The law of unintended consequences

[Fox2monk]

It feels a lot like what is actually happening?

Great insight.

In Alabama they start at 15 an hour. Guess what every McDonald’s on our major highway has gone to? Self ordering machines. It’s happening whether you deny it is or not.

You’re probably too fancy to hit a drive thru but another thing people see is prices being more for a Big Mac combo than five years ago at Outback Steakhouse.

It’s a double edged sword, McDonald’s employees probably don’t deserve $15 a hour but at the same time with inflation and cost of living $15 an hour is nothing now. That leads to the cost rising and then deciding not to give them jobs at all like you said. People don’t wanna pay $15 for a Big Mac combo, who can blame them?

 

[BBBLazing]

Makes no sense. I continue to be amazed how people don't understand the difference between the athletic budget and outside sourced NIL money. Stupid tweet.

So, Craft can donate to UK's athletic department, or donate to the NIL fund. If he is paying millions to the NIL fund to pay players, he is donating less to the actual athletic department. There is only so much money being donated. Generally, fans, especially those on here, have been clear that they will not donate toward NIL. So, if it lands solely on the biggest donors, they are not giving to both.

 

[UKnCincy]

It is window dressing that I would bet people on the inside see as straining out gnats but swallowing camels. I would be shocked if they are laying off anyone who has a salary that would actually move the needle. Either that or the AD has become so bloated that these are obvious lay offs and there will be no negative impacts. My guess is they are being liberal with the definition of "senior staff" too.

If you look at the titles of the individuals who have been confirmed to be laid off, then it’s clear that this did in fact include senior staff.

So far, we know the following were laid off:

• Exec Deputy AD & COO
• Deputy AD/External Relations & Business Development
• Assoc. AD/Branding, Creative & Communication
• Deputy AD
• Assistant AD/NIL
• Director/Football Technology

For context, at UK, the salary for the Deputy AD is $275K. Then you have benefits and employer share of payroll taxes on top of that, so these weren’t simply lower cost roles that were cut.

@JHB4UK is correct in his understanding of what’s happening here. This isn’t about NIL, it’s about preparing for a future when the schools will be paying athletes directly.

There are ongoing legal battles that may result in schools paying athletes, plus the state of California has been working on a bill that would require schools to share revenue with student athletes. Keep in mind that the reason NIL exists today is because California passed a state law banning NIL restrictions and then other states quickly followed suit.

It seems A&M is just trying to get ahead of things and realign their cost structure to a future where they may be paying athletes directly.

 

[MTsandfly]

Yep, seems like fake news to me. Money to pay staff cannot be used to pay players. That would be an NCAA violation.

 

[JHB4UK]

Yep, seems like fake news to me. Money to pay staff cannot be used to pay players. That would be an NCAA violation.

Stay tuned. It will be. Faster than you think.

 

[CRZ4UK]

I didn't think the schools were paying the players. That supposedly comes from sponsors.

It says prepare to pay. There are several who say college will make them employees and. Pay them salaries. Layoffs in preparation for what MAY HAPPEN sounds like a convenient excuse to can some guys.

 

[UKnCincy]

It says prepare to pay. There are several who say college will make them employees and. Pay them salaries. Layoffs in preparation for what MAY HAPPEN sounds like a convenient excuse to can some guys.

It’s not convenient if you believe with a high degree of certainty that schools will soon be paying athletes directly.

Just this week, Virginia passed a new law allowing schools in the state to pay athletes directly for NIL.

And even if it doesn’t go all the way to the point of making athletes employees, it’s still highly likely that schools may be forced to share TV revenues. Beyond the proposed California law, the House v. NCAA lawsuit could result in a revenue sharing moving forward. If the NCAA loses the House case, then they’re also looking at being forced to pay up to $4 billion to the former athletes who are coming after a share of the TV revenues.