Eventually...Where does the money come from?

[Frosted Szn]

NIL got me thinking...if you don't have potentially $71.4 million per year coming to you soon (Thank you Kevin Warren we accept your apology); how does a business go about deciding how to spend their money, and how does that affect the future bottom lines of collegiate athletic programs who depend on that money?

 

[Mattbraves]

all im saying is 150,000 fans. 100 dollars each. We have at least 15 extra million to buy some wins.

 

[headcard]

all im saying is 150,000 fans. 100 dollars each. We have at least 15 extra million to buy some wins.

While NIL was intended for businesses, etc, I do think the athletic department needs to find a way to funnel money into NIL. The department makes a massive profit and even gives back millions every year to the University. I think we should explore things like:

1) Stop asking for donations for building projects and have donors give that money to NIL.

2) Allow reduced ticket prices, seating preferences, etc for people that donate at a certain level to a NIL collective.

3) Make the Spring Game free, with at-will donations to a NIL collective.

4) Give AD employees a raise, with the understanding they will donate the money to a NIL collective (probably some IRS/tax issues with this, but I'm sure our tax nerds can find a loophole).

 

[rgrachek]

NIL got me thinking...if you don't have potentially $71.4 million per year coming to you soon (Thank you Kevin Warren we accept your apology); how does a business go about deciding how to spend their money, and how does that affect the future bottom lines of collegiate athletic programs who depend on that money?

The money is going to mainly be money from boosters laundered through businesses as NIL. Booster "invests" $100,000 in a business, then a player gets $80,000 on a NIL deal to put his picture on their advertisements. Pretty simple.

 

[Blindcheck]

I am just curious how the NIL agreements are going to be perceived by the Businesses when a student athlete gets $500,000 and they never get on the field.

 

[scarletred]

I am just curious how the NIL agreements are going to be perceived by the Businesses when a student athlete gets $500,000 and they never get on the field.

Very good question..

 

[RedCap]

Eventually ALL money for sports is derived from fans in the end unless taxpayers are funding it or subsidizing it which happens at some schools (though not Nebraska).

Now fans can fund it by donations, buying tickets, watching/listening to broadcasts (ie., ads/subscriptions) or businesses hoping to increase their business with endorsements (eg., NIL and other such paths).

 

[mgbreis]

Why are we so worried about NIL? I'd prefer to go back to the old days but that's never happening. I'm feeling pretty comfortable in my belief that the vast majority of us aren't big NIL donors. I'm happy that NIL seems to be working pretty well for us right now and I'll continue to let the rich people worry about it. This place is full of "what if!?!" and "yeah but!!!" people. Nebraska is killing it at NIL right now. Who GAF if some rich guy complains to Trev etc that the guy he gave a bunch of $$$ to is a flop? It's unlikely to happen (complaining) because that rich person is way more invested in the attention and importance of being an "insider" than any other aspect like "return on investment."

 

[egaRdeR]

Very good question..

Aren't these NIL engagements contracts of some form? I would assume there are contingencies in the agreement.

I believe the QB that left from OSU to Tex had a huge NIL right out of HS but is was dependent on him starting by a certain time and playing a set number of games or minutes.

The money is too big for these deals not to have some contract around them.

 

[regoratsginrom]

Some of these "students" will be making more money than their assistant coaches (just like the pros).

 

[RedCap]

Aren't these NIL engagements contracts of some form? I would assume there are contingencies in the agreement.

I believe the QB that left from OSU to Tex had a huge NIL right out of HS but is was dependent on him starting by a certain time and playing a set number of games or minutes.

The money is too big for these deals not to have some contract around them.

Of course they are contracts when big money is involved. BUT none of us know the details and stipulations of those contracts because they are private and likely vary quite a bit from one situation to the next. Until there are some lawsuits involving those contracts (which there will be down the road) we won't know the details.

 

[scarletred]

Some of these "students" will be making more money than their assistant coaches (just like the pros).

Eventually something has to give with over paid NIL money..

 

[drubendall]

Aren't these NIL engagements contracts of some form? I would assume there are contingencies in the agreement.

I believe the QB that left from OSU to Tex had a huge NIL right out of HS but is was dependent on him starting by a certain time and playing a set number of games or minutes.

The money is too big for these deals not to have some contract around them.

Imagine the tension between coaches, players, and parents when player is not starting and that is impacting their wallet. Some parents will probably squeal like pigs on social media. This should be fun

 

[Frosted Szn]

Why are we so worried about NIL? I'd prefer to go back to the old days but that's never happening. I'm feeling pretty comfortable in my belief that the vast majority of us aren't big NIL donors. I'm happy that NIL seems to be working pretty well for us right now and I'll continue to let the rich people worry about it. This place is full of "what if!?!" and "yeah but!!!" people. Nebraska is killing it at NIL right now. Who GAF if some rich guy complains to Trev etc that the guy he gave a bunch of $$$ to is a flop? It's unlikely to happen (complaining) because that rich person is way more invested in the attention and importance of being an "insider" than any other aspect like "return on investment."

To be completely transparent, I am not against NIL.

 

[IM4NUalways]

I am just curious how the NIL agreements are going to be perceived by the Businesses when a student athlete gets $500,000 and they never get on the field.

They will bitch to fire the HC and staff just like currently.

 

[salsa red]

If you were a business would you rather give some money to a player to play for a team you support and have them do some marketing for you or pay the money to the government in taxes (I'm assuming theres some tax benefits or the nil money can be written off)

 

[king_kong_]

The saying ‘the rich get richer’ didn’t come from nowhere

for Nebraska Football, money has never and will never be an issue

 

[egaRdeR]

Of course they are contracts when big money is involved. BUT none of us know the details and stipulations of those contracts because they are private and likely vary quite a bit from one situation to the next. Until there are some lawsuits involving those contracts (which there will be down the road) we won't know the details.

With some of the comments on here it seems like some think these players are just getting a bag of cash.

I am just stating that they likely have some requirements in the contract. And there certainly will be lawsuits to figure it out. It will be a legal nightmare.

 

[RedCap]

With some of the comments on here it seems like some think these players are just getting a bag of cash.

I am just stating that they likely have some requirements in the contract. And there certainly will be lawsuits to figure it out. It will be a legal nightmare.

Nightmare for parties involved but a dream come true for their lawyers!

 

[egaRdeR]

Nightmare for parties involved but a dream come true for their lawyers!

No kidding. Don't they always win?

 

[LonghornInOmaha]

Aren't these NIL engagements contracts of some form? I would assume there are contingencies in the agreement.

I believe the QB that left from OSU to Tex had a huge NIL right out of HS but is was dependent on him starting by a certain time and playing a set number of games or minutes.

The money is too big for these deals not to have some contract around them.

It can't be performance based. Ewers got paid fully by the Ohio State NIL regardless of being 4th string on the roster and only handing the ball off 2 or 3 times last year.

 

[Bugeater]

The beginning of the end for college football? Maybe not, but it makes you wonder where this will take college athletics in general. Everything has an eventual ending of sorts, the next 5-10 years will be interesting.

 

[Walleye79]

I have a feeling NIL will be pretty heavily regulated sooner rather then later. I read that Nil is only intended for players already signed and on the team. Don't know if that is true or not. Doesn't matter more and more coaches are starting to come out for some regulations to be in place

 

[egaRdeR]

It can't be performance based. Ewers got paid fully by the Ohio State NIL regardless of being 4th string on the roster and only handing the ball off 2 or 3 times last year.

Wow, this makes this NIL stuff even more messy. So reading a bit more, you are correct NIL can't be contingent on playing. Originally it was thought Elwers had contingencies around it and that is what I remember reading. But turns out that would be against the NIL rules.

I did find this article though that he lost his truck lease. It was contingent on him actually being enrolled at OSU. Maybe there will be more language like that preventing taking the money and running.

https://www.sportsbusinessjournal.c...2/10/Marketing-and-Sponsorship/Ewers-NIL.aspx

 

[itseasyas1-2-3]

Wow, this makes this NIL stuff even more messy. So reading a bit more, you are correct NIL can't be contingent on playing. Originally it was thought Elwers had contingencies around it and that is what I remember reading. But turns out that would be against the NIL rules.

I did find this article though that he lost his truck lease. It was contingent on him actually being enrolled at OSU. Maybe there will be more language like that preventing taking the money and running.

https://www.sportsbusinessjournal.c...2/10/Marketing-and-Sponsorship/Ewers-NIL.aspx

One way to slow down this type of thing is to require the new school to absorb 100% or a major portion of that incoming athlete's NIL agreement. Then you find out in a hurry what a player is actually worth.

Someone on this board was correct when he said the truth of all the NIL shortfalls will come into view a year or so down the line once the lawsuits start to begin.

It's going to make for some eye-opening reading. I look forward to it.

 

[RedCap]

I have a feeling NIL will be pretty heavily regulated sooner rather then later. I read that Nil is only intended for players already signed and on the team. Don't know if that is true or not. Doesn't matter more and more coaches are starting to come out for some regulations to be in place

I understand the desire to control things. But how are you going to prevent a person from selling their own name, image or likeness? No court is going to uphold any restriction on that very personal property these days.

 

[Clemke32]

Some of these "students" will be making more money than their assistant coaches (just like the pros).

This to me posses the biggest issue there will be with the NIL payments… how can you expect to have 18 year old kids Learn from someone that makes less then them… that’s essentially like saying I make more money then my boss, how would you expect me to listen to my boss in that kind of situation…

now I’m sure a lot of these contracts have built in protections for the business, I mean if it was me I’d put playing time restrictions to it and possibly statistical escalators/ milestones for anyone I’m planning on signing to an NIL contract… meaning you have to play x amount of snaps or have x amount of sack/ receptions/ tackles/ interceptions/ TDs/ yards or whatever and reach this payout, then have milestones for another tier of payment so maybe the first mile stone is just 1 TD you get 5k, 5th TD you get 30k or whatever… or even say a QB you get x amount extra for each 300 yard passing game or each game with no INTs…I want the kids motivated to get on the field, and make help sell my brand, I don’t want kids that just took a paycheck and then moved on or stopped trying, that’s not going to help sell my business.

 

[Walleye79]

I understand the desire to control things. But how are you going to prevent a person from selling their own name, image or likeness? No court is going to uphold any restriction on that very personal property these days.

I understand that. It's gonna be a wild ride watching this play out

 

[RedCap]

This to me posses the biggest issue there will be with the NIL payments… how can you expect to have 18 year old kids Learn from someone that makes less then them… that’s essentially like saying I make more money then my boss, how would you expect me to listen to my boss in that kind of situation…

now I’m sure a lot of these contracts have built in protections for the business, I mean if it was me I’d put playing time restrictions to it and possibly statistical escalators/ milestones for anyone I’m planning on signing to an NIL contract… meaning you have to play x amount of snaps or have x amount of sack/ receptions/ tackles/ interceptions/ TDs/ yards or whatever and reach this payout, then have milestones for another tier of payment so maybe the first mile stone is just 1 TD you get 5k, 5th TD you get 30k or whatever… or even say a QB you get x amount extra for each 300 yard passing game or each game with no INTs…I want the kids motivated to get on the field, and make help sell my brand, I don’t want kids that just took a paycheck and then moved on or stopped trying, that’s not going to help sell my business.

Football coaches routinely make more than their AD bosses. Same is true in pro sports where those star players have multi million contracts dwarfing by far the salaries of their coaches.

 

[Clemke32]

Football coaches routinely make more than their AD bosses. Same is true in pro sports where those star players have multi million contracts dwarfing by far the salaries of their coaches.

Oh I know and I agree with that, the issue there is that you’re dealing with kids that are a lot less mature and may start to get that mentality of why should I listen to you if you’re not making as much as I am, and I’m not so much concerned about the kids doing that to coaches but I’m o the support staff, like for a big example and where my concern would really be, is the strength staff, the ones that are charged with development

 

[LonghornInOmaha]

Wow, this makes this NIL stuff even more messy. So reading a bit more, you are correct NIL can't be contingent on playing. Originally it was thought Elwers had contingencies around it and that is what I remember reading. But turns out that would be against the NIL rules.

I did find this article though that he lost his truck lease. It was contingent on him actually being enrolled at OSU. Maybe there will be more language like that preventing taking the money and running.

https://www.sportsbusinessjournal.c...2/10/Marketing-and-Sponsorship/Ewers-NIL.aspx

It's definitely a messy and crazy time with NIL in existence. I'm sure there's lots of ways to skirt the existing rules. I'm guessing there's no minimum that the athlete HAS to do to fulfill his NIL obligation. So, can an hour of signing autographs at a local car dealership be considered enough to receive a million dollar NIL payment? I'm guessing it is.

And, NIL, as mentioned in this thread already, isn't supposed to be used specifically for incoming high school recruits. Then, somebody needs to explain how A&M can recruit the highest rated class EVER this last cycle. It's still the wild west for many schools, it's just out in the open more now than ever.

 

[jflores]

I’m actually wondering how many people here actually watch sports judging by the response I see here.

These NIL boosters/businesses are like every other organization out there in sports….they are buying potential and not guaranteed production.

Which in CFB old Tom Osborne put the hit rate on average about 50% for a given recruiting class. So you have to understand as an NIL donor roughly half your money will be wasted before the ink is dry. It maybe more than that if you are under the impression that your money should be buying star impact performance and not contributors. And even more still because there was no portal in Toms day. The guy you paid for who was a baller may just leave for a change of scenery or better money anyway.

Guaranteed money in sports is just an opportunity to get the same productivity out of a player that he has in the past demonstrated. There are plenty of contracts where that is not the case once the players cashed in and stops pushing as hard. That’s why there are performance bonuses in pro sports but it doesn’t seem that performance riders are a thing in NIL.