NIL Valuations

[MaxyJR1]

I see some social media about NIL Valuations and Sanders at Colorado. He could have a valuation of $4.5 million next year. This got me thinking.

It's a valuation and he will never see that kind of money. The valuations seem dumb. NIL is Name Image and Likeness. Outside of shirts for players and with their likeness or some high-profile commercials with Williams from USC, what are companies getting for NIL? If Sanders were to get paid and his Name, Image, and Likeness "Appearances" aren't meeting the appraised value of the deals, it sounds like pay to play. Wonder how the NCAA is eventually going to step in and determine validity of these deals.

 

[Tucker32]

I don't understand how any of what is going on is NIL, except for some of the things I see players like Caitlan Clark and others doing. For example, I walked into a Hy-Vee last week and there is a big cardboard cutout of Clark - that's NIL. Hy-Vee is paying her to use her NIL for ads. They are benefitting from their payment to her. That's how it is supposed to work.

How does a promise and payment of 200k or 700k from a collective meet the letter, or even spirit, of the law? There is very little use of name, image and likeness involved in most of these agreements - it is simply pay-for-play. At some point this has to be addressed. For example, in most of these college towns, even though there may be big boosters supporting the school, there are only so many NIL opportunities within that community. A booster payment is pay for play, not NIL.

 

[MNVCGUY]

I don't understand how any of what is going on is NIL, except for some of the things I see players like Caitlan Clark and others doing. For example, I walked into a Hy-Vee last week and there is a big cardboard cutout of Clark - that's NIL. Hy-Vee is paying her to use her NIL for ads. They are benefitting from their payment to her. That's how it is supposed to work.

How does a promise and payment of 200k or 700k from a collective meet the letter, or even spirit, of the law? There is very little use of name, image and likeness involved in most of these agreements - it is simply pay-for-play. At some point this has to be addressed. For example, in most of these college towns, even though there may be big boosters supporting the school, there are only so many NIL opportunities within that community. A booster payment is pay for play, not NIL.

Has been my problem with the current setup all along in that Pay for Play is being called NIL when it isn't.

NIL as intended is a great thing for college athletes and should have been in place for years. What is going on in college football and college basketball is being called NIL but it isn't in many cases. Don't have much faith that the NCAA will be able to crack down on the obvious pay for play disguised as NIL deals but who knows, maybe they will get it figured out. One can dream.

 

[Gophergrandpa]

I see some social media about NIL Valuations and Sanders at Colorado. He could have a valuation of $4.5 million next year. This got me thinking.

It's a valuation and he will never see that kind of money. The valuations seem dumb. NIL is Name Image and Likeness. Outside of shirts for players and with their likeness or some high-profile commercials with Williams from USC, what are companies getting for NIL? If Sanders were to get paid and his Name, Image, and Likeness "Appearances" aren't meeting the appraised value of the deals, it sounds like pay to play. Wonder how the NCAA is eventually going to step in and determine validity of these deals.

NIL should be renamed PFP.

 

[MplsGopher]

Pay to play is hiding behind the (very loose) framework of NIL.

Collectives are pay to play. Sorry, they are. They don’t attempt to derive much of any value themselves. They’re just frameworks to funnel donations into cash to players for playing the game that the donors love. Very little value occurs outside that transactional nature.

 

[disco]

I see some social media about NIL Valuations and Sanders at Colorado. He could have a valuation of $4.5 million next year. This got me thinking.

It's a valuation and he will never see that kind of money. The valuations seem dumb. NIL is Name Image and Likeness. Outside of shirts for players and with their likeness or some high-profile commercials with Williams from USC, what are companies getting for NIL? If Sanders were to get paid and his Name, Image, and Likeness "Appearances" aren't meeting the appraised value of the deals, it sounds like pay to play. Wonder how the NCAA is eventually going to step in and determine validity of these deals.

At least Sanders is appearing with his dad in those KFC commercials. He is doing advertising work, like Caleb Williams is for Wendy's. That's legit NIL.

 

[tmvander]

Don't worry guys the NCAA will come down HARD, SWIFT, and MERCILESS if/when the gophers have a player that makes $0.01 off of anything that isn't traditional "NIL." Give it time...give it time.

 

[watertown 1987 guy n]

Sorry, but this argument in my view doesn’t have merit. Why does UPS, McDonalds, or any other company hire an athlete or actor to be in a commercial- it ain’t because they have a formula that shows how many more packages they ship or burgers they sell. It’s called branding and the “appraised” value is in the eye of the company writing the check. NCAA won’t touch it because they can’t possibly come up with a defensible argument against the value. The company can say “we’re locking this guy in because we think he’s the next Michael Jordan or Tiger Woods and we want him to represent our company for the next 10 years”. DONE, put a $500 million value on the athlete!

 

[howeda7]

I don't understand how any of what is going on is NIL, except for some of the things I see players like Caitlan Clark and others doing. For example, I walked into a Hy-Vee last week and there is a big cardboard cutout of Clark - that's NIL. Hy-Vee is paying her to use her NIL for ads. They are benefitting from their payment to her. That's how it is supposed to work.

How does a promise and payment of 200k or 700k from a collective meet the letter, or even spirit, of the law? There is very little use of name, image and likeness involved in most of these agreements - it is simply pay-for-play. At some point this has to be addressed. For example, in most of these college towns, even though there may be big boosters supporting the school, there are only so many NIL opportunities within that community. A booster payment is pay for play, not NIL.

If booster Alabama booster Billy Joe of Billy Joe's Cadillac feels he got "value" for his $1 million NIL payment the same way HyVee did even though the player never did an ad, how is the NCAA going to say otherwise? They won't.

 

[Gophers1992]

Don't worry guys the NCAA will come down HARD, SWIFT, and MERCILESS if/when the gophers have a player that makes $0.01 off of anything that isn't traditional "NIL." Give it time...give it time.

And our local media will be happy to assist the NCAA in the process.

 

[1983]

I believe the NIL will fizzle out in time except for the top 7 to 10 programs. The is no value to the payee of NIL funds for the most part. Very few will ever see NIL money as it is set up now.

 

[A_Slab_of_Bacon]

Evaluations are gonna be like stock or similar evaluations, where everyone doing them has a specific interest in an outcome….

 

[TwistingMyMelon]

NCAA won’t touch it because they can’t possibly come up with a defensible argument against the value. The company can say “we’re locking this guy in because we think he’s the next Michael Jordan or Tiger Woods and we want him to represent our company for the next 10 years”. DONE, put a $500 million value on the athlete!

I'm not disagreeing about the likelihood of the NCAA putting its head in the sand but I disagree that it has to be that way. The second poster (Tucker32) talked about posters of Caitlin Clark endorsing Hy-Vee as a justifiable example of big money NIL. Caitlin Clark is the face of NCAA women's basketball and can be called a true celebrity. You also could say that about Sanders and, by extension, his athlete son. There are relatively few amateur athletes one can say that about.

If you're not like Caitlin Clark and Sanders and son, then there should be some reasonably convincing argument to justify an enormous NIL payout. I don't agree with those who say that there is no defensible argument to deny these things because that is done all the time outside of athletics. Try to get a $40 million dollar loan for expansion of your new restaurant business on the basis of telling the bank ""WE WILL BE THE NEXT PANERA!"

 

[MNVCGUY]

I'm not disagreeing about the likelihood of the NCAA putting its head in the sand but I disagree that it has to be that way. The second poster (Tucker32) talked about posters of Caitlin Clark endorsing Hy-Vee as a justifiable example of big money NIL. Caitlin Clark is the face of NCAA women's basketball and can be called a true celebrity. You also could say that about Sanders and, by extension, his athlete son. There are relatively few amateur athletes one can say that about.

If you're not like Caitlin Clark and Sanders and son, then there should be some reasonably convincing argument to justify an enormous NIL payout. I don't agree with those who say that there is no defensible argument to deny these things because that is done all the time outside of athletics. Try to get a $40 million dollar loan for expansion of your new restaurant business on the basis of telling the bank ""WE WILL BE THE NEXT PANERA!"

Yeah....it is pretty obvious when deals are pay for play and not legit NIL but there is so much grey area that could be exploited to justify it that until some sort of federal regulations come down on NIL money it is going to be a free for all and an easy way to hide pay for play in plain sight.

 

[MplsGopher]

There are all kinds of laws against clearly fraudulent transactions in many other realms of life.

You could make the exact same argument against those rules/regulations. “Just because my house last sold for $300k five years ago, who are you to say my friend can’t buy it from me for $20M???? It’s worth it to him!!!”

No. Doesn’t work like that.

Same adage applies though. Don’t be so damned greedy and you won’t be so easy to spot.

 

[SeaBee_Gopher]

We don’t even disguise what it really is when it’s discussed on the football forum. People are constantly saying we should contribute to the gopher NIL and almost no one mentions what these athletes will do to earn the money. Just contribute so we can pay player “x” so he doesn’t leave for Oregon. We discuss it as pay for play but call it NIL. Hahaha!

 

[60's Guy]

I see some social media about NIL Valuations and Sanders at Colorado. He could have a valuation of $4.5 million next year. This got me thinking.

It's a valuation and he will never see that kind of money. The valuations seem dumb. NIL is Name Image and Likeness. Outside of shirts for players and with their likeness or some high-profile commercials with Williams from USC, what are companies getting for NIL? If Sanders were to get paid and his Name, Image, and Likeness "Appearances" aren't meeting the appraised value of the deals, it sounds like pay to play. Wonder how the NCAA is eventually going to step in and determine validity of these deals.

I don't think you get it.
Some of the companies he has deals with.

 

[Pompous Elitist]

There are all kinds of laws against clearly fraudulent transactions in many other realms of life.

You could make the exact same argument against those rules/regulations. “Just because my house last sold for $300k five years ago, who are you to say my friend can’t buy it from me for $20M???? It’s worth it to him!!!”

No. Doesn’t work like that.

Same adage applies though. Don’t be so damned greedy and you won’t be so easy to spot.

With the (supposed…) coming crackdown on criminal-friendly US real estate law, the (supposed…) increased difficulty of formation of anonymous owner shell companies and downstream implications for real estate valuations NIL could present a new opportunity or avenues for a multi-step money laundering scheme, if players or their representation, collectives or elements of were approached and receptive.

 

[fmlizard]

I believe the NIL will fizzle out in time except for the top 7 to 10 programs. The is no value to the payee of NIL funds for the most part. Very few will ever see NIL money as it is set up now.

There's enough entities out there under our system of winner-take-all capitalism that have way more money than they could ever possibly spend.

There's no value test for these people other than "do I want it?"

No need for an ROI, it's like buying a 9th and 10th house

 

[Ewert86PC]

Yeah....it is pretty obvious when deals are pay for play and not legit NIL but there is so much grey area that could be exploited to justify it that until some sort of federal regulations come down on NIL money it is going to be a free for all and an easy way to hide pay for play in plain sight.

So was Bucko Irving's ducking out on us PFP dressed as NIL?

 

[MNVCGUY]

So was Bucko Irving's ducking out on us PFP dressed as NIL?

Don't know the specifics on how much he got or what he supposedly got it for but yeah....it would seem like a prime example of PFP money being labeled as NIL.

 

[watertown 1987 guy n]

Try to get a $40 million dollar loan for expansion of your new restaurant business on the basis of telling the bank ""WE WILL BE THE NEXT PANERA!"

You’re comparing apples n oranges. An external 2nd party using tried and true metrics of risk (the bank) vs a team fanatic driven partly by emotion that believes his company will get unmeasurable branding value from paying a player $$$ as a representative.

 

[gopherbadgerman]

I see some social media about NIL Valuations and Sanders at Colorado. He could have a valuation of $4.5 million next year. This got me thinking.

It's a valuation and he will never see that kind of money. The valuations seem dumb. NIL is Name Image and Likeness. Outside of shirts for players and with their likeness or some high-profile commercials with Williams from USC, what are companies getting for NIL? If Sanders were to get paid and his Name, Image, and Likeness "Appearances" aren't meeting the appraised value of the deals, it sounds like pay to play. Wonder how the NCAA is eventually going to step in and determine validity of these deals.

You don't know what he gets. I don't either. Everyone here speculates and bitches because the U does not have those resources. If we did no one would be complaining.

 

[Goldmember]

I see some social media about NIL Valuations and Sanders at Colorado. He could have a valuation of $4.5 million next year. This got me thinking.

It's a valuation and he will never see that kind of money. The valuations seem dumb. NIL is Name Image and Likeness. Outside of shirts for players and with their likeness or some high-profile commercials with Williams from USC, what are companies getting for NIL? If Sanders were to get paid and his Name, Image, and Likeness "Appearances" aren't meeting the appraised value of the deals, it sounds like pay to play. Wonder how the NCAA is eventually going to step in and determine validity of these deals.

NIL is the new name for “bags of cash”

 

[MplsGopher]

@MNVCGUY it's really as easy as this: how many promotions has Bucky done for _____ (if there even is a real company or organization to fill in that spot)?

That's mostly a rhetorical question. He may well have done more than zero, but little chance it has been enough work to justify the amount of money he has received.

That's saying nothing about him specifically. It's the same for most every player like that.