Escalating Money spend in College Football

[forensicbuzz]

Rules are not in place yet. Still a lot of speculation about what it will look like, and the speculation is it won’t be in place until this time next year, which is after the season is over. But, you never know. They could move faster than anticipated. Usually Courts don’t.

Edit: I don’t intend for this to come across argumentative. Just stating what I’ve read. Nothing is set in stone yet, so we’re all just spitballing.

 

[57jacket]

All the NIL madness requires schools to poach players at schools at lower level conferences. Elite take the best in the top 25-30. The next level takes those in the 25-50 range and so forth. The evaluation of players at FCS is critical for schools with limited NIL. We seem to be doing that, and hopeing we get some overlooked, under evaluated talent.

 

[stinger78]

I'm not sure what you don't understand. NIL is not school provided. It isn't tax deductible. It doesn't have a replenishable supply of money other than people giving non-tax-deductible funds. These funds are ONLY provided by people willing to give their OWN MONEY to players to play for a team they support. That money is not inexhaustible. So, eventually, that supply is going to run out. Unless there is a fund that creates NIL payments from the returns on a large principle, it won't last.

Right now, the GTAA (or any athletic association) cannot provide anything to any student athlete other than what is currently allowed by the NCAA. Your confusion indicates that you don't understand how NIL works. PLAYERS CANNOT BE DIRECTLY COMPENSATED BY ATHETIC ASSOCIATIONS. That may change in the future, but it certainly doesn't exist now.

I would say ALL sources of money run out… unless you’re the Fed and can just print more.

 

[GTRambler]

Well. My take, for whatever it is worth:

1. The money will never run out.

2. Rules are made to be broken. There will always be cheating going on in “college” football.

 

[4shotB]

Well. My take, for whatever it is worth:

1. The money will never run out.

2. Rules are made to be broken. There will always be cheating going on in “college” football.

I don't think anyone cheats anymore in CFB. This exists only in places where there are rules (and they are enforced).

 

[takethepoints]

I would say ALL sources of money run out… unless you’re the Fed and can just print more.

Well … and any bank where you simply create checking resources for those you give loans to. There aren't any limits on that, except capital requirements. And those, even after 2008, are pretty lax. See this link:

https://www.sciencedirect.com/science/article/pii/S1057521914001070

Nothing like a German scholar who wants to get to the bottom of things.

 

[stinger78]

Well … and any bank where you simply create checking resources for those you give loans to. There aren't any limits on that, except capital requirements. And those, even after 2008, are pretty lax. See this link:

https://www.sciencedirect.com/science/article/pii/S1057521914001070

Nothing like a German scholar who wants to get to the bottom of things.

Austrian school, no doubt.

 

[slugboy]

Off topic, but Luka Doncic is trying to de commercialize youth basketball. Maybe it will spread

Luka Dončić and the lost joy of youth basketball

Luka Dončić’s mission to help restore joy in youth basketball hits home.

www.mavsmoneyball.com

 

[bke1984]

Well. My take, for whatever it is worth:

1. The money will never run out.

2. Rules are made to be broken. There will always be cheating going on in “college” football.

Funny thing about pro sports teams - they generally operate at a loss. Owning those teams is a way for billionaires to be entertained. That's where college football is headed. But the problem is that there are too many players and all of them now get paid. In the old days only some of them got paid. Now we have the likes of Eric Singleton getting anywhere between $1M and $2M to play a single season for Auburn. Not to knock Eric too much here - he's a good player - but keep in mind that Cam Newton was alleged to have been solicited by his father for around $200K to play at Auburn for a year (let's inflation adjust it to $300K...which is generous). So the Heisman Trophy winner and AP POY who led his team to a national title was worth $200K in 2010 and a 700+ yard receiver with 3 TD's is worth $1M-$2M in 2024?

If that's the kind of money being thrown around then there is no way the money doesn't run out. The teams that are backed by billionaires are the only ones that stand a chance. And that requires that you have one that is interested enough in college football to accept throwing money away. There are many a dozen of those right now out of the 800ish billionaires in the US.

The only way this ends well for anyone is if some rules are put in place - salary caps, multi-year contracts, etc. Unfortunately that leads to a players union and collective bargaining with someone (not sure who the hell that is when there's not an owner...but it will happen). There will be hold outs, strikes, etc. It's just a pro sport now - and the academic side will (eventually) evaporate entirely.

 

[stinger78]

Funny thing about pro sports teams - they generally operate at a loss. Owning those teams is a way for billionaires to be entertained. That's where college football is headed. But the problem is that there are too many players and all of them now get paid. In the old days only some of them got paid. Now we have the likes of Eric Singleton getting anywhere between $1M and $2M to play a single season for Auburn. Not to knock Eric too much here - he's a good player - but keep in mind that Cam Newton was alleged to have been solicited by his father for around $200K to play at Auburn for a year (let's inflation adjust it to $300K...which is generous). So the Heisman Trophy winner and AP POY who led his team to a national title was worth $200K in 2010 and a 700+ yard receiver with 3 TD's is worth $1M-$2M in 2024?

If that's the kind of money being thrown around then there is no way the money doesn't run out. The teams that are backed by billionaires are the only ones that stand a chance. And that requires that you have one that is interested enough in college football to accept throwing money away. There are many a dozen of those right now out of the 800ish billionaires in the US.

The only way this ends well for anyone is if some rules are put in place - salary caps, multi-year contracts, etc. Unfortunately that leads to a players union and collective bargaining with someone (not sure who the hell that is when there's not an owner...but it will happen). There will be hold outs, strikes, etc. It's just a pro sport now - and the academic side will (eventually) evaporate entirely.

Inflation, baby!

 

[eetech]

I can admit that I am in favor of student athletes getting a 'piece of the action' given the amount of money involved to watch them play a game. I am no worried that we may all be in for a rude awakening as this money train will eventually dry up. What will we have left with respect to college sports when that happens?

College football messed this up when the SEC stooge Sankey was heading the NCAA.

It was pretty obvious at that time with billion dollar TV contracts and video game covers for which schools were being paid millions but players were receiving nothing, that the status quo was not tenable. Players had to be paid. Anyone who had the slightest bit of sense could see the obvious writing on the wall. Which was proven by a unanimous Supreme Court decision.

Except for the idiots running college football. If they weren’t idiots, they would have allowed the players to form a union (maybe even forced them to) with which they could have then bargained a decent system with salary caps, decent transfer rules, etc. Like they do it in the pros.

But the NCAA didn’t do that. The NCAA fought hard against the unions and so now we have a complete free for all **** show.

And it’s very hard to see how you can get a possible future agreement with the players to make this any better.

 

[gte447f]

College football messed this up when the SEC stooge Sankey was heading the NCAA.

It was pretty obvious at that time with billion dollar TV contracts and video game covers for which schools were being paid millions but players were receiving nothing, that the status quo was not tenable. Players had to be paid. Anyone who had the slightest bit of sense could see the obvious writing on the wall. Which was proven by a unanimous Supreme Court decision.

Except for the idiots running college football. If they weren’t idiots, they would have allowed the players to form a union (maybe even forced them to) with which they could have then bargained a decent system with salary caps, decent transfer rules, etc. Like they do it in the pros.

But the NCAA didn’t do that. The NCAA fought hard against the unions and so now we have a complete free for all **** show.

And it’s very hard to see how you can get a possible future agreement with the players to make this any better.

Ironically though, the players still don’t get a piece of the action. All of the nil payments are coming from stupid donors.

 

[eetech]

Funny thing about pro sports teams - they generally operate at a loss. Owning those teams is a way for billionaires to be entertained. That's where college football is headed. But the problem is that there are too many players and all of them now get paid. In the old days only some of them got paid. Now we have the likes of Eric Singleton getting anywhere between $1M and $2M to play a single season for Auburn. Not to knock Eric too much here - he's a good player - but keep in mind that Cam Newton was alleged to have been solicited by his father for around $200K to play at Auburn for a year (let's inflation adjust it to $300K...which is generous). So the Heisman Trophy winner and AP POY who led his team to a national title was worth $200K in 2010 and a 700+ yard receiver with 3 TD's is worth $1M-$2M in 2024?

If that's the kind of money being thrown around then there is no way the money doesn't run out. The teams that are backed by billionaires are the only ones that stand a chance. And that requires that you have one that is interested enough in college football to accept throwing money away. There are many a dozen of those right now out of the 800ish billionaires in the US.

The only way this ends well for anyone is if some rules are put in place - salary caps, multi-year contracts, etc. Unfortunately that leads to a players union and collective bargaining with someone (not sure who the hell that is when there's not an owner...but it will happen). There will be hold outs, strikes, etc. It's just a pro sport now - and the academic side will (eventually) evaporate entirely.

Pro sports don’t operate at a loss. They cook the books to look like they operate at a loss so they can save on taxes and get governments to pay for their billion dollar stadiums. There’s a reason only a handful of owners have sold a pro team voluntarily despite them being worth billions. If they were just losing millions of dollars every year many more would have sold them for those billions of dollars upfront.

 

[GoJacketsInRaleigh]

Jim Phillips needs to find some money for the entire conference. Whether that's with or without Notre Dame. Get out of the ESPN contract and go in with NBC/Peacock and Notre Dame or Amazon or Netflix. Or get some money from the Saudi's like LIV golf. But the performance in football and basketball compared to the money conferences has become an absolute joke. ACC will get 4-5 NCAA tournament teams this year. SEC currently projected at 13 teams and the Big Ten 10 teams.

 

[RamblinRed]

6 former FSU basketball players have filed a lawsuit against Coach Hamilton for failure to pay $250K to each player for NIL.

The basic issue here is that the coach promised each of the players they would receive $250K for playing for FSU and then the money never came through (Collective was unable to raise the money to pay the players).

As of right now schools cannot pay players directly, until the House settlement is finalized. Any payments to players have to come from the collectives.

6 former Florida State players file lawsuit against coach Leonard Hamilton over NIL compensation

The six plaintiffs allege that Hamilton promised each of them $250,000 in NIL payments from the coach’s “business partners.”

sports.yahoo.com

The six plaintiffs — Darin Green Jr., Josh Nickelberry, Primo Spears, Cam’Ron Fletcher, De’Ante Green and Jalen Warley — allege that Hamilton promised each of them $250,000 in NIL payments from the coach’s “business partners.”

The lawsuit is the latest public revelation of the chaotic nature of the NIL era of college athletics, providing a behind-the-scenes peek of an unregulated system in which boosters, and even coaches, are funding or promising to fund college rosters.

Communication, or lack thereof, between coaches and their booster-backed NIL collectives has been a problematic hallmark since the NIL era began in July 2021, when state laws forced the NCAA to permit athletes to earn compensation from endorsement deals. The elimination of the NCAA’s amateurism rules combined with the lack of guidance and enforcement — the NCAA is handcuffed by court rulings — has resulted in a messy system in which school donors pool cash to distribute to a roster.

However, collectives, even those affiliated with the wealthiest programs, are struggling to raise enough money to fulfill commitments made to either retain or recruit athletes, many of them needing direct financial assistance from institutions — a move that, while not necessarily within NCAA guidelines, is permitted through several state laws.

 

[MtnWasp]

If the NIL collectives are failing to cover recruiting promises, that would provide the impetus we need for the players to Unionize. Then we get collective bargaining and regulation that many fans here covet.

 

[Northeast Stinger]

I think a lot of our fans underestimate Tech's ability to compete in this financial battle. As long as there are no guidelines or regulations on how much you can pay players, schools will continue to find ways to buy who they think they need to be successful. I think Singleton is a perfect example of this. Auburn wanted a top-notch receiver and felt like he was best for their current situation so they made him an offer he could not refuse. Tech, for whatever reason, choose not to participate in the bidding war.

There are enough wealthy alumni who are willing to open their bank accounts to help their alma mater win on the football field. That is true at Tech just as it is true at most every other school. I think there is a year or two window where these athletes have the chance to really win the lottery, before someone puts rules and regulations in place that limit the pay for play situation. So now is the time to strike while the opportunity presents itself. I think you will see a lot of movement among the higher rated talent in college football this year and next year
Eventually, some ruling body will seize control of this and set some limits. Until then, it's going to be every man for himself, pretty much.

Go Jackets!

I would love to hear you say more about Tech alumni being willing to spend big on NIL. I don’t doubt for a moment that Tech has plenty of wealthy alumni, it’s just that my impression was always that they were conservative with their money, preferring sound business investments over vanity projects. Maybe I’ve bought into a stereotype but I think of fans at a school like uga having a kind of mindless exuberance whereas Tech having fans who keep the game in perspective.

Would love to hear what others think too.

 

[MtnWasp]

Recruiting both in football and basketball seems to me took a quantum boost with all the NIL mishegoss.

Indirect evidence, but pretty strong evidence nonetheless.

 

[leatherneckjacket]

6 former FSU basketball players have filed a lawsuit against Coach Hamilton for failure to pay $250K to each player for NIL.

The basic issue here is that the coach promised each of the players they would receive $250K for playing for FSU and then the money never came through (Collective was unable to raise the money to pay the players).

As of right now schools cannot pay players directly, until the House settlement is finalized. Any payments to players have to come from the collectives.

6 former Florida State players file lawsuit against coach Leonard Hamilton over NIL compensation

The six plaintiffs allege that Hamilton promised each of them $250,000 in NIL payments from the coach’s “business partners.”

sports.yahoo.com

The six plaintiffs — Darin Green Jr., Josh Nickelberry, Primo Spears, Cam’Ron Fletcher, De’Ante Green and Jalen Warley — allege that Hamilton promised each of them $250,000 in NIL payments from the coach’s “business partners.”

The lawsuit is the latest public revelation of the chaotic nature of the NIL era of college athletics, providing a behind-the-scenes peek of an unregulated system in which boosters, and even coaches, are funding or promising to fund college rosters.

Communication, or lack thereof, between coaches and their booster-backed NIL collectives has been a problematic hallmark since the NIL era began in July 2021, when state laws forced the NCAA to permit athletes to earn compensation from endorsement deals. The elimination of the NCAA’s amateurism rules combined with the lack of guidance and enforcement — the NCAA is handcuffed by court rulings — has resulted in a messy system in which school donors pool cash to distribute to a roster.

However, collectives, even those affiliated with the wealthiest programs, are struggling to raise enough money to fulfill commitments made to either retain or recruit athletes, many of them needing direct financial assistance from institutions — a move that, while not necessarily within NCAA guidelines, is permitted through several state laws.

I am curious as to how a coach can offer/promise NIL money when it is not supposed to be connected to the school in any way.

 

[Root4GT]

I am curious as to how a coach can offer/promise NIL money when it is not supposed to be connected to the school in any way.

Coach is the New Bagman! The NCAA will throw their hands up and hide in the corner!