NCAA set to allow direct payments to athletes
- Thread starter simply1
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A public company that spends big on NIL will be sued into oblivion by their stock holders
Nike doesn't have a connection to Oregon? Under Armour isn't bankrolling Maryland? Walmart/Tyson/JB Hunt aren't huge donors at Arkansas? Paycom isn't calling the shots at Oklahoma State? United Wholesale Mortgage (Ishbia) is hands off at Michigan State?
Those are just off the top of my head and there are hundreds of other examples.
Nike very likely doesn't contribute to Oregon (any more than they do for their other Nike schools) Their major shareholder does but that is different.
No one is going to pay attention to a tiny line item on page 242 of a financial report of a multi billion dollar company.
I din’t think you know how this works. Boosters aren’t cycling money through their legitimate business to support pay-for-play. That’s clearly a breach of fiduciary duty which would open them up to liability.
lol yes they are. I'm not talking about your mom and pop who might own 100 shares of Nike. I'm talking about a hedge fund that might own 10 million shares of Nike. They very much care if millions of their profits are going to the CEO's pet project.
Should have clarified. Worded it poorly.
I'm just saying there are other ways that these guys are going to figure out to make sure that they can keep this above board if the clearinghouse lasts, which it won't so it's a moot point anyway.
I love how no one thinks this can work but the NBA and NFL do it so the salary cap actually means something.
I don't think you can put a cap on somebody's earnings without collective bargaining. As soon as a deal gets tossed, it's going straight to court and the NCAA has lost every single court ruling of note in the last 5 years.
FMV is very much what someone is willing to pay. If having Arch Manning in a commercial for a car dealership in Austin is worth $5M to the dealership owner, how can a clearinghouse say it's not? Never mind the built in advantages that schools in larger population areas would have if we're trying to regulate what the 'market' is. Arch is inherently worth more being in Austin than Rocco is being in Ames so why is it fair that Texas has access to more NIL opportunities and dollars if there is a booster in Ames that wants to pay the same money?
An anti-trust exemption is the only thing that is going to stop this from continuing to the be the wild, wild west other than donor fatigue and there are too many egos for donor fatigue to kick in.
The salary cap is collectively bargained and players can sign whatever deals they want for whatever money somebody is willing to pay them outside of their contracts. The off limits industries are also collectively bargained.
Why won't the Clearinghouse last, especially when/if it gets codified by the Feds?
That's a pretty big 'if'.
I also really question how if we're going with the narrowest definition of FMV, which I grant to you will be the method that Deloitte uses, that any team in a smaller geographic area has any chance to compete. Texas can pay more than Alabama or Florida just by being in Austin rather than Tuscaloosa or Gainesville simply because there aren't market comps for other professional athletes in those areas and, therefore, the value must be lower.
Again, as I've said, I hope I'm wrong here and will be entirely glad to be if this thing works but until there is real concrete legislation being written, introduced and voted on that can get 60 votes in the Senate, it's all just going to be a constant state of chaos subject to whichever court ruling is the most recent.
I hope the rollout is flawless and the NIL valuations are fair and that smaller population areas and mid-majors don't get absolutely boned but I just don't see it. I assure you I'll be the first one here eating crow if I'm wrong and this thing has legs.
I don’t understand this. Public companies already spend lots of money on sports. Pop Tarts Bowl, Pioneer logo on the floor at Hilton, etc. Why would shareholders draw the line on NIL?
You don’t think it helps a brand’s prominence if all the Jordan schools get the best players? Didn’t Adidas literally do this?
