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Ohio Basketball Topic
Topic: NIL / Paid Partnerships
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giacomo
5/9/2022 11:01 AM
I merely said “if”. I don’t think it would play out that way. But if the big boys start an elite league, I think the rest go to to something more traditional. As my grandmother would say , “shall see what we shall see”.
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OhioCatFan
5/9/2022 11:27 AM
giacomo wrote:expand_more
I merely said “if”. I don’t think it would play out that way. But if the big boys start an elite league, I think the rest go to to something more traditional. As my grandmother would say , “shall see what we shall see”.
The problem is, I think, that a lot of the "big boys" can't afford that company. Our opponent this fall in football, Iowa State, is probably a good example of a school that is a P5 but would have trouble raising the necessary funds to equalize NIL money across all sports -- both men and women. I know that some say that NIL is a loophole in the current Title IX. If that's true, expect an amendment to take that loophole out.

Also, I read an interesting article recently saying that at a number of institutions there is an unintended financial consequence looming. Specifically, this article reported that as a result of businesses giving NIL money directly to athletes that their contributions to their local school's athletic budget are decreasing, and that as a result some schools, including P5s, are now asking the NCAA to reduce the number sports that a school needs to have to remain in D1.
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rpbobcat
5/9/2022 12:04 PM
OhioCatFan wrote:expand_more
I merely said “if”. I don’t think it would play out that way. But if the big boys start an elite league, I think the rest go to to something more traditional. As my grandmother would say , “shall see what we shall see”.
The problem is, I think, that a lot of the "big boys" can't afford that company. Our opponent this fall in football, Iowa State, is probably a good example of a school that is a P5 but would have trouble raising the necessary funds to equalize NIL money across all sports -- both men and women. I know that some say that NIL is a loophole in the current Title IX. If that's true, expect an amendment to take that loophole out.

Also, I read an interesting article recently saying that at a number of institutions there is an unintended financial consequence looming. Specifically, this article reported that as a result of businesses giving NIL money directly to athletes that their contributions to their local school's athletic budget are decreasing, and that as a result some schools, including P5s, are now asking the NCAA to reduce the number sports that a school needs to have to remain in D1.
I saw another article that said donors, especially some of the ones who make large donations for athletics, seem much more interested in NIL's.
(More bang for the buck)
They think that, over time, this will affect some school's abilities to expand/improve athletic facilities.
Last Edited: 5/9/2022 12:04:31 PM by rpbobcat
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giacomo
5/9/2022 12:14 PM
That makes sense to me. If a donor was giving 10k to the athletic department and decided to switch gears and go the NIL route, they likely trade the dollars rather than give more.

I know this comment may be surprising to most of you, but maybe coaches salaries have to come down to compensate.
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Pataskala
5/9/2022 12:45 PM
giacomo wrote:expand_more
That makes sense to me. If a donor was giving 10k to the athletic department and decided to switch gears and go the NIL route, they likely trade the dollars rather than give more.

I know this comment may be surprising to most of you, but maybe coaches salaries have to come down to compensate.
Naw. Fans come to watch Calipari coach, not to see the players play.
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Andrew Ruck
5/9/2022 1:20 PM
giacomo wrote:expand_more
I know this comment may be surprising to most of you, but maybe coaches salaries have to come down to compensate.
I for one am SHOCKED to hear you say that. Why didn't you ever tell us this is how you felt?
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giacomo
5/9/2022 4:15 PM
For years revenues have been going up with coaches being the biggest beneficiary. It seems logical that if cuts must be made for any reason, that would be the first place to look.

University of Michigan cost to attend: 31,484
Harbaugh average salary 7.34M

Could you envision a small company where the owner/president makes 7.34M per year and the 100 employees each make 32K? Let's say the employees all get a 25k raise for whatever reason, but revenues don't increase. Now the owner (only) makes 4,840,000.
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GoCats105
5/9/2022 5:09 PM
giacomo wrote:expand_more
For years revenues have been going up with coaches being the biggest beneficiary. It seems logical that if cuts must be made for any reason, that would be the first place to look.

University of Michigan cost to attend: 31,484
Harbaugh average salary 7.34M

Could you envision a small company where the owner/president makes 7.34M per year and the 100 employees each make 32K? Let's say the employees all get a 25k raise for whatever reason, but revenues don't increase. Now the owner (only) makes 4,840,000.
I mean, that's pretty much the problem right now with most of corporate America, not just college athletics.
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allen
5/9/2022 10:17 PM
Sears appeared to have signed a NIL with a peanut company, probably a shell company funded by the Alabama athletics department.
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Taiwan BC
5/9/2022 10:56 PM
Some people might say that Mark is nutty to sign a peanut related NIL… But we all know that’s just not true. Legumy, yes. Nutty, no…


Ok, I’ve got it out of my system for the day…
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rpbobcat
5/10/2022 6:55 AM
There's an interesting article by Ralph Russo of the AP on the NCAA and NIL "Collectives".
(Sounds like the Borg :-) )

You can find it on Muck Rack
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giacomo
5/10/2022 9:26 AM
allen wrote:expand_more
Sears appeared to have signed a NIL with a peanut company, probably a shell company funded by the Alabama athletics department.
I like it!
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BillyTheCat
5/10/2022 9:45 AM
giacomo wrote:expand_more
For years revenues have been going up with coaches being the biggest beneficiary. It seems logical that if cuts must be made for any reason, that would be the first place to look.

University of Michigan cost to attend: 31,484
Harbaugh average salary 7.34M

Could you envision a small company where the owner/president makes 7.34M per year and the 100 employees each make 32K? Let's say the employees all get a 25k raise for whatever reason, but revenues don't increase. Now the owner (only) makes 4,840,000.
Really? Exxon and Chevron CEO's made over $22Million last year, and each got bonuses of over $4Million. Their "Assistant Coaches" made over $7Million. Look at the pharmaceutical world? the banking industry. College athletics is a microcosm of the real world.
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Bobcat Love's Sense of Shame
5/10/2022 10:37 AM
BillyTheCat wrote:expand_more
Really? Exxon and Chevron CEO's made over $22Million last year, and each got bonuses of over $4Million. Their "Assistant Coaches" made over $7Million. Look at the pharmaceutical world? the banking industry. College athletics is a microcosm of the real world.
In one scenario, there's a market that allows for labor to move from employer to employer in unrestricted ways and make their own determinations about what they value. In the other, there's not a market at work.

I think what you're glossing over is the concept of value created. The banker who makes $22 million dollars and the bank teller at a retail bank create different levels of value for their company. If the bank teller creates more value, there's a mechanism for them to make more money.

In college sports, an athlete can create far more value than they receive in compensation because there's not a market for their services.

Those are fundamentally different structures. One's not a "microcosm" of the other simply because in both scenarios there are people who make a lot of money, and people who don't.
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M.D.W.S.T
5/10/2022 11:41 AM
I wonder if this NIL quote is about Boals and Sears?

"Mid-major coach had an agent call him. [He wanted] $200,000. '48 hours or my guy is in the portal.' This is a mid-major school." -- Power Five basketball coach

Could be anyone, but paints a pretty realistic picture that I'm sure many of us knew was happening. Enlightening article about how a lot of big names are viewing the NIL.

https://www.cbssports.com/college-football/news/college-c... /
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OhioCatFan
5/10/2022 3:55 PM
M.D.W.S.T wrote:expand_more
I wonder if this NIL quote is about Boals and Sears?

"Mid-major coach had an agent call him. [He wanted] $200,000. '48 hours or my guy is in the portal.' This is a mid-major school." -- Power Five basketball coach

Could be anyone, but paints a pretty realistic picture that I'm sure many of us knew was happening. Enlightening article about how a lot of big names are viewing the NIL.

https://www.cbssports.com/college-football/news/college-c... /
So, this is all legal now? I think it's time for WKU to get its Final Four berth back.
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giacomo
5/10/2022 9:59 PM
Bobcat Love's Sense of Shame wrote:expand_more
Really? Exxon and Chevron CEO's made over $22Million last year, and each got bonuses of over $4Million. Their "Assistant Coaches" made over $7Million. Look at the pharmaceutical world? the banking industry. College athletics is a microcosm of the real world.
In one scenario, there's a market that allows for labor to move from employer to employer in unrestricted ways and make their own determinations about what they value. In the other, there's not a market at work.

I think what you're glossing over is the concept of value created. The banker who makes $22 million dollars and the bank teller at a retail bank create different levels of value for their company. If the bank teller creates more value, there's a mechanism for them to make more money.

In college sports, an athlete can create far more value than they receive in compensation because there's not a market for their services.

Those are fundamentally different structures. One's not a "microcosm" of the other simply because in both scenarios there are people who make a lot of money, and people who
As Elmer Fudd would say, “twue”.
Last Edited: 5/10/2022 10:00:15 PM by giacomo
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rpbobcat
5/11/2022 6:50 AM
There's an article by Eric Olson of the AP on anticipated revenue for
players from NIL's.
He quotes Blake Lawrence, who started a company to help athletes "navigate the NIL landscape".

Mr. Lawrence feels that all scholarship football and basketball players in major (P5) conferences will be making at least 50K a year.
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IceCat76
5/11/2022 11:20 AM
rpbobcat wrote:expand_more
There's an article by Eric Olson of the AP on anticipated revenue for
players from NIL's.
He quotes Blake Lawrence, who started a company to help athletes "navigate the NIL landscape".

Mr. Lawrence feels that all scholarship football and basketball players in major (P5) conferences will be making at least 50K a year.
The problems will be when the running back makes $200K and drives a BMW and the guards that open the holes make $50K and drive used pick-ups. I see locker room issues down the road.
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giacomo
5/11/2022 2:06 PM
That could be, but they’ll learn about capitalism. They should know that Tom Brady makes more than a lineman. 50k is pretty good when you were getting nothing. Taking your date to the Athena and Swanky’s is now possible!
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Pataskala
5/18/2022 7:00 PM
No NIL for Ohio's high schoolers, at least for now. About 70% of Ohio HS ADs voted "no" yesterday on a proposal through the OHSAA. As is usually the case, look for somebody to take them to court.
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rpbobcat
5/19/2022 11:05 AM
Saw an article this morning that Nick Saban said Texas A&M "bought" every player by manipulating NIL's.
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BillyTheCat
5/19/2022 11:21 AM
rpbobcat wrote:expand_more
Saw an article this morning that Nick Saban said Texas A&M "bought" every player by manipulating NIL's.
He's just mad because he did not get them, and that his competition is using the rules to benefit themselves. Saban had no issues when he was projecting he'd have a $1million dollar NIL athlete last summer. I mean his players made $3Million last year!
Last Edited: 5/19/2022 11:28:56 AM by BillyTheCat
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cc-cat
5/20/2022 11:05 AM
Saban criticizing Jimbo Fisher, Deon and others re: player's getting money is like Jeffrey Dahmer questioning someone's diet.
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BillyTheCat
5/20/2022 12:02 PM
cc-cat wrote:expand_more
Saban criticizing Jimbo Fisher, Deon and others re: player's getting money is like Jeffrey Dahmer questioning someone's diet.
Very Very Very True
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