As John Calipari finalizes deal with Arkansas, NIL resources cannot be overlooked

Kentucky’s John Calipari is finalizing a five-year deal to become the next Arkansas basketball head coach, a source confirmed to On3.

After 15 seasons with the Wildcats, including three Final Four appearances and a national title, one of the faces of college basketball is moving on. It’s a dizzying move that will overshadow Monday’s national championship game in Phoenix.

The role of NIL resources cannot be overlooked in Calipari’s decision-making. Donor-led NIL collectives and third-party NIL entities have become crucial in retaining and attracting talent. Kentucky has long faced an uphill battle in the area. The Wildcats were one of the last SEC schools to form a collective.

Having dollars to spend in the transfer portal and recruiting won’t be a problem in Fayetteville. A source told On3 on Sunday night that Calipari will have “at least” $5 million annually in NIL funds to disperse. The same source estimated the budget will be in the $6 million ballpark. That will place the Razorbacks at the top of the sport, where typical Power 5 budgets range from $1 to $4 million.

Most of those dollars will be from top boosters. The source said Arkansas has already started to plan out a campaign surrounding the hire. The Razorback-focused NIL collective, Arkansas EDGE, has also taken some crucial steps this offseason to support the football program. There’s confidence local businesses and national brands will want to be attached to the Calipari-led basketball team, too.

Calipari did not receive the most help from an NIL standpoint while at Kentucky. He just launched the public-facing LaFamilia Club last month with a platform for fans to make donations.

NIL has become an increasingly large talking point during contract negotiations at top college football and basketball openings. Part of Calipari’s belief he can find success at Arkansas is he won’t be searching for dollars. While revenue sharing and employment models could be on the horizon, they haven’t arrived yet.

Meaning for the time being, dating back to the summer of 2021, the programs that can offer top dollar are attracting the top talent.

“It’s almost a mindset,” college football super-agent Trace Armstrong previously told On3. “If people are willing to do the things it takes to win, NIL’s going to be a factor. You just added another area that people will evaluate. Leadership, facilities, commitment to sport… It’s definitely another box to check.”

John Calipari will be operating with well-funded collective

Having NIL dollars at his disposal is definitely attractive to John Calipari. The most valuable position in the basketball transfer portal – where most NIL dollars are used these days – are power forwards and centers. For high-end talent at those positions, $1 million deals are commonplace.

Even top guards are making roughly half a million a year. Speaking with sources over the last week, On3’s learned of a conference player of the year transfer earning $500,000. Another guard is set to make $450,000. Helping a college basketball program get back to relevancy is imperative for bluebloods.

“It just doesn’t take as many players in basketball,” one collective operator told On3. “And one guy can truly change the game by himself, unlike football.”

To put those dollars in perspective, quarterbacks are typically the highest-paid position in football. Nebraska coach Matt Rhule said in December that, “a good quarterback in the portal costs $1 million to $1.5 million to $2 million.”

But without an offensive line, a quarterback means nothing. That’s completely different in basketball, where star players can take over a game instantaneously.

“Supply and demand and the impact one player can have in their sport versus football,” added another NIL collective executive. “The price per player on average is close to double the football average.”