know when my epiphany occurred ... but I realized College Football & Basketball ARE BIG businesses. $700 million dollars was recently distributed to SEC schools. Let that number sink in for a minute. That's just money distributed from the conference! Players are getting paid today, but universities are still passing the buck off to fans and NIL collectives. That's created the Wild-Wild West. It will kill college sports in less than 5 years if they don't fix it. As I stated above, I expect for 2-3 bigger conferences to pull out of NCAA and form their own league and playoffs.

Bottom line, if you hear an SEC school complaining about $, you may need to look closer at their financials. You'll see several line items that few people even understand. There's A LOT of pork hidden in the paperwork. If they show too much profit then tax payers start talking about lower tuition!
 
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Title 9 says you have to offer equitable opportunities and treat all programs equitably.

So you offer them the same percentage of the net revenue that you offer the teams that make money.

20% of zero is zero
 
Feels like NIL and the transfer Portal current models aren't sustainable models. Look for it to really get reeled in in the next couple recruiting cycles.
 
Feels like NIL and the transfer Portal current models aren't sustainable models. Look for it to really get reeled in in the next couple recruiting cycles.
By who? The schools tampering to get guys to enter the portal are gonna do it LESS? why? 12 team playoff means more tampering & portal transfers than ever, more teams are gonna think they are just a player or 2 away from finishing top 12.

Same for NIL, what football crazy millionaires are in the next few yrs gonna say 'WHOA NOT SPENDING AS MUCH!'? the reality again will be the CFB playoff gives more incentive to try and get great recruits by rich boosters....not less.

Horses already out the barn, NCAA is a toothless non-threatening entity now.
 
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By who? The schools tampering to get guys to enter the portal are gonna do it LESS? why? 12 team playoff means more tampering & portal transfers than ever, more teams are gonna think they are just a player or 2 away from finishing top 12.

Same for NIL, what football crazy millionaires are in the next few yrs gonna say 'WHOA NOT SPENDING AS MUCH!'? the reality again will be the CFB playoff gives more incentive to try and get great recruits by rich boosters....not less.

Horses already out the barn, NCAA is a toothless non-threatening entity now.
Saban or a traditional power will get butthurt that they lose a kid and make them change rules if i had to guess
 
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