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Benefits and Synergy of a Front-Loaded Budget Resulting in a Super Team Now
Posted on 7/18/24 at 1:37 pm
Posted on 7/18/24 at 1:37 pm
If I'm in a room with big-money boosters, and we're talking about how to fund and budget LSU recruiting money, I'm advocating for front-loaded investments rather than equal annual budgets.
To be more specific, it seems to make tremendous sense to spend more money to acquire additional talent early in a head coach's tenure rather than spread the money equally over that tenure. I'd much rather convince the boosters to front-load that money even if it means less money is donated.
For example, if I'm the head fundraiser for LSU football talent acquisition (aka NIL), and I can raise and spend 150 million dollars over 10 years (($15M per year), I'd be happier to spend $30M in the first year, $20M in the second and third year, and $8M per year after that. The initial talent acquisition is likely to create a team with enough talent synergy to create multiple national championships.
And, after all, national championships are the goal.
Moreover, those national championships purchase media benefits and narratives as well as create recruiting reductions that have value at least as long as that head coach remains at LSU.
The Saban Discount (sometimes called the Bama Discount) is real and has actual financial value. Athletes want to win; they want to play for a winner. Establishing a national championship cachet for a head coach has inestimable benefits for the program.
Indeed, I'd be happier to raise 120 million dollars with $25M in the first year, $15M in the second year, and $8M per year after that. Even though it's less money overall, the benefits of winning national championships creates huge future benefits that exceed the reduction in cash flow.
Of course, properly valuing each player remains essential. That value depends not only on the talent of the player, but also his effect on the overall likelihood of the team to win national championships.
It seems to me that LSU may have already implemented a front-loaded strategy.
To be more specific, it seems to make tremendous sense to spend more money to acquire additional talent early in a head coach's tenure rather than spread the money equally over that tenure. I'd much rather convince the boosters to front-load that money even if it means less money is donated.
For example, if I'm the head fundraiser for LSU football talent acquisition (aka NIL), and I can raise and spend 150 million dollars over 10 years (($15M per year), I'd be happier to spend $30M in the first year, $20M in the second and third year, and $8M per year after that. The initial talent acquisition is likely to create a team with enough talent synergy to create multiple national championships.
And, after all, national championships are the goal.
Moreover, those national championships purchase media benefits and narratives as well as create recruiting reductions that have value at least as long as that head coach remains at LSU.
The Saban Discount (sometimes called the Bama Discount) is real and has actual financial value. Athletes want to win; they want to play for a winner. Establishing a national championship cachet for a head coach has inestimable benefits for the program.
Indeed, I'd be happier to raise 120 million dollars with $25M in the first year, $15M in the second year, and $8M per year after that. Even though it's less money overall, the benefits of winning national championships creates huge future benefits that exceed the reduction in cash flow.
Of course, properly valuing each player remains essential. That value depends not only on the talent of the player, but also his effect on the overall likelihood of the team to win national championships.
It seems to me that LSU may have already implemented a front-loaded strategy.
Posted on 7/18/24 at 1:47 pm to Salviati
quote:
if I'm the head fundraiser for LSU football talent acquisition (aka NIL), and I can raise and spend 150 million dollars over 10 years (($15M per year), I'd be happier to spend $30M in the first year, $20M in the second and third year, and $8M per year after that.
You can't wish that money into existence. You can't make people pay you all the money up front. You get the money you can get and you spend it when you can.
Posted on 7/18/24 at 1:56 pm to TigerDeacon
quote:I hear what you are saying. I do. Fundraising ain't easy. LSU is not selling Girl Scout cookies
You can't wish that money into existence. You can't make people pay you all the money up front. You get the money you can get and you spend it when you can.
But there are times when you can present a cogent plan that inspires people and convinces them to donate in a different manner.
Posted on 7/18/24 at 2:25 pm to Salviati
Yeap. Has to be metrics involved. I'm sure AT has helped with metrics from what he was able to do at Ole Miss and compare them to what we were doing in Y3 of NIL and Kelly. NIL strategy for the behemoths should have always been viewed as a long-term strategy. No one who went all in on NIL out the gate has much of anything to show for it. Your usual playoff subjects all had a roster loaded with NFL talent, mixed in some transfers, and were relatively always good.
Posted on 7/18/24 at 2:33 pm to Salviati
Seems as though our NIL offers are definetly up to par with the other top programs now. But I still think a huge thing they are selling is the fact that we are arguably the best school at developing NFL talent and showing these recruits the amount of money they can make in the league for merely sacrificing 3 years while still being paid handsomely.
Posted on 7/18/24 at 4:12 pm to jrobic4
quote:
Yup, it's the offseason...
As offseason threads go, this is one of the better ones.
Posted on 7/19/24 at 8:58 am to Salviati
Paying a shitload of money upfront to unproven HS players who may not develop or who can transfer on a whim is just plain stupid and hamstrings future rosters. Just ask Jimbo Fisher.
Posted on 7/19/24 at 9:05 am to Salviati
Throwing $$ at players just doesn’t seem like a wise investment, except to LSU and player.
Just sounds ridiculous & crazy that it’s where we are now.
Just sounds ridiculous & crazy that it’s where we are now.
Posted on 7/25/24 at 8:38 am to lsusteve1
quote:Jimbo did not properly value his players. As I said in the OP, properly valuing each player remains essential. That value depends not only on the talent of the player, but also his effect on the overall likelihood of the team to win national championships.
Paying a shitload of money upfront to unproven HS players who may not develop or who can transfer on a whim is just plain stupid and hamstrings future rosters. Just ask Jimbo Fisher.
quote:It takes money to make money. You have to invest/spend money to see a return, and those 17-year-old kids are the best investments LSU fans can make.
Throwing $$ at players just doesn’t seem like a wise investment, except to LSU and player.
LSU fundraising, applications, and enrollment swell with LSU football success. Emmert recognized that simple facts decades ago. And while those 17-year-old players might not have played a single down in college, they proved in high school that they are worth the investment.
Not every NFL rookie pans out; not every five-star recruit pans out. But LSU makes hundreds of millions of dollars based upon the way those 17-year-olds work and play. They are indisputably worth it.
Pay those kids their money.
Posted on 7/25/24 at 8:44 am to LSU82BILL
quote:
Paying a shitload of money upfront to unproven HS players who may not develop or who can transfer on a whim is just plain stupid and hamstrings future rosters. Just ask Jimbo Fisher.
If you ARE going to throw money at your high school talent, it needs to be done in a very specific manner, contractually, and your evals on the players abilities and character better be on point.
Kelly's alignment of the admin and staff have made what we're seeing not only possible, but its also why it's the most sustainable model we've seen in this new era of college sports.
Posted on 7/25/24 at 9:59 am to Salviati
Prof Andrews can assist Bayou Traditions with some treasury laddering
This post was edited on 7/25/24 at 10:00 am
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