re: Insight: NIL Deals

Thank you. That seems plausible. I wonder whether there may be "companies" not so public as yours which spring up like mushrooms and whose sole purpose is funneling NIL money to kids not related to going to any particular school. Could that happen?

Not sure why all these complicated machinations are even required.

Pay a dude $1 million for one autograph and be done with it.

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If you are hiring someone to represent your company, based mostly on their athletic ability, wouldn’t it be good to have an idea if the money will change them on and off the field?

Money changes people. That’s a fact.

If the money goes to a “star’s” head and he is no longer a “star” then your investment is no good.

Also, money can change people off the field. You don’t want them to make bad PR moves.

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Was coming here to type exactly that. Honestly, you want them to invest a portion of it directly back into themselves.

Will they set up a Roth?
Will they listen to advice? Who's advice?
Will they blow it all on a car?

Where you desires are, your money will follow. Talking goals is a big part of the vetting process. I like doing business with kids who think about the future. Delayed gratification.

Something else, we are non-profit credit union. I hold financial seminars for medical residents and athletes. Some of what I do is just to help young earners start their financial life on the right foot.

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We know nothing about these kids. I’ll be honest, the vetting process isn’t fun. You don’t want to tie your name to a kid, then have them in a bar fight on a Saturday night after the game. Athletes who don’t emphasize the student aspect of college, will never be represented by our company. We also have to figure out how an 18 year old is going to handle thousands of dollars.

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I couldn’t be more proud of the young man we selected to represent our company. He is an upperclassman on this year’s LSU football team, a true leader and the exemplar of a fine young man.

This is a perfectly legitimate (and helpful) explanation of NIL strategies for business purposes.
But a considerable number of sports fans view NIL not as a business tool, but as a recruiting mechanism, where the objective (from the fan/ booster standpoint) is hiring the most promising HS talent.
To the extent there is pressure, it will not come from a Board, looking for increased profits, but from local consumers/ employees/ neighbors who want a national championship, no matter what it costs your company.
The businesses most responsive are likely to be local retail, local legal, local restaurants that can actually get some grass roots level response for their money.

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If we invest in a kid who signs the deal, takes our money then runs back to their home state because of playing time as a true freshman, then I look stupid for setting up the deal.

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I’d include full repayment if transfer in the NIL contract.

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IowaCityTigerFan

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Large, especially public companies are not the ones that will lean-in with NIL deals.

I think the small to middle market is the primary place coaches need to lean-in with. Find the privately held, local booster that has a 9 digit net worth and the only ROI expectation is wins on the field.

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If we invest in a kid who signs the deal, takes our money then runs back to their home state because of playing time as a true freshman, then I look stupid for setting up the deal.

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Aren't all NIL deals negotiated on an annual basis? If so, that kid that runs back to his home state would not have your deal the next year!

Here is my dealings with NIL.

I work in rea estate as an independent contractor. I plan to offer a few athlete's NIL deals in the spring. For me its building relationships with a few guys and representing them as their real estate advisor / agent once they graduate and or get drafted. That's my ROI. I'm obviously small fish but will see how this all pans out. Some guys are really interested and some guys have 2 word answers only wanting to know how much and when. I don't think this are the guys I's after.