Overtime Elite grabs another…

[Skiblets]

OTE is going to eat into the prep/basketball academies too. Guess I didn't appreciate that before. Bridgton and the other hoops centrics preps might need to re-think their model

 

[Chief00]

Also, FWIW since there was some confusion on this earlier (including with myself):

On the podcast release earlier with Dave Borges and Jim Calhoun, Dave asks Calhoun about OTE and what he thinks about it, and Calhoun pretty much says he thinks college is the better route with NIL because you don’t have to give up a % of future earnings.

So essentially (though it’s not entirely clear on what that will look like and there isn’t much about it online) it does sound like signees will have to give money back to OTE in the future in some fashion.

That’s what non-disclosures agreements are for - to hide unflattering stuff to the narrative they are doing it all for the kids. Bezos and other are in this to make money - trust me.
Calhoun and Chief always on the same page. Now Jim takes a logical long term investment approach but how many of these kids and families will? Chief has his doubts about that.

 

[GotNets?]

I thought that was the case too but haven't actually been able to find any articles discussing that.

If it’s true that they’re creating an income sharing agreement with these players, then it’s a far more interesting business model. It might not matter what their basketball product is like on the court if a few kids every season sign decent NBA deals. You don’t need to sell tickets or attract fans if that’s the case.

The same kind of system already exists for baseball and soccer players in different forms.

 

[WestHartHusk]

If it’s true that they’re creating an income sharing agreement with these players, then it’s a far more interesting business model. It might not matter what their basketball product is like on the court if a few kids every season sign decent NBA deals. You don’t need to sell tickets or attract fans if that’s the case.

The same kind of system already exists for baseball and soccer players in different forms.

If you are a top 15 recruit you don't need to share your future earning because KO "coached" you. U think these kids are just getting g bad advice for a few hundred credit thousand.

 

[Chief00]

If it’s true that they’re creating an income sharing agreement with these players, then it’s a far more interesting business model. It might not matter what their basketball product is like on the court if a few kids every season sign decent NBA deals. You don’t need to sell tickets or attract fans if that’s the case.

The same kind of system already exists for baseball and soccer players in different forms.

You see the building in Atlanta - not going to seat a lot - LOL. Future revenue /income streams.

 

[methodology]

If you are a top 15 recruit you don't need to share your future earning because KO "coached" you. U think these kids are just getting g bad advice for a few hundred credit thousand.

Kids in most of these kids positions have never seen this type of money. They don’t understand how much they are mortgaging their future for an upfront payment. All they see is the money they will be receiving

 

[huskymedic]

 

[superjohn]

Rated 70th in composite, 115th on 247. These kids are getting bad advice.

 

[SouthBayHusky]

It’ll only be a matter of time before all of the bad faith lawsuits begin, negative press combined with no eyeballs on this league.

 

[BGesus4]

Rated 70th in composite, 115th on 247. These kids are getting bad advice.

I’m confused on how it’s a bad decision to cash in on your basketball talent if your a lower ranked prospect and unlikely to make a lot of money playing basketball otherwise.

i think if you look at the basketball/college careers of the 70/115th ranked prospects historically, the vast majority of them would’ve been better off banking over a mil before turning 18 and never playing college basketball.

 

[Waquoit]

College will always be there but the cash is here now.

 

[Jbirdp5]

I’m confused on how it’s a bad decision to cash in on your basketball talent if your a lower ranked prospect and unlikely to make a lot of money playing basketball otherwise.

i think if you look at the basketball/college careers of the 70/115th ranked prospects historically, the vast majority of them would’ve been better off banking over a mil before turning 18 and never playing college basketball.

You may be right but this kid is a 22 so he likely got a one year deal. Him not being a 5 star he’s probably not getting close to 1 million from OtE. My guess is he’s probably more in the 200 to 300 k range. That makes it much more of a debate if one year of OTE is better than a 4 year scholarship

 

[Greedo]

College will always be there but the cash is here now.

For a lot of these kids basketball is their ticket to a good school. So they make 100k for a couple of years, then what? They can’t live off of that forever. Then their basketball career is potentially just over and they’re an average joe going to a community college.

So there’s that option vs going to UConn or Michigan or UVA or wherever and getting a strong degree with a background that they can really use to market themselves for post grad opportunities. They can make money in college now with NIL. They’re not passing up money for college. This just doesn’t make sense to me. These kids are getting bad advice IMO.

It’s different than the “leave college early and go pro” argument because then you’re talking about money that can set you up for the rest of your life even if it doesn’t work out. OTE isn’t offering that. It makes sense for the most elite prospects but not for these 4 star guys.

 

[ClifSpliffy]

we covered this. as far as readily available public info, the only 'sharing of future revenue' that can be seen, is the sharing of the nil cash that may flow to the recruit, along with the recruit, by virtue of their having a piece of the o by ownership of stock. i do not know if that sharing nil stuff ends when their time in oe is over, or if it carries forward. when, or if, the recruit sells their stock is their own business.
some of y'all seem particularly buggered by these young guys getting paid. not me, im all for it. while not my speed, what if o stock rockets up in the future if they've uncovered a new business model, and one share now becomes worth a 100? do you know that answer? i don't, but iffn it does, mebbe those guys will never have to work another day in their life.
i once bought netflix at around 10 bucks, even tho i knew that i would never be a customer, but i also knew that you would.
change has come!

 

[superjohn]

I’m confused on how it’s a bad decision to cash in on your basketball talent if your a lower ranked prospect and unlikely to make a lot of money playing basketball otherwise.

i think if you look at the basketball/college careers of the 70/115th ranked prospects historically, the vast majority of them would’ve been better off banking over a mil before turning 18 and never playing college basketball.

Because you have a better chance of making it playing for a great coach in college instead of playing for Kevin Ollie on some team nobody cares about. You can cash in playing in college now and if you do make it you don't have to share any future profits like you do with that cr@ppy OTE team you used to play for. I also think going to college for education, basketball, and socially offers all sorts of benefits this travel team doesn't. Playing with a college team with a major fanbase against other college teams with major fanbases and playing the tournament offers all sorts of other great opportunities this other team doesn't.

 

[methodology]

I’m confused on how it’s a bad decision to cash in on your basketball talent if your a lower ranked prospect and unlikely to make a lot of money playing basketball otherwise.

i think if you look at the basketball/college careers of the 70/115th ranked prospects historically, the vast majority of them would’ve been better off banking over a mil before turning 18 and never playing college basketball.

That player is not banking a mil. OTE is prob paying him 300 range for 2 years (not sure the length) with taxes and whatever he’ll be lucky if he has $100k after his stint

 

[Umami Zen]

4 stars who commit as Juniors to a college sometimes evolve into 5 stars in their senior yr prior to stepping on campus.

Example -UConn's 2022 commits

NIL opportunities will also influence some of these CBB decisions over the OTE alternative. BTW. I am not saying the CBB NIL opportunity is equivalent financially to the OTE opportunity.