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Can someone explain the ROI for big boosters in NIL era?
Posted on 9/29/23 at 2:39 pm
Posted on 9/29/23 at 2:39 pm
I get that NIL is here to stay, and I understand that from here on, boosters and their companies/collectives will just back up the brinks truck for 5* kids.
But with that said - can anyone explain how companies and boosters will keep doing this year over year?
I just don’t see how there’s a tangible ROI for any of these companies.
Yes maybe marketing will boost sales if you put a local hero like JD or Perkins on your ads, but I find it hard for that to consistently pay off.
Forgive me, but I can’t believe big donors will keep shelling millions every year for recruits with very little in return.
But with that said - can anyone explain how companies and boosters will keep doing this year over year?
I just don’t see how there’s a tangible ROI for any of these companies.
Yes maybe marketing will boost sales if you put a local hero like JD or Perkins on your ads, but I find it hard for that to consistently pay off.
Forgive me, but I can’t believe big donors will keep shelling millions every year for recruits with very little in return.
This post was edited on 9/29/23 at 2:41 pm
22
Posted on 9/29/23 at 2:47 pm to Yaboylsu63
Congress will step in and cede all the control back to the NCAA, mark my words.
Firstly, the government can only seem to frick a situation up worse the more they touch it.
Secondly and most importantly, the NCAA can claim they already have the infrastructure to be in the best position to enforce whatever legal changes are made.
Plus I'm sure the good people at the NCAA have buddies on the Hill, and they will make sure to take care of each other.
Firstly, the government can only seem to frick a situation up worse the more they touch it.
Secondly and most importantly, the NCAA can claim they already have the infrastructure to be in the best position to enforce whatever legal changes are made.
Plus I'm sure the good people at the NCAA have buddies on the Hill, and they will make sure to take care of each other.
Posted on 9/29/23 at 2:52 pm to Yaboylsu63
Posted on 9/29/23 at 3:14 pm to ZenFNmaster
Government getting involved is how we ended up here. There’s no going back.
Posted on 9/29/23 at 3:20 pm to Yaboylsu63
There is no ROI unless you consider being able to brag with your friends about how much you spent on your favorite football team.
I could be as rich as the Walton’s and I still wouldn’t give a penny that goes to pay players who can up and leave if the panties get in a bunch or they are not happy with the coach.
I could be as rich as the Walton’s and I still wouldn’t give a penny that goes to pay players who can up and leave if the panties get in a bunch or they are not happy with the coach.
Posted on 9/29/23 at 3:20 pm to Yaboylsu63
There is a current lawsuit in FL where that deal was based on the company giving the player a couple hundred grand and in return they were going to get a percentage of his future NFL earning. Appears that deal violated some FL laws, so they may get nothing in return; but I imagine many of the deals are structured similarly.
ESPN Article:
ESPN Article:
quote:
Dexter, a second-round draft pick, agreed to pay Big League Advance Fund (BLA) 15% of his pre-tax NFL earnings for the next 25 years in exchange for a one-time payment of $436,485 in 2022, according to a copy of a federal lawsuit filed in the U.S. District Court in Gainesville, Florida, on Friday.
This post was edited on 9/29/23 at 3:22 pm
Posted on 9/29/23 at 3:24 pm to Yaboylsu63
None of those donors are expecting anything back in terms of money directly.
Maybe Gordon gets a client or two but he isnt banking on Perkins bringing him any money.
Maybe Gordon gets a client or two but he isnt banking on Perkins bringing him any money.
Posted on 9/29/23 at 3:26 pm to Yaboylsu63
The return is the same as being a big donor for facilities - becoming a power broker at one of your state’s most powerful institutions.
It’s basically a lobbying and networking expense.
It’s basically a lobbying and networking expense.
Posted on 9/29/23 at 3:26 pm to Jones
Many of the NIL collectives have 501(c)(3) status so donations are tax deductible but the IRS is taking a hard look at those so the situation could change.
Posted on 9/29/23 at 3:28 pm to Jones
They are expecting perks that are pertaining to the game itself, like field passes and championship tickets maybe even championship rings when the time comes
Most NIL donors were probably already donating. they just moved the money to NIL instead,but still get the same perks. now they get to have actual commercials instead of just billboards in the stadium. They have a player on the commercial instead of just saying “the chainsaw dealer of the lsu tigers”they can now have Harold Perkins holding the chain saw.
Most NIL donors were probably already donating. they just moved the money to NIL instead,but still get the same perks. now they get to have actual commercials instead of just billboards in the stadium. They have a player on the commercial instead of just saying “the chainsaw dealer of the lsu tigers”they can now have Harold Perkins holding the chain saw.
This post was edited on 9/29/23 at 3:35 pm
Posted on 9/29/23 at 3:38 pm to Diseasefreeforall
The fact this was so far down tells me how stupid this board is.
Posted on 9/29/23 at 3:54 pm to Diseasefreeforall
quote:
Many of the NIL collectives have 501(c)(3) status so donations are tax deductible but the IRS is taking a hard look at those so the situation could change.
Back in June the IRS released a memorandum that stated NIL collectives do not qualify for 501(c)(3) status: Memorandum number AM 2023-004
TL;DR:
quote:
Consequently, it is the view of this Office that many organizations that develop paid NIL opportunities for student-athletes are not tax exempt and described in section 501(c)(3) because the private benefits they provide to student-athletes are not incidental both qualitatively and quantitatively to any exempt purpose furthered by that activity.
This post was edited on 9/29/23 at 3:55 pm
Posted on 9/29/23 at 4:03 pm to TrouserTrout
quote:
There is no ROI unless you consider being able to brag with your friends about how much you spent on your favorite football team.
This. Its like horse racing or womens basketball in Russia. It will become rich people trying to outdo each other.
Posted on 9/29/23 at 4:07 pm to Yaboylsu63
Ego and write-offs explain most of it. Being able to brag about how you bought this player, gave this much to the school, get your name on a building and then writing it off on your taxes.
Posted on 9/29/23 at 4:08 pm to Domeskeller
quote:
write-offs
Is it?
Posted on 9/29/23 at 4:11 pm to Yaboylsu63
Boosters already existed. You're just giving your money to buy players now instead of a facility upgrade, which didn't do much for the booster either.
Posted on 9/29/23 at 4:17 pm to Yaboylsu63
its called "frick you money"
Posted on 9/29/23 at 4:17 pm to Yaboylsu63
quote:
Forgive me, but I can’t believe big donors will keep shelling millions every year for recruits with very little in return.
I have said the same thing. When they donate cash to build something it is there with their name on it. Paying kids that dont pan out is going to get old quick for some in the game.
Posted on 9/29/23 at 4:23 pm to Yaboylsu63
It’s about the same as the ROI for boosters during the “hand some kid a random envelope” era.
Posted on 9/29/23 at 5:22 pm to Yaboylsu63
I'm guessing they spend the same money they did as before when it was under the table, but now they can write it off their taxes.
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