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NIL, Transfers, and Stratospheric Salaries. What Is the Future of GT Football and College Football in General?
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<blockquote data-quote="roadkill" data-source="post: 959708" data-attributes="member: 1555"><p>Kinda disagree with this take, because we have a very distorted market involving irrational actors. Boosters don’t care how much profit a team makes, they care about wins. I don't think the TV money will drop so fast that the rich schools will be scrambling to cut expenses.</p><p></p><p>Regardless, costs to run an AA continue to rise faster than general inflation. There are several future events that would impact expenses. Some, such as players being ruled to be employees, and/or player unionization, would likely result in significant cost increases to a school’s AA. The biggest problem with this, especially for schools like GT, is that the “rich” schools with deep donor pockets would see this as a minor speed bump on their path toward staying competitive at the highest level, while schools with a lower donor base and media revenue would fall further behind. On the other side of this equation is that any reduction in media revenue, such as has been discussed relative to future ESPN contracts, would have the same effect if not worse for GT since we have a greater dependency on media rights revenue as a portion of our overall total.</p><p></p><p>A proposed solution is to cap certain expenses such as coaches’ salaries. This could help insulate GT from the ever-escalating cost of acquiring and retaining coaching talent. It would take Congress passing a special anti-trust exemption and the NCAA’s will to do it, but it may be the only thing that can be done to maintain some semblance of competitiveness in Football and Basketball.</p></blockquote><p></p>
[QUOTE="roadkill, post: 959708, member: 1555"] Kinda disagree with this take, because we have a very distorted market involving irrational actors. Boosters don’t care how much profit a team makes, they care about wins. I don't think the TV money will drop so fast that the rich schools will be scrambling to cut expenses. Regardless, costs to run an AA continue to rise faster than general inflation. There are several future events that would impact expenses. Some, such as players being ruled to be employees, and/or player unionization, would likely result in significant cost increases to a school’s AA. The biggest problem with this, especially for schools like GT, is that the “rich” schools with deep donor pockets would see this as a minor speed bump on their path toward staying competitive at the highest level, while schools with a lower donor base and media revenue would fall further behind. On the other side of this equation is that any reduction in media revenue, such as has been discussed relative to future ESPN contracts, would have the same effect if not worse for GT since we have a greater dependency on media rights revenue as a portion of our overall total. A proposed solution is to cap certain expenses such as coaches’ salaries. This could help insulate GT from the ever-escalating cost of acquiring and retaining coaching talent. It would take Congress passing a special anti-trust exemption and the NCAA’s will to do it, but it may be the only thing that can be done to maintain some semblance of competitiveness in Football and Basketball. [/QUOTE]
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NIL, Transfers, and Stratospheric Salaries. What Is the Future of GT Football and College Football in General?
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