The Rich Get Richer - Martinez Gets Deodorant Endorsement - Alabama QB gets $1 Million in Endorsements

[HuskerWeatherman]

I guess I would point out that extremely few kids are physically ready for the NFL until they are three years out... that said, there was no "legal" way to make money playing football. I think however the economics of the game are such that even "unregulated" very few kids are going to make real money over the value of a scholarship playing football. NFL players are paid way less overall on average vs. MLB and NBA (not even going to soccer). It is numbers & physical realities that ultimately limit this.

And look at baseball... they have an amateur draft every year and pretty much only the first rounders are getting 7 digit signing bonuses. They get paid the pittance minimum unless/until they get to the majors. There might be some good guaranteed money in the second round. But a great many draftees in the lower rounds choose to commit to college baseball for three years (there can be an age quirk where some can become eligible in two).

So yeah, I guess we shouldn't begrudge them getting some money, but I suspect at the end of the day the vast majority of even pretty darn good college football players will not be making huge bucks.

There was a time when football players absolutely needed 3 years of college football to be NFL ready. There was a time when freshman played on the freshman team, and couldn't play varsity.

Over the past couple of decades, high school football, in many cases, has become a factory for producing players much more physically developed than they were when we were their age. Freshman now can star on a college football team.

That said, I do agree that we are talking about a very small minority of players that this would ever apply to. Granted, for all forms of entertainment, only the ultra-elite make good money with their talent as a profession. Football, however, was truly the only sport, the only form of entertainment, where a person had no path to making money legally with their craft in their teenage years.

I'm not really arguing for or against high school kids jumping straight into the NFL (though I could make an argument that the three year requirement is too much). I'm simply arguing that football players in general do not have the same opportunities to make money that all other athletes for all other sports do.

FWIW, players drafted in the first 10 rounds of the MLB draft are guaranteed a signing bonus. In 2019 (most recent I can find), the last player drafted in round 10 earned a $142,200 signing bonus. And then yes, they'll earn some small salary in the minors. Of course, a lot of those mid-round players will opt to play college ball instead.

My other primary point was that I struggle to justify paying a college head coach $5-10 million per year to coach players who had no legal path to make any money. There is no sport with this much disparity -- not even close.

 

[RedRum]

Very well said.

There will also be a negative interaction with the new transfer rules. NIL money will be used to lure guys from other teams. The simultaneous intersection of the two poorly thought out changes will create chaos. This isn't the kids making a few bucks or a replication of the NFL system at the collegiate level. Player contracts keep some semblance of fair play and balance in pro sports. The transfer and NIL moves needed to be paired with some boundaries and counter-balancing measures.

I haven't watched any pro sport with more than a passing interest, with the exception of the Royals brief dalliance with competence, in a couple of decades. These changes dramatically increase the likelihood I won't care about college athletics in the future. I understand my decision has little impact on the system as a whole, but I also think I won't be the only one who loses interest.

At least in pro football you have contracts and competitive balance through the draft and salary caps. What we are seeing here is a player, that has never even started a college game, make more $ than hundreds of players in the NFL right now. Or at least Saban claiming such to get an even greater recruiting advantage than he already has. Any schools that were illegitimaly funneling money to players in the past can now restructure it and then advertise it as an added benefit for that school.

And why donate to the University, when you can just pay players directly? Would you rather have a nice locker or weight room or endorsement money? I guess that depends on if you are getting a lot of endorsements or not.

 

[wheat]

There was a time when football players absolutely needed 3 years of college football to be NFL ready. There was a time when freshman played on the freshman team, and couldn't play varsity.

Over the past couple of decades, high school football, in many cases, has become a factory for producing players much more physically developed than they were when we were their age. Freshman now can star on a college football team.

That said, I do agree that we are talking about a very small minority of players that this would ever apply to. Granted, for all forms of entertainment, only the ultra-elite make good money with their talent as a profession. Football, however, was truly the only sport, the only form of entertainment, where a person had no path to making money legally with their craft in their teenage years.

I'm not really arguing for or against high school kids jumping straight into the NFL (though I could make an argument that the three year requirement is too much). I'm simply arguing that football players in general do not have the same opportunities to make money that all other athletes for all other sports do.

FWIW, players drafted in the first 10 rounds of the MLB draft are guaranteed a signing bonus. In 2019 (most recent I can find), the last player drafted in round 10 earned a $142,200 signing bonus. And then yes, they'll earn some small salary in the minors. Of course, a lot of those mid-round players will opt to play college ball instead.

My other primary point was that I struggle to justify paying a college head coach $5-10 million per year to coach players who had no legal path to make any money. There is no sport with this much disparity -- not even close.

I think it is very position dependent. There might running backs and DBs that are physically close to NFL-ready coming out of HS. I don't think there are very many linemen who are remotely close to ready for that jump. But it's more than physical. Part of the reason for the one-and-done in CBB is that high school kids aren't mentally/emotionally mature enough to move straight in to the adult business world. I wouldn't discount the value of that maturation.

I hear the argument about the coaches but I think that's a bit of a strawman. Most of those guys spent 20-25 years working to get in that position. Many of them started as GA's making nothing, or next to it, to follow their chosen career path. Frankly, the education, nutrition, clothing, training and other benefits that the average Power Five athlete receives almost certainly represent significantly greater compensation than the average GA stipend and even the salaries of most assistant coaches in lower divisions, where many coaches start their career. The athletes, and those working with/for them, have done a good job of hoodwinking an unthinking public in to believing they are being exploited. I do think coaches salaries have gotten ridiculous, but the hours and stress are also ridiculous.

I also would argue the players have a legal path to make money. In fact, they have more than one. They can get a degree, for free, and turn that in to a career. If they're good enough, they can also leverage the training and resources they are getting, for free, into a professional sports career. There's a tendency to swing the pendulum to one extreme or another and it would be healthier somewhere in the middle.

NIL: is a reality and it's not going away. Schools will have to figure out how to survive competitively in this environment. I expect some of those survival strategies will be a little unsavory.

 

[wheat]

At least in pro football you have contracts and competitive balance through the draft and salary caps. What we are seeing here is a player, that has never even started a college game, make more $ than hundreds of players in the NFL right now. Or at least Saban claiming such to get an even greater recruiting advantage than he already has. Any schools that were illegitimaly funneling money to players in the past can now restructure it and then advertise it as an added benefit for that school.

And why donate to the University, when you can just pay players directly? Would you rather have a nice locker or weight room or endorsement money? I guess that depends on if you are getting a lot of endorsements or not.

I kind of hope it pisses off his left tackle and his left tackle lets an opposing defensive end plant his million dollar quarterback in the turf.

 

[HuskerFed]

Being recruited! Nike school vs Runza.

 

[HuskerFed]

Curious how the linemen are going to block for the wealthy qb. No animosity I am sure!!

 

[cthusker]

At least in pro football you have contracts and competitive balance through the draft and salary caps. What we are seeing here is a player, that has never even started a college game, make more $ than hundreds of players in the NFL right now. Or at least Saban claiming such to get an even greater recruiting advantage than he already has. Any schools that were illegitimaly funneling money to players in the past can now restructure it and then advertise it as an added benefit for that school.

And why donate to the University, when you can just pay players directly? Would you rather have a nice locker or weight room or endorsement money? I guess that depends on if you are getting a lot of endorsements or not.

Brilliant post imo! Honestly was getting ready to posting something very similar but you beat me to it. CONTRACTS and SALARY CAPS keep the NFL from exploding and blowing themselves up. College football at the moment has NOTHING approaching what the NFL does to ensure talent is equally distributed via the draft. Perhaps college footbal can create a super league to have rules similar to the NFL. Doesn't the NFL have limited antitrust exemptions through the legislative process? If college football doesn't find a way to get some financial structure/rules it will probably cease to exist long term. I can see many P5 schools simply folding their programs when it becomes completely impossible to compete at a competive level with schools like Bama, GA, LSU, OU, USC... etc.

 

[Red Said Ted]

It really will be a blessing for many, many kids and their families. That can't be lost on anyone. However, this will have as ugly an underbelly as anything we saw back in the '80's and earlier, IMO.

On the pro side of the ledger, you have to think it's great that the kids who've lined the collective pockets of college footballs power structure for years are finally going to get a piece of the pie. I don't begrudge them that one bit. To me, that's really where the 'Pro's' end.

On the 'Con' side of things, and that's an appropriate turn of phrase, let's start with the change in dynamics at the team level. Yes, there has and always be a disparity in how individuals on a team are treated by teammates, coaches, media, fans, etc., but this will be a further irritant. Player 'A' gets a seven figure deal to use his likeness at 18-22 years of age and anyone who says it's not going to affect him personally hasn't met too many 19-22 year olds. There will be increased animosity (Have and have not'), likely personality changes in players that will effect relationships with, teammates, coaches, media maybe even academic staff. It's going to be interesting to watch just this piece. As I'd mentioned there is already a bit of a 'Have and have not' disparity on every team, but prior to NIL they're all either scholarship athletes or walk on athletes. Previous to this the biggest thing to covet was a scholly, followed closely by PT...or swap those depending on the kid. Wait until 'Player A' shows up in his new Corvette and these are likely to be the kids who're already getting most of the coach, media, fan love.

Next we'll have back door NIL deals. If anyone thinks colleges through back door means won't be brokering deals for kids still in high school as part of the recruiting process, you're giving colleges and kids too much credit. Without the impropriety that went along with previous generations 'bag men', you'll have many (not all) of the best athletes following the money. Why not? They're the ones earning it, right? If it's no longer illegal to 'take' money to have your mug put on a Jim & Nicks billboard in downtown Tuscaloosa, you're going to be OK with it. I know there will be rules, rules likely similar to the rules that are already being broken. Imagine a coach sitting in a kids kitchen with mom, dad and five star junior, not discussing the great family atmosphere, the top flight academic support, the medical and nutritional pluses their school has or where they're going to fit in the system and what that looks like for the player, but who they've got commitments from to sign the kid to an NIL IF they go to (Insert any school here). I purposely used Tuscaloosa in the first example, because they're light years ahead of everyone else in manipulating what's legal to the edge of the envelope. It will happen in Athens, Austin, Columbus, Eugene, Gainesville, Los Angeles and yes, even in Lincoln.

The last in the line might not move the needle for many, but gambling and influence related to gambling will now likely have an easier time 'getting' to kids. 'Throw this game and we'll increase your deal next year.' How can that be monitored?

A few questions I don't know the answers to:

Is this going to be capped? Looking at Alabama's QB's alleged seven figure deal, the answer to that looks like 'No'.

Who's going to monitor? The schools will likely have a new position that does nothing but monitor NIL compliance and I assume the NCAA will have it's hands in the soup as well. They're so good at what they do, giving them something else that seems like an obvious issue waiting to happen in the daylight won't be a problem at all.

Again, it's great that the kids and the families are going to get paid. Some of them. Likely the same group that are going to get rich at the end of their college years. Have's and have nots in big, bold letters.

I appreciate your thoughtful response. I have worked with young adults for almost 30 years. I get why a lot of us have concerns about how this will impact young people and the team. I’m not nearly as pessimistic about it as most of the members here. Most of the athletes will handle it much better than we’re giving them credit for. There will be those who do and say dumb things, just as there was before NIL.

And I understand the concern about recruiting and the influence of money. I think it already exist in various forms. And there are already the haves and have nots in college football. It’s bad. Alabama already has 88% blue chip recruits on its roster. I don’t see NIL making it worse. I actually think it’s possible it might spread the recruiting wealth. Time will tell.

As for gambling influence, it may increase the risk. I’m not sure. That risk already exist. Will NIL make payoffs easier? It certainly provides an avenue for delivering funds with less scrutiny. But the threat has always been there. And it’s still illegal. Again, as it is now, there will always be a small percentage of people who are willing to act unethically and illegally. This doesn’t change much in that regard other than it offers an easier method to transfer funds.

On your questions, it won’t be capped. Legally it can’t be, unless their is legislative intervention and even then any legislative action would likely be overturned by the courts. I don’t foresee any caps being placed. I have no problem with that. If Papa Johns wants to pay me a million bucks or 10 million bucks to say their pizza is good stuff, it’s really not okay for anyone to interfere with that. Not in America.

And monitoring authority is currently on the schools and their compliance offices. There are some restrictions and requirements. Kids have to clear their deals with their school. They have to complete a W-9 form. It’s not a free for all and I suspect we’ll see more detailed restrictions and requirements established over time. There will be some growing pains and lessons learned. I think that’s normal. I’d prefer to see the NCAA stay out of it because… well, they suck at compliance and regulation. There’s a lot to shake out but I think schools and conferences will manage it okay over time. It’s in everybody’s interest that they do.

For me, I initially was opposed to NIL and as I considered why it really came down to the fact that I have always appreciated the ‘purity’ of college athletics. But knowing this was coming for years I have accepted that 1) that purity hasn’t really existed for a long time now, and 2) it’s a selfish reason for me/us to deny someone access to income.

I love college sports, and especially Husker football and will continue to support the program regardless of whether or not the players are getting NIL money. I think we’re underestimating the majority of college players and their ability to handle this, especially with the support they’ll have from adult leaders at their respective universities. I believe the horizon is changing, but the sky is not falling.

 

[Bugsker]

IMO this is going to destroy college football

 

[RMR]

NIL: is a reality and it's not going away. Schools will have to figure out how to survive competitively in this environment. I expect some of those survival strategies will be a little unsavory.

So, SEC protocols for everyone now moving forward?? Game on!

 

[wcbsas]

All of the conferences are going to be robbed of schools that are going to join for super conferences I can see the big 12 dissolving and they either go west to the PAC 12 or they go east to the SEC perhaps Iowa State Kansas Kansas State would consider going east to the big ten but then you need another school ideally Missouri but Missouri’s already in the SEC

Neither school will be going to B1G.

 

[KleinTxHusker]

I kind of hope it pisses off his left tackle and his left tackle lets an opposing defensive end plant his million dollar quarterback in the turf.

Not good for a Left Tackle’s resume. And if good, they are typically about #2 or #3 on the offensive pay scale. They get that by keeping their QB’s jersy clean.

 

[eyesonNU]

At the very least, it will have a terribly negative effect by athletes choosing schools with bigger and wealthier donor/corporate sources of financial rewards. Not to mention schools with national advertising bases, such as ND.

Another potential problem: What influence will a big money donor have on a program to make sure that his golden endorser-player keeps his spot as a starter?

 

[The Big Red Lebowski]

I think it is very position dependent. There might running backs and DBs that are physically close to NFL-ready coming out of HS. I don't think there are very many linemen who are remotely close to ready for that jump. But it's more than physical. Part of the reason for the one-and-done in CBB is that high school kids aren't mentally/emotionally mature enough to move straight in to the adult business world. I wouldn't discount the value of that maturation.

I hear the argument about the coaches but I think that's a bit of a strawman. Most of those guys spent 20-25 years working to get in that position. Many of them started as GA's making nothing, or next to it, to follow their chosen career path. Frankly, the education, nutrition, clothing, training and other benefits that the average Power Five athlete receives almost certainly represent significantly greater compensation than the average GA stipend and even the salaries of most assistant coaches in lower divisions, where many coaches start their career. The athletes, and those working with/for them, have done a good job of hoodwinking an unthinking public in to believing they are being exploited. I do think coaches salaries have gotten ridiculous, but the hours and stress are also ridiculous.

I also would argue the players have a legal path to make money. In fact, they have more than one. They can get a degree, for free, and turn that in to a career. If they're good enough, they can also leverage the training and resources they are getting, for free, into a professional sports career. There's a tendency to swing the pendulum to one extreme or another and it would be healthier somewhere in the middle.

NIL: is a reality and it's not going away. Schools will have to figure out how to survive competitively in this environment. I expect some of those survival strategies will be a little unsavory.

The argument about coaches is not a strawman. You are conflating experience with value. In the entertainment business, it doesn't matter if you have 30 years of experience or 1 year. The relevant question is do you draw eyeballs? And star players, especially QBs, draw eyeballs.

I see it said over and over again that a star QB is nothing without the Alabama, Clemson, Ohio St. or Nebraska. People follow the school not the player. No, people follow programs that win and winning takes elite players.

For the most part, the NCAA operates much like a cartel. The cost of labor has been fixed at the cost of attendance, when it's clear the market clearing price is much higher. The 'Bama QB getting 7 figures in endorsement deals tells you everything you need to know about the market for elite QBs.

This was all inevitable the minute college football starting signing TV contracts, which shifted the sport from amateur athletic contest to show business.

 

[Frosty1980]

At the very least, it will have a terribly negative effect by athletes choosing schools with bigger and wealthier donor/corporate sources of financial rewards. Not to mention schools with national advertising bases, such as ND.

Another potential problem: What influence will a big money donor have on a program to make sure that his golden endorser-player keeps his spot as a starter?

Yep that is a great question!