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NIL: Is there a small ball approach?
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Kit-Cat Offline
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Post: #21
RE: NIL: Is there a small ball approach?
(05-19-2022 01:26 PM)Hootyhoo Wrote:  Is there a money all approach to college football? Sure.

Identify undervalued talent and identify inefficiencies in the way everyone else is playing the game. So good coaching and good scouting. It's not different than what you need to win now if you aren't a big money program.

My point is that the future of college football may not be a straight run away by the B1G/SEC as we hear in thread after thread. The way things have trended the last 10-15 years of the sport.

Recruiting was said to be at one point an inexact science. It is a lot more exact than it was 25 years ago with far fewer high level prospects overlooked by the P5. NIL sponsorship calculus for each college player is going to also be an inexact science.
05-19-2022 02:57 PM
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Kit-Cat Offline
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Post: #22
RE: NIL: Is there a small ball approach?
(05-19-2022 01:09 PM)Hokie Mark Wrote:  I thought the official rules stated that a player could receive NIL money only if it didn't matter which school he attended. Therefore, accepting NIL money SHOULDN'T obligate a player to attend a particular school - according to that rule.

Was that rule dropped and I missed it?

The example is a school has a booster club and was selling NFTs of players. If the booster donated 2,500 they could receive that digitally signed NFT with the money going to the players pocket.

If the player doesn't have to show up for team or transfers somewhere else then the booster just wasted 2,500 dollars. Buying a team then comes at a risk. Buy 100 players but 25 hit the transfer portal.

Some of the SEC fans here think they'll buy the entire team off at 1 million per year with TV money through NFT sales. That would be $125 million just for the FB team. Like ticket prices to a FB game they can only go so far until supporters cry Uncle.
05-19-2022 03:07 PM
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Frank the Tank Online
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Post: #23
RE: NIL: Is there a small ball approach?
(05-19-2022 03:07 PM)Kit-Cat Wrote:  
(05-19-2022 01:09 PM)Hokie Mark Wrote:  I thought the official rules stated that a player could receive NIL money only if it didn't matter which school he attended. Therefore, accepting NIL money SHOULDN'T obligate a player to attend a particular school - according to that rule.

Was that rule dropped and I missed it?

The example is a school has a booster club and was selling NFTs of players. If the booster donated 2,500 they could receive that digitally signed NFT with the money going to the players pocket.

If the player doesn't have to show up for team or transfers somewhere else then the booster just wasted 2,500 dollars. Buying a team then comes at a risk. Buy 100 players but 25 hit the transfer portal.

Some of the SEC fans here think they'll buy the entire team off at 1 million per year with TV money through NFT sales. That would be $125 million just for the FB team. Like ticket prices to a FB game they can only go so far until supporters cry Uncle.

The free market is messy - it's not a nice, neat, organized or coordinated way to determine pricing. To paraphrase Churchill's quote about democracy, the free market is the worst form of an economic system... except for all of the others that have been tried.

What we're seeing now is an unleashing of a free market in a world where NIL compensation was completely prohibited just a year ago. It's going to take time to stabilize.

Fans also need to put some of the numbers that they throw around into perspective. The minimum rookie NFL salary is $705,000 this year with the wealthiest and most powerful sports organization in the US. That doesn't seem to translate into entire college teams getting $1 million per player once we get past the initial burst of activity in the NIL market where people are throwing darts as to what it's actually worth right now.
05-20-2022 08:10 AM
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Post: #24
RE: NIL: Is there a small ball approach?
(05-20-2022 08:10 AM)Frank the Tank Wrote:  
(05-19-2022 03:07 PM)Kit-Cat Wrote:  
(05-19-2022 01:09 PM)Hokie Mark Wrote:  I thought the official rules stated that a player could receive NIL money only if it didn't matter which school he attended. Therefore, accepting NIL money SHOULDN'T obligate a player to attend a particular school - according to that rule.

Was that rule dropped and I missed it?

The example is a school has a booster club and was selling NFTs of players. If the booster donated 2,500 they could receive that digitally signed NFT with the money going to the players pocket.

If the player doesn't have to show up for team or transfers somewhere else then the booster just wasted 2,500 dollars. Buying a team then comes at a risk. Buy 100 players but 25 hit the transfer portal.

Some of the SEC fans here think they'll buy the entire team off at 1 million per year with TV money through NFT sales. That would be $125 million just for the FB team. Like ticket prices to a FB game they can only go so far until supporters cry Uncle.

The free market is messy - it's not a nice, neat, organized or coordinated way to determine pricing. To paraphrase Churchill's quote about democracy, the free market is the worst form of an economic system... except for all of the others that have been tried.

What we're seeing now is an unleashing of a free market in a world where NIL compensation was completely prohibited just a year ago. It's going to take time to stabilize.

Fans also need to put some of the numbers that they throw around into perspective. The minimum rookie NFL salary is $705,000 this year with the wealthiest and most powerful sports organization in the US. That doesn't seem to translate into entire college teams getting $1 million per player once we get past the initial burst of activity in the NIL market where people are throwing darts as to what it's actually worth right now.

UFC 274 is an example of what CFB players might expect to receive. Note the undercard making only around 20k per fight though many of those fighters make 6 figures from endorsements.

https://www.totalsportal.com/mma/ufc-274...s-payouts/

Fighters Purses/Win Bonus/UFC Bonus/Sponsorship/Total Payouts
Charles Oliveira $500k/$100k/$10k/$42k/$1.2m (including ppv bonus)
Justin Gaethje $500k/N/A/N/A/$32k/$850k (including ppv bonus)
Rose Namajunas $500k/N/A/$30k/$42k/$572k
Carla Esparza $310k/$100k/N/A/$20k/$430k
Michael Chandler $500k/$100k/$70k/$20k/$690k
Tony Ferguson $400k/N/A/N/A/$15k/$415k
Maurício Rua $210k/N/A/N/A/$10k/$220k
Ovince Saint Preux $110k/$100k/N/A/$5k/$215k
Donald Cerrone $200k/N/A/N/A/$10k canceled
Joe Lauzon $85k/N/A/N/A/$5k/canceled
Randy Brown $85k/$85k/N/A/$10k/$180k
Khaos Williams $30k/N/A/N/A/$5k/$35k
Brandon Royval $36k/$36k/$50k/$5k/$127k
Matt Schnell $30k/N/A/$50k/$5k/$85k
Macy Chiasson $40k/$40k/N/A/$5k/$85k ($6.6k bonus)
Norma Dumont $18k/N/A/N/A/$4k/$15.4k ($6.6k fine)
Blagoy Ivanov $36k/$36k/N/A/$5k/$77k
Marcos Rogério de Lima $75k/N/A/N/A/$5k/$80k
Francisco Trinaldo $75k/$75k/N/A/$5k/$155k
Danny Roberts $60k/N/A/N/A/$5k/$65k
Cameron VanCamp $12k/N/A/N/A/$4k/$16k
André Fialho $12k/$12k/$50k/$4k/$78k
Tracy Cortez $18k/$18k/N/A/$4k/$40k
Melissa Gatto $12k/N/A/N/A/$4k/$16k
Kleydson Rodrigues $12k/N/A/N/A/$4k/$16k
C.J. Vergara $12k/$12k/N/A/$4k/$28k
Ariane Carnelossi $18k/N/A/N/A$4k/$22k
Lupita Godinez $22k/$22k/N/A/$5k/$49k
Journey Newson $20k/$20k/N/A/$5k/$45k
Fernie Garcia $12k/N/A/N/A/$4k/$16k

Only 11 fighters out of 30 made over $100,000 on the fight card. Many under 100k received some kind of bonus though.

Are we going to see performance based clauses in NIL money? That would also become part of the calculus by the athletes.

When serious money is involved, not just a COLA difference of a thousand dollars here or there a lot of calculus is required. CFB may return to largely a regional sport with regional turf again.
05-20-2022 12:16 PM
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Post: #25
RE: NIL: Is there a small ball approach?
Quote:Additional NIL guidelines, which the NCAA working group are currently finalizing, are expected to help regulate these deals that officials say are encouraging current players to remain on their teams and inducing recruits to sign with their schools, a developing situation Sports Illustrated detailed Monday. On Tuesday, SI reported on the impending release of the guidelines, which could happen as early as next week. George and Ohio State athletic director Gene Smith, also on the working group, confirmed the existence of the draft of guidelines.

The guidance clarifies existing NCAA bylaws that prohibit boosters from being involved in recruiting. Any booster or booster-led collective that has been found to have associated with prospects about recruiting—on another college team or in high school—will be found to have violated NCAA rules and put the booster’s school at risk of sanctions, George says. In addition, a booster, or booster-run collectives, “cannot communicate with a student-athlete or others affiliated with a student-athlete to encourage them to remain enrolled or attend an institution.”

“Just because we have NIL, it doesn’t eliminate the rules,” George says. “Everybody is like, ‘It’s NIL!’ I am totally in favor of NIL done right. It’s really good. [Athletes] should be able to monetize their NIL, but a lot of what’s going on out there is not NIL.”

https://www.si.com/college/2022/05/06/ni...guidelines

Boosters are supposed to be limited to just buying NIL memorabilia as part of their collectives. That fills the appetite for small donors but big donors are still going to be expected to chip in on club suites and facilities.

Quote:The current regulations -- shaped in part by antitrust concerns in the wake of a recent Supreme Court decision -- are far less restrictive. The NCAA rules only prohibit a school or its employees from paying an athlete directly for his or her NIL rights. Some states have laws in place that say athletic departments and their employees may not "cause compensation to be directed" to athletes, but the specifics of what is and is not allowed remain murky.

https://www.si.com/college/2022/05/06/ni...guidelines

This article says that schools can organize marketing for players but they can't pay them directly.

NIL marketing deals generated will most likely include local deals, just as they have local marketing deals in place.

Marketing becomes localized and a player's value is localized. All state first teamer walking in the door with a 500k you tube deal can be a bigger attraction for local endorsements than if playing in another state where the interest level is less. A state though can have only so many 1st and 2nd all-state players.

More generally though marketing dollars is going to be a better indicator of potential? Does your school rank at the top of the conference in marketing money? Have a paid apparel deal?

I could see it helping places like NW, BC, MD, Rutgers which have so much more local money available than Miss St, Auburn, Florida, Arkansas. Money within a 50 mile radius of campus. Ultimately this will drive recruiting parity.
05-20-2022 04:52 PM
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Post: #26
RE: NIL: Is there a small ball approach?
A good article on how Texas A&M did it.

Quote:Here is how it allegedly plays out in College Station, and across the country:

-A recruit is targeted for a specific recruiting class.
-A “point donor” then heads the recruiting effort.
-The “point donor” gathers other donors around him.
-Those donors create an LLC.
-The LLC sponsors the targeted recruit and pays out deals for NIL if/when he enrolls.
-That recruit, upon arrival on campus, receives money from the LLC.
-In turn, the recruit promotes the LLC and its “cause,” whether that be a charity or a business.

https://brobible.com/sports/article/texa...nil-money/
05-20-2022 07:02 PM
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