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Does college athletes getting paid, help, hurt, or nothing changes for Miami.

Hurricane23

Hurricane23

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Anyone, but preferably someone with good knowledge about college finances and all that good stuff. Seems on the surface it will help, being in Miami a big city, tons of endorsement opportunities. Let’s talk!
 
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Cane44 said:
I'm just scared it opens the door for the SEC to double down on $$$$.... they maintain their bags with the kids, but now opens even more "legal" avenues to get their kids triple paid....
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Facts I do agree
 
The one case I can make for Miami is that players can now earn money and is not restricted anymore. UM is a marketable brand, despite our over 15 year hiatus from being elite. As a player, you get location and money and don't have to solely sacrifice the former for the latter. But agree with Canes1968, we'll need long-term data to understand where this helps/hurts Miami.
 
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Something has to be done to maintain parity for all schools to compete on the same level (or at least have the appearance of doing so). Otherwise we will end up with 2 separate entities playing college football.
 
I dont think its about college finances. At least, not in the long run. In fact, I think it changes the actual market structure. My macro view on this is there is a depressed (in fact I would argue actively suppressed) market for football talent. This is a factor of explicit or tacit collusion between NFL, NCAA, and state & federal regulators.

And yes, I would not be surprised in the least if programs can no longer compete and there is a massive restructuring in the college football landscape (college athletics overall).

So be it. Removing artificial and unjust barriers to individuals opportunity to be compensated fully for their skills and talents is more important. And I would add uniquely talented both in terms of physical abilities but also the time frame within which they can maximize their earnings.

NIL is one step towards establishing a more accurate market for football talent. We may see it evolve into a club system for the NFL - which is essentially what it is now - its just the most talented aren't able to fully capitalize on their value (due to lack of market). Scholarships are essentially a de facto salary cap.

To comment on your question directly about whether it benefits Miami or not. As others have stated, probably too early to tell. Many variables. And depends on your time horizon for success or failure. One fundamental force I think is favorable is its relative market size in terms of media, consumers, economic health, etc. It is also one of the most attractive locales to live.

This will also, I suspect, ultimately differentiate between the top 5 star talent but also less heralded recruits. What markets would I bet on that is best able to offer both top talent but also the 3 and 4 star recruits, support for their NIL? Again, I keep coming back to those markets that have size and diversity in their economies.

What Im most interested in is seeing the impact and changes in college coaching and specifically college football back offices.
 
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yeah, some say it evens the playing field and i'm thinking to myself now sec schools can drop bags legally under the right scheme ... any you don't think they gone run it up ... come on now
 
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I think it helps keeps good players in college longer to make the short buck unless they are sure fire draft picks. That is is a win for Miami and college football. But the issue will be Bama funneling even more money to recruits.
 
HurricaneU said:
I dont think its about college finances. At least, not in the long run. In fact, I think it changes the actual market structure. My macro view on this is there is a depressed (in fact I would argue actively suppressed) market for football talent. This is a factor of express or tacit collusion between NFL, NCAA, and state & federal regulators.

And yes, I would not be surprised in the least if programs can no longer compete and there is a massive restructuring in the college football landscape (college athletics overall).

So be it. Removing artificial and unjust barriers to individuals opportunity to be compensated fully for their skills and talents is more important. And I would add uniquely talented both in terms of physical abilities but also the time frame within which they can maximize their earnings.

NIL is one step towards establishing a more accurate market for football talent. We may see it evolve into a club system for the NFL - which is essentially what it is now - its just the most talented aren't able to fully capitalize on their value (due to lack of market). Scholarships are essentially a de facto salary cap.

To comment on your question directly about whether it benefits Miami or not. As others have stated, probably too early to tell. Many variables. And depends on your time horizon for success for failure. One fundamental force I think is favorable is its relative market size in terms of media, consumers, economic health, etc. It is also one of the most attractive locales to live.

This will also, I suspect, ultimately differentiate between the top 5 star talent but also less heralded recruits. What markets would I bet on that is best able to offer both top talent but also the 3 and 4 star recruits, support for their NIL? Again, I keep coming back to those markets that have size and diversity in their economies.

What Im most interested in is seeing the impact and changes in college coaching and specifically college football back offices.
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Appreciate that
 
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rvalenza said:
I think you're right. Billy Bob car dealer going to throw tons of legit $$$ at dudes.
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Here is the thing about Billy Bob. Now it will have to be above board and reported as duly executed contract for service and will be taxed. It will be disclosed in some fashion. Its price discovery. A necessary condition for a vibrant market.

So I fully support Billy Bob doing what he wants with his money. And the athlete who benefits from it.

But here is the thing: how many Billy Bobs are there and how much can they afford to pay out? I come back to the impact of market size and opportunities.

Another thing to consider. The bag game is strong in some places. We know that. But I would argue that even that game, the prices are depressed because its illegal. What happens when the market opens up and now Billy Bob has to compete with a luxury auto dealership in Miami?

I dont have the answers. I dont see the world in absolutes. I view it terms of options and risks. Its a Bayesian world. I just think there are some strong market forces in favor of larger markets.

Will be fun to watch the fireworks regardless.
 
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It will help. That's what my giant Yale MBA brain is telling me, being the unquestionable genius I am.

If you wanna get technical, go look up something called Resource Based Theory. In a nutshell, Miami has a huge market, and hype and image sell well in Miami. Those are resources other, small town schools don't have.

I think Miami and USC (California) will be the winners with this.

What we need is for D'Eriq King to get paid in a big way... that way recruits will see that. But overall, I see a competitive advantage for Miami the way this is playing out.
 
HurricaneU said:
Here is the thing about Billy Bob. Now it will have to be above board and reported as duly executed contract for service and will be taxed. It will be disclosed in some fashion. Its price discovery. A necessary condition for a vibrant market.

So I fully support Billy Bob doing what he wants with his money. And the athlete who benefits from it.

But here is the thing: how many Billy Bobs are there and how much can they afford to pay out? I come back to the impact of market size and opportunities.

Another thing to consider. The bag game is strong in some places. We know that. But I would argue that even that game, the prices are depressed because its illegal. What happens when the market opens up and now Billy Bob has to compete with a luxury auto dealership in Miami?

I dont have the answers. I dont see the world in absolutes. I view it terms of options and risks. Its a Bayesian world. I just think there are some strong market forces in favor of larger markets.

Will be fun to watch the fireworks regardless.
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You put that in a great perspective of understanding
 
HurricaneU said:
Here is the thing about Billy Bob. Now it will have to be above board and reported as duly executed contract for service and will be taxed. It will be disclosed in some fashion. Its price discovery. A necessary condition for a vibrant market.

So I fully support Billy Bob doing what he wants with his money. And the athlete who benefits from it.

But here is the thing: how many Billy Bobs are there and how much can they afford to pay out? I come back to the impact of market size and opportunities.

Another thing to consider. The bag game is strong in some places. We know that. But I would argue that even that game, the prices are depressed because its illegal. What happens when the market opens up and now Billy Bob has to compete with a luxury auto dealership in Miami?

I dont have the answers. I dont see the world in absolutes. I view it terms of options and risks. Its a Bayesian world. I just think there are some strong market forces in favor of larger markets.

Will be fun to watch the fireworks regardless.
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Also curious about what brands align themselves with a program? How does Twitch go after this? UberEats, GoPuff, DoorDash, etc? Red Bull?

My guess is College Hunks targets big time athletes in a variety of markets since I'm pretty sure they're franchised. So franchise owner in Miami paid for King. Franchise owner in Tuscaloosa will pay for Bama player. Columbus for Ohio State player, etc etc etc.

This has my head spinning. 2021-2022 is going to be wild.
 
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