The NIL Thread

[JTennant 290]

14 minutes ago, drakan said:

why not?  The NCAA and the schools are making $$$$$ off of them.  Pre-covid ND raked in $54M net profit off their football program.

And I bet a forensic dive into the financial report could find those books being cooked and the profit being even higher.. 

I’m not insinuating any deceit or tax evasion as it’s just an internal report.

the athletic department has many crossover expenses with the educational side.

 

there was a report about 7-8 years ago before UM gave Harbaugh a huge contract how only a handful of programs are profitable.. such a crock of BS while those unprofitable programs are erecting 700-800 million $ stadiums and spending $10-15 million a year on coaches and analysts. 

[jbrown_9999 1,020]

32 minutes ago, JTennant said:

And I bet a forensic dive into the financial report could find those books being cooked and the profit being even higher.. 

I’m not insinuating any deceit or tax evasion as it’s just an internal report.

the athletic department has many crossover expenses with the educational side.

 

there was a report about 7-8 years ago before UM gave Harbaugh a huge contract how only a handful of programs are profitable.. such a crock of BS while those unprofitable programs are erecting 700-800 million $ stadiums and spending $10-15 million a year on coaches and analysts. 

I am guessing that ticket and TV revenue will not cover costs of a major athletic department and that contributions are needed to stay afloat.

[JTennant 290]

19 minutes ago, jbrown_9999 said:

I am guessing that ticket and TV revenue will not cover costs of a major athletic department and that contributions are needed to stay afloat.

My guess is they want to stay out of the ire of scrutiny and speculation and are adding expenses that aren't completely attributable to the athletic department to the report.

You're a plant manager and you're reporting 5k a month in cleaning supplies to the sales team and administration side of the building(cubicles) when 95% of it's used to clean your shop floors and equipment type of scenario (is my best guess).. which would could be a catastrophic situation not knowing how much your product is costing you out the door, but in this case I'm guessing AD's and other number guys in the universities know their numbers in and out.. and that they might be different than whats put on the universities letterhead for donors and politicians to see.

Many articles claim only a handful of programs are truly profitable.. Then my question is why continue to invest hundreds of millions if it's truly a loser, or did they move numbers around within the university for various reasons?

Doing this has nothing to do with the amount of taxes you pay at the end of the year, but that 5k/month in overhead that comes off the admin sales office overhead instead of billed into the cost of the widgits your production floor assembles..

Is football a loss gainer? Like grocery store bread? Gotta sell that shit at a loss otherise you won't sell milk, medicine, or cosmetics.. IE attendance is typically directly related to football programs popularity.

I don't have the answer but I find it hard to believe only a hand full are truly profitable..

 

 

https://ibaworldtour.com/how-many-profitable-college-football-programs/

Edited January 4, 2022 by JTennant

[jbrown_9999 1,020]

Just now, JTennant said:

My guess is they want to stay out of the ire of scrutiny and speculation and are adding expenses that aren't completely attributable to the athletic department to the report.

You're a plant manager and you're reporting 5k a month in cleaning supplies to the sales team and administration side of the building(cubicles) when 95% of it's used to clean your shop floors and equipment type of scenario (is my best guess).

Has nothing to do with the amount of taxes you pay at the end of the year, but that 5k/month in overhead that comes off the admin sales office overhead instead of billed into the cost of the widgits your production floor assembles..

Many articles claim only a handful of programs are truly profitable.. Then my question is why continue to invest hundreds of millions if it's truly a loser, or did they move numbers around within the university for various reasons?

Is football a loss gainer? Like grocery store bread? Gotta sell that shit at a loss otherise you won't sell milk, medicine, or cosmetics.. IE attendance is typically directly related to football programs popularity.

 

 

https://ibaworldtour.com/how-many-profitable-college-football-programs/

Many football and men's basketball programs are probably able to be profitable in and of themselves but the fact that they are used to fund the rest of the athletic programs probably is where the some of the "profitability" questions come into play. Title IX prevents schools from just having two or three sports as well.

I have seen stories about both Butler and Alabama's academic profile being raised as a result of their athletic success. Butler saw their applications skyrocket after their final four appearances. I believe that Alabama credits Saban with at least a $100MM impact to the school.

[Pregame 291]

2 minutes ago, JTennant said:

My guess is they want to stay out of the ire of scrutiny and speculation and are adding expenses that aren't completely attributable to the athletic department to the report.

You're a plant manager and you're reporting 5k a month in cleaning supplies to the sales team and administration side of the building(cubicles) when 95% of it's used to clean your shop floors and equipment type of scenario (is my best guess).

Has nothing to do with the amount of taxes you pay at the end of the year, but that 5k/month in overhead that comes off the admin sales office overhead instead of billed into the cost of the widgits your production floor assembles..

Many articles claim only a handful of programs are truly profitable.. Then my question is why continue to invest hundreds of millions if it's truly a loser, or did they move numbers around within the university for various reasons?

Is football a loss gainer? Like grocery store bread? Gotta sell that shit at a loss otherise you won't sell milk, medicine, or cosmetics.. IE attendance is typically directly related to football programs popularity.

 

 

https://ibaworldtour.com/how-many-profitable-college-football-programs/

Bingo, the world of college athletics crying poor is and always has been bullshit. If you don't have the money, don't give the HC and leader of the "money losing" football program $9m a year. March Madness alone does something close to $1b in revenue alone. This all reminds me of how Amazon never technically made a profit for a decade+.

[coltssb 1,044]

On 1/4/2022 at 3:41 PM, Pregame said:

Bingo, the world of college athletics crying poor is and always has been bullshit. If you don't have the money, don't give the HC and leader of the "money losing" football program $9m a year. March Madness alone does something close to $1b in revenue alone. This all reminds me of how Amazon never technically made a profit for a decade+.

Never made a profit?  The guy is the richest man in the world. Or close to it. Somethings missing here. 

[Pregame 291]

4 minutes ago, coltssb said:

Never made a profit?  The guy is the richest man in the world. Or close to it. Somethings missing here. 

......Exactly.

[jbrown_9999 1,020]

13 minutes ago, coltssb said:

Never made a profit?  The guy is the richest man in the world. Or close to it. Somethings missing here. 

Not too difficult to figure out. Amazon operated at a loss as they expanded and grew their top line. No different than what a lot of tech and early stage life science companies do.

[coltssb 1,044]

1 minute ago, jbrown_9999 said:

Not too difficult to figure out. Amazon operated at a loss as they expanded and grew their top line. No different than what a lot of tech and early stage life science companies do.

It was more of a tongue in cheek response. 

[reneg 70]

https://247sports.com/Article/NIL-contracts-8-million-184487879/

 

How big is this going to get? Does this spark a potential end of the NIL or is it here to stay??

[EddieAngel 508]

43 minutes ago, reneg said:

https://247sports.com/Article/NIL-contracts-8-million-184487879/

 

How big is this going to get? Does this spark a potential end of the NIL or is it here to stay??

Makes me wonder whether ND is going to be able to keep a hold of their great recruiting class. ND man or not, if a top recruit sees possible millions in their near future it seems like it is going to be a real tough battle to keep them if our boosters aren't coming in with good offers as well. The longer they take to regulate this the longer it will take to unravel the mess this wild west creates. Schools like ND are going to get left behind.

[soulpatch 149]

1 hour ago, reneg said:

https://247sports.com/Article/NIL-contracts-8-million-184487879/

 

How big is this going to get? Does this spark a potential end of the NIL or is it here to stay??

$8M for 3 years doesn't sound like something that would threaten the existence of something that came about as a result of lawsuits. And, honestly, it doesn't seem like all that much money. I mean, if someone as 'meh' as Mel Tucker gets $100M/$10M-year and you have 15+ programs earning >$85M/year, I'd expect to see more go out the door. Really, I would wager that there are already deals in this neighborhood but they're just not publicized.

[SDIrishFan 607]

Speculation is the team is Tennessee and the recruit is Iamaleava

[Tailgate Approved 248]

3 hours ago, reneg said:

How big is this going to get? Does this spark a potential end of the NIL or is it here to stay??

I don't think NIL is going anywhere, and that's fine. I feel for you guys that are troubled by the potential abuse of NIL (not pointing to OP, just speaking generally). It sucks that your enjoyment of the sport might be affected by this stuff. I hope things turn out better than we all imagine after the market adjusts to the new paradigm.

[ndfanatic78 285]

This could get to the point where it will entice players to stay in college longer because they will make more money than in the NFL. That actually could help ND dramatically. 

[SDIrishFan 607]

21 minutes ago, ndfanatic78 said:

This could get to the point where it will entice players to stay in college longer because they will make more money than in the NFL. That actually could help ND dramatically. 

I'm not sure NIL money will ever reach NFL money, at least not across the board. Maybe for a few top recruits initially.

But I agree, it helps ND and players who leave for the NFL early b/c they don't want to get injured and lose their shot at the NFL. NIL money can replace the "injury insurance" that some players take out. And if these kids can make a bunch of money, "live the college life", why not do it for another year?

[ndfanatic78 285]

8 million for 3 years seems like it would be more than most rookie contracts, not first rounders, but most, right. (I could be totally wrong. I didn't look.) 

[ndfanatic78 285]

After reading the article it sounds like other ventures that former ND athletes are pursuing for current ND athletes. The ND athletes I guess aren't advertising as much as other schools.

[ndfanatic78 285]

https://valiantuofm.com/pages/meettheteam

If a university facilitating NIL with players is supposedly against the rules it appears to me that this would be pretty blatant cheating. I don’t see how this was setup without the help of the university. If it isn’t against rules why isn’t ND doing the same thing.

Edited March 31, 2022 by ndfanatic78

[97domer 74]

I can’t speak to the rules for this particular situation, but I will give Harbaugh credit that he is at the forefront of creativity in recruiting. Trips to Europe, Colin Kaepernick, this event, etc. He is progressive in trying things where everyone else is reactive.