bill82
Sophomore
OSU's 10,157th Best Donor
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Post by bill82 on Dec 27, 2023 5:10:18 GMT -8
We have our bag from the Pac 12. How do we position ourselves over the next two years? Let's consider leapfrogging.
There is a lot of speculation about future conference realignment and potential media partners. I'm feeling like the big media contracts for the Big10 and SEC are clouding our thinking of our future.
The old financial model was for boosters to donate money and corporations to buy advertising to build great facilities and provide support services that impressed players and pay for the best possible coaches. Players were stuck at a school and coaches could skip to the next opportunity. We (and virtually every other school) were a stepping stone for coaches to greater riches funded by richer boosters..
When media revenue started rising, schools had more money for facilities to impress players and pay higher coaches salaries. The pool of players did not change nor did the pool of coachers. Corporate sponsorships stayed the same as well. Players were stuck and coaches could skip. Donors still needed to buy tickets and contribute to facilities.
Enter the portal and NIL and there is an instant mismatch between new funding and historical practices. Can we piece together something in this chaos to attract the best players that is better than the mega conferences?
We are starting from scratch.
Corporations can give directly to players. Donors can give directly to players. Players can skip to a new college anytime. The pool of players and coaches is the same. All schools remain stepping stones. Facilities and support services are not nearly as important to players anymore. Donors and ticket sales and perhaps institution funding can support stadium maintenance and improvements.
So how about we start by prioritizing NIL and build our program around players? This is going the way of the NFL so lets move it along. Lets take this time as a lean conference of two with solid funding to leapfrog the competition.
Any media deal we get, even a small one can be assigned directly to player compensation. If we could get $5 million a year we can build a competitive team. Great players will attract up and coming coaches. We don't have to lead in coaches' salaries. We don't have to have a massive bureaucracy in the AD's department to support players and their educational goals. They can pay for their own tutors and buy their own food. Keep our Olympic sports in a regional conference. Perhaps stay independent in football.
Seek out state and local government support for facilities based on the economic benefits of sports to local businesses. It is time for those partners to contribute.
The faster we can build an efficient model that puts more money in players' pockets the better. There will be a lot of resistance to this model from ADs across the country that want to preserve their empires and from mega-donors that want to maintain power over their program. We are starting from scratch. We have flexibility to change. Should we?
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Post by beaverology on Dec 27, 2023 7:17:28 GMT -8
To compete for a national championship, this is what you're looking at. You want to know how Texas A&M and Oregon are pulling in top recruiting classes? Here you go. All Aggie/Duck jokes are welcome. Suggested NIL salaries for 2024 football players/recruits/transfers:
High level QB transfer: $2M to $3M
5 star recruit: $1M signing bonus
4 star recruit: $500,000 signing bonus
All scholarship football players receive $100,000 salary per year
85 scholarship players on roster = $8.5M per year
Players need to locked into a 3 year contract to fulfill NIL payments, otherwise, some will take the money and run.
A program like OSU could scale this down by 50% and still be very competitive, make the CFP and maintain a national brand.
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Post by Henry Skrimshander on Dec 27, 2023 10:04:23 GMT -8
For the love of God, INSTITUTIONAL FUNDS CANNOT BE USED FOR NIL.
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Post by beaverology on Dec 27, 2023 10:29:58 GMT -8
Who said NIL is institutional money?
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Post by Henry Skrimshander on Dec 27, 2023 14:51:41 GMT -8
Who said NIL is institutional money? The OP. "Any media deal we get, even a small one can be assigned directly to player compensation. If we could get $5 million a year we can build a competitive team."Media rights money is institutional money. Never mind his lunacy about cutting support staff and eliminating training table, tutors and other academic help. |
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Post by orangeattack on Dec 27, 2023 15:05:31 GMT -8
Who said NIL is institutional money? The OP. "Any media deal we get, even a small one can be assigned directly to player compensation. If we could get $5 million a year we can build a competitive team."Media rights money is institutional money. Never mind his lunacy about cutting support staff and eliminating training table, tutors and other academic help. while I think the details are not realistic, the overall concept of thinking laterally to create a product that can survive in the future is not a bad one. Personally I think the "leapfrogging" to be done is with aligning the new conference with a streaming partner. The big money is all in traditional media organizations, but the new money is coming from tech. |
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Post by beaverology on Dec 27, 2023 15:52:18 GMT -8
Who said NIL is institutional money? The OP. "Any media deal we get, even a small one can be assigned directly to player compensation. If we could get $5 million a year we can build a competitive team."Media rights money is institutional money. Never mind his lunacy about cutting support staff and eliminating training table, tutors and other academic help. I remember former Big10 commish Kevin Warren talking about using money from the FOX tv deal to pay football players. College football is in a state of flux right now. What happens if there's a future bill passed in states that forces college football programs to share 50% of all revenue generated with the football players? CA proposed a bill like this less than a year ago. Who knows where this ends. |
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sparty
Junior
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Post by sparty on Dec 27, 2023 16:06:51 GMT -8
To compete for a national championship, this is what you're looking at. You want to know how Texas A&M and Oregon are pulling in top recruiting classes? Here you go. All Aggie/Duck jokes are welcome. Suggested NIL salaries for 2024 football players/recruits/transfers: High level QB transfer: $2M to $3M 5 star recruit: $1M signing bonus 4 star recruit: $500,000 signing bonus All scholarship football players receive $100,000 salary per year 85 scholarship players on roster = $8.5M per year Players need to locked into a 3 year contract to fulfill NIL payments, otherwise, some will take the money and run. A program like OSU could scale this down by 50% and still be very competitive, make the CFP and maintain a national brand. You are leaving out Ohio State, Michigan, Georgia and about 4 others from the SEC. |
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Post by beaverology on Dec 27, 2023 16:11:50 GMT -8
To compete for a national championship, this is what you're looking at. You want to know how Texas A&M and Oregon are pulling in top recruiting classes? Here you go. All Aggie/Duck jokes are welcome. Suggested NIL salaries for 2024 football players/recruits/transfers: High level QB transfer: $2M to $3M 5 star recruit: $1M signing bonus 4 star recruit: $500,000 signing bonus All scholarship football players receive $100,000 salary per year 85 scholarship players on roster = $8.5M per year Players need to locked into a 3 year contract to fulfill NIL payments, otherwise, some will take the money and run. A program like OSU could scale this down by 50% and still be very competitive, make the CFP and maintain a national brand. You are leaving out Ohio State, Michigan, Georgia and about 4 others from the SEC. I forgot to put down the salary for transfer portal kicker who walks on. |
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bill82
Sophomore
OSU's 10,157th Best Donor
Posts: 1,009
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Post by bill82 on Dec 27, 2023 18:51:33 GMT -8
Who said NIL is institutional money? The OP. "Any media deal we get, even a small one can be assigned directly to player compensation. If we could get $5 million a year we can build a competitive team."Media rights money is institutional money. Never mind his lunacy about cutting support staff and eliminating training table, tutors and other academic help. Media rights are payments for NIL of the players - not the coaches on the sidelines or the AD in a luxury box. They can be assigned to a third party and paid out to players. We don't need that money. |
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Post by Henry Skrimshander on Dec 27, 2023 20:41:40 GMT -8
Media rights are payments directly to the school in exchange for the right to broadcast games on TV, streaming or radio. The rights to those games are owned by Oregon State University (radio) or the Pac-2 (TV/streaming). They are as institutional as you can get.
I'm not sure what other kind of "media deal" you are talking about. But if the grantor of said rights is OSU or the conference, those are institutional funds and may not be used for NIL purposes.
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Post by ostate on Dec 27, 2023 21:40:32 GMT -8
For fun I ran some numbers; we need an estimated $640m 'endowment' to pay every male and female Beaver athlete $30k a year (in perpetuity)...
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bill82
Sophomore
OSU's 10,157th Best Donor
Posts: 1,009
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Post by bill82 on Dec 28, 2023 6:31:12 GMT -8
Media rights are payments directly to the school in exchange for the right to broadcast games on TV, streaming or radio. The rights to those games are owned by Oregon State University (radio) or the Pac-2 (TV/streaming). They are as institutional as you can get. I'm not sure what other kind of "media deal" you are talking about. But if the grantor of said rights is OSU or the conference, those are institutional funds and may not be used for NIL purposes. As Lee Corso would say, Not so Fast! Oregon State previously granted its rights to the Pac 12, who in turn sold those rights to media companies who made a profit. The Pac 12 in turn, under the terms of the GOR gave that revenue back to Oregon State less expenses. We don't care what the media company does with their profits and we don't care that the Pac 12 took a cut for expenses. Oregon State has no active GOR. We are starting from scratch. Oregon State can grant its rights to future games to any entity, who can in turn can do whatever OSU specifies. Oregon State can ask that money to go to a foundation, an NIL collective or whatever. Think of licensing relationships where OSU lets apparel companies use our logo in exchange for a percentage of sales. We do not care what the apparel company does with their profits as long as we get our percentage. I understand the argument for keeping all of the media rights and using a conventional arrangement. No debate there. But I will debate the ability of accountants and financial analysts to figure out a way to legally get this money to athletes. Institutions launder money all the time when there is a mismatch between where money comes from, and how public officials want to spend it. When I worked at a local government nothing would stop us from using gas taxes meant for road repairs to pay for cops. We'd charge the road department a boatload of overhead (approved by some accounting firm) and then use that overhead paid by gas taxes to fund the cops. This is all second nature to the bean counters at OSU. If they want to get money to athletes they can do it. The media revenue seems like a logical source to me. |
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sparty
Junior
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Post by sparty on Dec 28, 2023 6:45:03 GMT -8
Media rights are payments directly to the school in exchange for the right to broadcast games on TV, streaming or radio. The rights to those games are owned by Oregon State University (radio) or the Pac-2 (TV/streaming). They are as institutional as you can get. I'm not sure what other kind of "media deal" you are talking about. But if the grantor of said rights is OSU or the conference, those are institutional funds and may not be used for NIL purposes. As Lee Corso would say, Not so Fast! Oregon State previously granted its rights to the Pac 12, who in turn sold those rights to media companies who made a profit. The Pac 12 in turn, under the terms of the GOR gave that revenue back to Oregon State less expenses. We don't care what the media company does with their profits and we don't care that the Pac 12 took a cut for expenses. Oregon State has no active GOR. We are starting from scratch. Oregon State can grant its rights to future games to any entity, who can in turn can do whatever OSU specifies. Oregon State can ask that money to go to a foundation, an NIL collective or whatever. Think of licensing relationships where OSU lets apparel companies use our logo in exchange for a percentage of sales. We do not care what the apparel company does with their profits as long as we get our percentage. I understand the argument for keeping all of the media rights and using a conventional arrangement. No debate there. But I will debate the ability of accountants and financial analysts to figure out a way to legally get this money to athletes. Institutions launder money all the time when there is a mismatch between where money comes from, and how public officials want to spend it. When I worked at a local government nothing would stop us from using gas taxes meant for road repairs to pay for cops. We'd charge the road department a boatload of overhead (approved by some accounting firm) and then use that overhead paid by gas taxes to fund the cops. This is all second nature to the bean counters at OSU. If they want to get money to athletes they can do it. The media revenue seems like a logical source to me. You are right about the creative ways the government entities launder money. From the cities, counties, state and federal.
It sounds like you have seen it first hand but that is a whole different topic.
I wonder if a shell company could be set up to pay the media revenue through this company and then to the athletes at OSU? Maybe even hire the athletes thru this company?
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Post by Henry Skrimshander on Dec 28, 2023 9:14:11 GMT -8
I prefer not to live in fantasyland. Laundering money, shell companies ... seems like that's on the up-and-up.
Media rights are needed to pay operating expenses, so the athletic department can even exist in the first place.
NIL money, which IMHO is the worst possible destination of my dollars in support of OSU, must come from private sources.
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