Can we stay competitive in the NIL era?

[g0lftime]

If Saban feels that way and he's coming from the top program, the whole system is in trouble. NIL plus the transfer portal is overwhelming how recruits are viewing offers.

 

[Augusta_Jacket]

NIL collective, deals for Yellow Jackets position groups are in works

The potential for Georgia Tech athletes to earn money off their name, image and likeness is about to increase.

www.ajc.com

 

[CuseJacket]

 

[TampaBuzz]

"fund these kids for years until the NFL contract." With NIL, they can now admit to all the past violations without worry.

 

[RonJohn]

"fund these kids for years until the NFL contract." With NIL, they can now admit to all the past violations without worry.

Past violations don't necessarily get cleared because of a rule change. Also, there would have been no NIL reason if the funding is under the table.

But I am skeptical of the anonymous long time NFL agent quote. The "funding" by agents wasn't to "fund these kids" it was to get the potential stars locked in to an agent. The agents weren't altruistically donating money so that starving players would have money. They were investing money to build relationships with players they want to sign. This quote doesn't make sense because the NIL money can take away influence that agents might be able to have with college athletes. I think the agents would rather be able to use money and provide a couple hundred thousand of "funds" per year to multiple players and sign a couple with very large contracts rather than have to compete for players based solely merits of the agent.

 

[MidtownJacket]

Past violations don't necessarily get cleared because of a rule change. Also, there would have been no NIL reason if the funding is under the table.

But I am skeptical of the anonymous long time NFL agent quote. The "funding" by agents wasn't to "fund these kids" it was to get the potential stars locked in to an agent. The agents weren't altruistically donating money so that starving players would have money. They were investing money to build relationships with players they want to sign. This quote doesn't make sense because the NIL money can take away influence that agents might be able to have with college athletes. I think the agents would rather be able to use money and provide a couple hundred thousand of "funds" per year to multiple players and sign a couple with very large contracts rather than have to compete for players based solely merits of the agent.

Had a similar reaction to the idea that this somehow helps agents.. They aren't allowed to help kids student athletes get deals right?

 

[ChicagobasedJacket]

Had a similar reaction to the idea that this somehow helps agents.. They aren't allowed to help kids student athletes get deals right?

It helps big agents save money in the long run. Instead of years of thousands of dollars in payments with no guarantees the athlete will stick with you, you can now pay once they are ready/proven or choose to invest at a lower rate

 

[RonJohn]

It helps big agents save money in the long run. Instead of years of thousands of dollars in payments with no guarantees the athlete will stick with you, you can now pay once they are ready/proven or choose to invest at a lower rate

My point was that it hurts agents from getting clients to start with. They had some poor student athletes that they could easily entice with a large rental house for his family to get him hooked into signing with the agent. They might save tens of thousands a year in rent money for a large house, but they now have to actually compete in order to sign the athlete. They have to prove to the athlete that they are the best agent. They will have to negotiate on percentages. I think it will lose money for the agents in the long run.

 

[CEB]

My point was that it hurts agents from getting clients to start with. They had some poor student athletes that they could easily entice with a large rental house for his family to get him hooked into signing with the agent. They might save tens of thousands a year in rent money for a large house, but they now have to actually compete in order to sign the athlete. They have to prove to the athlete that they are the best agent. They will have to negotiate on percentages. I think it will lose money for the agents in the long run.

Nah... it just reset the baseline. Just because kids are getting nil money doesn’t mean agents won’t be putting a “cherry on top” for them. The application of nil for agents is probably more appropriate than most of these other crazy nil entities / deals out there... as an agent, they are actually going to use these guys to advertise to other guys.

 

[RonJohn]

Nah... it just reset the baseline. Just because kids are getting nil money doesn’t mean agents won’t be putting a “cherry on top” for them. The application of nil for agents is probably more appropriate than most of these other crazy nil entities / deals out there... as an agent, they are actually going to use these guys to advertise to other guys.

Compare it to a person who buys used golf clubs at flea markets/yard sales/thrift stores/etc and sells them on ebay. He will spend less money if he doesn't buy used golf clubs, but he won't have any clubs to sell on ebay. He will lose the opportunity cost.

If a highly rated football player gets a last NIL check for $20k after the college football season and before the draft, he can hire and pay for a lawyer to vet all of the agent contracts he is proposed. He can hire and pay for an accountant and tax professional to vet the contracts financial and tax implications. Where the agent who paid the family's upscale rent for a few years could slip in a 15% contract with no questions before will have to compete with agents who will drop down to 8% or maybe even 5%. Some players were dependent on agents in the old system and saw them as saviors until mid way thru their pro career when they realized the agents were charging excessive fees. Now they will be able to sit back and force the agents to fight for their business. I think the athletic programs are going to have classes and training on handling money, contracts, and taxes.

As to the "cherry on top", will a person who signs a deal for $200k/year care about getting an additional $20k? Will he care about an additional $50k? He might, but the person providing that additional money is no longer a "savior" who automatically gets the agent contract. The agents aren't going to be swooping in on guys who are desperate to put food on their siblings tables and are naive enough to ignore getting screwed in contracts.

 

[CEB]

I don’t follow the analogy but I hope your right. I hope every school institutes programs to teach finance, contract law and tax strategy. I also hope that all of these kids invest their nil money on attorneys and consultants and educational opportunities to make sure they don’t piss away their pro contract dollars.
However, I bet 95 out of 100 buy cars, jewelry and entertainment, pick an agent based on a signing bonus, and then complain that the schools and the agents still got rich at their expense.
Paying everyone above the table isn’t going to remove the unsavory behavior or the under the table transactions.

 

[RonJohn]

I don’t follow the analogy but I hope your right. I hope every school institutes programs to teach finance, contract law and tax strategy. I also hope that all of these kids invest their nil money on attorneys and consultants and educational opportunities to make sure they don’t piss away their pro contract dollars.
However, I bet 95 out of 100 buy cars, jewelry and entertainment, pick an agent based on a signing bonus, and then complain that the schools and the agents still got rich at their expense.
Paying everyone above the table isn’t going to remove the unsavory behavior or the under the table transactions.

I remember that GT athletics has a tax planning series for student athletes and that TStan said attendance to those sessions was up significantly when the NIL was on the horizon.

I am pretty certain that many of the athletes who make money professionally will still squander their money and retire broke. In the past and agent could wave an envelope of $20k in front of a student athlete and that might be the most money that the athlete had ever had access to in his life. If every scholarship OL player gets a contract for $50k per year, $20k would still be a lot of money. However, the $20k won't be the most that the athlete has had access to every. The $20k won't be the difference between the athlete's parents having food to eat or not. Poor student athletes won't be as easy a target to manipulate if the already have access to some money.

As to overall athletes being foolish with their money, it probably won't change drastically. However, in the general populations, the reports I have seen say that around 65% of all Americans live paycheck to paycheck. It isn't just athletes. More than half of Americans spend every dime they have every paycheck. Many if not most of those believe that people who have savings are just lucky, and don't believe there is any correlation between their lack of financial planning and their lack of wealth. I have actually talked to people who were jealous of people with lower incomes who were able to save money. For superstar professional athlete, student athlete with NIL income, or common workers it takes financial planning and discipline to not lose everything you make. Unfortunately, none of those groups are particularly good at it.

 

[CEB]

As to overall athletes being foolish with their money, it probably won't change drastically. However, in the general populations, the reports I have seen say that around 65% of all Americans live paycheck to paycheck. It isn't just athletes. More than half of Americans spend every dime they have every paycheck. Many if not most of those believe that people who have savings are just lucky, and don't believe there is any correlation between their lack of financial planning and their lack of wealth. I have actually talked to people who were jealous of people with lower incomes who were able to save money. For superstar professional athlete, student athlete with NIL income, or common workers it takes financial planning and discipline to not lose everything you make. Unfortunately, none of those groups are particularly good at it.

Could not agree more with this. My comment was directed at athletes in the context of the discussion, but you are 100% right that it is not EXCLUSIVE to athletes. For athletes as well as the rest of us, our money management habits are learned from friends, family and neighbors who are part of that majority of people who struggle with financial discipline. It's an easy trap to fall into.

 

[GoldZ]

Could not agree more with this. My comment was directed at athletes in the context of the discussion, but you are 100% right that it is not EXCLUSIVE to athletes. For athletes as well as the rest of us, our money management habits are learned from friends, family and neighbors who are part of that majority of people who struggle with financial discipline. It's an easy trap to fall into.

Yeah, but major diff between blue collar workers living pay check to pay check vs athletes who make mega bucks. One group has more of an excuse than the other. Most athletes have resources available for advice that the blue collar folks would die for. Of course, many individuals from both groups act responsibly, which imo makes those who don't look even worse.

 

[RonJohn]

Yeah, but major diff between blue collar workers living pay check to pay check vs athletes who make mega bucks. One group has more of an excuse than the other. Most athletes have resources available for advice that the blue collar folks would die for. Of course, many individuals from both groups act responsibly, which imo makes those who don't look even worse.

From what I have seen, the amount of money makes no difference. Someone who struggles with money will struggle with money no matter how high their income climbs.

I hope that the GT athletic department is having seminars on money management in addition to tax planning. If you are a scholarship olineman who gets a $50k check, it could buy a car, a vacation, and a lot of partying. Or it could make you extremely comfortable for an entire year. Hopefully the people in the first group will notice that the people in the second group are not having any issues in April when they are struggling to pay taxes and car insurance. They will either notice that the second group was wiser with money, or they will decide that the "system" is trying to keep them down. Back to the athletic department. If the goal of the football team is to groom players for NFL careers, they should also try to teach them how to be set for life after the athletic career is over.

 

[RonJohn]

With respect to NIL and the athletic department. Wasn't the athletic department (or the football team) working with a group that was supposed to teach and/or manage social media presence for the athletes? Why have we not seen at least some of the athletes trying to develop a larger audience and make influencer money?

 

[forensicbuzz]

My point was that it hurts agents from getting clients to start with. They had some poor student athletes that they could easily entice with a large rental house for his family to get him hooked into signing with the agent. They might save tens of thousands a year in rent money for a large house, but they now have to actually compete in order to sign the athlete. They have to prove to the athlete that they are the best agent. They will have to negotiate on percentages. I think it will lose money for the agents in the long run.

If I understand it correctly, you can hire an agent/advisor to work with you on NIL-related contracts. That's a legitimate in for the agents.

 

[RonJohn]

If I understand it correctly, you can hire an agent/advisor to work with you on NIL-related contracts. That's a legitimate in for the agents.

I don't know about the rules. However, even if they can hire an agent for NIL contracts it doesn't change the fact that the Tweet seems disingenuous. If an agent signs an NIL contract with a student athlete and charges a much higher percentage or has terms that the athlete doesn't like, he would be able to see other players on the team that don't have those terms. The "funds" that the agents provided before were a low cost hook to catch the athletes into signing large professional athlete contracts. Without those hooks, the agents will have to compete against other agents to sign a player.

 

[forensicbuzz]

I don't know about the rules. However, even if they can hire an agent for NIL contracts it doesn't change the fact that the Tweet seems disingenuous. If an agent signs an NIL contract with a student athlete and charges a much higher percentage or has terms that the athlete doesn't like, he would be able to see other players on the team that don't have those terms. The "funds" that the agents provided before were a low cost hook to catch the athletes into signing large professional athlete contracts. Without those hooks, the agents will have to compete against other agents to sign a player.

I wasn't disagreeing with you, just adding commentary.

 

[RamblinRed]

This tweet is basketball specific, but it gives some idea of why I think there is a good chance Miami could rise to the top of the Coastal within 2-3 years.
A much more competent coaching staff combined with nutty fans willing to spend alot of money provides alot of potential for growth.

If Miami is willing to pay out almost a $1M for a basketball player, how much do you think their alums will pay out for FB players.