OT: College Football Player Compensation

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  • Formula 21
    The Future is Now
    • Jun 2013
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    OT: College Football Player Compensation


    A 3-star DT worth $500K, a 4-star WR $1 million: The sticker shock of college football recruiting beyond 2022

    By Stewart Mandel
    Apr 19, 2022


    In early March, The Athletic reported that a five-star 2023 recruit signed an $8 million NIL deal with a school’s donor collective. While that remains by far the highest known deal to date, other top recruits are reaping the benefits of a rapidly soaring arms race.
    The Athletic reviewed three recruits’ recently signed NIL contracts, each with a different school-specific collective. The Athletic agreed to preserve the anonymity of all parties in order to get a better sense of the current market rates for top recruits. A four-star receiver landed a deal that will pay him more than $1 million over the next four years in exchange for his exclusive NIL rights. A defensive lineman ranked among the top 10 at his position received a three-year deal worth $1 million. And a three-star defensive lineman signed for $500,000 over four years. The latter two are non-exclusive.
    “(NIL) creates a situation where you can basically buy players,” Alabama coach Nick Saban recently told the Associated Press. “You can do it in recruiting. I mean, if that’s what we want college football to be, I don’t know.”
    Corey Staniscia, who helped author the state of Florida’s NIL law last year and now works for Dreamfield Sports, agreed. “You have adults with a lot of money who just want to win championships and buy athletes,” he said.
    All of the deals The Athletic reviewed stipulate that they are not an inducement to attend a specific school, but it’s no secret which collectives support which college teams. And given the Supreme Court’s 9-0 decision in last year’s NCAA vs. Alston antitrust case, experts consider the NCAA unlikely to take aggressive action limiting athletes’ compensation.
    “This is the hierarchy,” said attorney Mike Caspino, who has represented dozens of recruits in their dealings with collectives and executed the contracts The Athletic reviewed. “Five-star quarterbacks: They’re getting $2 million a year. The next-most sought after players are D-linemen, edge rushers; they’re getting seven figures. The next is a stud offensive lineman with quick feet — they’re in the high six figures. Everyone else is a hodgepodge, but in the six-figure range.”
    Many coaches and administrators are experiencing sticker shock over an above-table market that sprouted up seemingly overnight and is now having a profound effect on where certain recruits are committing. Others have resigned themselves to NIL bidding wars becoming the new normal.
    “I think it’s not going to be long until every signee at a Power 5 school is on some form of NIL — and that may be this coming year,” said Ole Miss head coach Lane Kiffin.
    Many states’ NIL laws adopted last summer prohibit schools from directly brokering deals. That opened the door for third-party collectives — organizations that pool fan and booster donations in order to compensate a specific school’s athletes. Boosters at a small handful of programs — Texas A&M, Texas, Tennessee, Oregon and Miami chief among them — mobilized the quickest when the NCAA allowed NIL compensation for the first time last July. But they are far outnumbered by exasperated coaches and administrators who fear their programs getting left behind. Many have lost recruits simply because another school’s collective offered an NIL package it couldn’t match.
    “We lost a kid (on signing day) over that. That hurt,” a Power 5 head coach told The Athletic. “Two hours before, the mom is telling me he’s coming here. And then she said, ‘Coach, how can we turn down $300,000?’ You can’t. Take it, I get it.”
    In recent weeks, new collectives have been announced everywhere from Ohio State and Penn State to Kansas State and FIU.
    “It’s a conversation that is absolutely being had, collective by collective, across the country right now. Do we need to go in this direction to compete?” said sports attorney Darren Heitner, who advises Florida’s Gator Collective. “A benchmark has been set, and if you’re a talented player, and if you’re willing to take the risk, then you probably think you’re worth that much or more.”
    On April 8, offensive lineman Josh Conerly Jr., from Seattle, the last remaining unsigned five-star in the class of 2022, spurned presumed favorite USC, which does not have a collective, in favor of Oregon, which does. It’s called Division Street, and Ducks mega-booster Phil Knight is heavily involved.
    “(Recruiting) doesn’t even resemble what we used to do before NIL,” USC coach Lincoln Riley told reporters the day after losing Conerly. “In every sense of the word, it’s different. The reality is, it’s made what’s gone on at certain places for a long time … it’s going to put it out in the open. So maybe (there are) some positives there.”
    Elsewhere, Ohio State has long been considered the favorite for five-star 2023 receiver Carnell Tate from IMG Academy in Florida, but two weekends ago he visited Tennessee, and late last week, On3 revised its prediction for Tate to Tennessee. The co-president of Spyre Sports, a for-profit collective associated with Tennessee, told The Athletic in February, “We’re prepared to invest a substantial amount of resources into the 2023 recruiting class.” A co-founder of The Foundation, Ohio State’s recently announced non-profit NIL fund, recently said on a Bucknuts podcast, “We can’t make an official deal with a recruit.”
    But not everybody’s jumping on board the collective movement. Many prominent football schools have explicitly warned their donors against getting involved in recruiting — which is still technically against the rules. USC does not have a collective. A Notre Dame version launched Monday but is being marketed as a charity endeavor. The co-founder of a Michigan NIL partner said of paying recruits: “Michigan’s not doing that.”
    “I think there are some places that have weaponized NIL and are using it in recruiting,” said UCLA coach Chip Kelly. “That’s not going to happen here, so we don’t even discuss it.
    Heitner fears some of the more brazen deals being made for recruits may lead to future repercussions for the players. “The athlete is the one with the risk,” he said. “Don’t put it past the NCAA to render an athlete ineligible after the fact.”
    Caspino, the attorney that helped author dozens of these recruit-collective contracts, disagrees that they violate NCAA rules.
    “What blows everybody away by my contracts is there is no mention of the school and there is no commitment that he has to go there and play football,” he said. “I welcome the NCAA looking at my contracts.”
    Beyond the legality, there’s also the question of whether throwing seven-figure deals at unproven high school players or inexperienced portal transfers is a sensible investment. Saban called it an “unsustainable model.” Riley predicted an eventual “market correction.”
    “You’re really guessing that this 18-year-old guy who has proven zero is worth a million dollars from somebody, somehow, however that money is getting there,” said the Power 5 head coach. “Like … what the fuck are we talking about? Why even want to be associated with this? We’re ruining kids.”
    The 2023 class could turn out to be a fascinating case study. Will the players who cashed in be less likely to transfer because they risk blowing up their deal — or perhaps more likely because they picked a school solely for financial reasons? If a lot of the top recruits become busts, will donors be less likely to pitch in going forward? Or will 2024 kids get even richer as more schools’ collectives become better funded?
    “A lot of people tell me hey, don’t worry, this isn’t here to stay, these numbers you’re seeing out there, people can’t keep that up. I disagree,” said Kiffin. “(Schools) always find a way to keep up. They find money.”
    The Athletic’s David Ubben and Max Olson contributed reporting



    Now, if you excuse me, I have some Charger memories to suppress.
    The Wasted Decade is done.
    Build Back Better.
  • Fouts2herbert
    Charger Fan since 1978
    • Sep 2021
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    #2
    ^^^that’s interesting that USC and UCLA aren’t forming collectives. If their athletic departments are capable of keeping up then they should be fine, otherwise they might fall behind.

    bye bye redshirt seasons?
    "The author assumes no responsibility or liability for any errors or omissions in the content of this post. The information contained in this post is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness..."​​

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    • equivocation
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      • Apr 2021
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      #3
      Just stop pretending college football is an amateur sport and put in a CBA and salary cap.

      The coaches and ADs and bowl selection committees certainly aren't working for room and board.

      "We're ruining kids [by paying them]." What are you, a commie?

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      • Boltjolt
        Dont let the PBs fool ya
        • Jun 2013
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        #4
        Originally posted by equivocation View Post
        Just stop pretending college football is an amateur sport and put in a CBA and salary cap.

        The coaches and ADs and bowl selection committees certainly aren't working for room and board.

        "We're ruining kids [by paying them]." What are you, a commie?
        But it is. There are 112 Div I schools alone, maybe more? and only 264 drafted players. Thats a small %. Why should some get paid and not all? Sure i guess endorsements are the difference.

        The farm players in MLB make next to nothing while the players in MLB get huge deals and no salary cap.

        Maybe allow schools to pay to lure recruits to their school and out a cap on that?

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        • equivocation
          Registered Charger Fan
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          #5
          Originally posted by Boltjolt View Post

          But it is. There are 112 Div I schools alone, maybe more? and only 264 drafted players. Thats a small %. Why should some get paid and not all? Sure i guess endorsements are the difference.

          The farm players in MLB make next to nothing while the players in MLB get huge deals and no salary cap.

          Maybe allow schools to pay to lure recruits to their school?
          Amateur sports don't have multi billion dollar TV deals every year with huge money riding on the outcome of games and seasons. That's why there's such a black market for NCAA players.

          Association football has no problem running lower level pro leagues across a variety of countries. I think there's 4 levels of pro leagues in England. Yeah, they don't make as much. C'est la vie.

          Yeah, most don't make the NFL. Most don't make the Premier League, or La Liga, or any other top league. That doesn't make them not professional.

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          • Formula 21
            The Future is Now
            • Jun 2013
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            #6
            Originally posted by equivocation View Post
            Just stop pretending college football is an amateur sport and put in a CBA and salary cap.

            The coaches and ADs and bowl selection committees certainly aren't working for room and board.

            "We're ruining kids [by paying them]." What are you, a commie?
            Yeah, but the kids are taking money meant for the coaches and facilities and all the other hanger ons. Pay kids for their outstanding talent and hard work? That’s outrageous.
            Now, if you excuse me, I have some Charger memories to suppress.
            The Wasted Decade is done.
            Build Back Better.

            Comment

            • Formula 21
              The Future is Now
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              #7
              Originally posted by Boltjolt View Post

              But it is. There are 112 Div I schools alone, maybe more? and only 264 drafted players. Thats a small %. Why should some get paid and not all? Sure i guess endorsements are the difference.

              The farm players in MLB make next to nothing while the players in MLB get huge deals and no salary cap.

              Maybe allow schools to pay to lure recruits to their school and out a cap on that?
              What kind of TV deal do the baseball farm players get? The players should get paid by how much money they bring into a program. I don’t watch sports so some mid level coach can get paid millions. I watch to see top athletes in action.
              Now, if you excuse me, I have some Charger memories to suppress.
              The Wasted Decade is done.
              Build Back Better.

              Comment

              • equivocation
                Registered Charger Fan
                • Apr 2021
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                #8
                Originally posted by Formula 21 View Post

                Yeah, but the kids are taking money meant for the coaches and facilities and all the other hanger ons. Pay kids for their outstanding talent and hard work? That’s outrageous.
                Well, see, players only get what the Party...errr...the NCAA determines that they need. And what they need is room and board and not to be corrupted by capitalism...err...money. The coaches will take all the money...err....corruption for them, ya know, for their protection. The players don't know what they need and don't deserve agency, so we have to protect them!

                "From each according to their ability, to each according to their need" is how we do things in this country! Oh, wait...

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                • Boltjolt
                  Dont let the PBs fool ya
                  • Jun 2013
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                  • Henderson, NV
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                  #9
                  Originally posted by equivocation View Post

                  Amateur sports don't have multi billion dollar TV deals every year with huge money riding on the outcome of games and seasons. That's why there's such a black market for NCAA players.

                  Association football has no problem running lower level pro leagues across a variety of countries. I think there's 4 levels of pro leagues in England. Yeah, they don't make as much. C'est la vie.

                  Yeah, most don't make the NFL. Most don't make the Premier League, or La Liga, or any other top league. That doesn't make them not professional.
                  But thats their league. I dont care what they do with their league and how much they pay, we arent interested in their league lol. A college football player is not a professional. They get drafted to be a professional.

                  Even profesional golfers have to qualify for the tournaments and if they dont, they dont get paid and have to pay an entry fee.

                  Im not against the top guys getting endorsements even for their school, they have a lot of dough...... that actual students pay to get in those schools and just think how much more expensive it will be for those students because they have to pay their top athletes?

                  These athletes are getting a free education....if they so choose to try and get one. That a lot of money right there. Its their own fault if they dont take advantage of it.

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                  • equivocation
                    Registered Charger Fan
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                    #10
                    Originally posted by Boltjolt View Post

                    But thats their league. I dont care what they do with their league and how much they pay, we arent interested in their league lol. A college football player is not a professional. They get drafted to be a professional.

                    Even profesional golfers have to qualify for the tournaments and if they dont, they dont get paid and have to pay an entry fee.

                    Im not against the top guys getting endorsements even for their school, they have a lot of dough...... that actual students pay to get in those schools and just think how much more expensive it will be for those students because they have to pay their top athletes?

                    These athletes are getting a free education....if they so choose to try and get one. That a lot of money right there. Its their own fault if they dont take advantage of it.
                    It's not about fault. It's about agency and laws.

                    18 year olds are adults, and in this country you cannot demand that adults don't make money. So the NIL shit is going to happen, and it's going to be a total free market jungle. The NCAA is losing lawsuits over this and will continue to do so, because what they have been doing is illegal. Colleges agreeing to not pay players over a certain amount is collusion covered by a variety of anti trust laws. And with the amount of money at stake, there will be every incentive to keep paying players more.

                    If you want to maintain competitive balance in NCAA football and basketball, the formula in THIS country is an anti-trust exemption for the organization balanced by a CBA and salary cap.

                    Again, there is no such thing as a revenue amateur sport. That's a contradiction. If NCAA wants to maintain amateur status they can't be raking in the dough so it's time to start voiding TV contracts and playing for almost free. Won't be able to pay millions of dollars to the coaches, though. Tough break, you're an amateur coach. Be happy with $50k/year.

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                    • Formula 21
                      The Future is Now
                      • Jun 2013
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                      #11
                      Free markets are what built this economy. The SEC will rise to the top. When they pay the best high school talent, their league will get better and their TV contracts will get better and their fan bases will expand. Many of their markets have no NFL competition. We’ll see who else follows.

                      And like the old AFL, it’s all about the QBs.
                      Now, if you excuse me, I have some Charger memories to suppress.
                      The Wasted Decade is done.
                      Build Back Better.

                      Comment

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