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Who benefits from NIL?

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GoAndRunIsGoneAndDone

Blue Chip Prospect
Dec 12, 2023
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Obviously, the players getting paid benefits them, but who else and are they helping to foot university NIL monies? The way I see it, the players and NBA owners are who benefit from NIL. So, are they donating? Are they getting a say in who is recruited/signed for "their" money?
Sounds a whole lot like college BB is now a NBA G league. Who else benefits and where is all of this money coming from?

Didn't I read that Cal's contract with Arky guaranteed him 7 mil/yr in NIL? Wasn't that supposed to be an impressive amount of NIL money, at the time? And wasn't that supposed to be a huge part of him leaving here? Well, that doesn't even touch what numbers are being put out there, now....if anywhere close to true.

The old saying..follow the money, is usually right on.
 
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Cole World said:
The university that sells parking, $12 beers and 18,000+ tickets per game
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Ok, I'm sure that's true, to a point but I don't think that's the answer. Saw too many empty seats with teams that were top level teams this year and likely, high end nil money spent on them. I may be totally off base but like I said...follow the money and you'll usually find what you're looking for.

Besides...NIL money wasn't supposed to come from those funds/places.
 
GoAndRunIsGoneAndDone said:
Ok, I'm sure that's true, to a point but I don't think that's the answer. Saw too many empty seats with teams that were top level teams this year and likely, high end nil money spent on them. I may be totally off base but like I said...follow the money and you'll usually find what you're looking for.

Besides...NIL money wasn't supposed to come from those funds/places.
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They're still the ones benefitting from the players getting paid x amount of money, which is why they were allowed to set up students with third parties. The third parties paying the players advertisements are likely plastered around every arena in the country.
 
The players are the ones benefitting from the use of their name, image and likeness.

And it’s far overdue.

Let the gnashing of teeth and the wailing 😭 continue from the ones that used to make money on the player’s backs.

Maybe it’s out of line now in the player’s favor?

But they have 100 years to catch up on.
 
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I don't see how NBA Owners befit, other than supporting their alma mater or whatever school is their favorite just like any booster. They can't steer kids to their team, they have to go through a draft to prevent that, this isn't the G League where a team owns a players rights from being drafted or signed as a free agent. What does the Pacers owner get from donating to Indiana other than just supporting Indiana? He can't hand pick players he wants, if they are good enough to be drafted he has to hope no other team does it.
GoAndRunIsGoneAndDone said:
Besides...NIL money wasn't supposed to come from those funds/places.
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NIL money was supposed to come from whoever uses the kid's likeness or image, an ad for a car lot, or radio commercial featuring a player. So the player is compensated for what they contribute to a school, which now days is worth way way way more than just the value of their education. In the wild west of NIL we have now, there aren't any regulations on that. That's how you get the NIL funds schools set up so they can just take donations from anyone and everyone to distribute to players. That's what everyone is trying to get NIL deals in before this legislation is finalized to limit it somewhat.
 
Where was this same energy when the schools could prevent kids from transferring, a player could be deemed ineligible for accepting a free pizza at a local pizza joint and when universities and conferences generated billions in revenue in exchange for either 75 or 13 scholarships valued at less than $100K per year each?
 
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GoAndRunIsGoneAndDone said:
Obviously, the players getting paid benefits them, but who else and are they helping to foot university NIL monies? The way I see it, the players and NBA owners are who benefit from NIL. So, are they donating? Are they getting a say in who is recruited/signed for "their" money?
Sounds a whole lot like college BB is now a NBA G league. Who else benefits and where is all of this money coming from?

Didn't I read that Cal's contract with Arky guaranteed him 7 mil/yr in NIL? Wasn't that supposed to be an impressive amount of NIL money, at the time? And wasn't that supposed to be a huge part of him leaving here? Well, that doesn't even touch what numbers are being put out there, now....if anywhere close to true.

The old saying..follow the money, is usually right on.
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That 7M for AR was just from the Chicken Man it's said we had over 12M total so who knows the actual number?
EDIT The Chicken Man hired Cal when he opens up his check book nobody is going to question him.
 
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I think most of us can agree that Cal nor college ball created the one and done rule, but the NBA is who made the rule and who benefitted from it. Could NIL be chapter 2 of that?
 
HogFan2012 said:
That 7M for AR was just from the Chicken Man it's said we had over 12M total so who knows the actual number?
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I agree that the numbers are likely inflated but, Cal left, at least in part...for NIL guarantees. If he thought 7 mil was enough to leave here for but we are now, a year later, talking 20+ mil per yr nil budgets...It just doesn't make much sense. At this rate, we'll be talking 60+ mil budgets next year!
 
GoAndRunIsGoneAndDone said:
I agree that the numbers are likely inflated but, Cal left, at least in part...for NIL guarantees. If he thought 7 mil was enough to leave here for but we are now, a year later, talking 20+ mil per yr nil budgets...It just doesn't make much sense. At this rate, we'll be talking 60+ mil budgets next year!
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I don't know all the details all I know is he hired Cal and puts 7M in the NIL that was what was said then. AR still has a lot of other people and high end companies that donate also.

Cal could probably go back to him and say I need 5M more and the Chicken Man just says OK.

EDIT I don't think it will ever get to a point where you need 60M your talking close to NBA money then.
154M for the NBA salary cap this year. I think like 190M till the luxury tax kicks in or something like that.
 
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And Cal left for a lot of reasons I think mainly was just burnt out and had burnt his relationships with the AD and big donors.

Yall probably know more about that than me so that's that.
 
Has NIL become federally taxed "income" yet?

I understand some states are catching up to taxing it

The feds have to be taxing it or soon will be?

So wild
 
I'm asking because I don’t really understand the NIL. Doesn’t the major donors get money back by investing in the NIL?
 
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CastleRubric said:
Has NIL become federally taxed "income" yet?

I understand some states are catching up to taxing it

The feds have to be taxing it or soon will be?

So wild
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Yes it's taxable income.
Some states with state tax are trying to remove it from the state tax like Bama. They think it a deterrent to the players to have to pay extra tax.

EDIT from Google.
House Bill 240 would allow student's NIL money to not be taxed by the state of Alabama. The goal is for Alabama colleges and universities to be able to recruit the best athletes by offering competitive levels of NIL money. “There's also other states throughout the Southeastern Conference who have no state income tax.
 
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People still seem confused by NIL. It has nothing to do with the expected House court settlement which will allow schools to directly pay athletes. To make it clear does anyone think that Lebron James make only what his salary from the Lakers is. No, it might even be less than half, like Michael Jordan’s was. That is the NIL portion of his income. True business contracts would only be made if the business thought that their business would reap more benefits than what they paid.
 
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MJ with the bulls in one year just craze money. That was over 25 years ago money not todays

In his final NBA season (1997-98), Michael Jordan earned $33.14 million in salary and an estimated $40 million in endorsements, totaling around $73.14 million. He also earned an estimated $130 million annually from his shoe deal with Nike
 
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As for the question posed in the title, based on the depth of talent assembled by Pope for next year, I'd say blue bloods benefit more than anybody. It also helps any school with big NIL bucks but if the money is equal the blue bloods will have the best rosters.
 
GoAndRunIsGoneAndDone said:
Obviously, the players getting paid benefits them, but who else and are they helping to foot university NIL monies? The way I see it, the players and NBA owners are who benefit from NIL. So, are they donating? Are they getting a say in who is recruited/signed for "their" money?
Sounds a whole lot like college BB is now a NBA G league. Who else benefits and where is all of this money coming from?

Didn't I read that Cal's contract with Arky guaranteed him 7 mil/yr in NIL? Wasn't that supposed to be an impressive amount of NIL money, at the time? And wasn't that supposed to be a huge part of him leaving here? Well, that doesn't even touch what numbers are being put out there, now....if anywhere close to true.

The old saying..follow the money, is usually right on.
Click to expand...
So the networks pay money to all the sec or big 10 schools that they broadcast I would guess. Should increase or protect their viewership. That’s a thought. Certainly logical that traditional boosters who enjoyed being around players, getting good seats, etc would still be a thing.
 
I'm looking at potential revenue sources here. If pro team owners stand to gain by kids developing for a year or so longer in college, reducing their risks, it seems logical that they'd be a great source of nil contributions. Form shell companies that pay nil money to teams/players as they choose. Everybody wins. The top talent still goes one and done but the borderline players develop longer while being paid...like now. Form close ties with big money owners and work with those people to bring in high level talent and the risks are lessened by the collective, should a player not work out to be pro material. In theory, both college and pro puts a better product on the floor with less risk to donors.

Boosters get tax write offs and the satisfaction of donating to their teams, as well as potential business gains from commercials etc by pd players but the real money source is likely to be from the business of pro basketball and football.

Maybe we're already doing something like this. Maybe it's against the rules...IDK. That's why I'm asking. Our product is basketball and football. It seems logical to sell our product to people in those businesses, at the very least, right?
 
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