NIL - New Recruiting Competition

[Eagleton95.99]

So a Miami area company just did a deal that offers $6k a year to every player on the Miami football team. So any recruit going there knows, right off the bat, they have 6k. Also, the company said they were going to take the lead in trying to drum up more deals like this, to grow the pot, to help recruiting.

So this looks to me like it's going to be the new normal. The boosters are going to have to organize to create pots of money that go to the team's players. And it will probably be well known how much you get as a recruit for signing with each school. Of course individual deals will be struck on top of this for individual players.

This could play out in strange ways. Will Stanford with it's tech money, or Harvard/Princeton with their rich donor bases, have unexpectedly large pots? Will Rutgers be able to step up with some Wall Street connections? How will places like Nebraska or WVU do, where they are the only game in town for a small poor area?

Anyway, this puts new pressure on boosters to organize to build up the NIL pot for recruiting.

https://www.miamiherald.com/sports/college/acc/university-of-miami/article252592583.html

 

[RUtrumpet92_rivals498139]

That's crazy. Donating up to 540k per year for football? I wonder what their business' profit margin is like. Is that truly sustainable?

 

[PSU_Nut_rivals17625]

That's crazy. Donating up to 540k per year for football? I wonder what their business' profit margin is like. Is that truly sustainable?

I agree 100%. I think the NIL will not be as profitable as many envision. Many of the businesses have to account for this spending. When you don't see the ROI I see the money being thrown around decreasing to more realistic amounts. People aren't going to buy things simply because the third string tailback is endorsing it.

 

[Caliknight]

I agree 100%. I think the NIL will not be as profitable as many envision. Many of the businesses have to account for this spending. When you don't see the ROI I see the money being thrown around decreasing to more realistic amounts. People aren't going to buy things simply because the third string tailback is endorsing it.

No, but the are going to offer Johnny Five Star huge amounts to sign with their school. I can't believe people can't see this.

People with money don't always make business decisions. If you are a big booster of a program, the end goal is winning as it relates to your interest, not creating value for your company. Two totally separate things.

 

[RW90]

So it begins...

 

[bumpstock]

That's crazy. Donating up to 540k per year for football? I wonder what their business' profit margin is like. Is that truly sustainable?

Well...is it Tax Deductible?

Also, sometimes a business (when owner has multiple businesses) loses money intentionally! Why you ask? Tax deduction.

 

[Eagleton95.99]

Well...is it Tax Deductible?

Also, sometimes a business (when owner has multiple businesses) loses money intentionally! Why you ask? Tax deduction.

Sometimes the business is just a booster looking to channel money to the players. And I think it is indeed now a tax write off as a qualified business expense.

 

[Zimm80]

Is there going to be a cap on what a player can make or will they be able to out earn the very coaches that recruited them , in the next few years college football will be just like the pros.

 

[NickRU714]

That's crazy. Donating up to 540k per year for football? I wonder what their business' profit margin is like. Is that truly sustainable?

It's just a 1 year publicity stunt.

Article I read said just a 1 year deal.
But the guy said they were looking into sustainable options with the separate company formation.

 

[bumpstock]

Sometimes the business is just a booster looking to channel money to the players. And I think it is indeed now a tax write off as a qualified business expense.

If you're correct, then stand-by! The show has just begun...

 

[Eagleton95.99]

If you're correct, then stand-by! The show has just begun...

Sure seems like it