New NCAA Subdivision Coming?- Schools Paying Players

[Cornhuskers7]

According to the article, schools getting into this subdivision only have to put up the $30,000 for HALF of the enrolled athletes. That kind of sounds like they're buying the NIL rights to the non-stars to at least give them something while the stud players can still go make the big $$$ on the economy.

$30k is the minimum with no maximum and the school could do any number of deals over 50% of enrolled athletes. Say they did $50k which I'd have to think is better than most athletes could earn via marketing and maybe only 10% of the athletes would be on the economy. Would that give the collective the opportunity to really throw big $$$ at a few star recruits?

This is where there isn't enough information provided to help us truly understand what this system is. You are right they only have to put up $30k for half of the enrolled athletes (I didn't notice the half the first time I read the article). However, this could end up meaning that athletes would earn less than $30k per year, depending on if more than half the athletes signed on for it. It is still unclear to me whether or not athletes going into this subdivision would be required to enter NIL rights deals with the university, or if they could still opt to go out on their own. That plays a huge factor.

 

[NU_Alum]

1. As I stated, endowments only give an indication as to the strength of a school's donor base.
2. There is no limit in NIL. If Joe Millionaire wants to pay Joe Sixpack $2 million to come to his school, he can.
3. I am not biased toward Texas schools. State lines are imaginary. I am probably as close to UNL as the crow flies as I am UT.
4. SMU's donors subsidizing their ACC media fees for the next 7-8 years. Over $200 million, just from a couple of boosters. Let that sink in.

Inside story reveals how SMU's billionaire boosters bought Power 5 ticket

SMU and their move to the ACC was another twist in the conference realignment saga. Ross Dellenger detailed the fascinating path to get there.

awfulannouncing.com

5. "Why aren't they a big dog". It's early yet. Let's give this a few years to ferment.
6. Neither you, nor I, know who is right or wrong. I am making a forecast, through my own projections and deductive reasoning, for 2028 and beyond.

We know there are limits on NIL (real life limits, not on paper limits) from just watching what's happened. The return on investment just isn't there for people to drop millions and millions on kids. A&M tried it and it was a DISASTER. All of that money was wasted.

SMU isn't going to get into the P2 conference, that's all you need to know that they'll never be a player long term. Why do they need time to ferment if they can just buy a team right now? Why aren't the best coaches running to coach there? It's not that early, if they wanted they could have tried going A&M already.

By 2028 there will only be 2 major conferences, B1G and SEC. All of the tv money will be spent on those two. Everyone else will be left out, that includes SMU.

 

[Cornhuskers7]

1. As I stated, endowments only give an indication as to the strength of a school's donor base.
2. There is no limit in NIL. If Joe Millionaire wants to pay Joe Sixpack $2 million to come to his school, he can.
3. I am not biased toward Texas schools. State lines are imaginary. I am probably as close to UNL as the crow flies as I am UT.
4. SMU's donors subsidizing their ACC media fees for the next 7-8 years. Over $200 million, just from a couple of boosters. Let that sink in.

Inside story reveals how SMU's billionaire boosters bought Power 5 ticket

SMU and their move to the ACC was another twist in the conference realignment saga. Ross Dellenger detailed the fascinating path to get there.

awfulannouncing.com

5. "Why aren't they a big dog". It's early yet. Let's give this a few years to ferment.
6. Neither you, nor I, know who is right or wrong. I am making a forecast, through my own projections and deductive reasoning, for 2028 and beyond.

The caveat is whether athletes would be required to enter exclusive NIL-rights deals with the school. I'm not sure the legality of forcing that. If you can force that, though, you can effectively put a "soft cap" on how much NIL money is given to players by requiring it to only come from one source, the school.

Again, not sure about the legality of that, but it seems like the sneaky type of thing the NCAA would try to get away with. Otherwise, I'm not sure what benefit there is to this proposal.

 

[WestTexasHusker]

We know there are limits on NIL (real life limits, not on paper limits) from just watching what's happened. The return on investment just isn't there for people to drop millions and millions on kids. A&M tried it and it was a DISASTER. All of that money was wasted.

SMU isn't going to get into the P2 conference, that's all you need to know that they'll never be a player long term. Why do they need time to ferment if they can just buy a team right now? Why aren't the best coaches running to coach there? It's not that early, if they wanted they could have tried going A&M already.

By 2028 there will only be 2 major conferences, B1G and SEC. All of the tv money will be spent on those two. Everyone else will be left out, that includes SMU.

Let's see where we are at in 2028.

 

[WestTexasHusker]

The caveat is whether athletes would be required to enter exclusive NIL-rights deals with the school. I'm not sure the legality of forcing that. If you can force that, though, you can effectively put a "soft cap" on how much NIL money is given to players by requiring it to only come from one source, the school.

Again, not sure about the legality of that, but it seems like the sneaky type of thing the NCAA would try to get away with. Otherwise, I'm not sure what benefit there is to this proposal.

The NCAA is still licking its wounds from the most recent SC rulings. They are effectively neutered, and a non-factor going forward.

 

[Cornhuskers7]

We know there are limits on NIL (real life limits, not on paper limits) from just watching what's happened. The return on investment just isn't there for people to drop millions and millions on kids. A&M tried it and it was a DISASTER. All of that money was wasted.

SMU isn't going to get into the P2 conference, that's all you need to know that they'll never be a player long term. Why do they need time to ferment if they can just buy a team right now? Why aren't the best coaches running to coach there? It's not that early, if they wanted they could have tried going A&M already.

By 2028 there will only be 2 major conferences, B1G and SEC. All of the tv money will be spent on those two. Everyone else will be left out, that includes SMU.

The limits on NIL are different in different places. Yes, NIL can never outgrow the money that is available, but we've seen the pockets of those financing these NIL things are deep. How sustainable is what we've seen over the last few years? I'm not sure. I still believe that at some point we will see a correction factor where people get tired of throwing millions away on a player who flames out or gets hurt. However, college football is a weird place, and we've seen a lot of stupid things happen with money.

 

[WestTexasHusker]

The limits on NIL are different in different places. Yes, NIL can never outgrow the money that is available, but we've seen the pockets of those financing these NIL things are deep. How sustainable is what we've seen over the last few years? I'm not sure. I still believe that at some point we will see a correction factor where people get tired of throwing millions away on a player who flames out or gets hurt. However, college football is a weird place, and we've seen a lot of stupid things happen with money.

Agree. That's why I think we are heading toward a situation where the teams backed by drunk billionaires will be the winners. There's a limited number of those.

How about the SMU booster who said “It’s a couple hundred million dollars, I’m not losing sleep over it.”

 

[webhusker]

The caveat is whether athletes would be required to enter exclusive NIL-rights deals with the school. I'm not sure the legality of forcing that. If you can force that, though, you can effectively put a "soft cap" on how much NIL money is given to players by requiring it to only come from one source, the school.

Again, not sure about the legality of that, but it seems like the sneaky type of thing the NCAA would try to get away with. Otherwise, I'm not sure what benefit there is to this proposal.

I'd think if the athlete signed the deal with the school for $30k or whatever amount they put in place (and as I read the article it would have to be the same amount for a girl on the bowling team as the left guard on FB) then that would be an "exclusive" right to their NIL.

I have a hard time believing that all but a few athletes really make much more than $30~50k

 

[WestTexasHusker]

I'd think if the athlete signed the deal with the school for $30k or whatever amount they put in place (and as I read the article it would have to be the same amount for a girl on the bowling team as the left guard on FB) then that would be an "exclusive" right to their NIL.

I have a hard time believing that all but a few athletes really make much more than $30~50k

I don't think the $30K compensation has any relationship to NIL. The $30K is basically a new "laundry money" number. Schools will not be able to dictate NIL unless long-standing commerce laws are changed.

 

[Cornhuskers7]

Agree. That's why I think we are heading toward a situation where the teams backed by drunk billionaires will be the winners. There's a limited number of those.

How about the SMU booster who said “It’s a couple hundred million dollars, I’m not losing sleep over it.”

Meanwhile, I'm losing sleep over a quarter I dropped in the parking lot yesterday

 

[Cornhuskers7]

Meanwhile, I'm losing sleep over a quarter I dropped in the parking lot yesterday

 

[Redleg]

At least in terms of the NFL, I disagree with this comment. There will always be some GMs/scouts attracted to guys who have an explosion in productivity/development their senior year and then go on to crush it at the combine/pro day. Historically, the Raiders have been the organization who's drafted guys like this. Although it's true that the NFL really doesn't care where you go to college, or even if you played college football. Phildadelphia starting LT Jordan Mailata was a rugby player in Australia before the Eagles drafted him in 2017.

Could be, but I question how many NFL talents will exhaust eligibility at the lower tier schools rather than "transfer up" before their senior year. Exposure is less of an issue as the NFL pretty much finds the really good players these days, but if a guy has a chance to move up within the college ranks, bank some better NIL and $30K just for being on the team, why stay at a school that doesn't pay that $30K?

 

[Bigger Ed]

This is the paragraph that confused me. Obviously there are different interpretations and this is just a conversation starter. I could be all wrong on what they are saying.

In a sense, this would allow institutions to purchase the NIL rights of their athletes — a concept suggested by athletic administrators over the last several years.

I read this to mean it would be similar to a team selling its media rights to the conference.