TAM NIL amounts revealed

[cymonw1980]

Sports fans and sports writers dramatically overstate and credit the value of sports to a university and credit enrollment.

I'm sure that Alabama's football success has a big impact on enrollment, but...
- I picked a random southern school in Georgia Tech, and despite going the other direction in football, over the past couple decades have grown faster
- Looking at enrollment trends at schools in general, there is typically no to weak correlation to football success, regardless of what lag you put on it.
- Alabama also is far and away the most extreme example of a school's identity being so thoroughly dominated by football.

Athletics revenues are typically a very small portion of an overall university's revenues. Usually <5%. So naturally people really into CFB want to attribute a large increase in enrollment in tuition to CFB. But when you look across CFB, that analysis just doesn't hold up. It certainly helps, and it's a great marketing tool that some schools definitely benefit from. But for most schools macro factors like job markets and regional/state demographic shifts correlate way better.

Fair. I would say most P5 institutions get significant value from marketing provided by their athletic programs... their logo plastered on TV's every weekend is not a bad thing. So, even modest impact to enrollment brings in $M's.

On top of this, the schools collect all of the tuition payments from the revenues brought in by the athletes. This is a transfer from Athletic revenue generated by athletics to the university.

In addition, the multi million dollar facilities that are owned by the university, are built by the revenue from the athletics dept.

You are right, Alabama is an out lier (that was the point of the article). However, to say there is no value to a school that is not winning the title every year is false. There is value that is much harder to determine. You are right, many things impact enrollment beyond athletics and that will make it hard to evaluate in many cases.

The point is, the whole deal comes at 0 cost to the university... so, whatever the marketing value is (much greater than "0" wherever you want to put it) is 0 cost to them.

 

[AuH2O]

Fair. I would say most P5 institutions get significant value from marketing provided by their athletic programs... their logo plastered on TV's every weekend is not a bad thing. So, even modest impact to enrollment brings in $M's.

On top of this, the schools collect all of the tuition payments from the revenues brought in by the athletes. This is a transfer from Athletic revenue generated by athletics to the university.

In addition, the multi million dollar facilities that are owned by the university, are built by the revenue from the athletics dept.

You are right, Alabama is an out lier (that was the point of the article). However, to say there is no value to a school that is not winning the title every year is false. There is value that is much harder to determine. You are right, many things impact enrollment beyond athletics and that will make it hard to evaluate in many cases.

The point is, the whole deal comes at 0 cost to the university... so, whatever the marketing value is (much greater than "0" wherever you want to put it) is 0 cost to them.

True, but the university (non-AD) collects the tuition because they incur all the costs associated with tuition. Now of course it’s not a net zero for a given student. There’s a piece of that tuition that is beyond the direct costs to educate that student. But it isn’t like athletics brings in a student and that tuition is pure profit. Unless they are UNC basketball players, they are still incurring costs to educate the student.

 

[Jonyrose]

The loss of Purchase was kind of the catalyst for me to pony up (not that it will help much, but I will feel better). What ISU NIL's are out there (I haven't paid much attention to this)? Opinions on best one(s). I assume not tax deductible.

NIL would not have gone to purchase anyway, only current roster players

 

[83cy]

NIL would not have gone to purchase anyway, only current roster players

Maybe, giving money once recruits sign/enroll will be an incentive. Either way I'm donating.

 

[Drew0311]

Hope these universities provide a good tax service. I could see a lot of these kids failing to pay taxes on these large sums of money

 

[cyclone1209]

Can't remember where I heard it but supposedly Ryan Day told a group of Ohio St boosters it will take $13M per year in NIL money to consistently win the Natty.

Said it before but I'm guessing these wealthy donors will soon grow tired if giving this kind of money to a bunch of 18-22 year old kids and watch them not perform, get in legal issues, transfer, etc.

No kidding.

The fans (even the rich ones) won't put up with paying the 4 and 5 stars much longer I predict. Especially in a time where the stock market has lost 20% of its value this year almost, especially when these kids can transfer with no sit out, oh and especially when these funds should be coming from A) the school itself, or B) a pool of funds divided by the league.

I guess Phil Knight can give money in perpetuity at Oregon but that is a one off..

 

[cyclone1209]

Out-of-state, it would about triple it. I wonder if that amount includes the free car usage that has been brought up pertaining to players like CJ Stroud. He has the right to exchange his luxury automobile every 45 days with some car dealership. Currently, he's driving a $200,000 Mercedes G Wagon.

Some college kids really will not handle this well at all.

And CJ Stroud - jealous, but good for you. Seriously.