NIL + transfer portal impact on CBB

[auror]

This is the wording I've seen. They cannot offer:
"• NIL compensation contingent upon enrollment at a particular school. For example, institutions should not use NIL arrangements to improperly induce matriculation (e.g., guaranteeing a particular NIL opportunity upon enrollment);"

I'm not sure how the collectives would have receipts to show it's not contingent upon matriculation if the deals are negotiated and setup before commitment. Perhaps there is a creative way to negotiate the deal.

 

[ctchamps]

Schools that don’t have fanatic boosters to buy players in order to win will be hurt. But that was always the case. People with their head in the sand are exposed to what some of us have been saying for a long time. The only thing that has substantively changed with the NIL is that players have increased their negotiating power.

I’m in the minority but I believe this pay to play could have a silver lining. It could narrow the monetary discrepancy that currently exists between the conferences. At least I hope it does because the split by the power conferences was going to hurt most of those outside looking in. Personally given that UConn is on the outside it would kill college sports for me.

The theory is college sports is driven by football and those conferences with more eyes get higher valuations. So let’s evaluate this as a business model.

What will happen if boosters of smaller schools start competing to purchase some of the best players? How many players removed from circulation will it take to negatively impact the football “product” produced by the P5?

If that happens, a big if for sure, will that diminished product reduce the number of viewers and reduce media payments?

I don’t know if the rumor of a P5 college farm system is true or if P5 schools are trying to get fans to donate. If either or both are true it indicates to me that there is some concern by those conferences of a loss of control.

 

[HooperScooper]

This is the wording I've seen. They cannot offer:
"• NIL compensation contingent upon enrollment at a particular school. For example, institutions should not use NIL arrangements to improperly induce matriculation (e.g., guaranteeing a particular NIL opportunity upon enrollment);"

I'm not sure how the collectives would have receipts to show it's not contingent upon matriculation if the deals are negotiated and setup before commitment. Perhaps there is a creative way to negotiate the deal.

So are they saying that Nijel Pack knew nothing about his $800,000, plus a car, NIL deal before he signed with Miami? A deal he inked seconds after signing with Miami. Sounds totally legit, right?

https://www.miamiherald.com/sports/college/acc/university-of-miami/article260698217.html

 

[shizzle787]

I have a theory on this: the big conferences are going to lead the way toward a regulated pay-for-play system. The NCAA is feckless, but Greg Sankey and the SEC are very powerful. They will lead the charge. I envision a system where schools pay their revenue sport athletes (m/w basketball, football) as unionized employees (the red states will acquiesce for this collegiate sports exception). Schools will have a salary cap for each individual sport-but it will differ for every school based on their revenues (including student fees). Every school will be given a % of their revenue for that sport as an amount to spend on wages. Schools do not have to opt in but they will struggle mightily to recruit. Schools will no longer allowed to be involved in NIL at all. NIL collectives will be forbidden. If a player wants an NIL, he/she will either need to be proactive in the local community or hope some big company comes calling. The transfer portal will stay the same. I have no problem with that. The kids will be on one-year contracts with an option to renew yearly. Most of these kids will realize going forward that their older brothers and cousins and friends made a mistake by entering the portal and will not be so quick to do so.

 

[XavierFan]

Anything that changes the status quo of management getting 100% if the revenues is fine with me.

 

[shizzle787]

Anything that changes the status quo of management getting 100% if the revenues is fine with me.

The management also pays 100% of the costs. Only 1-2% of scholarship college athletes bring in revenue. Also, most schools lose money on athletics with the shortfall being made up by student fees.

 

[Fishy]

NIL, as it is presently constituted, is going to be the OK Corral.

We're bringing a knife to a gun fight.

 

[Kolumbo]

So the Ivy League could buy up the best quarterbacks and some receivers and really put on a show. Let's see what happens with Hockey.

 

[FfldCntyFan]

This is the wording I've seen. They cannot offer:
"• NIL compensation contingent upon enrollment at a particular school. For example, institutions should not use NIL arrangements to improperly induce matriculation (e.g., guaranteeing a particular NIL opportunity upon enrollment);"

I'm not sure how the collectives would have receipts to show it's not contingent upon matriculation if the deals are negotiated and setup before commitment. Perhaps there is a creative way to negotiate the deal.

All this is doing is reiterating the stance the NCAA stated in the initial announcement about NIL being allowed (can't be contingent on school attended: boosters cannot recruit).

My interpretation (based on nearly a half century of watching how the NCAA behaves):

Schools with most favored nation status will be allowed to do what they want with little more than an occasional slap on the wrist. All others (guess where we fall) will be penalized severely for anything the NCAA can attempt to view as excessive use of NIL.

 

[Get a Job]

I have a theory on this: the big conferences are going to lead the way toward a regulated pay-for-play system. The NCAA is feckless, but Greg Sankey and the SEC are very powerful. They will lead the charge. I envision a system where schools pay their revenue sport athletes (m/w basketball, football) as unionized employees (the red states will acquiesce for this collegiate sports exception). Schools will have a salary cap for each individual sport-but it will differ for every school based on their revenues (including student fees). Every school will be given a % of their revenue for that sport as an amount to spend on wages. Schools do not have to opt in but they will struggle mightily to recruit. Schools will no longer allowed to be involved in NIL at all. NIL collectives will be forbidden. If a player wants an NIL, he/she will either need to be proactive in the local community or hope some big company comes calling. The transfer portal will stay the same. I have no problem with that. The kids will be on one-year contracts with an option to renew yearly. Most of these kids will realize going forward that their older brothers and cousins and friends made a mistake by entering the portal and will not be so quick to do so.

You played Dungeons and Dragons as a kid, didn't you?

 

[XavierFan]

The management also pays 100% of the costs. Only 1-2% of scholarship college athletes bring in revenue. Also, most schools lose money on athletics with the shortfall being made up by student fees.

And yet NIL is showing there is obviously a market for the players beyond a scholarship. Shocking.

 

[XavierFan]

So the Ivy League could buy up the best quarterbacks and some receivers and really put on a show. Let's see what happens with Hockey.

Recruiting has tracked 1 to 1 with athletic budget for decades, this changes nothing.

 

[HooperScooper]

All this is doing is reiterating the stance the NCAA stated in the initial announcement about NIL being allowed (can't be contingent on school attended: boosters cannot recruit).

My interpretation (based on nearly a half century of watching how the NCAA behaves):

Schools with most favored nation status will be allowed to do what they want with little more than an occasional slap on the wrist. All others (guess where we fall) will be penalized severely for anything the NCAA can attempt to view as excessive use of NIL.

Does this pertain to transfers also? Because that NIL deal with Nijel Pack and a Miami booster is obviously against those rules.

Shortly after his signing was announced, Life Wallet owner John H. Ruiz posted on Twitter that his company had inked Pack to an $800,000 NIL deal that includes a new car. It is the biggest NIL offer so far from Ruiz, whose deals with UM athletes are resulting in national publicity for his digital health care business that was launched in January.

https://www.miamiherald.com/sports/college/acc/university-of-miami/article260698217.html

 

[shizzle787]

And yet NIL is showing there is obviously a market for the players beyond a scholarship. Shocking.

1-2% of players.

 

[XavierFan]

1-2% of players.

So far, this is really only the first summer where players and any financial rights. It's only going to grow.

 

[shizzle787]

You played Dungeons and Dragons as a kid, didn't you?

FIFA, Madden, and NBA Live

 

[FfldCntyFan]

Does this pertain to transfers also? Because that NIL deal with Nijel Pack and a Miami booster is obviously against those rules.

Shortly after his signing was announced, Life Wallet owner John H. Ruiz posted on Twitter that his company had inked Pack to an $800,000 NIL deal that includes a new car. It is the biggest NIL offer so far from Ruiz, whose deals with UM athletes are resulting in national publicity for his digital health care business that was launched in January.

https://www.miamiherald.com/sports/college/acc/university-of-miami/article260698217.html

I believe that it does and I'm pretty sure that in another thread there was a discussion on how toothless the NCAA was in response to abuse by boosters in general and Miami specifically.

Prior to Wong threatening to leave (which would have exposed if his deal was Miami specific if he did leave), it should have been possible for those involved to present it as if it wasn't school contingent and that there was no recruiting/influencing by a booster.

I imagine that as with most things the NCAA didn't expect the immediate run on NIL deals for transfers and didn't have the fortitude to do anything to bring it under control.

 

[pj]

So are they saying that Nijel Pack knew nothing about his $800,000, plus a car, NIL deal before he signed with Miami? A deal he inked seconds after signing with Miami. Sounds totally legit, right?

https://www.miamiherald.com/sports/college/acc/university-of-miami/article260698217.html

The risk is a corrupt NCAA and selective enforcement. If you're in the club, you can induce players to come to your school with NIL, and the hammer will never come down on you. If you're a threat to the club, you get investigated and punished for inducing enrollment with your NIL.

 

[navery12]

1-2% of players.

Way more than 2% of players are getting NIL deals so this is false

 

[August_West]

Anything that changes the status quo of management getting 100% if the revenues is fine with me.

me too. But this isn't revenue sharing. Schools and NCAA are keeping everything they had before. This is dark money booster crap. Schools ain't paying, neither is NCAA.

 

[auror]

This is dark money booster crap. Schools ain't paying, neither is NCAA.

Just think of boosters as patrons. The players are basketball artists. John Ruiz de Medici.

 

[Kenny11]

And yet NIL is showing there is obviously a market for the players beyond a scholarship. Shocking.

Its strange because there is a market, but besides a super-phenom, a hot chick, or a player that has already built a large social media presence the market isn't based on helping companies increase their revenues or even their visibility. Its basically just rich fans with businesses who want to see their teams win. And that's fine but lets not pretend its a "market" in a true business sense. I actually find it fascinating.

 

[superjohn]

me too. But this isn't revenue sharing. Schools and NCAA are keeping everything they had before. This is dark money booster crap. Schools ain't paying, neither is NCAA.

What I don't understand is why people have been saying forever that the NCAA has to pay everyone and they could've avoided all of this if they just paid everyone. I think people are under the impression the NCAA has billions and can pay everyone all that money. The money isn't there, it never has been.

 

[HuskyHawk]

What I don't understand is why people have been saying forever that the NCAA has to pay everyone and they could've avoided all of this if they just paid everyone. I think people are under the impression the NCAA has billions and can pay everyone all that money. The money isn't there, it never has been.

Schools don't have it either. Most of them at least.

 

[XavierFan]

What I don't understand is why people have been saying forever that the NCAA has to pay everyone and they could've avoided all of this if they just paid everyone. I think people are under the impression the NCAA has billions and can pay everyone all that money. The money isn't there, it never has been.

The highest paid public employee of every state is a coach. I think you all underestimate how much money is in college athletics, severely.