NIL, NFT: Is This What It's All About Now?

[jrw]

NFT auction raises over half-million dollars for Oregon players. I guess I'm glad it's for our team, but I feel as if we're standing at the top of a slippery slope.

 

Let's sing along!

[Duck 1972]

This shows we are going to be a player in the country and NIL. And this is for all players not just a few which I believe is the best, especially for team cohesion.

[WiseKwacker]

As a former fan of "Seinfeld" and a current fan of "Curb Your Enthusiasm," my favorite Super Bowl commercial was the one starring Larry David. In discussing that commercial with an old buddy who attended the U of O with me many years ago, we agreed that we thought it was hilarious but didn't really know what the hell they were advertising--"...something to do with cryptocurrency, I think..."  I like to think of myself as a pretty savvy, up-to-date guy who's rapidly approaching 70. More and more frequently, though, I have to look myself in the mirror and admit that I'm just out of my element in a particular aspect of modern society. This NFT stuff is one of those aspects. 

 

My respect and admiration for Phil Knight rose immensely after I read "Shoe Dog." Phil is helping engineer the Ducks' approach to NIL and NFT. So, in this case, I just fall back on a simple motto as a Duck fan: In Phil I Trust.  

 

[Jon Joseph]

Thanks for the post. Name of today's game, you have to be in the NIL game to recruit and pick the top guys from out of the portal. 

 

Oregon, thank goodness and Uncle Phil, has the resources to compete in this day of pay-for-play and free agency. Merchants in Pullman of all places, pooled NIL deals to attract QB transfer Cam Ward; the young man who won the Walter Peyton Award in 2021 for being the best player in FCS. But does WAZZU and a number of Pac-12 schools have the resources to go big time NIL for recruits and existing players? 

 

There is no doubt that B1G and SEC schools do have the resources to do so. On the coaching level, MS ST had the money to take the Pirate from WAZZU and MI ST had the money to take Mel Tucker from CU and with the help of 2 boosters, to pay Mel $9M a year. Arizona lost its baseball coach to the SEC. SC lost its women's T+F coach to the SEC.

 

The slope is as slippery as walking downhill on ice in no-traction slippers. The NCAA can grumble about all of this but having lost in the Supreme Court 9-0 in the futile attempt to sustain the argument that college football and basketball players are 'amateur athletes,' there is little or nothing the NCAA can do. That's why the NCAA basically told the G5 and P5 to regulate its own big time sports. A Transition Committee co-chaired by SEC Commissioner Greg Sankey and the Ohio University AD, are in the process of drafting proposed rules and regulations for the G5 + P5 schools. 

 

I think there can be some reasonable notice requirements placed on portal entry, but good luck trying to control NIL without getting sued. And good luck winning such a suit after the NCAA was shut out by the Supremes.

[David Marsh]

On 2/21/2022 at 9:50 AM, Jon Joseph said:

Oregon, thank goodness and Uncle Phil, has the resources to compete in this day of pay-for-play and free agency. Merchants in Pullman of all places, pooled NIL deals to attract QB transfer Cam Ward; the young man who won the Walter Peyton Award in 2021 for being the best player in FCS. But does WAZZU and a number of Pac-12 schools have the resources to go big time NIL for recruits and existing players? 

The sustainability of NIL is going to be the big key thing to watch. Especially when some of these big deals go bust because the player they paid for doesn't materialize. 

 

I don't think we will get a full grasp as to how sustainable NIL will be for probably five years when the novelty wears off and the results of all that money spent reveals itself. Some players will be massive hits and others will be flops, such is the nature of recruiting but now with big time money behind it. 

 

I do think Oregon and knight are looking at NIL with a longer-term lens than other programs. Using NIL to build a machine to invest on current players and future players without burning out the Oregon's donar base. Oregon doesn't have a huge donar base but it is incredibly powerful... So keeping them engaged and in the game is going to be key to the long term success. 

 

Irrational fan base and donar spending is at its height right now... But will they continue to feel that way if it doesn't come with immediate national championships? 

[Washington Waddler]

On 2/21/2022 at 9:06 AM, WiseKwacker said:

Phil is helping engineer the Ducks' approach to NIL and NFT. So, in this case, I just fall back on a simple motto as a Duck fan: In Phil I Trust.  

     In matters having to do with the on field product, Oregon has often had to be the first out of the gate - to be the innovator - in order to over come limitations created by both the perception and reality of the program on a national level. We had to create in order to both change minds and to change our own destiny.

 

     But when it comes to the business end (NILS/NFT) of football, no such limitation exists. It’s Nike. If Phil clears his throat, recruits and the rest of the NILS world will go quiet and listen.

 

     That’s why I’m not particularly worried about Oregon not jumping as fast as it can into the hog trough that spews dollars at every recruit with a pulse. Let the WSU’s and AT&M’s of the world go raging down that road; I’ll put my money on the wait and see attitude we’re utilizing. When we’re ready to jump, they’ll know it.

 

Edited February 21, 2022 by Washington Waddler

[Haywarduck]

If my math is correct each player currently on the roster will get about $4k. Not the money an O-lineman will get at Texas, but a nice baseline for all players to be able to have some money for life as a college student. It also sets up a system where players are all getting some cash, which seems like the healthy thing to do for a program. 

 

When a freshman O-lineman for Texas comes in fat and slow with $50k from the program while other players are working their tales off, culture will be a problem. I'm grateful Oregon seems focused on how this will affect the culture of the program. Players need to know they are valued from the bottom up. Once there is output there can be more money available. It will definitely be an interesting thing to watch.

 

So far I give our program an A, Texas a C-, and Texas A & M an F. Paying kids big money while at college before seeing any return is a recipe for disaster. I could, and have been wrong before, but I like Oregon's move on this.

[Drake]

The revenue generated from sports entertainment in general is enormous. However, so are the bills. 
 

 NIL is now part of the college sports landscape (bills)to compete at the highest levels. The management of NIL donations will now create important jobs at many Universities, and it will be interesting to watch this play out over the next several years. 

This could easily be mismanaged. 
 

Creating ways to generate revenues that can be used for NIL expenditures now becomes important. I would say the the support from Nike helps put Oregon in a very strong long-term position. They compete at the highest levels to sign players to endorse their products.
 

They know very well the pitfalls of throwing around money without some long-term plan, or vision. 

[Jon Joseph]

On 2/21/2022 at 2:05 PM, Haywarduck said:

If my math is correct each player currently on the roster will get about $4k. Not the money an O-lineman will get at Texas, but a nice baseline for all players to be able to have some money for life as a college student. It also sets up a system where players are all getting some cash, which seems like the healthy thing to do for a program. 

 

When a freshman O-lineman for Texas comes in fat and slow with $50k from the program while other players are working their tales off, culture will be a problem. I'm grateful Oregon seems focused on how this will affect the culture of the program. Players need to know they are valued from the bottom up. Once there is output there can be more money available. It will definitely be an interesting thing to watch.

 

So far I give our program an A, Texas a C-, and Texas A & M an F. Paying kids big money while at college before seeing any return is a recipe for disaster. I could, and have been wrong before, but I like Oregon's move on this.

With no intent of disparaging anyone, $50K is more money that a lot of the player's parents and guardians make in a year. I am fine with kids getting paid via NIL However, if it could survive a legal challenge I'd like to see at least 50% of the money put in trust until a player exhausts his eligibility or leaves early to go pro.

[McDuck]

I'm still waiting to see the tax consequences of all this.  Scholarship money isn't subject to federal tax for students in degree programs.  I assume the o-lineman at TAMU can no longer be considered a dependent on his parents return.  Is tax withheld?  FICA?  Do they get a W-2?  A 1099?

 

Wouldn't it make sense to have answers before we give a 19 year old a wad of cash?

[jrw]

On 2/21/2022 at 12:56 PM, Jon Joseph said:

With no intent of disparaging anyone, $50K is more money that a lot of the player's parents and guardians make in a year. I am fine with kids getting paid via NIL However, if it could survive a legal challenge I'd like to see at least 50% of the money put in trust until a player exhausts his eligibility or leaves early to go pro.

This is brilliant. I hope it could be made to work. Seems as if athletes are truly employees, then all sorts of labor laws come in play.

[Just Ducky]

I would like to know how many of these kids can pass a p-test.

[Haywarduck]

On 2/21/2022 at 12:56 PM, Jon Joseph said:

With no intent of disparaging anyone, $50K is more money that a lot of the player's parents and guardians make in a year. I am fine with kids getting paid via NIL However, if it could survive a legal challenge I'd like to see at least 50% of the money put in trust until a player exhausts his eligibility or leaves early to go pro.

More likely is it will open up kids to loans from agents and owe agents more than their rookie contract by the time they leave school. Oh and, of course they will have spent all the NIL money.  Call me a skeptic, maybe even cynical on this one, but that kind of money in most student athletes hands isn't going to end well.

 

Kind of ironic, but I think many of these kids will end up owing money, with less education, and worse football outcomes after many of these NIL deals end. The idea of student athletes making a little extra cash is going to turn many colleges into Grand Lakes University. One of my favorite Rodney movies.

[geoquack]

The arms race that will destroy college football is underway.

Edited February 22, 2022 by geoquack

[David Marsh]

On 2/21/2022 at 12:56 PM, Jon Joseph said:

With no intent of disparaging anyone, $50K is more money that a lot of the player's parents and guardians make in a year. I am fine with kids getting paid via NIL However, if it could survive a legal challenge I'd like to see at least 50% of the money put in trust until a player exhausts his eligibility or leaves early to go pro.

I know with TAMU and their NIL contracts they bind players to staying with the team in order to actually collect it all. I would assume there is a clause in there about going pro vs transfer portal.

[Jon Joseph]

On 2/21/2022 at 8:31 PM, geoquack said:

The arms race that will destroy college football is underway.

It started with the SEC driven one true champion BCS and moved on from there to this BCA x 2 and monetizing CFB football. . The Pac-12 in particular  never should he e thrown CFB;s most valuable asset in to the mix without assurances that the Psc-23 champ would be in a true playoff.

 

From Hanse making this decision forward to today, the Pac-12 has made bad after bad business decisions.