I agree with much of what you posted. But, how does a business justify a large 'advertising' expense for a HS senior who's yet to play a single down? Why would that individual bring in more business than a local celebrity, businessman, radio personality, etc.? Can you justify, to the IRS, spending, let's say, $500k annually to have Will Levis or Barion Brown endorse your Cadillac dealership vs. only $50k for Jeff Piecoro (sp?)? With all the OADs on the basketball team, you think having a Shaedon Sharpe or BJ Boston endorsement is worth anything to a local business? Does an endorsement on many, many items made by an 18-year old kid move the needle at all regarding new sales? I highly doubt it.In reading through a lot of posts (not necessarily yours) the term "donation" has been used a lot, but the whole idea around NIL is that a company, for instance a car dealership, will pay for the use of the players NIL to endorse their business. The business will gain positive exposure, that will lead to more customers. It's nothing more than an advertising expense, it is not a donation. A donation is when you give to something usually a charity and expect nothing in return.
So in your example it's important not to conflate a business's advertising budget with what they would make in the way of a donation. It's a distinction with a huge difference. I'm not sure that in your example their ad budget would effect what they might make in the form of a donation to UKs general fund. Granted their return on their NIL advertising investment may or may not justify the expenditure but that's true of any form of advertising.
What Stoops is basically asking for is for companies to go ahead and put NIL in general in their ad budget, setting aside those dollars for future payments to players, and then allow the player to receive the information that those funds will be made available for them to compete for.
And, where does this stop? It seems logical that every year a star player will want more NIL money (renegotiating his contract) and, if someone doesn't pony up, that kid enters the transfer portal looking for a school that will. How does the business justify as a normal advertising expense renting that kid for one year?
At what point do boosters say, 'To hell with this'? They're supposed to throw big bucks after players year after year after year - for what? As another thread poster asked, what's the ROI? What's the continuing incentive to do so?
The NIL ruling will be the death of CFB, imo. I think this could've all been avoided if scholarship athletes would've been allowed to be paid as work/study students. $12-$15/hour for 20 hours a week during the season for sure and preseason. Maybe throw in 10 hours per week in the offseason as they are working out, looking at the playbook, etc. The playing field would have been more level, easier to monitor and the need to throw big bucks at kids year after year would have been avoided. Now, it's just going to be a free-for-all every year as teams struggle to recruit AND keep the players they have due to other teams offering more money. Explain to me again how this is good for college sports?