NIL and future of NCAACF

[t4pizza]

If the settlement works like they all expect this could actually be a good thing for App State and all smaller schools. I say this because although there is a lot of bad (increased scholarships and direct pay from schools, etc) there is also a lot of good in that NIL will be enforced to truly be NIL. The current cap for payment is less than Ohio State paid for its football team alone last year, and it has to be spread out to all teams (not many kids will actually make big money because there are too many mouths to feed). So the players are about to make significantly less than they have been with this crazy non enforced NIL. If all NIL deals over $600 are actually reviewed to determine a true business purpose and fair value, then a great deal of the tampering will automatically end. While there is true NIL value for a small percentage of college athletes, most have just been getting paid to play and calling it NIL. Does anyone really think that Santana Hopper has 6 digit marketing value for his new school? Of course not. So if that deal is reviewed and determined not to be true NIL, then it goes away. It will be interesting to see what happens to all these players who have been promised pay for play NIL for this up coming season but don't have contracts with a real business purpose. If all those deals go away so will a great deal of the tampering. If this stops, it is a win for App and small schools. I say "If" because I have real doubts.

All that being said, this settlement does absolutely nothing in regards to the monopolistic practices of the college sports so I expect continued litigation until an anti trust exemption.

Rick Neuheisel has been on this for a while, and he says there is no way this passes muster because it limits the ability of the players to earn and the Supreme Court has already said that is illegal. He says, as you do, that the only solution is antitrust exemption from Congress and collective bargaining with the players.

I actually have a theory that the NCAA decided to do absolutely nothing (after the Supremes decision) to try to enforce NIL to demonstrate what a colossal screw up it would become in hopes of getting the anti trust exemption. To say they have done nothing would be an understatement as they have actually created, by lack of any NIL enforcement and allowing unlimited transfers, the system wide chaos that now needs to be controlled. This settlement does nothing to control it, and it is still a violation of the anti trust laws.

[JTApps1]

Just so people understand what reallocating existing funds means, potentially: cutting sports, cutting staff, reducing scholarships from teams that arent football and basketball, reducing budgets (both for teams and operationally), putting construction projects on hold, among other things that I'm not thinking of because I'm not Doug Gillian.

And then trying to add new sources of money- raising ticket prices, hoping playfly can increase our sponsorship values, doing something to increase our donor base, hope that Keith Gill gets his head out of his ass and negotiates a better media deal at the next opportunity, and yes, the gambling tax.

This is good for some athletes to get paid, but also potentially really bad for other athletes and some athletic departments.

I think we'll end up having around six legit D1 sports and the rest will be glorified D3 level. IMO there's an argument to be made both for and against this.

[AppSt94]

Just so people understand what reallocating existing funds means, potentially: cutting sports, cutting staff, reducing scholarships from teams that arent football and basketball, reducing budgets (both for teams and operationally), putting construction projects on hold, among other things that I'm not thinking of because I'm not Doug Gillian.

And then trying to add new sources of money- raising ticket prices, hoping playfly can increase our sponsorship values, doing something to increase our donor base, hope that Keith Gill gets his head out of his ass and negotiates a better media deal at the next opportunity, and yes, the gambling tax.

This is good for some athletes to get paid, but also potentially really bad for other athletes and some athletic departments.

I think we'll end up having around six legit D1 sports and the rest will be glorified D3 level. IMO there's an argument to be made both for and against this.

Agree. This will erode the quality of college athletics.

[t4pizza]

Just so people understand what reallocating existing funds means, potentially: cutting sports, cutting staff, reducing scholarships from teams that arent football and basketball, reducing budgets (both for teams and operationally), putting construction projects on hold, among other things that I'm not thinking of because I'm not Doug Gillian.

And then trying to add new sources of money- raising ticket prices, hoping playfly can increase our sponsorship values, doing something to increase our donor base, hope that Keith Gill gets his head out of his ass and negotiates a better media deal at the next opportunity, and yes, the gambling tax.

This is good for some athletes to get paid, but also potentially really bad for other athletes and some athletic departments.

I think we'll end up having around six legit D1 sports and the rest will be glorified D3 level. IMO there's an argument to be made both for and against this.

The biggest P4 will still have different college sports. The SEC especially has been pouring money (earned from football primarily) into all kinds of Olympic sports for years. Look at the swimming, gymnastics, track and field, etc championships and there are tons of SEC schools involved. Also look at women's sports, the SEC is dominant in almost every single one of them, I can't think of one that they are not. This will continue under this settlement because it actually will cost the SEC less than it currently does. Sharing 20 million in revenue between all these teams is nothing compared to the figure that boosters have been shelling out for NIL. Now the boosters can give directly back to the schools instead of picking sides (school or NIL collective). Read an interesting article about how the House settlement was a big win for the Big East because their basketball revenue sharing will be so much larger since those teams don't have football to spend money on. I won't be surprised if some (many?) schools drop football to concentrate on a more robust and deeper athletic department. Some administrators will get tired of shelling out the vast majority to a football program that really doesn't have a chance to win even a conference title (looking at you UNC and State).

[BambooRdApp]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

[t4pizza]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

While social media does provide opportunity, it also provides transparency. If you don't have a large following, there is no monetization and nobody can legitimately claim there is because that stuff is very well known, so it's not like you could funnel NIL that way. Olivia Dunne makes legit NIL because she has monster social media following and that has led to legit commercial deals for companies. It is easy to look at her numbers and see that NIL is justified. I highly doubt there is any athlete on App States entire roster of sports (or most any other school for that matter) that has a following large enough to earn high dollar NIL. So yeah, for the few, social media does give opportunities but most just don't have the online clout to get paid.

[AppSt94]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

While social media does provide opportunity, it also provides transparency. If you don't have a large following, there is no monetization and nobody can legitimately claim there is because that stuff is very well known, so it's not like you could funnel NIL that way. Olivia Dunne makes legit NIL because she has monster social media following and that has led to legit commercial deals for companies. It is easy to look at her numbers and see that NIL is justified. I highly doubt there is any athlete on App States entire roster of sports (or most any other school for that matter) that has a following large enough to earn high dollar NIL. So yeah, for the few, social media does give opportunities but most just don't have the online clout to get paid.

That’s very much my point. Their valuation is largely based on social engagement farming. To your point, most athletes at the college level aren’t well known enough to entice sponsorship opportunities that bring in customers. Is QB1 at Podunk University really going to give a business the ROI to justify a mid five figure deal? Is Joey going to bring in enough revenue to Tennessee to justify the $1.2 million price tag? Of course not. Justifying and measuring the NIL deals based on wins on the field is bad business.

[AppSt94]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Ok. The NCAA puts limits on the number hours of instruction allowed per week. They get 8 hours of instruction (practice) per week. Pay them $20 an hour and call it a day. Thats fair market value and more than they would get working at Mast General.

[BambooRdApp]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Ok. The NCAA puts limits on the number hours of instruction allowed per week. They get 8 hours of instruction (practice) per week. Pay them $20 an hour and call it a day. Thats fair market value and more than they would get working at Mast General.

I believe they perceive their fair value to be much greater than that...going out on limb with that conclusion.

[bcoach]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Then they need to be employees with all that comes with it.

[BambooRdApp]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Then they need to be employees with all that comes with it.

Well, maybe. There are consequences or other factors in determining how this plays out. The initial lawsuit by the Arizona swimmer would not have happened if he (or his legal team) if they did not believe they have a fair value that should be equated to $$$$.

[Stonewall]

The Cooper Flaggs , Notre Dame football among others with national followings are few and far between. Uncle Joe’s Tavern in Columbus, Ohio or Knoxville Tennessee might throw a couple K at a few guys to hob nob with their customers though. Good luck on enforcing those.

[AppSt94]

The " side gig" for the student athlete is the sport they play for the University. Many are putting in more hours than a student with a "side gig".
We can debate whether they should get paid or not ...or whether the scholarship should be the only payment.
My point is that the amount of time that student athletes put in ...there are really not much time for other "side gigs".

And, yes, the athletes earn revenue for a university. Whether a university spends the money wisely....that can be debated by someone other than me as I have not been involved with operating an athletic department and related facilities that go along with that mission.

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Ok. The NCAA puts limits on the number hours of instruction allowed per week. They get 8 hours of instruction (practice) per week. Pay them $20 an hour and call it a day. Thats fair market value and more than they would get working at Mast General.

I believe they perceive their fair value to be much greater than that...going out on limb with that conclusion.

Sure. Businesses are more often destroyed by perception than built on it.

[Saint3333]

Let me sum up where we are. G5 programs would be fine if we went back to the paper bags of cash that magically show up in lockers of power programs system than what we have today.

[Bigdaddyg1]

So will there be contract negotiations between the stud free agent quarterback who is demanding $10m a season, or that 6’8” LeBron type power forward who can command pro level money? It will be interesting to see how this money is distributed and will this be public knowledge? Will there be a college version of Overthecap?

[t4pizza]

The more I read the more I think this will be better for us than most think. The P4s are driving this NIL enforcement by Deloitte, they are tired of the lawlessness even though it benefitted them. Enforcement will benefit them because the numbers are way less than what is being spent now and the remainder will go back to the schools in the way of donations once again. Texas Tech paid a softball player over 1 million this year alone. The schools will only have 20 million to share with athletes this year alone. Anyone think that softball pitcher is getting 1 million this year with all the other athletes that need to be paid? No way. She can find some legit NIL but it won't be from alumi collectives, it would be from legit businesses. Ohio State had over 20 million in NIL on their football team alone last year, think about the drastic savings they will have this year. If they decide to keep all 20 million on football alone, that means no other athlete on any team gets any profit sharing at all (they can get real NIL but everyone knows that hardly exists). In the end, the athletes are all going to get a heck of a lot less than they have the last 4 years and that will benefit the schools. Of course, there will be additional anti trust lawsuits challenging the cap of money (and they will prevail) but that might be what it takes to get the anti trust exemption because that is one of the only ways to stop the constant litigation.

I really think that if we can just find a way to give full rides to all available athletes, we may be in better shape than anticipated. The non revenue sports will not see significant (if any) money from the revenue sharing so if we can give a full ride to those expanded rosters, we should be in decent shape as many G5s won't be able to do so. If the NIL is honestly regulated and enforced, this settlement will be better for us than we have had lately.

[t4pizza]

So will there be contract negotiations between the stud free agent quarterback who is demanding $10m a season, or that 6’8” LeBron type power forward who can command pro level money? It will be interesting to see how this money is distributed and will this be public knowledge? Will there be a college version of Overthecap?

It will be public knowledge in the public schools because we can FIA that information. Private schools are different and usually exempt from that but there may be reporting provisions in the new rules. Hard to enforce a NIL cap if the enforcement agency can't see exactly where the money is going. For that reason, I would expect that information to be readily available to the public. Plus,the Judge in the settlement retained jurisdiction and there are required update filings so at least during that time we should be able to see it. Honestly, 20 million split between all athletes won't go that far. I doubt we see anyone making in excess of 1 million, even the stud QB.

[BambooRdApp]

While true that athletes don’t have time for a normal job, social media has created opportunities that require minimal effort compared to a part time job that requires one to show up somewhere.

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Ok. The NCAA puts limits on the number hours of instruction allowed per week. They get 8 hours of instruction (practice) per week. Pay them $20 an hour and call it a day. Thats fair market value and more than they would get working at Mast General.

I believe they perceive their fair value to be much greater than that...going out on limb with that conclusion.

Sure. Businesses are more often destroyed by perception than built on it.

Could be or the business continues to navigate the marketplace and adapts. It is a tale as old as time. A business properly adapts or it doesn't..
As it relates to the portal....That is part of the reason we have so many kids in the portal each year. A kid thinks his fair value, in many cases, is more than what it actually is. ..or, in some cases, it is justified and they get paid.
Fair value, at any point is time, is what a willing buyer and seller are willing to pay while not under duress.
Time will time tell how it all shakes out with the latest court ruling.

[bcoach]

The Cooper Flaggs , Notre Dame football among others with national followings are few and far between. Uncle Joe’s Tavern in Columbus, Ohio or Knoxville Tennessee might throw a couple K at a few guys to hob nob with their customers though. Good luck on enforcing those.

It will continue to be pay for play for sure. You are 100% correct nobody buys anythng because some player endorses it except maybe shoes.

[AppSt94]

That is true. However, they are not getting paid for the time spent playing football is the their basic argument.
The fair value of services provided is more than a scholly is their argument.

Ok. The NCAA puts limits on the number hours of instruction allowed per week. They get 8 hours of instruction (practice) per week. Pay them $20 an hour and call it a day. Thats fair market value and more than they would get working at Mast General.

I believe they perceive their fair value to be much greater than that...going out on limb with that conclusion.

Sure. Businesses are more often destroyed by perception than built on it.

Could be or the business continues to navigate the marketplace and adapts. It is a tale as old as time. A business properly adapts or it doesn't..
As it relates to the portal....That is part of the reason we have so many kids in the portal each year. A kid thinks his fair value, in many cases, is more than what it actually is. ..or, in some cases, it is justified and they get paid.
Fair value, at any point is time, is what a willing buyer and seller are willing to pay while not under duress.
Time will time tell how it all shakes out with the latest court ruling.

Agree. It is very much and the market value varies by position and availability. It’s hard to say how many in the portal are in because they want more money. Most are in there because the opportat their current school is no longer available to them.