Ohio Football Topic
Topic: NIL Earnings Data
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TWT
12/28/2023 8:24 PM
We hear a lot about NIL valuations. On3 has a way of calculating "valuations" and their database reports on NIL deals but the the terms are not disclosed. To this point in time its been quite difficult to pin down actual NIL earning data and what I was able to find conflicts with conventional perception.

Richest College Football Programs by Average NIL Earnings (2023)

https://nfldraftdiamonds.com/2023/04/richest-college-foot... /

1.Texas A&M 85k
2.Michigan 65k
3.Oklahoma 64k
4.Georgia 56k
5.Alabama 52k
6.Clemson 46k
7.Ohio St. 44k
8.Notre Dame 34k
9.Utah 29k
10.Baylor 16.5k

A few points upon researching the topic of NIL.

-Its very top heavy with the NIL deals. A few 5 stars are pulling in 500k+ endorsements while their teammates are getting scraps. Valuations are an attempt to promote a market value into reality.

-The importance of a strong social media presence to juice the value of endorsements. Only a handful of 5 starts are walking into college with over 1 million social media followers. Most players even at the top programs don't have more than a few thousand followers.

-The requirements for the NIL endorsements can require many appearances and marketing activities. There are only so many that one player can fulfill. This leads to the question at what point are they worth a players time.

-Players aren't necessarily impressed with smaller deals. There was a story about a car dealership giving every Utah player a lease on a 61,000 dollar so long as they played for the Utes. A bunch of players jumped into the portal anyways. What they want is to put themselves in position for are the large 500k windfalls that you can earn as a star skill player at the larger power programs.

-Deals are both national and regional and what they can earn in a power conference is 5x more by virtue of it being higher profile. Regional meaning focused in-state. That one university is in a college town vs. another in a small city isn't a significant factor in a regional deal.

The existential concern I've seen posted on here is the notion that Toledo, Akron and Buffalo will run away with the MAC because they are in small cities I'm not seeing as the upside for deals will have a conference ceiling. The deals are regional and can be also tied to players home locations in other states. Ohio is the only MAC program with a paid apparel deal so I wouldn't be too concerned about our relative NIL value to peers.

The NIL industry is expected to double in the next few years. That should open up a path for MAC players to earn 75k-100k endorsements that the Top 100 recruits don't have time to mess around with. It can prevent some of the MAC guys from hitting the portal but of course not all. There is also room for a strategy of promising recruits the athletic department can help them earn deals and set them on a path for a big time P5 transfer opportunity.
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Bobcat Love's Sense of Shame
12/30/2023 7:03 PM
This is really interesting. Especially seeing how substantial the drop is from 1 to 10.

Have to assume based on this that there isn't a massive difference between us and the bottom tier of P5.
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greencat
12/31/2023 11:00 AM
Campus Flow wrote:expand_more
We hear a lot about NIL valuations. On3 has a way of calculating "valuations" and their database reports on NIL deals but the the terms are not disclosed. To this point in time its been quite difficult to pin down actual NIL earning data and what I was able to find conflicts with conventional perception.

Richest College Football Programs by Average NIL Earnings (2023)

https://nfldraftdiamonds.com/2023/04/richest-college-foot... /

1.Texas A&M 85k
2.Michigan 65k
3.Oklahoma 64k
4.Georgia 56k
5.Alabama 52k
6.Clemson 46k
7.Ohio St. 44k
8.Notre Dame 34k
9.Utah 29k
10.Baylor 16.5k

A few points upon researching the topic of NIL.

-Its very top heavy with the NIL deals. A few 5 stars are pulling in 500k+ endorsements while their teammates are getting scraps. Valuations are an attempt to promote a market value into reality.

-The importance of a strong social media presence to juice the value of endorsements. Only a handful of 5 starts are walking into college with over 1 million social media followers. Most players even at the top programs don't have more than a few thousand followers.

-The requirements for the NIL endorsements can require many appearances and marketing activities. There are only so many that one player can fulfill. This leads to the question at what point are they worth a players time.

-Players aren't necessarily impressed with smaller deals. There was a story about a car dealership giving every Utah player a lease on a 61,000 dollar so long as they played for the Utes. A bunch of players jumped into the portal anyways. What they want is to put themselves in position for are the large 500k windfalls that you can earn as a star skill player at the larger power programs.

-Deals are both national and regional and what they can earn in a power conference is 5x more by virtue of it being higher profile. Regional meaning focused in-state. That one university is in a college town vs. another in a small city isn't a significant factor in a regional deal.

The existential concern I've seen posted on here is the notion that Toledo, Akron and Buffalo will run away with the MAC because they are in small cities I'm not seeing as the upside for deals will have a conference ceiling. The deals are regional and can be also tied to players home locations in other states. Ohio is the only MAC program with a paid apparel deal so I wouldn't be too concerned about our relative NIL value to peers.

The NIL industry is expected to double in the next few years. That should open up a path for MAC players to earn 75k-100k endorsements that the Top 100 recruits don't have time to mess around with. It can prevent some of the MAC guys from hitting the portal but of course not all. There is also room for a strategy of promising recruits the athletic department can help them earn deals and set them on a path for a big time P5 transfer opportunity.
Texas A&M/Clemson/Baylor combined for 19 losses.
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