How much NIL are kids asking for

RamblinRed

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This is a good read.
Asked coaches about how much kids are asking for in NIL and the disconnect between asking prices and reality in terms of how good the players are.


Among the power-conference coaches we polled, the main thing you need to know is that a whopping 77% of them told us their staff has been asked to pay at least $1 million in NIL for a player.

One coach told us he was informed that it would take $400,000 to get a transfer who had just averaged around five points per game at the mid-major level.

"My jaw is still dropped," the coach said.

Another coach told us his staff offered $50,000 for a player and was subsequently made to feel like the offer was insulting.

"It was $50,000 more than he deserved," the coach said. "He wound up going to the SEC."

We didn't ask about this specifically for our series, but one coach I spoke with did go out of his way to make the point that the amount of NIL money being requested and paid is significantly higher than it was just two years ago.

"The same player who got $50,000 a few years ago is now getting $200,000 -- and the player who got $200,000 a few years ago is probably asking for a million (now) and nearly getting it," one coach told me.

But one thing a lot of coaches told us over and over again is that there's a big gap between the market a lot of so-so-players think exists and the one that actually exists for players of their caliber. That's where coaches said they often find themselves rolling their eyes as conversations unfold.
 

slugboy

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It’s interesting to see this at the same time that the New York Times runs a new Michael Oher article (gift link)

NIL is an evolution of how boosters get players to play for their schools, but it’s something that’s been going on for a while.

The Touhy’s were rich Ole Miss boosters. Michael Oher was staying with friends, and was already a high-profile high-star recruit when the Touhy’s gave him a bunch of stuff, including a truck, to move in with them. Michael Oher went to Ole Miss, and he said clearly at the time that he’d rather go to Tennessee but that the Touhy’s wouldn’t approve. They were friends with Michael Lewis, who wrote “The Blind Side”, and it’s their version of the story that was written, and it’s falling apart under scrutiny. It looks like they basically acquired a player for Ole Miss, and said it was out of compassion.

I think this is an illustration for the other side of the equation: the demand side of the economics is racing up, but that’s because the supply side is racing up thanks to the boosters. And there have been boosters willing to do a lot for their schools.

Back to the original topic: The athletes are in a feeding frenzy, and their demands are hyperinflationary. But boosters are throwing chum in the water. We can’t be surprised that the little guys (the athletes) have unrealistic views of the market when the market makers (big boosters) are inflating the market in competition with each other.
 

cpf2001

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"It was $50,000 more than he deserved," the coach said. "He wound up going to the SEC."
I want to hear more about this lol and what “going to the SEC” means in context. That they overpay in the SEC for basketball? That this person doesn’t take the SEC seriously? Something else?
 

bob4gt

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I heard from a reliable source Nait was getting $50,000 and no one else on the team was getting more.
BB THWg
ETA: This was before recruiting.
 

78pike

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I don't know that I have ever heard definitively how NIL money is taxed. Is it considered income and subject to normal tax rates based on the amount? Is it considered a gift? My point being that if a player receives an NIL package of $500K it is really a net value that is considerably less than that correct? Especially if the family had an advisor/ agent that is expecting a percentage.
 

YlJacket

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I don't know that I have ever heard definitively how NIL money is taxed. Is it considered income and subject to normal tax rates based on the amount? Is it considered a gift? My point being that if a player receives an NIL package of $500K it is really a net value that is considerably less than that correct? Especially if the family had an advisor/ agent that is expecting a percentage.
NIL is payment for services or use of name/image. Thus it is income. There are a lot of tricks in offsetting expenses and funneling income through special purpose LLCs. The million dollar guys will use a lot of the same tricks as professional athletes - probably not worth it for the $20K to $50K guys. And yes these higher $ guys do have NIL agents that take a cut.
 

slugboy

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I don't know that I have ever heard definitively how NIL money is taxed. Is it considered income and subject to normal tax rates based on the amount? Is it considered a gift? My point being that if a player receives an NIL package of $500K it is really a net value that is considerably less than that correct? Especially if the family had an advisor/ agent that is expecting a percentage.
It is taxable income. There are certified NCAA agents, and they get paid by the players.

 

MtnWasp

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What the players ask for is based on expectations formed by information about the market.

But the information seems chaotic and unreliable. So I think it is not surprising that the players' expectations are also chaotic and sometimes ridiculous.

I think we will continue to see some ridiculous things until this market evolves some structure.
 

beeteam

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What the players ask for is based on expectations formed by information about the market.

But the information seems chaotic and unreliable. So I think it is not surprising that the players' expectations are also chaotic and sometimes ridiculous.

I think we will continue to see some ridiculous things until this market evolves some structure.
I would think the agents would know what the going rates are and would structure the introductory offers accordingly. They would also be the ones to temper the players/families/entourages expectations accordingly.
 

Techster

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In the NFL/NBA/MLB, salary is pegged by position, the open market (free agency), and franchise tender/tag that's published. I think it would be wise for schools and SAs to be open about what they're getting paid once the season starts or is over that way both sides benefit. SAs know what their peers are getting paid and can ask for a competitive NIL offer, and schools know what level of player is getting paid.

Yes, I understand NIL isn't "pay for play" (*wink* *wink*), but there's no rule that says you can't help everyone in the process be more informed. It's a win-win for everyone...unless you're averaging 5 points a game and asking for $250K NIL.
 

YlJacket

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There are likely confidentiality clauses in NIL deals - especially higher dollar deals - that prevent athletes from publicly disclosing amounts. Data is going to have to come from blinded data from agents who have a vested interest in pumping those numbers up. I expect the public knowledge of this data will be anecdotal for a while.
 

MtnWasp

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There are likely confidentiality clauses in NIL deals - especially higher dollar deals - that prevent athletes from publicly disclosing amounts. Data is going to have to come from blinded data from agents who have a vested interest in pumping those numbers up. I expect the public knowledge of this data will be anecdotal for a while.
This.

There is no entity collecting the data or making it available, therefore, the agents have no way of knowing their market. Everyone is flying blind.

I guess there is a potential business opportunity here for someone who wants to collect the data. I'm sure schools and agents would buy it.
 

bigrabbit

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Is it true that international players are limited by their visas in terms of collecting NIL? Can they collect any, or just minimal or none?

My impression from the Olympics is the level of non U.S. basketball talent is now apparently pretty high. You already have a lot of European or Asian tennis and golf athletes coming here, maybe basketball can be the same, partly to help manage the madness.
 

Richland County

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Basketball it seems has soo many players to chose from and the odds of a lower rated recruit out performing his prediction is common. I don't think NIL is as big a factor in basketball as it is in football.
 

RamblinRed

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Is it true that international players are limited by their visas in terms of collecting NIL? Can they collect any, or just minimal or none?

My impression from the Olympics is the level of non U.S. basketball talent is now apparently pretty high. You already have a lot of European or Asian tennis and golf athletes coming here, maybe basketball can be the same, partly to help manage the madness.
This is true.
I'm sure someone can provide the legal documentation.
I believe Intl players are not eligible to receive any NIL on American soil. This is part of why you see teams taking international trips - it allows the Intl players a chance to get a little NIL outside the US.
So for example I don't believe Baye is eligible for any NIL money.
 

yjfan

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Basketball it seems has soo many players to chose from and the odds of a lower rated recruit out performing his prediction is common. I don't think NIL is as big a factor in basketball as it is in football.
but then they look at the portal the next year for the bag anyway
 

dtm1997

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This is true.
I'm sure someone can provide the legal documentation.
I believe Intl players are not eligible to receive any NIL on American soil. This is part of why you see teams taking international trips - it allows the Intl players a chance to get a little NIL outside the US.
So for example I don't believe Baye is eligible for any NIL money.
Oddly, Baye just made a visit home for a couple of weeks.

There should be little doubt he's our highest paid player.
 

Peacone36

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Wake me when someone write an article about how much coaches are asking for.
This thing is 18 months old and the college sports landscape has completely changed, and not for the better. Everything that was great about CBB compared to the pros has been set ablaze through realignment, freedom of movement and player contracts. The former two obviously being longer in the tooth. This leads me to surmise that your comment is short sighted.

At what point do these players unionize? At what point do they decide they need multi year deals? At what point do they decide they aren’t getting a big enough piece of the March Madness pie and decide a labor stoppage is the answer?

Pandora’s box is wide open and it has resulted in me pining for the days of Coach K’s samsonite bags and real estate side hustle.
 
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