It’s about capital allocation. I want us to have the best facilities, but in the current environment is that the best use of $200m? If we could take that and use it toward NIL/Salaries I think that would have a much better return toward the goal of acquiring the best players. Remember, when this revenue sharing kicks in we’ll be 20-30M in annual revenue lower than most of our competition.
It's also about timing.
It isn't necessary to put a couple-hundred million in the bank if it is currently impossible to build MULTIPLE 7-story buildings within a few hundred yards of each other.
People try to turn this "NIL vs. Buildings" thing into some sort of "guns vs. butter" academic *********ory exercise. The reality is that the motivation for making those donations is completely different. People who want their names on things...will put their names on things. They want permanence and recognition and a sense of ownership. The motivations for NIL contributions are completely different.
Might there be donor fatigue? Sure. And that's why it makes sense to spread things out. Not because the wealthy are "too broke" to fund both, but when you ALSO factor in the whole "UM Centennial" thing (and Frenk's desparate push for fund-raising to cement his "legacy"), then you realize that an awful lot of e-mails are being sent out right now, particularly to alums, particularly to (historically) big donors. For the non-alum-football-fans on the board, I realize that they don't see all of the OTHER fund-raisers that UM is pushing right now, they just think "there are only two" (football building and NIL). That just isn't true.
And, sure, it might also be nice to show some "return on investment" with the smaller expenditures before we go deeper with the big donors.
Finally, without giving too much away, we might also be identifying some new sources of funding, some new venture partners, some new folks who might like to put a particular name or two on the building. Let's just say, no need to do a whole 3-stripes motif in the new building if you just have to paint over it a year later...
Everyone relax. It took us a while to build the basketball arena too. I don't expect any delays like THAT, but there are some good NON "we need to fund NIL instead of build buildings" reasons out there.