NIL in CBB

mstranahan

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1,557
Not sure what thread to put this in. Mods, feel free to move to a different thread if there's a better one....

Just spoke to a friend whose nephew is a one & done this year. he's expected to go in the lottery by most mocks. We were talking about how NIL has reduced the stress of lining up an agent and talking to potential sponsors between declaring for draft and draft day. (He already has an agent and has several NIL sponsors he signed with a year ago) Then she surprised me with this "I hate NIL. [My nephew] is making insane amounts of money and he isn't old enough to know how to handle that. I know they need to share the wealth with the players, but if they don't have good guidance from parents, it's going to lead to a tragedy." (I'm paraphrasing, but that's close to verbatim)

We talked for a while. She told me some hair-raising stories about what some of his teammates have done with their money and the culture it is producing. (In her nephew's case, all the money goes into a trust and the trustee is not a family member or friend.) She also said it is well known that most of the top kids in the P5 are making more than their coaches are. The kids all know each other from AAU ball and they talk. I told her I had heard Bacot was north of a million. She laughed and said she knows at least 20 freshmen who are well into the 7 figures. (I can't verify anything she said about figures, but I've known her for a long time and she's not a big talker and I don't think she's exaggerating.)

It's a different world out there. :eek:
 

YlJacket

Helluva Engineer
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3,242
Not sure what thread to put this in. Mods, feel free to move to a different thread if there's a better one....

Just spoke to a friend whose nephew is a one & done this year. he's expected to go in the lottery by most mocks. We were talking about how NIL has reduced the stress of lining up an agent and talking to potential sponsors between declaring for draft and draft day. (He already has an agent and has several NIL sponsors he signed with a year ago) Then she surprised me with this "I hate NIL. [My nephew] is making insane amounts of money and he isn't old enough to know how to handle that. I know they need to share the wealth with the players, but if they don't have good guidance from parents, it's going to lead to a tragedy." (I'm paraphrasing, but that's close to verbatim)

We talked for a while. She told me some hair-raising stories about what some of his teammates have done with their money and the culture it is producing. (In her nephew's case, all the money goes into a trust and the trustee is not a family member or friend.) She also said it is well known that most of the top kids in the P5 are making more than their coaches are. The kids all know each other from AAU ball and they talk. I told her I had heard Bacot was north of a million. She laughed and said she knows at least 20 freshmen who are well into the 7 figures. (I can't verify anything she said about figures, but I've known her for a long time and she's not a big talker and I don't think she's exaggerating.)

It's a different world out there. :eek:
That is consistent with what I heard from a blue blood assistant coach who recruits the top 20 or so. He has to go through the NIL agents before he can talk to the player - and that is only after he can say they have NIL funds to meet a $1M (+/-) number. I would expect her number of freshman over $1M is a bit high but directionally accurate (just my impression).

It is why I have no expectation that GT will be able to get back into Cremmins level recruiting. I do think that with support from the NBA guys and some creative cultivating of local ATL/GT corporations and connections we can compete in the top 50 to 125 level (Market drops way off after the top 20 who have NBA possibilities).
 

g0lftime

Helluva Engineer
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5,732
Are we on the path to athletes being employees of the school? It sure appears to be heading that way.
I wonder how many of these kids are going to get into financial trouble with the IRS. The amount of money being thrown around is obscene.

The GT model is pretty much based on donors. Return on investment doesn't exist. Not tax deductible? Support by business owners can use the kids for advertising or as part time employees and it becomes a business expense and lots more money available. Really open for abuse.
 

orientalnc

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Retired Staff
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Oriental, NC
The real solution to the NIL problem is a law (or court ruling) or the NCAA saying the NIL payment has to be made for "actual" use of the athlete's NIL and not some off the wall donation to an NIL collective or, directly to the athlete. The IRS might have some interest in this as well. I just do not think the current NIL atmosphere is being played by the book.
 

orientalnc

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Retired Staff
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We'd no longer be pretending with the whole "student" athlete thing.
Maybe college clubs are different now, but I had to be a student in good standing to join a club. The club rules weren't strictly enforced regarding "good standing," but you had to be an enrolled student.
 

kg01

Get-Bak! Coach
Featured Member
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Location
Atlanta
Maybe college clubs are different now, but I had to be a student in good standing to join a club. The club rules weren't strictly enforced regarding "good standing," but you had to be an enrolled student.

Not talking about a club in that sense. "Club" as in club teams like overseas. Not like intramurals.
 

Northeast Stinger

Helluva Engineer
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10,533
Maybe college clubs are different now, but I had to be a student in good standing to join a club. The club rules weren't strictly enforced regarding "good standing," but you had to be an enrolled student.
I thought you were talking more about advertisers but I see now what you were questioning.

I was thinking “The Atlanta Gas Light Yellow Jackets” or something.
 

GetYourBuzzOn

Georgia Tech Fan
Messages
77
I don't believe their data is accurate at all.
What specifically do you think is inaccurate? I'm not looking to make an argument either way, just genuinely curious.

On3 seems to be fairly well respected by media sources regarding NIL valuations- a quick google has SI, ESPN, Sports Business Journal, and Axios citing their information. I think its an interesting concept, and would expect others to have proprietary valuation algorithms at some point.
 
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