The future of NIL?

FarminCy

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Nov 14, 2009
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A friend is an associate athletic director at a P5 school. Talked with her on spring break a few weeks ago. Said NIL is the greatest thing to happen as her job got so much easier. Doesn’t have to spend much time to determine (or help hide) if money, new cars, apartments, etc are going to get them in trouble as it’s all NIL now vs under the table. She loves it.
 

Clonehomer

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Apr 11, 2006
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So you're providing money so a company can contract out appearances by these athletes, and you can take a tax write off for it? Wouldn't this be equivalent to me setting a non-profit to have a plumber make an appearance at my home and write that off?
 
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SCNCY

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I always though a marketing agency would be the way to go. Basically if you sign with ISU, you sign with an ISU Donor owned marketing agency that sells their NIL. That way you try and lock their NIL to your school and prevent other schools from offering bigger packages.
 
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Kinch

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Going through a non profit sounds great in theory, it it opens it up to fraud.
 

cyclone1209

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A friend is an associate athletic director at a P5 school. Talked with her on spring break a few weeks ago. Said NIL is the greatest thing to happen as her job got so much easier. Doesn’t have to spend much time to determine (or help hide) if money, new cars, apartments, etc are going to get them in trouble as it’s all NIL now vs under the table. She loves it.
Where this gets tricky is what strings do the money deals come with? Like imagine the business that paid Spencer rattler $1MM then he transfers the next year - granted in that case he got benched, but what if he hadn’t and just left.
 

Kinch

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Where this gets tricky is what strings do the money deals come with? Like imagine the business that paid Spencer rattler $1MM then he transfers the next year - granted in that case he got benched, but what if he hadn’t and just left.
That is an excellent point. I think in five years businesses, individuals and others participating in NIL will have second thoughts with spending a million on an 18 year old kid who may transfer, get arrested, drop out of school or be a flash in the pan. It is hard to have strings attached to someone that age and make it work for everyone involved.
 

WhoISthis

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Oct 6, 2010
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That is an excellent point. I think in five years businesses, individuals and others participating in NIL will have second thoughts with spending a million on an 18 year old kid who may transfer, get arrested, drop out of school or be a flash in the pan. It is hard to have strings attached to someone that age and make it work for everyone involved.
Seems optimistic. How many normal marketing deals available to these companies have strings attached?

Say you're an Iowa business with a 200k marketing budget. Few things get your name out there better than teaming with a big name Iowa or ISU player for just a year? doesn't really matter if they transfer later, or even flame out. The ROI in marketing is front-loaded.
 

I@ST1

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Seems optimistic. How many normal marketing deals available to these companies have strings attached?

Say you're an Iowa business with a 200k marketing budget. Few things get your name out there better than teaming with a big name Iowa or ISU player for just a year? doesn't really matter if they transfer later, or even flame out. The ROI in marketing is front-loaded.

I’d disagree with this. If you have a 200k marketing budget - your name is already out there and paying an ISU player isn’t going to move the needle much.

Are you going to go to such business only because they have an NIL deal with an ISU player? Doubt it.
 
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NorthCyd

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I wish, for the sake of college sports, that they would at least limit how much money they can throw at these kids. How the heck are any of the normal schools going to compete with teams that have $75 million in NIL to buy players.
It's no different than it was before, now it's just above board.
 

farminclone

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Nov 16, 2009
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Seems optimistic. How many normal marketing deals available to these companies have strings attached?

Say you're an Iowa business with a 200k marketing budget. Few things get your name out there better than teaming with a big name Iowa or ISU player for just a year? doesn't really matter if they transfer later, or even flame out. The ROI in marketing is front-loaded.

But very very little of this is actually about marketing.
 
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WhoISthis

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I’d disagree with this. If you have a 200k marketing budget - your name is already out there and paying an ISU player isn’t going to move the needle much.

Are you going to go to such business only because they have an NIL deal with an ISU player? Doubt it.
Don't be pedantic.

What do they do with the 200k? Or whatever amount you want it to be. Just give it a way? The bottom line is those with marketing budgets do not have many options that have "stings attached" and NIL is likely a very cost-effective ROI regardless.

Are you going to go or buy anything because of any type of marketing? I think you overestimate the ROI on the alternatives in marketing.
 

t-noah

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It's no different than it was before, now it's just above board.
Well maybe. I think I disagree though. You are assuming everybody did it or gave money for pay-for-play. Which is not true. Everyone did not do this.

Now with NIL it is all legal. It's just that the bigger schools, or the schools with richer alums, or the more creative such as OSU (?) will be the big winners.

Parity or atleast aspiring for parity is over. There needs to be caps on NIL IMO.
 

WhoISthis

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But very very little of this is actually about marketing.
Of course- and in those cases, it is even sillier to think people are unhappy with ROI or thinking there would need to be strings attached. Before NIL, you had even less ROI assurance on donations.

The post I responded implied NIL will slow down because "in five years businesses, individuals and others participating in NIL will have second thoughts with spending a million on an 18 year old kid who may transfer, get arrested, drop out of school or be a flash in the pan". That is optimistic. For those that are actual legit NIL to boost business, it is not greater risk than other forms. For the booster driven stuff, it is cheaper than indirectly buying players via the arms race of college athletics.

If you're a fledgling non-profit in Ohio or Texas or Nebraska, a good way to fundraise it to have a donation drive in which a percentage goes to a popular football player. A win-win. The non-profit makes more than they would otherwise due to association with the player, and the player makes money,
 

Kinch

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Sep 19, 2021
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Seems optimistic. How many normal marketing deals available to these companies have strings attached?

Say you're an Iowa business with a 200k marketing budget. Few things get your name out there better than teaming with a big name Iowa or ISU player for just a year? doesn't really matter if they transfer later, or even flame out. The ROI in marketing is front-loaded.
And the potential for damage is also very front loaded. Think about Hickory Park paying Xavier Foster $50,000 to be their spokesman.
 

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