Transfer Portal + NIL = bad news for MSU

Smoked Toag

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I love how you discredit Jones and Cross as 5 stars. Your goalpost moving is getting lazier and lazier.
Chris Jones was a 3 star until he blew up under our watch, and that was an MSU/Ole Miss deal. I can probably bend a little on Charles Cross, but even he was a 4 star level that was between us, Ole Miss and Florida State. Our 247 site got him the 5th star.
 

Eleven Bravo

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Are these payments contractual and do they bind a kid to a school contractually? I can't imagine any of these kids being in a position to really understand what they are signing if they are contractual. If these contracts are/become 4 yr deals that bind a kid to a school, the transfer portal activity may change a bit. Admittedly, I have no idea how this is supposed to work.

As I understand it, the schools themselves have zero involvement in NIL. NIL is strictly between a business and a player. If a school is out there even talking about NIL opportunities with a prospective athlete, this is considered a violation, period. Yes, I know that the businesses that give out NIL deals to athletes are boosters of these schools, but the school is not supposed to be involved in NIL in any way whatsoever. It (NIL) also applies only to players currently enrolled in these schools, and schools are not allowed to use future NIL opportunities to entice players to enroll in their school. That’s how it is supposed to work, at least-but we all also know that rules, at least when it comes to recruiting college athletes, are made to be broken.
 

aTotal360

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I'm glad the little known Chris Jones slipped through the cracks.
 

aTotal360

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I don't think the vast majority kids give a rip about the scholarship. They assume it will always be there. With that being said, I'm almost 100% certain there are funds set up for student athletes that get "cut" to remain in school at little to no expense to them. There is a system in place to dodge that PR nightmare.
 
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thatsbaseball

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Anyone who actually believes that the "money" schools won't utilize NIL FULLY when they all learn the most efficient and effective ways to do so is is being naïve...however that doesn't mean schools like us can't survive. The key (to me anyway) is going to be having a very sharp athletic administration and coaching staff who can maneuver in the new environment. LOL So I guess "the more some things change the more they stay the same".
 

Smoked Toag

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Anyone who actually believes that the "money" schools won't utilize NIL FULLY when they all learn the most efficient and effective ways to do so is is being naïve...however that doesn't mean schools like us can't survive. The key (to me anyway) is going to be having a very sharp athletic administration and coaching staff who can maneuver in the new environment. LOL So I guess "the more some things change the more they stay the same".
I fail to see how anything has changed.

Some of the more negative folks say that the city schools located in bigger metro areas (say Memphis, UCF, etc.) might overtake us. Why haven't they already? FedEx has been in Memphis for 50 years, donating to all areas of U of M, yet they are still where they are. Why is NIL going to change anything?

People don't just give away money to players unless they are incredibly invested. Those folks tend to be the true boosters of the school.
 

The Peeper

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To be fair, NIL has been around now what, 6 months? How many transfers have we had during that?
 

horshack.sixpack

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Gotcha. Back on topic. I think that NIL has just pushed some/most of the $$$ to the top of the table instead of under it.
 

horshack.sixpack

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By "bind", I meant 4yr deal for $xxxxx.xx per year so long as you play at MSU. I'd be interested in seeing how the contracts are drawn up, if they are that formal.
 

johnson86-1

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Yep. Both could've signed for money with other schools then too. You guys act like it wasn't already happening. Nothing has changed. Ts just in the open more now.

There is a pretty significant difference from people finding a way to transfer after tax money (assuming they don't have a cash business where they are already evading taxes) to recruits without any documentation (and pretty much definitely violating some IRS requirements on reporting payments) versus having a legal mechanism to spend "advertising" dollars on recruits that can be deducted as a business expense.

It may not make a big difference, but if you see schools with a big booster base getting organized and essentially guaranteeing a payroll each year, there are a lot of schools we will not be able to keep up with that we have been able to with under the table dollars. The one saving grace we may have is that a lot of schools with more money than us (say, University of Tennessee) have taken on a lot of debt. So they may not be able to stomach money that was going to the athletic department now going to NIL deals.
 

Go Budaw

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I fail to see how anything has changed.

Some of the more negative folks say that the city schools located in bigger metro areas (say Memphis, UCF, etc.) might overtake us. Why haven't they already? FedEx has been in Memphis for 50 years, donating to all areas of U of M, yet they are still where they are. Why is NIL going to change anything?

People don't just give away money to players unless they are incredibly invested. Those folks tend to be the true boosters of the school.

I don’t think anyone is saying that, with the notable exception of Miami. They are a sleeping giant that has everything they need on turnkey to use NIL to vault back into the national limelight. The talent and money are both already right in their backyard.
 

johnson86-1

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I fail to see how anything has changed.

Some of the more negative folks say that the city schools located in bigger metro areas (say Memphis, UCF, etc.) might overtake us. Why haven't they already? FedEx has been in Memphis for 50 years, donating to all areas of U of M, yet they are still where they are. Why is NIL going to change anything?

People don't just give away money to players unless they are incredibly invested. Those folks tend to be the true boosters of the school.

There are a lot of boosters that are currently giving money to schools that have no appetite for making under the table payments to players. If they can make those payments above the table, deduct them as a business expense for marketing, and also not have to play fast and lose with IRS requirements, that's going to open up the donor base some more. That's probably going to make the biggest difference with boosters with wholly owned successful "small" businesses that don't mind spending 10k's each year in "advertising" or even 100k's a year.
 

Cooterpoot

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There is a pretty significant difference from people finding a way to transfer after tax money (assuming they don't have a cash business where they are already evading taxes) to recruits without any documentation (and pretty much definitely violating some IRS requirements on reporting payments) versus having a legal mechanism to spend "advertising" dollars on recruits that can be deducted as a business expense.

It may not make a big difference, but if you see schools with a big booster base getting organized and essentially guaranteeing a payroll each year, there are a lot of schools we will not be able to keep up with that we have been able to with under the table dollars. The one saving grace we may have is that a lot of schools with more money than us (say, University of Tennessee) have taken on a lot of debt. So they may not be able to stomach money that was going to the athletic department now going to NIL deals.

Still will change very little. It'll get the top flight guys huge pay days, but beyond that, little else.
 

Smoked Toag

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I don’t think anyone is saying that, with the notable exception of Miami. They are a sleeping giant that has everything they need on turnkey to use NIL to vault back into the national limelight. The talent and money are both already right in their backyard.
Why haven't they? What you fail to realize is that it's still much easier to just pay guys cash under the table. No taxes, no money trails, and honestly, there's no real morality to it, because nobody cares about cheating unless they are trying to bust their rival. They know that restricting gifts and NIL is just dumb. So if Miami wanted to mobilize, they could do it. I mean look at ponzi scheme guy a few years ago. It's far more likely that their coaching just sucked. If Miami explodes, it'll be due to Mario Cristobal.

Bo Bounds is going full nimrod on Texas A&M thinking that it's because of their LLCs that they signed the #1 class. Last I checked, they've been in the top 10 since Jimbo got there. Couldn't possibly be because they beat Bama or anything right? Got to be NIL. Not to mention that aTm has been paying for players since the days of Eric Dickerson. Does nobody remember the TransA&M?

Funny thing about aTm, is that it was the very lowly rated class of 2009-2011 that produced the team that came closest to ever winning a title, in 2012. Had they not had the hurricane postponement that year, they likely beat Florida and finish at least 11-1 and beat out Alabama.
 
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Smoked Toag

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There are a lot of boosters that are currently giving money to schools that have no appetite for making under the table payments to players. If they can make those payments above the table, deduct them as a business expense for marketing, and also not have to play fast and lose with IRS requirements, that's going to open up the donor base some more. That's probably going to make the biggest difference with boosters with wholly owned successful "small" businesses that don't mind spending 10k's each year in "advertising" or even 100k's a year.
We just disagree on that. That aspect won't happen at near the level you think it will.

Like I said in the other post, it's just a moral falsehood. You might could shame people in 1982, but not anymore. You mean it's horrible because the NCAA said it? El Oh El. Now, tampering with academics is something different, but that's not what's going on here. This is not breaking the law. If anything, most consider it righteous, rather than sinful, to use religious terminology.
 
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thatsbaseball

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You ever spent (or know anybody who spent) any under the table money on recruiting ?
 

Smoked Toag

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https://www.si.com/college/2021/12/07/texas-offensive-line-nil-deal-nonprofit

All above board and tax deductible to the wealthy (and not so wealthy) Texas boosters backing it .
That crap won't even stand up, in the end. Can't be tied to the school, so they'll have to back off on that marketing at a minimum. Lot of that will get phased out. And what if we have an economic downturn?

Was Texas not already signing high level offensive linemen? Again, what changed?
 

thatsbaseball

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So you know this for a fact and these folks are just guessing what they can do and not do ?
 

johnson86-1

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We just disagree on that. That aspect won't happen at near the level you think it will.

Like I said in the other post, it's just a moral falsehood. You might could shame people in 1982, but not anymore. You mean it's horrible because the NCAA said it? El Oh El. Now, tampering with academics is something different, but that's not what's going on here. This is not breaking the law. If anything, most consider it righteous, rather than sinful, to use religious terminology.

I can assure you the existence of a the IRS is not a moral falsehood. Moral or not, they truly, truly exist and even though people routinely break tax law/IRS requirements without detection, it doesn't mean they don't do a cost benefit analysis when deciding whether to do so. A lot of people like their alma mater enough to give it money, but not enough to take any risk of running afoul of the IRS. If you make giving money to players 40% cheaper and make it where you can do so without risking any criminal or civil penalties for not reporting payments, then that is going to move the needle for a lot of people.
 

Maroonthirteen

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That crap won't even stand up, in the end. Can't be tied to the school, so they'll have to back off on that marketing at a minimum. Lot of that will get phased out. And what if we have an economic downturn?

Was Texas not already signing high level offensive linemen? Again, what changed?

yeah. I'm thinking how long is some booster willing to be on the hook for $50k per year for some kid that may or may not be a difference maker or even a starter.

How about aTm spending $30million on a signing class. Which rumor is the kids are guaranteed the money for the 4 years. So, is aTM going to pay $30M each class from
now until whenever? You can't pay 2022 kids and not 2023 and 2024 and so on. So ATm is going to carry a $120M a year payroll for its football program from
now to eternity?

I think all this fizzles out or comes back down to earth with a few more Rattlers and Ewers.
 

Dawgzilla

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Yes, I know that the businesses that give out NIL deals to athletes are boosters of these schools.

Everyone keeps thinking these deals are just a way for the under the table money to become legit, but I'm still not sure thats entirely true. Sure, local businesses are boosters and want to overpay players just to support the team. The really big money out there seems to be legit investments by sports memorabilia and trading card companies and social media platforms looking to make money themselves.

Does anyone really think Bryce Young and Quinn Ewers would have been paid over $1MM to sign with Bama and OSU? They are getting paid by companies looking to make money selling autographs and merchandise. They don't care where those guys go to school as long as they are successful and famous. The opportunity to make big money on social media is better at larger and more popular programs, too. But these guys aren't just being handed money to sign with a specific school.
 

codeDawg

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Convince me I'm wrong. I'll hang up and listen.

It’s terrible for MSU, but rather than changing the rules to regulate pay for play with pro-competitive rules the boomers want to die on the “purity of college football” hill.
 

Dawgzilla

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How about aTm spending $30million on a signing class. Which rumor is the kids are guaranteed the money for the 4 years. So, is aTM going to pay $30M each class from
now until whenever? You can't pay 2022 kids and not 2023 and 2024 and so on. So ATm is going to carry a $120M a year payroll for its football program from
now to eternity?

I think all this fizzles out or comes back down to earth with a few more Rattlers and Ewers.

Yeah, I don't think the A&M deals are true as reported. Not sure about the source at all.

https://brobible.com/sports/article/texas-am-recruiting-class-nil-money/

First, coaches still cannot discuss recruits with boosters. Second, boosters still cannot contact recruits. Third, the NIL deals cannot bind a player to a specific school.

If the stuff reported by some Sooner fan is true, the NCAA and SEC will shut it down.
 
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