Thoughts on CKC

[volfan102455]

NCAA generates over a BILLION dollars in revenue just from media rights. Universities in the Big 10, ACC, SEC etc. ain't offering sports out of the kindness of their hearts. McDonald's does not have to sell hamburgers either but that is missing the point of profit making.

The debate is over revenue sharing and heck yes, athletes and their reps have a place at the table.

The ADs for the majority of universities do not make money and are in the red. So you take money out of that and share it with others - then even more universities are in the red. There is not enough money to go around.

Hypothetical example of how fast the money dries up given that many think because there are billions they should get a millions -

There were 554,298 college student athletes in 2024-2025. If each of them is given 100,000 then there needs to be at least 55.4 billion dollars in profit.

I believe there are approximately 600 or so at UT so that is 60M. 2023 UTK AD generated 202M in total revenue - after expenses there was 11M left. Where is the other 49M coming from?

I get it - some folks see the billions ACROSS THE INDUSTRY and say I got to have some of that not realizing that they are 1 of over a half million student athletes. And if you add up the personal associated with the ADs, media companies, etc. it is probably easily over 2 million folks taking part of the pie.

 

[Amb3096]

You know we haven't talked much about players who don't give effort after getting NIL to play. Can we get a refund? LOL

I don't think NIL compensation comes from the school's coffers, does it? I thought it was sponsors who pay the students for agreed upon promotional deals. I'm sure there are checks being passed around under the table too, but performance guarantees on those would be the equivalent of asking for a refund on a TV that you stole.

 

[volfan102455]

I don't think NIL compensation comes from the school's coffers, does it? I thought it was sponsors who pay the students for agreed upon promotional deals. I'm sure there are checks being passed around under the table too, but performance guarantees on those would be the equivalent of asking for a refund on a TV that you stole.

Yes, NIL is not supposed to be from the schools, but from the "individual" promoting themselves. They are also not employees, and the concept of revenue sharing is normally associated with employees of a corporation / entity.

And if were to become employees, lots of different rules would apply.

 

[volfan102455]

And I personally don't have a problem with the original intent of NIL but that expects the "individual" to prompt their brand.

 

[chuckiepoo]

And if were to become employees, lots of different rules would apply.

Expensive rules to manage. A nice chunk of the pie would vaporize into overhead.

 

[madtownvol]

The ADs for the majority of universities do not make money and are in the red. So you take money out of that and share it with others - then even more universities are in the red. There is not enough money to go around.

Hypothetical example of how fast the money dries up given that many think because there are billions they should get a millions -

There were 554,298 college student athletes in 2024-2025. If each of them is given 100,000 then there needs to be at least 55.4 billion dollars in profit.

I believe there are approximately 600 or so at UT so that is 60M. 2023 UTK AD generated 202M in total revenue - after expenses there was 11M left. Where is the other 49M coming from?

I get it - some folks see the billions ACROSS THE INDUSTRY and say I got to have some of that not realizing that they are 1 of over a half million student athletes. And if you add up the personal associated with the ADs, media companies, etc. it is probably easily over 2 million folks taking part of the pie.

First, my prior post was factually inaccurate since most D1 ADs are technically classified as non-profits (which means they have tax exempt status--think about that for a minute).

Revenue is supposed to be recycled back into their programs.

To your contention about needing $55 billion dollars to make the system, there is a cap set on much $ schools can distribute to athletes, which I believe is 20 million per yer (though it rises by some % each year). So, your $55 billion a year estimate is a very creative fiction)

A lot of people confuse athlete's personal NIL deals with the revenue sharing plan. But if a college athlete cuts a deal with Nike, that $ is not coming from the school. Separate sources. Schools are finding all kinds of ways to offset those revenue sharing costs as well (See link below). Also, the cost of college coaches such as 14 million to Kirby Smart and 12 million to Lane Kiffin (not to mention massive buyout clauses) also comes out of school budget so the arms race in coaching salaries is another factor in the budget stress situation.

College athletic departments need to find every dollar. The search is on for new ways to do it

Exploring new ways to make money in more ways than raising ticket prices is an urgent task for programs looking to keep up with one another.

www.nytimes.com