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NIL model developed by Aggie and Bama
Posted on 1/4/22 at 8:27 am
Posted on 1/4/22 at 8:27 am
I do not see how that system is sustainable. What makes the NFL work is that all those big salaries are tied to the revenue. They have a salary cap and the expenses never exceed the revenue for an NFL franchise. Additionally, with a professional you can have them for better part of a decade not three years with an option to just transfer when they want too. Unless the labor expense some how gets tied to the revenue brought in by a program, I just cannot see donors coughing up 50 a million a year for many players that are not going to pan out. What am I missing?
11
Posted on 1/4/22 at 8:29 am to FreddieMac
No one is spending $50MM a year. Maybe a tenth of that, and even that is dubious.
The "labor expense" will ultimately be tied to revenue like it is in professional leagues, but only after the players are legally recognized as "labor" with the right to collectively bargain.
The "labor expense" will ultimately be tied to revenue like it is in professional leagues, but only after the players are legally recognized as "labor" with the right to collectively bargain.
This post was edited on 1/4/22 at 8:31 am
Posted on 1/4/22 at 8:31 am to FreddieMac
I’ll explain as simple as I can. Salary cap is for team designated player contracts/salaries.
There is no restriction on NIL for NFL players (remember all the Drew Brees commercials)? Legally there are no restrictions for college and even some high school NIL deals. There will be no cap for this; nor can there be in capitalist society.
There is no restriction on NIL for NFL players (remember all the Drew Brees commercials)? Legally there are no restrictions for college and even some high school NIL deals. There will be no cap for this; nor can there be in capitalist society.
Posted on 1/4/22 at 8:40 am to Geauxldilocks
I saw an AD for the Alabama NIL fund last night. They charge $10 per month to support players with discounts on exclusive swag. They had several players in the ads. Model to follow.
Posted on 1/4/22 at 8:42 am to FreddieMac
its not sustainable. If it continues, college football will be destroyed in a few short years.
NIL plus no penalty transfers fricked up the game and will destroy it if it's not better controlled. Basically kids will declare just to see what deals they can get.
NIL plus no penalty transfers fricked up the game and will destroy it if it's not better controlled. Basically kids will declare just to see what deals they can get.
Posted on 1/4/22 at 8:48 am to Geauxldilocks
I think OP means in terms of economics , not legalities. The market will bear what it bears. I think his point is that the TAM /Bama model is not market driven, it’s donor driven. Their donors shelled out a big chunk for this year. OP is questioning whether they can sustain that “big chunk” year after year and what happens if they don’t. A market driven NIL is based upon revenue and tied to it , so it will ebb and flow depending upon market dynamics. It may not have a ceiling , but it can also drop if the economy (local to he school or national) dips or recesses. Personally , I don’t think you will see the Wild West of NIL much longer. Spencer Rattler and Ugaleli were indicative of what can happen when you shell out large sums to an unproven 18 year old. I think you will see more incentive and back end laced deals going forward. This will drive more kids to the portal as playing time will become the key to earning money.
Posted on 1/4/22 at 8:50 am to Gravitiger
quote:
but only after the players are legally recognized as "labor" with the right to collectively bargain.
Just end college football and create a semi pro league.
The academic side is a farce at this point.
Posted on 1/4/22 at 8:55 am to MNOCEOMS
quote:
I saw an AD for the Alabama NIL fund last night. They charge $10 per month to support players with discounts on exclusive swag. They had several players in the ads. Model to follow.
This isnt a bad idea for an NIL slush fund
$10/mo = $120/yr per person
If you get 25k people to sign up for this, which shouldn't be hard with the large fanbases out there, that's $3M/yr. 50k people would be $6M/yr. 100k people would be $12M/yr.
Posted on 1/4/22 at 8:55 am to michael corleone
I agree, this is the more likely scenario.
Posted on 1/4/22 at 8:58 am to michael corleone
quote:
I think OP means in terms of economics , not legalities. The market will bear what it bears. I think his point is that the TAM /Bama model is not market driven, it’s donor driven. Their donors shelled out a big chunk for this year. OP is questioning whether they can sustain that “big chunk” year after year and what happens if they don’t. A market driven NIL is based upon revenue and tied to it , so it will ebb and flow depending upon market dynamics. It may not have a ceiling , but it can also drop if the economy (local to he school or national) dips or recesses. Personally , I don’t think you will see the Wild West of NIL much longer. Spencer Rattler and Ugaleli were indicative of what can happen when you shell out large sums to an unproven 18 year old. I think you will see more incentive and back end laced deals going forward. This will drive more kids to the portal as playing time will become the key to earning money.
Exactly. Again, NIL is being treated as salary for players to come play. It is not being treated as NIL as it was intended or in the NFL. NIL is very targeted and specific in the NFL.
I guess I am thinking the market will correct NIL without much intervention. Or, programs are going to have to figure a way to use NIL to and tie it to the revenue of the program to provide stability. Aggie will be interesting to see how many of those paid 18 year old will see the field.
Posted on 1/4/22 at 8:59 am to RogerTheShrubber
quote:Very myopic perspective. College football is far bigger than the top few NFL feeder programs recruiting the top few players who expect NIL money.
Just end college football and create a semi pro league.
The academic side is a farce at this point.
This post was edited on 1/4/22 at 9:00 am
Posted on 1/4/22 at 9:01 am to MNOCEOMS
quote:Link? Because that is blatantly illegal under NCAA rules and Alabama state law.
I saw an AD for the Alabama NIL fund last night. They charge $10 per month to support players with discounts on exclusive swag. They had several players in the ads. Model to follow.
Posted on 1/4/22 at 9:02 am to michael corleone
quote:The two are inseparable.
I think OP means in terms of economics , not legalities
Posted on 1/4/22 at 9:02 am to FreddieMac
quote:There was a pot full of money flowing to athletes under the table prior to NIL. That money was not paid for regular "economic" purposes. Boosters paid it to have a winning program.
I do not see how that system is sustainable. . . . What am I missing?
With NIL, there is a pot full of money flowing to athletes on the table. That money is not paid for regular "economic" purposes. Boosters pay it to have a winning program.
There is also the school of thought that having a NC winning program provides significant, tangible, economic benefits to a school. Alabama alumni donations and student enrollment have soared since Saban re-established its winning tradition.
Posted on 1/4/22 at 9:04 am to RogerTheShrubber
quote:The old system wasn't sustainable, either. That's why it changed. And why it will continue to evolve.
its not sustainable. If it continues, college football will be destroyed in a few short years.
This post was edited on 1/4/22 at 9:10 am
Posted on 1/4/22 at 9:06 am to FreddieMac
You vastly underestimate the need to win for people at places like Bama. It is their whole sense of being. It is about bragging rights. It is their world. They will give what they need to give. They are 100% committed to winning and will do whatever it takes. They will go to parties and brag about who gave the most to get a player. Things really haven't changed except that now it is legal and the money is getting bigger.
Posted on 1/4/22 at 9:08 am to Salviati
quote:Correlation =/= causation.
Alabama alumni donations and student enrollment have soared since Saban re-established its winning tradition.
Alabama spent billions recruiting academically elite out-of-state students and upgrading their tenure-track faculty starting in the early 2000s. For example, if you come from Columbus, OH, and make a 32 on your ACT, it is cheaper to go to Bama than OSU.
Neither enrollment nor alumni donations for academics have "soared" during the Saban era. They have gotten better because they spent money to recruit better students and faculty. Athletics were just one small part of that plan.
This post was edited on 1/4/22 at 9:10 am
Posted on 1/4/22 at 9:16 am to FreddieMac
What are the impedences for organizations like TAF, and its equivalent at other schools, from being the main body that collects and then distributes the funds via "NIL" deals to players? I'm sure there are some in place, I'm just curious what they are.
Since TAF handles the fund raising for facilities, it feels like another organization competing for the same funds would be inefficient.
Since TAF handles the fund raising for facilities, it feels like another organization competing for the same funds would be inefficient.
Posted on 1/4/22 at 9:20 am to Gravitiger
quote:
College football is far bigger than the top few NFL feeder programs recruiting the top few players who expect NIL money.
is it though?
Posted on 1/4/22 at 9:22 am to Topo Chico
quote:The funds cannot come from any school-affiliated organization, per NCAA rules and most state laws. The schools cannot be associated in any way with organizing payments, except for educating student-athletes and giving them access to a neutral portal of potential sponsors. That's why BYU, Miami, and Texas are all under investigation right now.
What are the impedences for organizations like TAF, and its equivalent at other schools, from being the main body that collects and then distributes the funds via "NIL" deals to players? I'm sure there are some in place, I'm just curious what they are.
This post was edited on 1/4/22 at 9:25 am
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