***PSU launches new NIL collective — Success with Honor***
- Thread starter Richie O
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Very easy to subscribe. I just did so - glad to see this organized effort get going.
It will be interesting how these things shake out in the end.
Could see a return of Harvard Yale as the premiere game in CFB.
Pitting alumni bases against one another based on wealth we dont come even close.
LdN
This is offensive. NIL and Success with Honor are mutually exclusive concepts.
Does it have to be?
I did not see any details, but is there anything that's being proposed to make it more like an "enhanced scholarship", where there's still some team loyalty and so forth?
Are you saying that there is no honor in compensating athletes for use of their names, images, or likenesses?
That assumes they are not being compensated. A Penn State athletic scholarship is worth in excess of 100K a year. A football scholarship is worth even more.
Yes, but in the case of football, the players are clearly under compensated.
If managed properly, perhaps this initiative can help keep college football as college football.
Nonsense. There is not a scholarship D1 football or basketball player in this country that is not being adequately compensated.
The players fill the stadium.
8 x 100,000 = 800,000 * $200 per ticket after all is said and done (parking, ticket, donations to get points) = $160,000,000, plus TV contract, etc.
There are 85 players.
Those 85 players generate, for the most part, probably $250,000,000 for PSU. I'm sure someone will be along to correct my undervaluation, and I'm just fine with that.
If I divide by 85, that's about $3,000,000 per player.
Do the same for Wrestling or Women's Volleyball - not even close.
So, if the football players are compensated adequately, by definition, the women's volleyball players are insanely overcompensated.
What if each professional football player that played and graduated from PSU helped with NIL. I'm thinking if they gave back a minimum of say 2% to 5% of their compensation to the NIL fund. That's somewhere in the ballpark of State taxes. They received their preparation from PSU for their career in the NFL. If you take a player like Saquan, that's making 10 million a year in salary and endorsements. If he alone gave 5% back, that's nearly $6,000 per player with 85. I think it could work. Problem is we do not put many guys in the NBA for basketball, where some other schools do and many other sports would depend on Alumni donations.
I don't think that basketball = football.
Far, far less people care about PSU basketball.
And so the value of the players is less....that's just how it works.
I don't think so at all.
A marxist would argue for all players, regardless of sport, to be treated equally.
A marxist would never make an argument about the value provided.
A marxist would pass a law requiring it.
I'm simply suggesting that we ought to use OUR leverage (money, scholarship) to get what we want (a restoration of a four year college career, with student athletes, like 1970 or 1980, restricted or no transfer portal) and the athletes get what they want (more up front $$$).
Would NIL contributions be tax deductible? Direct payments to players wouldn’t be but this system run by school may be treated differently. Some hot shot tax attorney would probably find a loophole or two.
The more I think about it, the more I think this play is sheer genius.
As it stands now, NIL is a very immature market. You have people and organizations that are basically paying for options, and there's going to be a lot of volatility given that these options are high risk for unproven commodities that don't necessarily equate to proven pull through value, let alone long term pull through value. Eventually, the market is going to stabilize as people begin to think harder (or regulators begin to require someone to be thinking harder) about the fair market value of what are essentially intangible personal services.
And as this market evolves, it's going to be clearinghouses and other middlemen (whether they be traditional sports agents, ad agencies, tech companies, or someone else) that are eventually going to determine how that market stabilizes. I can't help but be reminded of how my senior senator (Mark Warner) made his money. Years ago, our government decided to create national cell phone service on an expedited basis by essentially giving away market licenses for free, by lottery. (No, literally, they did that, and the only way your lottery ticket would be invalidated was if it had a typo, the pages were out of order, or upside down. Seriously.) Warner was smart enough to realize that all of the little fractional ownership interests in these licenses were eventually going to be gobbled up by big telecom, and took on the role of "market maker/broker" for such transactions.
That is what the collective, and other organizations are going to do, and they'll do well for themselves in the process. (Indeed, eventually, I suspect many such organizations will be flipped to private equity, which simply loves middleman businesses in unregulated markets.) This is the genius of the collective, and it's compounded by being wrapped in ethical, athlete-friendly, and university-aligned themes, while simultaneously having both "crowdfunding" and "angel investor" pathways .
As it stands now, NIL is a very immature market. You have people and organizations that are basically paying for options, and there's going to be a lot of volatility given that these options are high risk for unproven commodities that don't necessarily equate to proven pull through value, let alone long term pull through value. Eventually, the market is going to stabilize as people begin to think harder (or regulators begin to require someone to be thinking harder) about the fair market value of what are essentially intangible personal services.
And as this market evolves, it's going to be clearinghouses and other middlemen (whether they be traditional sports agents, ad agencies, tech companies, or someone else) that are eventually going to determine how that market stabilizes. I can't help but be reminded of how my senior senator (Mark Warner) made his money. Years ago, our government decided to create national cell phone service on an expedited basis by essentially giving away market licenses for free, by lottery. (No, literally, they did that, and the only way your lottery ticket would be invalidated was if it had a typo, the pages were out of order, or upside down. Seriously.) Warner was smart enough to realize that all of the little fractional ownership interests in these licenses were eventually going to be gobbled up by big telecom, and took on the role of "market maker/broker" for such transactions.
That is what the collective, and other organizations are going to do, and they'll do well for themselves in the process. (Indeed, eventually, I suspect many such organizations will be flipped to private equity, which simply loves middleman businesses in unregulated markets.) This is the genius of the collective, and it's compounded by being wrapped in ethical, athlete-friendly, and university-aligned themes, while simultaneously having both "crowdfunding" and "angel investor" pathways .
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