Aginnebraska said:

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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.

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College athletes are getting paid for endorsing products just like any other person: Instagram posts, twitter posts, snapchat posts, interviews, commercials etc. Look at the popular LSU gymnast, Livvy Dunne, she is in several national commercials advertising different products. She has 2.6MM instagram followers and is more marketable than a lot of professional athletes.

Luke The Drifter said:

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No business or individual has put money into NIL hoping to better their bottom line.

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I disagree. Clothing companies like Wrangler have outfitted athletes to get their collegiate clothing lines more attention.

Sports and fitness supplements are prevalent in NIL as they get their brand out to the kids.

I wouldn't doubt a local car dealership would want to get there name out so all these players with $200k in pockets will buy a new Escalade.

But I agree, there are some NIL deals that are just from Collectives that want to get the players paid.

NIL will separate into distinct categories, if it hasn't already.

The athletes with looks and personality -- like Bryce Young and Livvy Dunne -- will make a lot of money actually endorsing products and delivering ROI.

Some athletes will make a few bucks here and there doing interviews on outlets like TexAgs or signing autographs.

The rest will get money just for coming to a particular school, and it likely won't be nearly as much as people anticipate. I think a lot of people with money to invest are going to sour on collectives when these kids take cash and bolt after a season or fail to crack the lineup.

They do it for two reasons. One is to make the team they like better. The other, and the biggest reason of all, is to stroke their own ego and be able to tell their buddies they are involved, know people, know this that or the other.

Business/ROI has nothing to do with it.

it has already.

I don't want to derail the thread, so let me know if I should create my own. But what is realistically stopping someone like Jerry Jones from offering $100k plus tuition to anyone who wants to come to Arkansas as a walk-on, thereby avoiding scholarship limits? And if that's legal, how long until you have the schools with the deepest pockets taking 40 players every year?

So what I've learned from this thread is that apparently size matters.

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

LOL! This is not the 1990s.

Definitely Not A Cop said:

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I don't want to derail the thread, so let me know if I should create my own. But what is realistically stopping someone like Jerry Jones from offering $100k plus tuition to anyone who wants to come to Arkansas as a walk-on, thereby avoiding scholarship limits? And if that's legal, how long until you have the schools with the deepest pockets taking 40 players every year?

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ncaa rules don't allow it.

BMX Bandit said:

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Definitely Not A Cop said:

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I don't want to derail the thread, so let me know if I should create my own. But what is realistically stopping someone like Jerry Jones from offering $100k plus tuition to anyone who wants to come to Arkansas as a walk-on, thereby avoiding scholarship limits? And if that's legal, how long until you have the schools with the deepest pockets taking 40 players every year?

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ncaa rules don't allow it.

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What don't they allow? Covering tuitions for walk-ons? Or any NIL money being given to walk-ons?

an alumni paying for an athlete to go to school would be a benefit not allowed under the NCAA rules.

in your scenario, offering a person money to come to a school in exchange for NIL money would violate the arkansas law on NIL, and thus violate NCAA rules.

Thanks.

The reason we have NIL is that the NCAA rules prohibiting athletes from capitalizing on their name, image, and likeness were deemed to have been anti-trust law violations. About all the NCAA can do in this field is to prohibit NIL being used as inducements, but that's virtually impossible to enforce (modern twist on an old joke: what comes first? the commitment or the NIL deal?), so, bag men have essentially be replaced by NIL deals. Now, not only can you stoke your ego by "buying" a player for your school, it's also tax deductible as a business advertising expense (if you do it right), unlike the cash stuffed in those brown paper bags (or McDonald's bags if you're Tennessee).

As to why people do this, some businesses may see endorsements as a valid advertising expense, but most are just doing it to help the school. I do think that the money involved has been wildly overhyped. If you have millions to spend on your team, most folks are going to want their name on something, rather than to just cut a check to an athlete who might hit the transfer portal before the ink is dry on your check.

Captain Awesome said:

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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.

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Donating to the university might be tax-deductible, but as a charitable contribution doesn't that deduction cover just a percentage of the total donation?

On the other hand, paying someone (a player) directly for making an ad counts as a business expense - 100 percent deductible - does it not?

AggieAL1 said:

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Captain Awesome said:

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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.

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Donating to the university might be tax-deductible, but as a charitable contribution doesn't that deduction cover just a percentage of the total donation?

On the other hand, paying someone (a player) directly for making an ad counts as a business expense - 100 percent deductible - does it not?

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The rule that allowed you to partially deduct (80%) of your seat contribution is gone. Now, no contribution which is tied to seating is deductible. However, if you make a gift towards a building campaign, or to the TMF's general fund, that is still 100% deductible, as it has always been.

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The reason we have NIL is that the NCAA rules prohibiting athletes from capitalizing on their name, image, and likeness were deemed to have been anti-trust law violations.

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this is not correct.

we have NIL because in 2019 CA passed a law that said if the NCAA did not allow its student-athletes to make money off NIL, then those schools could be in the NCAA. The law was set to go into effect in 2023.

FL then passed a similar law that didn't have a delay on implementation. Several states all followed suit.

NCAA could do nothing because enforcing the rule would mean many big schools would be required by law to leave the NCAA