Who determines allocation of NIL $?
- Thread starter Bulldog45
- Start date
I'm fairly certain they get input from 'decision makers' from each sport. I'm not certain of the rules of how contact between the schools and their collectives go, but you can rest assured knowing (a) we are following the letter of the law; and (b) the right people are making these decisions. It's not left to some non-coach's best guess.
Hopefully, we are smart enough to not spend that kind of money on baseball on the entire team. Not a money maker.
But what is the return on investment for the expenditure? How much more profitable is an 8 win football season vs. a 5 or 6 in the SEC?
In isolation, those two results generate about the same amount of profit. But yes we all know FB pays the bills blah blah blah. I’d imagine Baseball will make money for us starting in 2029
I've been wondering how it all works. How do we decide how much to spend on a player? How/when do we start paying? What are the conditions of the agreement?
How many BI folks are involved in budgeting, value evaluation, negotiations, etc.?
How many BI folks are involved in budgeting, value evaluation, negotiations, etc.?
@CharlieWinfield has been pretty good about engaging with the pack and explaining some of the nuances and operations of an NIL collective. Might reach out to him.
I’m on it - all good questions - will try to share answers this evening If ok.
Probably should be softball, since $5 / ticket has essentially broken everyone's personal budget in 2024.**********
#SPSisSomeBrokeAssMoFos
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How did it work then?**
I'd also like to know how blue bloods do it. How do we handle it when we have an NIL deal in place, but another team is tampering or the player is actively shopping himself out?
I want to know how the initiative money is spent. I’ve been donating since it opened and I have no information about how or where the money is spent. The website says almost nothing. What exactly is the money for?
You must have missed the post above from Charlie Winfield, but he said he was going to stop and answer these questions later today.
Thanks again for the patience. I know some people have some concerns about where I post, etc., To be clear, though, I am a long-time avid 17n reader and occasional poster, so I normally read here multiple times each day, and I try to respond where I can. It is just harder to stay current the past week or two.
Anyway, I have tried to identify all the questions from the thread and answer where I can. TL/DR, etc., but here goes:
Just wondering who makes the call on how the money gets spent, as in who decides whether to spend $1 million on a qb or $1 million on a weekend rotation for baseball etc?
It’s complicated. There are a number of things that go into this. The short answer is that the donors do in the first instance, and I do in the second instance. The more detailed answer, though. is this . . .
First – there is a question of allocation among sports.
When people donate, they can decide to make an unallocated donation, or they can allocate it by sport. When people allocate by sport, we honor it. So, to some degree, the contributors decide. This can result in some blowback, of course. For example, we have some people who designate gifts to sports that some other people would not deem to be a priority, thereby leading some to question our decision-making. (“What idiot decided to pay a [fill in the objectionable sport] athlete”). Also, when allocating to a sport, some people have gone further in some circumstances to fund a full-team deal. This also leads to some concern. (Assertions of “malpractice” / “what idiot paid this guy”). But, if somebody wants to give to bowling (to avoid being politically incorrect), we will.
When people donate without allocating to a sport, we go where the fire is hottest, so to speak. I think we have a very good understanding and cooperative approach among the stakeholders as to how to allocate between sports, and we act with urgency where we need. But, the donations largely dictate the outcome here, and the urgency finishes it off.
Second – there is a question of allocation among players within a sport. This takes a lot more work and time, but there are roughly a gazillion factors that go into it – including a player’s relationships / popularity with donors, media attention, skill, their position and its availability, etc. But, somebody has to be responsible for deciding and, for better or worse, that is usually me, with advice from donors, stakeholders, etc. Note: By the letter of NCAA rules, a school / coaches cannot direct where NIL funds are spent. Collectives who function at a higher level will nevertheless be able to gain an understanding of a player’s value from many internal perspectives without breaking those rules. I am fortunate to be involved in some different aspects of my several jobs that help me avoid having to make decisions in a vacuum.
Anecdotally, football shapes up not unlike the NFL. QBs, guys who can get to the QBs, and guys who can protect the QBs (outside OL in particular) are all commanding larger deals across the country (as are the great players at any position).
But what is the return on investment for the expenditure? How much more profitable is an 8 win football season vs. a 5 or 6 in the SEC?
It’s drastic. I’m a big believer of the idea that every successful SEC athletic program needs – for the benefit of all its sports – to have a football team that can win 7-8 games, at a minimum.
How do we decide how much to spend on a player? How/when do we start paying? What are the conditions of the agreement?
The process of deciding what a player’s NIL value is at any given time is very complicated, but it involves consideration of a lot of factors (see above for discussion on this). As to timing, it is important to be very aware of a few key dates (January 3 and May 2, for example, which are the day after transfer portals close for non-graduates). Thus, smart collectives would structure their deals to be heavily weighted to post-portal dates and, in football, post bowl-game dates to encourage senior participation. That way, if somebody walks out on the deal, the collective’s loss is minimized. But, we work very hard, consistent with state law, to be sure we aren't paying people who are screwing with us or undermining our efforts. We build in a lot of protections, and we use them.
As a side note, agents are more and more involved in these talks. Many are great and make the process easier.
How many BI folks are involved in budgeting, value evaluation, negotiations, etc.?
Several, from a few perspectives. First, you have to allocate by team and then consider position group and type of player, all of which has to be done in view of NIL values across the country, player’s age and experience, etc. I handle the bulk of negotiations guided by the range of valuations, but, we have fundraising efforts (which help dictate the amount of funds available) and accounting and CFO support to help us be prudent with funds, to understand cash flow models, etc. It isn't just me making decisions - we get tax, budget, fundraising, and other advice.
I'd also like to know how blue bloods do it. How do we handle it when we have an NIL deal in place, but another team is tampering or the player is actively shopping himself out?
It's mostly the same, although some collectives over-committee it and are not able to act quickly enough. Too many of those types think of it like they are at fantasy camp for GMs or something.
As to tampering, it is hard to prove with enough certainty, but I grow increasingly convinced that no real action will ever be taken to stop it. It is been interesting to see rival sites indicate they were getting a player who wasn't even in the portal yet.
I want to know how the initiative money is spent. I’ve been donating since it opened and I have no information about how or where the money is spent. The website says almost nothing. What exactly is the money for?
It might be easier to call me. 662 617 1031. I am happy to talk to members any time. I have sucked at being quick to respond the past couple of weeks, but I will. Over 98% of our money has been spent engaging with athletes in NIL deals, in exchange for which they promote either (1) the Bulldog Initiative, in hopes of generating more donations, (2) the town / region, (3) their program, or (4) a good cause, be it through interviews, social media posts, videos, or the like.
The one thing we do not do is release what a player makes, for several reasons - most notably the negative impact on locker rooms, the extreme inflationary pressure it creates, the complicated nature of it (we, for example, have some businesses who want to work through us but want to deal with a particular player - this is more of the “true NIL” that people talk about - this can skew a given player’s NIL value quite apart from their performance value from a fan perspective), and the targeted vitriol it could produce for players who have bad days. This does require a heavy ask in trust, and I carry the weight of the pressure that comes with that like an elephant sitting on my chest every single day. It’s not ideal, but it’s honestly the only way for things to survive.
Anyway, I have tried to identify all the questions from the thread and answer where I can. TL/DR, etc., but here goes:
Just wondering who makes the call on how the money gets spent, as in who decides whether to spend $1 million on a qb or $1 million on a weekend rotation for baseball etc?
It’s complicated. There are a number of things that go into this. The short answer is that the donors do in the first instance, and I do in the second instance. The more detailed answer, though. is this . . .
First – there is a question of allocation among sports.
When people donate, they can decide to make an unallocated donation, or they can allocate it by sport. When people allocate by sport, we honor it. So, to some degree, the contributors decide. This can result in some blowback, of course. For example, we have some people who designate gifts to sports that some other people would not deem to be a priority, thereby leading some to question our decision-making. (“What idiot decided to pay a [fill in the objectionable sport] athlete”). Also, when allocating to a sport, some people have gone further in some circumstances to fund a full-team deal. This also leads to some concern. (Assertions of “malpractice” / “what idiot paid this guy”). But, if somebody wants to give to bowling (to avoid being politically incorrect), we will.
When people donate without allocating to a sport, we go where the fire is hottest, so to speak. I think we have a very good understanding and cooperative approach among the stakeholders as to how to allocate between sports, and we act with urgency where we need. But, the donations largely dictate the outcome here, and the urgency finishes it off.
Second – there is a question of allocation among players within a sport. This takes a lot more work and time, but there are roughly a gazillion factors that go into it – including a player’s relationships / popularity with donors, media attention, skill, their position and its availability, etc. But, somebody has to be responsible for deciding and, for better or worse, that is usually me, with advice from donors, stakeholders, etc. Note: By the letter of NCAA rules, a school / coaches cannot direct where NIL funds are spent. Collectives who function at a higher level will nevertheless be able to gain an understanding of a player’s value from many internal perspectives without breaking those rules. I am fortunate to be involved in some different aspects of my several jobs that help me avoid having to make decisions in a vacuum.
Anecdotally, football shapes up not unlike the NFL. QBs, guys who can get to the QBs, and guys who can protect the QBs (outside OL in particular) are all commanding larger deals across the country (as are the great players at any position).
But what is the return on investment for the expenditure? How much more profitable is an 8 win football season vs. a 5 or 6 in the SEC?
It’s drastic. I’m a big believer of the idea that every successful SEC athletic program needs – for the benefit of all its sports – to have a football team that can win 7-8 games, at a minimum.
How do we decide how much to spend on a player? How/when do we start paying? What are the conditions of the agreement?
The process of deciding what a player’s NIL value is at any given time is very complicated, but it involves consideration of a lot of factors (see above for discussion on this). As to timing, it is important to be very aware of a few key dates (January 3 and May 2, for example, which are the day after transfer portals close for non-graduates). Thus, smart collectives would structure their deals to be heavily weighted to post-portal dates and, in football, post bowl-game dates to encourage senior participation. That way, if somebody walks out on the deal, the collective’s loss is minimized. But, we work very hard, consistent with state law, to be sure we aren't paying people who are screwing with us or undermining our efforts. We build in a lot of protections, and we use them.
As a side note, agents are more and more involved in these talks. Many are great and make the process easier.
How many BI folks are involved in budgeting, value evaluation, negotiations, etc.?
Several, from a few perspectives. First, you have to allocate by team and then consider position group and type of player, all of which has to be done in view of NIL values across the country, player’s age and experience, etc. I handle the bulk of negotiations guided by the range of valuations, but, we have fundraising efforts (which help dictate the amount of funds available) and accounting and CFO support to help us be prudent with funds, to understand cash flow models, etc. It isn't just me making decisions - we get tax, budget, fundraising, and other advice.
I'd also like to know how blue bloods do it. How do we handle it when we have an NIL deal in place, but another team is tampering or the player is actively shopping himself out?
It's mostly the same, although some collectives over-committee it and are not able to act quickly enough. Too many of those types think of it like they are at fantasy camp for GMs or something.
As to tampering, it is hard to prove with enough certainty, but I grow increasingly convinced that no real action will ever be taken to stop it. It is been interesting to see rival sites indicate they were getting a player who wasn't even in the portal yet.
I want to know how the initiative money is spent. I’ve been donating since it opened and I have no information about how or where the money is spent. The website says almost nothing. What exactly is the money for?
It might be easier to call me. 662 617 1031. I am happy to talk to members any time. I have sucked at being quick to respond the past couple of weeks, but I will. Over 98% of our money has been spent engaging with athletes in NIL deals, in exchange for which they promote either (1) the Bulldog Initiative, in hopes of generating more donations, (2) the town / region, (3) their program, or (4) a good cause, be it through interviews, social media posts, videos, or the like.
The one thing we do not do is release what a player makes, for several reasons - most notably the negative impact on locker rooms, the extreme inflationary pressure it creates, the complicated nature of it (we, for example, have some businesses who want to work through us but want to deal with a particular player - this is more of the “true NIL” that people talk about - this can skew a given player’s NIL value quite apart from their performance value from a fan perspective), and the targeted vitriol it could produce for players who have bad days. This does require a heavy ask in trust, and I carry the weight of the pressure that comes with that like an elephant sitting on my chest every single day. It’s not ideal, but it’s honestly the only way for things to survive.
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So what you're saying is that it's all your fault if we don't win ten games next year! Just kidding, I admire you for taking on this Herculean task and I don't envy you the responsibility that comes with it. Thank you for doing what you do. It's easy to get on here and complain but you're actually doing something to improve the situation. Very few people realize the good you're doing for this university and young peoples lives. Thanks and HailState!
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