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Per Dick Vitale …

It’s going through a business that’s giving them a cut right—not direct to the player. And didn't see an option to give more than the suggested rate. Am I missing something?
Yes, you are clearly missing quite a bit. Players can be paid by anyone (business or non business) to provide a service. Go to any of the players’ social media, and you will see a link to contact them directly about NIL deals.

I can directly pay a recruit $10 million dollars to make an appearance at a birthday party. They are worth their market value. Their market value is whatever someone is willing to pay them for their service. I can also pay a recruit $10 million through my business to post a tweet encouraging people to use my company. Many are doing this as it becomes a marketing business expense and can lower a tax bill.

It’s very easy to pay recruits large sums of money legally under the new rules.
 
It’s not that simple. There’s fair market compensation to consider and it can’t be a personal payment—it has to run through a business entity.
You keep mentioning fair market compensation. Do you know any lawyers? I know about 100, they make my life difficult every day. Do you realize how hard it would be to take a case to try to prove that an athlete is receiving unfair fair market compensation?

First of all all these deals are private not public. The athlete would never disclose how much he made unless he chose to do so. You aren't getting ahold of his taxes. Who is going to try to prove they took above fair market value? Certainly not the NCAA, I will guarantee that.

Further, tiktokers and only fan members have made literally a million dollars in 24 hours because of their NIL. NIL has nothing to do with how good you are at basketball. Bronny James will command million dollar NIL deals if he goes to college and he is not a top 10 player. Jello Ball another example of a star that is not great at basketball.

If someone is willing to pay someone a bunch of money that is their fair market value. It would be near impossible to say a certain player is not worth what he is receiving. Especially because all the big NIL recipients are going to be very popular and good at basketball. One guy makes a million, why cant another guy make a million?

There is a lot you need to understand about NIL before you comment anymore, you are extremely ignorant.
 
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I didn’t say NIL could be used for recruiting. I said that I could pay someone, let’s say TJD 100k to promote me. I could also pay Logan duncomb $100 for the same thing.

Fair market value yes, but when a player reaches TJD status, you can give them as much as you want and No1 will ask questions. If I gave Logan 100k people would, but why would anyone do that?

you talk to compliance.
As an example who the hell is to say what Zach Edey's marketing value is to the Callicrate Company for their proband bull castration tool. These tools are of interest to a huge number of Purdue grads and so he has marketing value. A large part of NIL money is for marketing so the sky is the limit.

I linked Sabin's comment about a Jr in high school, that he wouldn't name, that signed an $8 miilion NIL contract. I mentioned Arch Manning and later realized it probably is Arch Manning that signed the contract.

By the way I saw you are in the solar industry. If you guys suck all the energy out of the sun then the rest of us are screwed.
 
By the way I saw you are in the solar industry. If you guys suck all the energy out of the sun then the rest of us are screwed.

I have heard crazier statements in county meetings. One guy was convinced I had studied the drainage and old well system in a county and purposely was avoiding certain farms. He literally made a PowerPoint presentation.

You see, we knew that years down the road the leaching of the solar panels would be so toxic it would result in legal implications. So obviously, we were avoiding these areas.

This guy lived in an area he said we were avoiding on purpose. A few months later I paid double market value to convince his next door neighbor to lease us his entire farm. Property line is in clear site of his backyard swimming pool.

I’m a petty asshole.
 
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Agree. If thinking giving me something would prevent me from asking for more, that is impressively dumb.
They already were getting stipends. I assume that doesn't change because not every player will get NIL money.
 
I have heard crazier statements in county meetings. One guy was convinced I had studied the drainage and old well system in a county and purposely was avoiding certain farms. He literally made a PowerPoint presentation.

You see, we knew that years down the road the leaching of the solar panels would be so toxic it would result in legal implications. So obviously, we were avoiding these areas.

This guy lived in an area he said we were avoiding on purpose. A few months later I paid double market value to convince his next door neighbor to lease us his entire farm. Property line is in clear site of his backyard swimming pool.

I’m a petty asshole.
"suck all the energy out of the sun"....ok that's GOLD !! LMAO

 
As an example who the hell is to say what Zach Edey's marketing value is to the Callicrate Company for their proband bull castration tool. These tools are of interest to a huge number of Purdue grads and so he has marketing value. A large part of NIL money is for marketing so the sky is the limit.

I linked Sabin's comment about a Jr in high school, that he wouldn't name, that signed an $8 miilion NIL contract. I mentioned Arch Manning and later realized it probably is Arch Manning that signed the contract.

By the way I saw you are in the solar industry. If you guys suck all the energy out of the sun then the rest of us are screwed.
Here is an article about the Kentucky legislative bill that Calipari got passed to formalize NIL. No limits of any kind on value of compensation. The only restrictions are
1) Can't be used for recruiting (LOL)
2) Can't provide NIL for illegal product

Calipari admitted he was an expert in compensation for athletes and provided his years of experience in this pursuit to craft the bill for the State of Kentucky.

 
Who cares? It’s just legal free agency these days anyway.

I’m sure glad IU put out a press release saying we’re making NIL a priority rather than actually doing something tangible. Nope…a press release will work. All smoke and mirrors to appease fans. Falling further and further behind.
 
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You keep mentioning fair market compensation. Do you know any lawyers? I know about 100, they make my life difficult every day. Do you realize how hard it would be to take a case to try to prove that an athlete is receiving unfair fair market compensation?

First of all all these deals are private not public. The athlete would never disclose how much he made unless he chose to do so. You aren't getting ahold of his taxes. Who is going to try to prove they took above fair market value? Certainly not the NCAA, I will guarantee that.

Further, tiktokers and only fan members have made literally a million dollars in 24 hours because of their NIL. NIL has nothing to do with how good you are at basketball. Bronny James will command million dollar NIL deals if he goes to college and he is not a top 10 player. Jello Ball another example of a star that is not great at basketball.

If someone is willing to pay someone a bunch of money that is their fair market value. It would be near impossible to say a certain player is not worth what he is receiving. Especially because all the big NIL recipients are going to be very popular and good at basketball. One guy makes a million, why cant another guy make a million?

There is a lot you need to understand about NIL before you comment anymore, you are extremely ignorant.
As little as Cavanaugh knows about basketball, and player evaluation in particular, he actually does know what he’s talking about with regards to NIL.
 
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Here is an article about the Kentucky legislative bill that Calipari got passed to formalize NIL. No limits of any kind on value of compensation. The only restrictions are
1) Can't be used for recruiting (LOL)
2) Can't provide NIL for illegal product

Calipari admitted he was an expert in compensation for athletes and provided his years of experience in this pursuit to craft the bill for the State of Kentucky.


State of KY does have restrictions that prevent NIL activities related to gambling, adult entertainment, etc. just as IU does that go beyond “illegal products” as you mentioned. With the understanding that Indiana does not have an NIL bill and these restrictions vary based on state law, it certainly appears KY does have a fair market consideration in it’s state law. Which I assume is reviewed by the school at the time the SA submits approval for the NIL contract. When the state of Indiana passes legislation I anticipate similar language will be included.

From Senate Bill 6:

14) “Prevailing Market Rate” means a rate that is tethered to the value of the consideration the student athlete provides in an NIL agreement and that is reasonable based on a comparison with:
a) Student athletes of similar skill and experience in that sport;
b) Student athletes of similar notoriety; and,
c) NIL agreement compensation in similar markets
 
State of KY does have restrictions that prevent NIL activities related to gambling, adult entertainment, etc. just as IU does that go beyond “illegal products” as you mentioned. With the understanding that Indiana does not have an NIL bill and these restrictions vary based on state law, it certainly appears KY does have a fair market consideration in it’s state law. Which I assume is reviewed by the school at the time the SA submits approval for the NIL contract. When the state of Indiana passes legislation I anticipate similar language will be included.

From Senate Bill 6:

14) “Prevailing Market Rate” means a rate that is tethered to the value of the consideration the student athlete provides in an NIL agreement and that is reasonable based on a comparison with:
a) Student athletes of similar skill and experience in that sport;
b) Student athletes of similar notoriety; and,
c) NIL agreement compensation in similar markets
I know that it is not limited to illegality (as the article makes clear) but wanted to be brief. The NCAA has made no comment on Sabin’s very public pronouncements of seven figure NIL deals. Sabin has been very public and the NCAA absolutely silent. I can’t imagine the NCAA or a state enforcement agency presenting a reasonable case that would find a starting qb for Alabama in violation of the NIL conditions you set out. There is no established peer group to reference and there is no established market in NIL agreements. If you intend to reference fair market value then you need a market to reference.
 
I know that it is not limited to illegality (as the article makes clear) but wanted to be brief. The NCAA has made no comment on Sabin’s very public pronouncements of seven figure NIL deals. Sabin has been very public and the NCAA absolutely silent. I can’t imagine the NCAA or a state enforcement agency presenting a reasonable case that would find a starting qb for Alabama in violation of the NIL conditions you set out. There is no established peer group to reference and there is no established market in NIL agreements. If you intend to reference fair market value then you need a market to reference.
I can’t even imagine how this would work. Who is the clearing house for information.

Okay I have a 6’9” forward averaging 20 points a game with a notoriety score of 9.5 on the future NCAA notoriety scale in a marketing area of 5 million with medium household income of $70k/year. I want to use his likeness to market portable basketball goals. Who can I contact about his peer group in a similar market to determine the current prevailing NIL value that I can agree to comply with regulations.

It’s not like you are hiring a kid to mow the grass and all the kids in your area get $25.
 
I know that it is not limited to illegality (as the article makes clear) but wanted to be brief. The NCAA has made no comment on Sabin’s very public pronouncements of seven figure NIL deals. Sabin has been very public and the NCAA absolutely silent. I can’t imagine the NCAA or a state enforcement agency presenting a reasonable case that would find a starting qb for Alabama in violation of the NIL conditions you set out. There is no established peer group to reference and there is no established market in NIL agreements. If you intend to reference fair market value then you need a market to reference.

Clearly a work in progress but there is now a year’s worth of data to make a stab at it. But can we all at least agree that in some states there is at least the intention to review whether or not it’s appropriate to pay a SA $1M to announce that the donor is “awesome”—which I told I was “ignorant” for questioning. I would expect Indiana’s legislation to address fair compensation as well when proposed.
 
no one knows more about "fair market compensation", than Indiana lawmakers.
In the sense of Chicago Aldermen?

Clearly a work in progress but there is now a year’s worth of data to make a stab at it. But can we all at least agree that in some states there is at least the intention to review whether or not it’s appropriate to pay a SA $1M to announce that the donor is “awesome”—which I told I was “ignorant” for questioning. I would expect Indiana’s legislation to address fair compensation as well when proposed.
Will you tell where I can find the official data for the year broken out by peer groups and equivalent markets?
 
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Clearly a work in progress but there is now a year’s worth of data to make a stab at it. But can we all at least agree that in some states there is at least the intention to review whether or not it’s appropriate to pay a SA $1M to announce that the donor is “awesome”—which I told I was “ignorant” for questioning. I would expect Indiana’s legislation to address fair compensation as well when proposed.
If you average between 19 and 22 points per game in a Power 5 and you have a notoriety ranking (of some sort that is undefined) and have a marketing area of between 5,000,000 and 7,500,000 with median income between x and y, then the prevailing market rate is between $100,000 and $105,000 for a single use of name.

Who is to be the certifying authority for this data and when will their reports be available and issued how frequently.? Will cost of living increases apply and will limits be applied to aggregate of NIL contracts for an individual or only single instances?

In principle this type of scheme is unworkable-just empty virtue signaling by legislators to fill out a legislative quota. I disagree with your implication that vague unenforceable legislation is better than no NIL legislation at all. Fair market compensation ultimately will be what is agreed between two willing parties to a private agreement. You know...the usual definition under contract law. The reqirement that not used for recruitment has reduced the standing of individual universities as having a valid interest in the agreements.

Who is reviewing, or planning to review, the appropriateness of publicly announced +$1MM NIL agreements to date and where can I find the specific criteria (however nascent) being used in the determination?
 
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I have heard crazier statements in county meetings. One guy was convinced I had studied the drainage and old well system in a county and purposely was avoiding certain farms. He literally made a PowerPoint presentation.

You see, we knew that years down the road the leaching of the solar panels would be so toxic it would result in legal implications. So obviously, we were avoiding these areas.

This guy lived in an area he said we were avoiding on purpose. A few months later I paid double market value to convince his next door neighbor to lease us his entire farm. Property line is in clear site of his backyard swimming pool.

I’m a petty asshole.
I remember a funny story from Spain a few years ago. The Spanish government was subsidizing power sold in to the national grid from solar and wind electrical generation facilities to reduce carbon dioxide emissions. Someone noticed that sales were increasing from solar facilities at night. They investigated to see if some miraculous technological advance had been made. They found however that the government subsidies were so attractive that some solar facilities were leasing diesel generators and selling their output into the grid and making a tidy profit. :)
 
If you average between 19 and 22 points per game in a Power 5 and you have a notoriety ranking (of some sort that is undefined) and have a marketing area of between 5,000,000 and 7,500,000 with median income between x and y, then the prevailing market rate is between $100,000 and $105,000 for a single use of name.

Who is to be the certifying authority for this data and when will their reports be available and issued how frequently.? Will cost of living increases apply and will limits be applied to aggregate of NIL contracts for an individual or only single instances?

In principle this type of scheme is unworkable-just empty virtue signaling by legislators to fill out a legislative quota. I disagree with your implication that vague unenforceable legislation is better than no NIL legislation at all. Fair market compensation ultimately will be what is agreed between two willing parties to a private agreement. You know...the usual definition under contract law. The reqirement that not used for recruitment has reduced the standing of individual universities as having a valid interest in the agreements.

Who is reviewing, or planning to review, the appropriateness of publicly announced +$1MM NIL agreements to date and where can I find the specific criteria (however nascent) being used in the determination?
You can take all of those metrics one thing I don’t see being mentioned is the school.

if player A goes to Alabama to play football fair and reasonable is (say) $1.5 million. In the same state and city is generic U, a school that no one has ever heard of. At Alabama the player is projected to win four National Championships. At Generic, he is projected to finish last in the southern colonial league.

is he still worth $1.5 million?

the reality of the matter is that players are being paid not just for their likeness and image, but for that of the school they are using.
 
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You can take all of those metrics one thing I don’t see being mentioned is the school.

if player A goes to Alabama to play football fair and reasonable is (say) $1.5 million. In the same state and city is generic U, a school that no one has ever heard of. At Alabama the player is projected to win four National Championships. At Generic, he is projected to finish last in the southern colonial league.

is he still worth $1.5 million?

the reality of the matter is that players are being paid not just for their likeness and image, but for that of the school they are using.
I agree partly but same in the NBA when playing for a big market team in NYC or LA. The teams aren't a party to players' endorsement deals.

The universities court the best athletes and not vice versa. The fact that Alabama recruited a particular athlete is because of the talents that athlete has already displayed. I agree that once he decides to go there he does have more marketing value then someone no one has ever heard of. That is how endorsement deals work. Sorry that no name qb has little endorsement value but if the NCAA wanted equality of outcome then they shouldn't have allowed NIL deals at all or provided a hard limit that no athlete could exceed and a minimum that no athlete could be under. That is the only way to guarantee equality of outcome including the women's lacrosse team at Colgate as well as the all American football player at Alabama.
 
I agree partly but same in the NBA when playing for a big market team in NYC or LA. The teams aren't a party to players' endorsement deals.

The universities court the best athletes and not vice versa. The fact that Alabama recruited a particular athlete is because of the talents that athlete has already displayed. I agree that once he decides to go there he does have more marketing value then someone no one has ever heard of. That is how endorsement deals work. Sorry that no name qb has little endorsement value but if the NCAA wanted equality of outcome then they shouldn't have allowed NIL deals at all or provided a hard limit that no athlete could exceed and a minimum that no athlete could be under. That is the only way to guarantee equality of outcome including the women's lacrosse team at Colgate as well as the all American football player at Alabama.
You amissing my point.

take Alabama, they could recruit any class they want and the school could justify a payroll of $290 million dollars. The $290 million dollars could be considered reasonable as it’s Alabama.

now, take a small school across the street from them. Let’s say they recruited an entire class that is even better than the one from Alabama, Would it be reasonable to pay them the same money?

now, forget for a second what is “allowed”, and ask the why or how.

it’s common sense that these players are being paid not just for their likeness and image, but for the school that the represent. TJD may be worth X to play at IU. He’s not worth X to play at IUPUI. I would suggest that the going rate for players will be tied as much to the school as to the player.

my prediction is that in the future this will come full circle and it will be a battle between the schools and the players. Why couldn’t Alabama argue that the only reason that a QB is getting $1.5 million is because of the school?

nil came about because there was a view that the players were being used and need to be compensated. In the future I suggest that the schools will cry foul and say that these players are using the schools, and that without the schools the players don’t have the same value.
 
You amissing my point.

take Alabama, they could recruit any class they want and the school could justify a payroll of $290 million dollars. The $290 million dollars could be considered reasonable as it’s Alabama.

now, take a small school across the street from them. Let’s say they recruited an entire class that is even better than the one from Alabama, Would it be reasonable to pay them the same money?

now, forget for a second what is “allowed”, and ask the why or how.

it’s common sense that these players are being paid not just for their likeness and image, but for the school that the represent. TJD may be worth X to play at IU. He’s not worth X to play at IUPUI. I would suggest that the going rate for players will be tied as much to the school as to the player.

my prediction is that in the future this will come full circle and it will be a battle between the schools and the players. Why couldn’t Alabama argue that the only reason that a QB is getting $1.5 million is because of the school?

nil came about because there was a view that the players were being used and need to be compensated. In the future I suggest that the schools will cry foul and say that these players are using the schools, and that without the schools the players don’t have the same value.
I think I understood what you meant and sorry if I don't. I doubt that Alabama would choose to file suit against elite athletes for unfairly profiting from their status as Alabama athletes (maybe accountants in the administration would but not football staff :) ) My point was that in reality football athletes make a program what it is rather than vice versa. In reality Alabama may also profit in recruiting from NIL because it will be public knowledge that playing there enhances NIL value.
 
You amissing my point.

take Alabama, they could recruit any class they want and the school could justify a payroll of $290 million dollars. The $290 million dollars could be considered reasonable as it’s Alabama.

now, take a small school across the street from them. Let’s say they recruited an entire class that is even better than the one from Alabama, Would it be reasonable to pay them the same money?

now, forget for a second what is “allowed”, and ask the why or how.

it’s common sense that these players are being paid not just for their likeness and image, but for the school that the represent. TJD may be worth X to play at IU. He’s not worth X to play at IUPUI. I would suggest that the going rate for players will be tied as much to the school as to the player.

my prediction is that in the future this will come full circle and it will be a battle between the schools and the players. Why couldn’t Alabama argue that the only reason that a QB is getting $1.5 million is because of the school?

nil came about because there was a view that the players were being used and need to be compensated. In the future I suggest that the schools will cry foul and say that these players are using the schools, and that without the schools the players don’t have the same value.
If you have time look at this from the Texas A&M website. They (and their supporters :)) have been extremely pro active in regards to NIL and they have the Number 1 ranked incoming recruiting class. They will take the NIL fight to Alabama no doubt about it.

 
I think I understood what you meant and sorry if I don't. I doubt that Alabama would choose to file suit against elite athletes for unfairly profiting from their status as Alabama athletes (maybe accountants in the administration would but not football staff :) ) My point was that in reality football athletes make a program what it is rather than vice versa. In reality Alabama may also profit in recruiting from NIL because it will be public knowledge that playing there enhances NIL value.
I agree. And when I say “schools” I mean lawyers and not the athletic dept or staff. Saban (and the entire AD) may think that Johnny QB is only bringing benefit to Alabama, university lawyers may see it differently.

there was an espn article that I read when this was all just starting and it was talking about OSU, and how their lawyers were so protective of anything associated with the University. Espn had a tailgate at a game and they hung a banner for the tailgate, but used a font that had “OSU colors “ in it. Lawyers were all over it and threatened espn.

if lawyers think that an espn banner at a tailgate is harming OSU because they are using the wrong color of red, think about how this may translate in the future.
 
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I agree. And when I say “schools” I mean lawyers and not the athletic dept or staff. Saban (and the entire AD) may think that Johnny QB is only bringing benefit to Alabama, university lawyers may see it differently.

there was an espn article that I read when this was all just starting and it was talking about OSU, and how their lawyers were so protective of anything associated with the University. Espn had a tailgate at a game and they hung a banner for the tailgate, but used a font that had “OSU colors “ in it. Lawyers were all over it and threatened espn.

if lawyers think that an espn banner at a tailgate is harming OSU because they are using the wrong color of red, think about how this may translate in the future.
When it comes to student athletes you have to consider how academic political correctness will influence the legal strategy considering both female and male sports and a lot of poor minority athletes. Kind of hard to imagine OSU adopting a legal strategy that could be seen to the detriment of any number of interest groups. Flag color is a safe topic in comparison.
 
You guys are looking way too much into this. Players will be paid whatever boosters are willing to pay them. Trying to determine their “real” market value is pointless.
 
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You guys are looking way too much into this. Players will be paid whatever boosters are willing to pay them. Trying to determine their “real” market value is pointless.
What boosters and other companies are willing to pay them is their real market value in my view.
 
If you have time look at this from the Texas A&M website. They (and their supporters :)) have been extremely pro active in regards to NIL and they have the Number 1 ranked incoming recruiting class. They will take the NIL fight to Alabama no doubt about it.

God knows what Johnny Manziel would have made in NIL. Drug dealers and topless bars being out would have reduced his income though.
 
What boosters and other companies are willing to pay them is their real market value in my view.
I agree, so I'm confused why people are trying to out an exact dollar amount to X recruit. It will be different every time based on the circumstances.

I think the bottom line is that schools/boosters are going to find a way to pay kids they want whatever is necessary to get them to go to their school. No matter the dollar amount it is legal under the new rules.
 
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I agree, so I'm confused why people are trying to out an exact dollar amount to X recruit. It will be different every time based on the circumstances.

I think the bottom line is that schools/boosters are going to find a way to pay kids they want whatever is necessary to get them to go to their school. No matter the dollar amount it is legal under the new rules.

also, from a legal perspective, “fair market value” applies mostly to things like corporations that have a fiduciary responsibility to shareholders or insurance valuations, but not transactions between two individuals unless it’s part of some tax avoidance scheme
 
I agree, so I'm confused why people are trying to out an exact dollar amount to X recruit. It will be different every time based on the circumstances.

I think the bottom line is that schools/boosters are going to find a way to pay kids they want whatever is necessary to get them to go to their school. No matter the dollar amount it is legal under the new rules.

Yeah, they may try to “find a way” but as it relates to recruiting it is totally illegal. Now whether they get caught…
 
So can an alumni reach out to a player in the portal? Reach out to a player not in the player? That way it is not IU but an individual or a company (the local Buick dealer for example).
Texas set up a non profit that offered 50 K to the top 16 OLinemen.
OL, money well spent
 
It’s not illegal in any way. Not sure how you don’t understand this.

NCAA rules re: NIL don’t permit “pay for play” or impermissible recruiting “contingent on enrollment at a particular institution”. From NCAA’s own website.
 
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