We all know it's been happening since the dawn of time. Now the NIL just makes it all taxable.
Here is the question.

Why? Why are business men/donors willing to spend hundreds of thousands of dollars with no real financial return other than preferential treatment? Bragging rights? The ROI can't be worth it. Can it? Is it hard for me to understand because I don't roam in those circles?

It isn't about these players helping you get more business. It's a way to legally give players cash to play for your school. No business or individual has put money into NIL hoping to better their bottom line.

I dont think thats always the case. A lot of companies/businessmen are giving NIL deals to players in return for them being a spokes person for their business. Heck just look at Texags and orangebloods, they are giving NIL deals to players for interviews and exclusive player insight, which drives subscriptions up.

There's a lot of alums out there whose sense of self worth is tied to how good their football program is.

I'm sure there are some guys just flushing money down the toilet to try and see their favorite school succeed. But I would bet those are in the minority, and represent the VAST minority of dollars.

Most of these deals center around marketing/endorsements. These sort of things have been working for eons, companies wouldn't sign endorsement deals if they didn't generate revenue. There is absolutely no reason to think it wouldn't work with college athletes, if it works with minor olympic athletes and local celebs. For most companies or for big bucks, this absolutely moves their bottom line. In exactly the same way that companies are the "Official _____ of (insert athletic department here)."

Wearetheaggies said:

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There's a lot of alums out there whose sense of self worth is tied to how good their football program is.

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DING! DING! DING!

I needed to know this too.

As long as I can remember, Blue Hairs have been donating millions to the various foundations (12th Man etc) with no real expectation of return. This is no different. But now these new NIL funds are basically pooling of donor dollars for the direct benefit of specific players which otherwise went into generic foundation budgets with no direct benefit to players.

There is no way any specific business really thinks these endorsements will be profitable or improve demand for their products. Frankly the fact these dollars are being funneled through 3rd party managed funds is likely because the donors don't want to have their own companies/businesses tied directly to the ups and downs associated with 18-21 year old immature college kids.

A&M has a half million living alumni. If (on average) they pony up the equivalent of $100 per alumni, there is a pool of $50MM per year to help bring the best athletic talent to Aggieland. That cost is right in line with annual dues mindlessly paid in previous years to the 12th Man Foundation.

nm

I would imagine in the near future we will be referring to college football in two distinct eras (NCAA & NIL). Much like baseball divided between the live ball and dead ball eras.
The only difference being the live ball era increased baseball's popularity and growth where the NIL will do the opposite in my opinion.
CFB will have lost quite a bit of distinctiveness/regionality and fan fervor because it will be viewed as too close of a replica of the NFL.

Tex Ags might actually get some benefit from their association with NIL since they are in the direct business of providing new "content" to their subscribers who are specifically interested in information associated with TAMU athletics. Interviews and access to A&M Celebrities is valuable content to TexAgs and Lucci.

ea1060 said:

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I dont think thats always the case. A lot of companies/businessmen are giving NIL deals to players in return for them being a spokes person for their business. Heck just look at Texags and orangebloods, they are giving NIL deals to players for interviews and exclusive player insight, which drives subscriptions up.

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This. The vast majority are endorsement deals. Unless you're Mattress Mack a business owner's own face isn't getting clicks on Twitter.

There is no measurable means to NIL or paying Peyton Manning millions to endorse a product.

PT Barnum - nobody ever went broke underestimating the intelligence of the America people as they are fooled easily into inferior products and ideas.

The coming dissension in pay to play and soon bring accusations of be racist, or in violation of some other societal code, and there is always the IRS.

I also fear that a million dollar QB playing an FBS directional school gets blown up by a player filled with envy and anger.

Players need to get all they can because this won't last forever.

Meximan said:

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ea1060 said:

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I dont think thats always the case. A lot of companies/businessmen are giving NIL deals to players in return for them being a spokes person for their business. Heck just look at Texags and orangebloods, they are giving NIL deals to players for interviews and exclusive player insight, which drives subscriptions up.

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This. The vast majority are endorsement deals. Unless you're Mattress Mack a business owner's own face isn't getting clicks on Twitter.

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Just because they are written up as "endorsement" deals doesn't mean there will ever be an expectation of doing commercials or ribbon cuttings. One of the elements of contractual law is that consideration is given by both sides,...the consideration provided by the athlete is obviously their willingness to endorse etc. Basically, that costs the Athlete nothing but is necessary to fulfill their part of the bargain.

The only real activity I see athletes doing is as their part of the NIL deal is TexAg interviews and sitting down for autograph signings. Those events are small ways for the NIL contract holder to recoup of the money they've contributed to the athlete through signing fees and t-shirt sales.

Advertising = business expense

Are 12th Man Foundations tax deductible? Because if they aren't, the deductibility of advertising expenses, gives alumni with their own businesses an incentive to structure contributions (which in previous years might have gone to 12MF) as endorsements. Get apprx 1/3 of that donation back in the form of lower taxes.

Aginnebraska said:

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As long as I can remember, Blue Hairs have been donating millions to the various foundations (12th Man etc) with no real expectation of return. This is no different. But now these new NIL funds are basically pooling of donor dollars for the direct benefit of specific players which otherwise went into generic foundation budgets with no direct benefit to players.

There is no way any specific business really thinks these endorsements will be profitable or improve demand for their products. Frankly the fact these dollars are being funneled through 3rd party managed funds is likely because the donors don't want to have their own companies/businesses tied directly to the ups and downs associated with 18-21 year old immature college kids.

A&M has a half million living alumni. If (on average) they pony up the equivalent of $100 per alumni, there is a pool of $50MM per year to help bring the best athletic talent to Aggieland. That cost is right in line with annual dues mindlessly paid in previous years to the 12th Man Foundation.

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so $18-20 per year gets us a new coach?

Aginnebraska said:

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The only real activity I see athletes doing is as their part of the NIL deal is TexAg interviews and sitting down for autograph signings. Those events are small ways for the NIL contract holder to recoup of the money they've contributed to the athlete through signing fees and t-shirt sales.

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One of the small town car dealerships near me has a local kid who plays for the sips doing radio commercials for them. Not sure how much he is getting payed, but I think that definitely fits the spirit of NIL and not just writing checks for nothing.

Luke The Drifter said:

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It isn't about these players helping you get more business. It's a way to legally give players cash to play for your school. No business or individual has put money into NIL hoping to better their bottom line.

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for the most part, yes. but some businesses are using it as legit advertising and don't care about helping a particular school.

Bryce Young in the Dr. Pepper and Heisman house ads is one example.

another is this law firm:

Quote:

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Are 12th Man Foundations tax deductible?

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if not tied to tickets, yes.

Captain Awesome said:

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Why? Why are business men/donors willing to spend hundreds of thousands of dollars with no real financial return other than preferential treatment? Bragging rights? The ROI can't be worth it. Can it? Is it hard for me to understand because I don't roam in those circles?

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Ego.

Luke The Drifter said:

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It isn't about these players helping you get more business. It's a way to legally give players cash to play for your school. No business or individual has put money into NIL hoping to better their bottom line.

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That is NOT what NIL was meant to be. It was NOT supposed to be paying players to play for a certain team. It was supposed to be what the OP suggested where businesses pay players to promote their products and services. Businesses would not do that if there was not a positive ROI.

However, that is NOT what NIL has turned into and anyone with half of a brain could see this would be the result of NIL. It has turned into primarily "pay for play" where people are just buying players. I would not say that no businesses have invested into NIL without an expectation of financial gain from the promotion of their products and services (there are examples of that). However, I think significantly more money is spent on NIL just to buy players. And yes, there were always cases of people breaking the rules to pay players and recruits, but NIL has taken that to an entirely new level.

I personally hate NIL and always have since it was obvious what it would turn into. It is just another thing that makes college football a little less enjoyable. It has moved far closer to the NFL which I don't watch.

Seems like some companies are paying players for traditional marketing...

https://www.si.com/college/alabama/bamacentral/bryce-young-inks-nil-deal-with-dr-pepper-will-be-featured-on-fansville-blackwell

"Last year, Dr Pepper was one of the first nationally-recognized brands to sign an NIL deal with a college athlete in Uiagalelei. After replacing the Clemson quarterback with Young, Dr Pepper senior vice president of brand marketing for carbonated soft drinks John Alvarado stated that Young is a solid fit for the upcoming season's campaign.

"Not only is Bryce one of the greatest collegiate athletes in college sports, but he fits perfectly in the Dr Pepper family," Alvarado told Forbes. "As a fan of the brand, he emulates what the brand stands for and represents our message around everyone being 'deserving' of a Dr Pepper."

SECAg13 said:

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Aginnebraska said:

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The only real activity I see athletes doing is as their part of the NIL deal is TexAg interviews and sitting down for autograph signings. Those events are small ways for the NIL contract holder to recoup of the money they've contributed to the athlete through signing fees and t-shirt sales.

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One of the small town car dealerships near me has a local kid who plays for the sips doing radio commercials for them. Not sure how much he is getting payed, but I think that definitely fits the spirit of NIL and not just writing checks for nothing.

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Except it is effectively writing checks for nothing, because nobody is buying cars because of a what college football player recommends. A little less shammy perhaps, but still a sham.

Captain Awesome said:

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We all know it's been happening since the dawn of time. Now the NIL just makes it all taxable.
Here is the question.

Why? Why are business men/donors willing to spend hundreds of thousands of dollars with no real financial return other than preferential treatment? Bragging rights? The ROI can't be worth it. Can it? Is it hard for me to understand because I don't roam in those circles?

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these are good questions.

it's one of those things in life...people like to brag about how much money they've spent or contributed...regardless of whether it makes any sense or not. Or whether it will pay off / return value in the end

Captain Awesome said:

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We all know it's been happening since the dawn of time. Now the NIL just makes it all taxable.
Here is the question.

Why? Why are business men/donors willing to spend hundreds of thousands of dollars with no real financial return other than preferential treatment? Bragging rights? The ROI can't be worth it. Can it? Is it hard for me to understand because I don't roam in those circles?

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do you have these same questions for those that donate to the program?

do you think the "ROI" is greater on giving money to 12th man foundation or giving it directly to a player to get them to play for A&M?

Wearetheaggies said:

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There's a lot of alums out there whose sense of self worth is tied to how good their football program is.

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This. I just think about before NIL, when "donors" HAD to hide in the shadows.
Donating to the university was at least tax-deductible then.
I've often wondered how much I would pay to see our team win. I still haven't come up with a number.

Hey Nav said:

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Seems like some companies are paying players for traditional marketing...

https://www.si.com/college/alabama/bamacentral/bryce-young-inks-nil-deal-with-dr-pepper-will-be-featured-on-fansville-blackwell

"Last year, Dr Pepper was one of the first nationally-recognized brands to sign an NIL deal with a college athlete in Uiagalelei. After replacing the Clemson quarterback with Young, Dr Pepper senior vice president of brand marketing for carbonated soft drinks John Alvarado stated that Young is a solid fit for the upcoming season's campaign.

"Not only is Bryce one of the greatest collegiate athletes in college sports, but he fits perfectly in the Dr Pepper family," Alvarado told Forbes. "As a fan of the brand, he emulates what the brand stands for and represents our message around everyone being 'deserving' of a Dr Pepper."

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Bryce Young is actually really good in those commercials, too.

BMX Bandit said:

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do you think the "ROI" is greater on giving money to 12th man foundation or giving it directly to a player to get them to play for A&M?

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After watching our team after last year's record breaking recruiting cycle, I would have to choose the 12th man foundation. Kinda joking, but am I?

I don't know how much money is involved, but when Weigman signed with Sawgrass Fishing Rods, it was the first time I'd ever heard of Sawgrass...

Quote:

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do you think the "ROI" is greater on giving money to 12th man foundation or giving it directly to a player to get them to play for A&M?

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How are we defining "ROI?" Beyond the point of paying enough for desired seats, it starts to look like lonely jocksniffing.

Captain Awesome said:

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We all know it's been happening since the dawn of time. Now the NIL just makes it all taxable.
Here is the question.

Why? Why are business men/donors willing to spend hundreds of thousands of dollars with no real financial return other than preferential treatment? Bragging rights? The ROI can't be worth it. Can it? Is it hard for me to understand because I don't roam in those circles?

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Because fools and their money.......

That said, it is THEIR money!

Harry Lime said:

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Quote:

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do you think the "ROI" is greater on giving money to 12th man foundation or giving it directly to a player to get them to play for A&M?

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How are we defining "ROI?" Beyond the point of paying enough for desired seats, it starts to look like lonely jocksniffing.

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isn't the definition different for each person?

some may want their name on the wall, some may want to sniff some jocks, some may want a player to stick around because he makes us better.

Wearetheaggies said:

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There's a lot of alums out there whose sense of self worth is tied to how good their football program is.

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Winner!! Winner!!

I majored in history and I get a kick out of flippantly buying a funny tshirt or some gadget on Amazon. Some people majored in finance, business, or engineering and get a kick out of buying recruits.