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re: Hot take: businesses will not continue to pay for NIL year in and out

Posted on 12/17/21 at 12:22 pm to
Posted by KamaCausey_LSU
Member since Apr 2013
17162 posts
Posted on 12/17/21 at 12:22 pm to
quote:

11. What is prohibited under the new policy?
Subject to state law, the following is prohibited under the new interim policy:
• NIL agreement without quid pro quo (e.g., compensation for work not performed). Student-athlete NIL
agreements should include the expected NIL deliverables by a student-athlete in exchange for the agreed
upon compensation and student-athletes must be compensated only for work actually performed.

I think businesses will get smarter with their NIL agreements/contracts to where they won't owe a player most of the value if they transfer or sit out.
Posted by Manswers
Michigan
Member since Feb 2009
3727 posts
Posted on 12/17/21 at 12:22 pm to
Like any business transaction, they will continue to pay as long as they are making a profit in some way. The NIL payments are neither charity nor some rich sports fanatic spending his fortune so LSU can have a competitive team.

So, how do NIL investors make money? I'm sure advertising is some of it but do they also get a small portion of TV money? I'm curious about the economics of it all.
Posted by DeathvalleyU
Louisiana
Member since Dec 2015
1217 posts
Posted on 12/17/21 at 12:35 pm to
Businesses won't continue to blindly throw big money at these recruits without some kind of guarantee the guy stays. I.E Quinn Ewers. This is all new. I dont see this type of stuff continuing on this path.
Posted by tenderfoot tigah
Red Stick
Member since Sep 2004
11513 posts
Posted on 12/17/21 at 12:37 pm to
quote:

So, how do NIL investors make money? I'm sure advertising is some of it but do they also get a small portion of TV money? I'm curious about the economics of it all.


They don't. It's purely pay for play.
Posted by The_Duke
Member since Nov 2016
4169 posts
Posted on 12/17/21 at 12:38 pm to
There will be rules and regulations coming--

this is the first year so of course, it's wild and unstructured. Kinda feels like a startup--

but just like for any business to maintain and become stability rules will follow
Posted by tigahlovah
virginia beach, va
Member since Oct 2009
4216 posts
Posted on 12/17/21 at 5:27 pm to
The schools that are serious about winning will set up AND maintain these dummy nil deals. It's all about the program winning for the serious schools, not the ROI.
Posted by arcalades
USA
Member since Feb 2014
19276 posts
Posted on 12/17/21 at 5:44 pm to
dear lord the op doesn't get it at all
Posted by Cadieh
Member since Dec 2021
3 posts
Posted on 12/17/21 at 5:48 pm to
We are a State University. Perhaps our Legislature could vote in some Tax write off's for businesses that financially support NIL. Just like TOPS.....
Posted by Panny Crickets
Fort Worth, TX
Member since Sep 2008
5596 posts
Posted on 12/17/21 at 5:50 pm to
quote:

businesses will not continue to pay for NIL year in and out


You’re severely underestimating how much money boosters have and how much they like to win.

We are just getting started.
This post was edited on 12/17/21 at 5:51 pm
Posted by r0cky1
Member since Oct 2020
4727 posts
Posted on 12/17/21 at 5:54 pm to
For people with frick you money it’s certainly sustainable
Posted by CitizenK
BR
Member since Aug 2019
13921 posts
Posted on 12/17/21 at 5:59 pm to
Yes they will, they just were not getting to expense it before when it was under the table
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