Fascinating interview with Memphis AD Ed Scott

[Seinfeld]

I’m sure that most of you don’t give a rip about what’s going on in the world of Memphis athletics, but I found this interview to be incredibly fascinating. Scott goes in depth about what they’re spending, what those around them are spending, and the absolute shenanigans that ADs are having to deal with in order to meet the skyrocketing costs of competing in today’s NIL world. It’s just nuts

Some highlights….

- In 2023, Memphis spent $2M more on basketball player contracts than they had the funds to pay

- Tiger basketball spent roughly $5M on last year’s roster. This year it will be $9M, a 80% YoY increase

- Due to not having the funds to pay this $9M, Penny will be personally fundraising $2.6M, and if he doesn’t get there, he will write the check

- The Tiger basketball roster costs $2M more than what they spent on the football roster ($7M)

 

[Shmuley]

Seems sustainable.

 

[Dawgzilla2]

I’m sure that most of you don’t give a rip about what’s going on in the world of Memphis athletics, but I found this interview to be incredibly fascinating. Scott goes in depth about what they’re spending, what those around them are spending, and the absolute shenanigans that ADs are having to deal with in order to meet the skyrocketing costs of competing in today’s NIL world. It’s just nuts

Some highlights….

- In 2023, Memphis spent $2M more on basketball player contracts than they had the funds to pay

- Tiger basketball spent roughly $5M on last year’s roster. This year it will be $9M, a 80% YoY increase

- Due to not having the funds to pay this $9M, Penny will be personally fundraising $2.6M, and if he doesn’t get there, he will write the check

- The Tiger basketball roster costs $2M more than what they spent on the football roster ($7M)

I keep posting on here that basketball players are getting far more money than football.

For $9MM, Memphis is picked to finish 2nd in the AAC, after finishing 8th last year. So what do you think we have to spend on our basketball team just to be middle of the pack in the SEC?

My theory is there are many schools like Memphis who are not trying to be nationally relevant in football, and can spend most of their NIL money on basketball. They get lower caps on revenue sharing than P4, but right now that doesn't really matter.

 

[Perd Hapley]

Sounds like this guy’s doing a fantastic job of running his athletic department****

 

[Bulldog45]

Sounds like this guy’s doing a fantastic job of running his athletic department****

AD’s will get fired quicker for losing than they will running up debt in today’s world, so string it out as long as you can I guess as long you can make sure your paycheck is the last one to bounce.

 

[RBcoach]

How many coaches are going to want to stay in college coaching if they are having to write a check to cover expenses. Let's just hypothetically say he only reaches 1.5 million in fundraising. Do you think he wants to lose a million dollars of his own money? I get Penny Hardaway probably has a lot of money, but would be hard to write a check for a million each year.

 

[ckDOG]

So when does this bubble start to burst? Clearly the TV money is there for a lot of programs but the math ain't mathing for the have not programs.

 

[greenbean.sixpack]

So when does this bubble start to burst? Clearly the TV money is there for a lot of programs but the math ain't mathing for the have not programs.

It doesn’t. What will happen is the programs that can’t compete will either drop to lower levels, drop sports are just be rolled kill for the big boys. When it gets to only thirty ish teams who have the means to compete, fans will lose interest and TV ratings will decline. How long does it take? No one knows, could be five years could be 10.

 

[Seinfeld]

So when does this bubble start to burst? Clearly the TV money is there for a lot of programs but the math ain't mathing for the have not programs.

And I have to wonder, is the math problem really only a thing for G6 schools? SEC and B1G schools obviously bring in a lot more revenue, but we also spend a lot more too. Scott mentions that Memphis’s football roster cost $7M this year while we know that ours was in the $27-$35M range, and we apparently can’t afford a backup QB or a decent sound system.

I also really wonder how many ADs out there are signing contracts without knowing how they’re gonna cover the bills. Maybe not a ton, but I also know that the number is not zero. Revenues may be growing, but the cost to play is growing at a much faster, exponential rate.

 

[Seinfeld]

Sounds like this guy’s doing a fantastic job of running his athletic department****

Yeah, but in all seriousness, I thought that his transparency was a breath of fresh air. Especially in this cloak and dagger NIL world of “give us all your money, but don’t ask where it goes”

 

[The Peeper]

I’m sure that most of you don’t give a rip about what’s going on in the world of Memphis athletics

You would be correct

 

[Dawgzilla2]

How many coaches are going to want to stay in college coaching if they are having to write a check to cover expenses. Let's just hypothetically say he only reaches 1.5 million in fundraising. Do you think he wants to lose a million dollars of his own money? I get Penny Hardaway probably has a lot of money, but would be hard to write a check for a million each year.

If someone is making around $6MM per year, but needs to spend $1MM to make their job easier to keep, it's kind of a no brainer.

 

[DAWGSANDSAINTS]

I’m sure that most of you don’t give a rip about what’s going on in the world of Memphis athletics, but I found this interview to be incredibly fascinating. Scott goes in depth about what they’re spending, what those around them are spending, and the absolute shenanigans that ADs are having to deal with in order to meet the skyrocketing costs of competing in today’s NIL world. It’s just nuts

Some highlights….

- In 2023, Memphis spent $2M more on basketball player contracts than they had the funds to pay

- Tiger basketball spent roughly $5M on last year’s roster. This year it will be $9M, a 80% YoY increase

- Due to not having the funds to pay this $9M, Penny will be personally fundraising $2.6M, and if he doesn’t get there, he will write the check

- The Tiger basketball roster costs $2M more than what they spent on the football roster ($7M)

Which is just reason # 100 why this BS of paying players this stupid amount of $$ is so 17-ed up!

 

[ZombieKissinger]

I thought I’d heard something about coaches not being allowed to fund NIL themselves

 

[Maroon13]

I thought I’d heard something about coaches not being allowed to fund NIL themselves

Evidently, They aren't allowed to give to NIL collectives. That seems to be the whole point of this interview. The AD says they were contacted by other schools and their compliance about the way Penny is quoted, it could be a ncaa violation. How ironic!

However from everything the AD says, I take it all these numbers thrown around are their Rev share numbers. The Ad clearly states they don't have a collective any longer. All the money is in house and the contracts are controlled by him.

He has promised basketball $6.4 million in rev share. Penny wants $9million. So Penny is going to fund raise to get another $2.6 million but if he can't get it all, Penny will donate the shortage out of his own pocket to the schools fund raising arm. Penny hasn't written a check.... yet.

In 2023, a collective promised $4 million in contracts to basketball players and only paid out $2million because they were short the money at the end of the season. This AD and Penny had to fund raise on the back end to pay out those contracts. But again, the ad says they don't have a collective any longer.

 

[Maroon13]

Other items I found interesting in the show...

GP says the American is the 11th best conference in college basketball. Because of that, it doesn't matter sometimes if Memphis money offer is more than another school. Food for thought....

GP used the example of George Washington university offering some OkSt center less money than Memphis but the guy chose GW.

GP says the Big10 commissioner evidently said it wasn't even worth it to have fund raisers such as a golf tournament with boosters. Because those type events only raise $100k and $100k isn't worth the time and effort. Schools and coaches have to spend time with billionaires to get the millions needed. Good grief.

The whole first hour of the show was very interesting if all this business with paying players interest you.

 

[hatfieldms]

College sports are completely broken

 

[Maroon13]

Yeah, but in all seriousness, I thought that his transparency was a breath of fresh air. Especially in this cloak and dagger NIL world of “give us all your money, but don’t ask where it goes”

I thought he was very articulate and seems smart. I imagine the guy will be a P4 AD soon.

 

[olblue]

I keep posting on here that basketball players are getting far more money than football.

For $9MM, Memphis is picked to finish 2nd in the AAC, after finishing 8th last year. So what do you think we have to spend on our basketball team just to be middle of the pack in the SEC?

My theory is there are many schools like Memphis who are not trying to be nationally relevant in football, and can spend most of their NIL money on basketball. They get lower caps on revenue sharing than P4, but right now that doesn't really matter.

I would argue that basketball players started in a much better position at the beginning of this new era. Because of AAU, street agents had been a thing for decades.

 

[patdog]

College sports are completely broken

Yep. I hate what it has become.

 

[patdog]

I would argue that basketball players started in a much better position at the beginning of this new era. Because of AAU, street agents had been a thing for decades.

Yeah. And a lot fewer players. You pay 5 good basketball players & you can win a national championship. You pay 5 good football players & you’ll win 4 games.

 

[Dawgzilla2]

I would argue that basketball players started in a much better position at the beginning of this new era. Because of AAU, street agents had been a thing for decades.

I dont think you have to "argue" it. Its a fact.

 

[Seinfeld]

I thought I’d heard something about coaches not being allowed to fund NIL themselves

They can’t. It would have to be done in some roundabout way where he takes a reduced salary or something similar so that it can free up cash for the AD

 

[Seinfeld]

College sports are completely broken

People keep pointing towards the media deals and viewership numbers as proof that college sports are thriving, but I think that the system is significantly more broken than anyone realizes.

You know that neighbor that has the $80k lifted truck in his driveway and a Navigator for his 3rd wife, but he can’t keep up with his house or yard because he’s working round the clock to pay for it all? This is college sports right now