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NIL act passed - NCAA allows athletes to monetise their name, image, likeness

Not Sure said:
College football can’t be NFL lite and expect to have success. College football isn’t looking for parity, either. Alabama needs Vanderbilt. Michigan and OSU need Rutgers. Clemson needs Duke.
Now, if the football programs go independent from the schools themselves, which is a possibility, then all bets are off. No pesky annoyances like womens soccer teams to help finance.
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Why does Alabama need Vanderbilt? What does playing Vanderbilt achieve for Alabama that they couldn’t achieve by playing Clemson or USC?

More premier matchups = more money. It’s as simple as that.

The people want to see premier matchups as often as possible and they and the networks will pay for it.
 
Jens1893 said:
Why does Alabama need Vanderbilt? What does playing Vanderbilt achieve for Alabama that they couldn’t achieve by playing Clemson or USC?

More premier matchups = more money. It’s as simple as that.

The people want to see premier matchups as often as possible and they and the networks will pay for it.
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They need the guaranteed win. If Alabama, Clemson, Auburn, OSU, Georgia, Michigan, USC, LSU, OU, Wisconsin, Oregon and Notre Dame play each other every week, one of those teams has to lose. That turns a team that is currently elite into the college version of the Detroit Lions.
 
Jens1893 said:
Why does Alabama need Vanderbilt? What does playing Vanderbilt achieve for Alabama that they couldn’t achieve by playing Clemson or USC?

More premier matchups = more money. It’s as simple as that.

The people want to see premier matchups as often as possible and they and the networks will pay for it.
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Alabama needs Vanderbilt to do their homework
 
Not Sure said:
They need the guaranteed win. If Alabama, Clemson, Auburn, OSU, Georgia, Michigan, USC, LSU, OU, Wisconsin, Oregon and Notre Dame play each other every week, one of those teams has to lose. That turns a team that is currently elite into the college version of the Detroit Lions.
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Wins and losses don’t matter one iota here.
 
Jens1893 said:
They will matter when they get there. For now the only thing that matters is multiplying your income by factor X.
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What do you see them doing with this money?

As non-profits, maybe donate 10s of millions to the general university fund every year? If so, it makes sense for CU to beg, borrow and steal to get in the "haves" club.
 
Buffnik said:
What do you see them doing with this money?

As non-profits, maybe donate 10s of millions to the general university fund every year? If so, it makes sense for CU to beg, borrow and steal to get in the "haves" club.
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Pay the players, pay the coaches.
 
Jens1893 said:
Pay the players, pay the coaches.
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It would be weird that a unit of a non-profit wouldn't use its revenues to support the mission of the non-profit.

Hard to see that a mission would be to be able to pay executives, coaches and players more than their NFL counterparts.

In the NFL, the folks who are enriched the most are the owners. The owner of an athletic department is the university.
 
Buffnik said:
It would be weird that a unit of a non-profit wouldn't use its revenues to support the mission of the non-profit.

Hard to see that a mission would be to be able to pay executives, coaches and players more than their NFL counterparts.
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I don't think that's too hard to see.

In the Midwest and the Southeast, CFB draws more fans than NFL, with tickets about the same prices. If TV money for a new elite CFB league gets closer to NFL, they'll have the money to compete with NFL salaries.
 
As soon as they kick the poors out and all the top programs are playing a weekly schedule consisting of Alabama, Georgia, Clemson, aTm, OU, Florida, Ohio State, Michigan, USC, Notre Dame, etc, the blue bloods will never consistently 12-0/11-1 again and they will cease to be “blue bloods”.

It will be the NFL where pretty much every team will hover around 5-7 or 7-5 with a few outliers that go 3-9 or 9-3. That is going to affect their brands that have been built over decades and their loyal alumni base will lose interest.
 
The Alabaster Yak said:
As soon as they kick the poors out and all the top programs are playing a weekly schedule consisting of Alabama, Georgia, Clemson, aTm, OU, Florida, Ohio State, Michigan, USC, Notre Dame, etc, the blue bloods will never consistently 12-0/11-1 again and they will cease to be “blue bloods”.

It will be the NFL where pretty much every team will hover around 5-7 or 7-5 with a few outliers that go 3-9 or 9-3. That is going to affect their brands that have been built over decades and their loyal alumni base will lose interest.
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Exactly and I believe that this will be the point CFB implodes. Why would anyone who doesn’t attend one of the selected 20-30 schools even bother to tune in for these games?
My opinion is that most fans would say to themselves, “what’s even the point of this?”. If people just want to watch paid players in a 30 team league, they’ll just watch the NFL, which has more talented players. I know I don’t sit around watching AAA baseball or G-League hoops.
At that point TV contracts will plummet and CFB will become regional until the point that paying the players no longer makes any sense. From there I can see the age restriction of the NFL being dropped and the elite players just going to the league.

true detective mel GIF
 
The Alabaster Yak said:
As soon as they kick the poors out and all the top programs are playing a weekly schedule consisting of Alabama, Georgia, Clemson, aTm, OU, Florida, Ohio State, Michigan, USC, Notre Dame, etc, the blue bloods will never consistently 12-0/11-1 again and they will cease to be “blue bloods”.

It will be the NFL where pretty much every team will hover around 5-7 or 7-5 with a few outliers that go 3-9 or 9-3. That is going to affect their brands that have been built over decades and their loyal alumni base will lose interest.
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it's not outrageous to believe that in this hypothetical new league, a stratification could occur between those schools. Even in the NFL with all their rules promoting parity, we see teams that make the playoffs nearly every year and other teams that compete for the first draft pick nearly every year.
 
hokiehead said:
it's not outrageous to believe that in this hypothetical new league, a stratification could occur between those schools. Even in the NFL with all their rules promoting parity, we see teams that make the playoffs nearly every year and other teams that compete for the first draft pick nearly every year.
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I think that will definitely happen, but how will Georgia, Clemson and Notre Dame fans feel when they are 3-9/4-8 every year (for example)? The interest in their programs exists because they rarely, if ever, are that bad and they believe they can compete for a NC.
 
The Alabaster Yak said:
I think that will definitely happen, but how will Georgia, Clemson and Notre Dame fans feel when they are 3-9/4-8 every year (for example)? The interest in their programs exists because they rarely, if ever, are that bad and they believe they can compete for a NC.
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I don't know the answer to your question, but I suspect that the BMDs who give to those schools' ADs, and the NIL sponsors, would be more likely to keep on giving for a 4-8 team playing in "the big boys league" than they would a 11-1 team playing in the hypothetical new equivalent of FCS.

I don't have numbers to back it up, but I suspect over the last decade, the ten worst performing P5 schools got far more money in donations than the top ten performing FCS schools.
 
Gary Indiana said:
Exactly and I believe that this will be the point CFB implodes. Why would anyone who doesn’t attend one of the selected 20-30 schools even bother to tune in for these games?
My opinion is that most fans would say to themselves, “what’s even the point of this?”. If people just want to watch paid players in a 30 team league, they’ll just watch the NFL, which has more talented players. I know I don’t sit around watching AAA baseball or G-League hoops.
At that point TV contracts will plummet and CFB will become regional until the point that paying the players no longer makes any sense. From there I can see the age restriction of the NFL being dropped and the elite players just going to the league.

true detective mel GIF
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Yeah. I have zero interest in watching a minor league football game between teams sponsored by universities I have no connection with or with which the CFB team I root for has no affiliation. And I watch those games now, so they lose a viewer in this economic utopia some are envisioning.

These premium matchups that drive their current monetary value stop being premium when the game becomes insignificant to half the current market.

Further, everyone seems to be ignoring what motivates the ownership. If they can increase revenues, there has to be a reason for them to want those revenues. And university presidents give zero fvcks about how wealthy they can make football coaches and players. What they might make is a by-product based on the value brought to the university - coach & player interests is not the value being served.
 
The ironic part of all this is all these issues basically stem from a 17/18 year old’s right to choose where they “attend school”. Recruiting is the lifeblood of a college football program, but the very nature of recruiting is what is going to be the sport’s downfall.
 
hokiehead said:
I don't know the answer to your question, but I suspect that the BMDs who give to those schools' ADs, and the NIL sponsors, would be more likely to keep on giving for a 4-8 team playing in "the big boys league" than they would a 11-1 team playing in the hypothetical new equivalent of FCS.

I don't have numbers to back it up, but I suspect over the last decade, the ten worst performing P5 schools got far more money in donations than the top ten performing FCS schools.
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Why are you comparing P5 to FCS? In this scenario, I think you have the “NFL-lite” league, the rest of the current P5 and maybe some hungry G5 type programs in a different league, then the FCS/middling to lower end G5 in another league.

The more apt comparison would be Rutgers, Kansas, Arizona, Colorado, Oregon State, Vanderbilt, etc to Boise State, Cincinnati, Houston, UCF, SMU, Memphis, etc. I would be willing to bet that donations across those P5 and G5 programs are probably similar over the last couple decades.

Regardless, I just think once this new 30 team league is established and they are playing each other every week, the BMDs at some of these programs are going to get tired of being mediocre, even if they are mediocre in the top league. Look at NFL fan bases that get real sick of rooting for a team that isn’t competing for the SB every year. I think after 3-4 years of some of these blue bloods going 5-7 or 7-5 in a 30 team league, the shine is going to be off and all the money in the world isn’t going to make anyone happy.

TL/DR… Yes, the top 30 programs absolutely need the bottom feeder P5 and G5 programs in order to maintain their elite status and brand.
 
The downfall will occur when the IRS says I want my piece of this pie and decides that these NIL deal's are not legitimate deductible business expenses. Of course when a few players also get nabbed for forgetting to pay taxes on their NIL deals and the Feds also decide that their athletic scholarships are also now taxable because they are essentially employees. Oh and when they players travel to other states, especially ones with local income taxes, don't be surprised when some locality goes after their prorated share of that NIL money.
 
AeroBuff99 said:
The downfall will occur when the IRS says I want my piece of this pie and decides that these NIL deal's are not legitimate deductible business expenses. Of course when a few players also get nabbed for forgetting to pay taxes on their NIL deals and the Feds also decide that their athletic scholarships are also now taxable because they are essentially employees. Oh and when they players travel to other states, especially ones with local income taxes, don't be surprised when some locality goes after their prorated share of that NIL money.
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I'm not a tax pro, but NIL deals seem like any other corporate sponsorship. why do you believe the IRS will treat them differently?

e.g. if Nike can treat sponsorship of LeBron James as a "legitimate business expense", it seems they can do the same with sponsorship of college athletes.

I do think you're correct that some of these "young, dumb and full of cûm" college athletes will get in trouble for not claiming that income.
 
hokiehead said:
I'm not a tax pro, but NIL deals seem like any other corporate sponsorship. why do you believe the IRS will treat them differently?

e.g. if Nike can treat sponsorship of LeBron James as a "legitimate business expense", it seems they can do the same with sponsorship of college athletes.

I do think you're correct that some of these "young, dumb and full of cûm" college athletes will get in trouble for not claiming that income.
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Because all the local yokals setting up these deals or putting money in these funds are doing it for the sole purpose of paying players. I doubt many of them are even doing much promotion with them if any at all. It will take some time, but eventually someone is going to be asking questions and looking for receipts.
 
AeroBuff99 said:
Because all the local yokals setting up these deals or putting money in these funds are doing it for the sole purpose of paying players. I doubt many of them are even doing much promotion with them if any at all. It will take some time, but eventually someone is going to be asking questions and looking for receipts.
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OK, like I said, I'm not a tax pro. Doesn't seem different to me, but I trust you're right.
 
hokiehead said:
I'm not a tax pro, but NIL deals seem like any other corporate sponsorship. why do you believe the IRS will treat them differently?

e.g. if Nike can treat sponsorship of LeBron James as a "legitimate business expense", it seems they can do the same with sponsorship of college athletes.
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There's a difference between "sponsorship" and NIL. When Nike sponsors LeBron, they outline a variety of tasks, appearances, specific actions, etc that LeBron must do. A part of that sponsorship is the for the right to use his Name, Image and Likeness to promote and even possibly include in their product.

My understanding of what the NIL rules allow is only the latter, but not the former. Where it gets sticky from a tax standpoint is that if you pay someone for some thing, and the amount you pay them is meaningfully greater than the value of that thing, it is presumed to be a gift rather than a bona fide purchase. If you don't actually use the thing you're paying someone for to generate more business for your company, is it a legitimate expense?

I think the most salient comparison is that your business can buy art for your office, but if you pay more for that art than it is worth because the artist is your daughter, the difference between its market value and the price you paid is not a legitimate expense.
 
The Alabaster Yak said:
Yes, at some point, players will stay in college because they will make more money than their Rookie deals in the NFL will pay them. The NFL will then counter by bumping the Rookie wage scale up.
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Nope.

Because we're not talking about the scholarship stipend money. We're talking about endorsement money. Even if the endorsement money for NFL 1st round pick QB is ever the same as the endorsement money available for being the star QB at a university, there's still the contract in the millions & the insurance policy on it which you only get on the NFL side of the ledger.
 
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