NIL, Transfers, and Stratospheric Salaries. What Is the Future of GT Football and College Football in General?

[GTRambler]

Well, Tech's coach, AD, and Pres seem to want to play with the big boys.

Yes. That is what their “Competitive Drive Initiative” is all about.

 

[billga99]

To the President's credit he is trying and I did contribute what I could. But the reality of the BIG 10 and SEC getting 50MM plus more per team from TV and having large stadiums which they fill is just too big a revenue difference. The only way I can see to slow this train down is for all other teams outside those conferences refuse to play Big 10 and SEC schools in any sport. It is one thing to travel for football and basketball. For non revenue sports having no ability to play any regional teams would have an impact. And if the NCAA excluded those 2 conference for any NCAA title, my bet is they would come to the table to negotiate.

 

[CrackerJacket]

The speculation about CFB dividing itself into semi-pro and student-athlete worlds is on point. I think we will end up with age group pro football, where the team owner/sponsor could be a university, a corporation, or even an individual. The ‘College’ Gameday show will be analyzing matchups such as Notre Dame v the Elon Muskoxes or Bama vs the Facebook Trolls.
The other division is college football, where the athletes are bona fide students and are eligible for schollys and a standard stipend. But I’m not sure the latter division could survive on its own, much less fund other sports, unless they get $$ from the age group leagues.

 

[ibeattetris]

Random question somewhat related, has the "4 years of eligibility" ever been challenged in court? Given how NIL/transfers/outright paying players was restricted for so long, I was wondering why NCAA has the ability to restrict players to certain limits (which seem more arbitrary given what they did with COVID and now the UVA seniors).

 

[forensicbuzz]

Random question somewhat related, has the "4 years of eligibility" ever been challenged in court? Given how NIL/transfers/outright paying players was restricted for so long, I was wondering why NCAA has the ability to restrict players to certain limits (which seem more arbitrary given what they did with COVID and now the UVA seniors).

I feel every aspect of the NCAA rules will be challenged. But, remember, the NCAA is a member organization governed by the university presidents. These rules could be changed any time, but they haven't.

Here's a very interesting article Article

 

[roadkill]

I feel every aspect of the NCAA rules will be challenged. But, remember, the NCAA is a member organization governed by the university presidents. These rules could be changed any time, but they haven't.

Here's a very interesting article Article

Thanks for sharing the article. I found it enlightening with respect to the history of admissions and eligibility requirements for S-As.

Also interesting was the court's take on the NCAA's authority over athletic programs:
"As to the question of whether the NCAA maintained "controlling authority" over their member institutions which receive federal financial assistance, the Third Circuit held that this argument failed as well. The court stated that the NCAA did not control its members."
"While it was true that member institutions make student-athlete admission and scholarship decisions conscious of possible NCAA sanctions, that did not mean the NCAA controls them because the institutions could either accept the sanctions imposed or withdraw from the NCAA, albeit not the most optimal choices with respect to an institution's future competition in national collegiate athletics. Despite the fact that the NCAA constitution required its members to forfeit authority over their sports programs to the NCAA, the member institutions retained control over the individual athletic programs and could make their own determinations as to whether they would adhere to the NCAA rules and regulations."

 

[forensicbuzz]

Thanks for sharing the article. I found it enlightening with respect to the history of admissions and eligibility requirements for S-As.

Also interesting was the court's take on the NCAA's authority over athletic programs:
"As to the question of whether the NCAA maintained "controlling authority" over their member institutions which receive federal financial assistance, the Third Circuit held that this argument failed as well. The court stated that the NCAA did not control its members."
"While it was true that member institutions make student-athlete admission and scholarship decisions conscious of possible NCAA sanctions, that did not mean the NCAA controls them because the institutions could either accept the sanctions imposed or withdraw from the NCAA, albeit not the most optimal choices with respect to an institution's future competition in national collegiate athletics. Despite the fact that the NCAA constitution required its members to forfeit authority over their sports programs to the NCAA, the member institutions retained control over the individual athletic programs and could make their own determinations as to whether they would adhere to the NCAA rules and regulations."

That was written in 2000.

 

[Heisman's Ghost]

What would keep NIL and free transfers from happening in your academic league? Or keep the pro schools from picking off your best players year after year anyway? And how many schools in the BIG, SEC, etc do you think are gonna give up that sweet Conf TV money?

Not allowing it. I don't give a tinker's damn about the SEC. If Tech wants to continue to try and compete with these semi professional teams, have at it but it is ultimately a losing proposition.

 

[Dress2Jacket]

Well, Tech's coach, AD, and Pres seem to want to play with the big boys.

Being the coach, AD, or possibly President of a P5 school pays better than being the coach, AD, or maybe President of one of those *other* types of schools.

 

[UgaBlows]

Not allowing it. I don't give a tinker's damn about the SEC. If Tech wants to continue to try and compete with these semi professional teams, have at it but it is ultimately a losing proposition.

The lawsuits are what allow NIL to exist, so there’s nothing any school or conference can do to stop it is there?

 

[Novajacket]

At the end of the day this money all comes from one pile. NIL money is money that either was going to be donated legally to AA or illegally to student athletes. As far as I know schools are not using TV revenue to pay NIL to students. So as time goes on more and more booster money will go to NIL. That mainly means there is less money going to AA, which means lower or flat admin and coaches salaries. Especially for schools like us, we will need to decide if the money is better spent as NIL money vs coaching, admin, and facilities. I think the CBK contract gives us flexibility to navigate the next 5 years and adjust.

 

[MWBATL]

At the end of the day this money all comes from one pile. NIL money is money that either was going to be donated legally to AA or illegally to student athletes. As far as I know schools are not using TV revenue to pay NIL to students. So as time goes on more and more booster money will go to NIL. That mainly means there is less money going to AA, which means lower or flat admin and coaches salaries. Especially for schools like us, we will need to decide if the money is better spent as NIL money vs coaching, admin, and facilities. I think the CBK contract gives us flexibility to navigate the next 5 years and adjust.

I agree with your general point, but I think that source is not as big as you may think. Donor Giving and Endowments make up only 15% of all athletic revenue. Government and Institutional Grants are by far the biggest source, and Media Rights exceed Donor Gifts and those two are unlikely to change with NIL. And likely will continue to grow. So salaries are likely to continue to skyrocket, at least in programs whose revenues are booming.

Infographic: U.S. College Sports Are a Billion-Dollar Game

This chart shows total revenue generated by NCAA athletic departments in 2019, by source.

www.statista.com

I do agree with your broader point that for a place like GT, which is 13th out of 14th ACC schools in athletics revenues, we must be more cautious with our spending than the factories.

 

[MikeGT]

At the end of the day this money all comes from one pile. NIL money is money that either was going to be donated legally to AA or illegally to student athletes. As far as I know schools are not using TV revenue to pay NIL to students. So as time goes on more and more booster money will go to NIL. That mainly means there is less money going to AA, which means lower or flat admin and coaches salaries. Especially for schools like us, we will need to decide if the money is better spent as NIL money vs coaching, admin, and facilities. I think the CBK contract gives us flexibility to navigate the next 5 years and adjust.

I’m not sure if you mean TV money as in the ESPN contract money? Since that’s coming directly to the conference and schools, I believe that would be expressly pay for play. ( as opposed to the pay for play from external NIL collectives).
There is a small percentage that’s coming from legit sources - like Dr Pepper ads or I suppose social media mentions of products. This, I believe, was the intent of the court ruling.

But you do have a good point - if one has X $ to donate, does that go to AT Fund or NIL?
For me, it’s going to AT Fund, and indirectly through seat license fees.

 

[Heisman's Ghost]

The lawsuits are what allow NIL to exist, so there’s nothing any school or conference can do to stop it is there?

They may choose to retain what little credibility they have left and not participate in this scam.

 

[roadkill]

At the end of the day this money all comes from one pile. NIL money is money that either was going to be donated legally to AA or illegally to student athletes. As far as I know schools are not using TV revenue to pay NIL to students. So as time goes on more and more booster money will go to NIL. That mainly means there is less money going to AA, which means lower or flat admin and coaches salaries. Especially for schools like us, we will need to decide if the money is better spent as NIL money vs coaching, admin, and facilities. I think the CBK contract gives us flexibility to navigate the next 5 years and adjust.

It isn't clear to me that the money flowing to NIL, donated to the AA, or else directly to the S-As, is necessarily a zero-sum situation as you imply. I suspect there is some overlap, but if we are to believe that at least a portion of NIL funding is advertising that would otherwise have been spent on other advertising, then some of it is incremental to the sport. Also, some NIL providers may be simply getting into the pay-for-play game with greater enthusiasm than before, now that it's above the table.

Personally, I have mixed feelings about NIL. When I was in school I didn't have a scholly so I worked to help pay my tuition. As I understand things, had I participated in an NCAA-regulated sport at the time, my work would have been considered impermissible benefits and at a minimum I would have been suspended from the team. I don't see how that's fair, and neither did the Supreme Court. What someone needs to come up with, and this is not just to benefit lower-budgeted schools like Tech, is a way of achieving some sort of equity around NIL payments without running afoul of labor law. Otherwise, the sport is trending toward favoring those schools that have the boosters with the deepest pockets for NIL. At least as far as getting the best talent is concerned. Even the traditional powers are worried about this, so I expect something to happen before it gets much worse.

 

[ibeattetris]

What someone needs to come up with, and this is not just to benefit lower-budgeted schools like Tech, is a way of achieving some sort of equity around NIL payments without running afoul of labor law.

Unless there is a collective bargaining agreement, there is really nothing else left but allowing the free market to express itself.

 

[Novajacket]

I don't understand why everyone's default is some power out there (govt, college pres, ncaa, ) needs to make it easier for poorer schools to compete with richer schools. Outside the time and effort to set this up, how much benefit are you expecting? Why would richer schools go along with this?

 

[roadkill]

I don't understand why everyone's default is some power out there (govt, college pres, ncaa, ) needs to make it easier for poorer schools to compete with richer schools. Outside the time and effort to set this up, how much benefit are you expecting? Why would richer schools go along with this?

Parity. Without some semblance of or at least a perception of relative parity, fans lose interest. The pros realized this some time ago.

 

[MWBATL]

Parity. Without some semblance of or at least a perception of relative parity, fans lose interest. The pros realized this some time ago.

It doesn't seem to have damaged worldwide soccer leagues to not have parity.

 

[billga99]

It doesn't seem to have damaged worldwide soccer leagues to not have parity.

But soccer is "the sport" for most countries without near as many competing sports. Also divisional play allows teams to move up and down based on performance in some countries. At some point lack of competition will have an impact.