Re: Is any college football player worth 2.7 million?

RememberTheDanny

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Not likely for investor in $2.7M player - yes to Nil investors of teammates

Dec 26, 2024, 7:44 AM

On the marginal aspects of NIL investment in individual teams, there might be positive ROI for those smaller $ investments. Overall, I doubt very much that NIL provides a positive ROI.

Let’s take MI and 2025 recruiting class QB Bryce Underwood (I think that’s name). Barstool Sports principal owner coughed up ~$12M in NIL money to buy off Underwood to flip to MI.

Unless Bryce Underwood is a Wizard of Wall Street money manager who will invest Barsttol Sports cash reserves into Nancy Pelosi-esque stock market returns, Underwood’s image and occasional appearances on Barstool’s website and podcasts won’t get a positive ROI.

Portnoy ‘bought’ Underwood for reasons of ego. Kind of like buying a Maserati instead of a Subaru. Or, he made a terrible business decision.

As for the ‘on the margin’ NIL investors in less luminescent players, there might be a positive ROI. Say that Underwood leads MI to multiple National Championships. A consortium of three investors, each being executive managers of an insurance company, an anti-theft security systems company, and a home fire extinguisher company respectively, invest in a NIL for a MI offensive tackle. The offensive tackle’s NIL deal is worth $360000 over 4 years; cost per year for each of the three NIL members in the consortium Every player on the MI team has more ‘image value’ because MI had gotten tremendous new publicity by winning several Nat.Championships with Underwood at WB. The three NIL investors each chipped in $120,000 share. Each year’s NIL cost for each of the three members is $30,000.

It is feasible that an expense of $30,000 per year might bring in additional sales of $120,000 per year that generate pre-tax profits of $40,000 per year. In this scenario, the small NIL investors get a positive ROI from their NIL investment.

For investors in small NIL expenses for the non-star players, there might indeed be a positive ROI, but the guy who pays the huge bucks for World’s Biggest Stud Player, the ROI would almost assuredly be negative.

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You are combining two different things, NIL payment and money made from putting butts in seats. How are the rich boosters getting a financial return on investment from their NIL contributions? The boosters are not getting any of the revenue from attendance and they are not getting any of the tv revenue. The players wanted a cut of the profits and that still has not happened. That is why most boosters are getting fed up because they are being asked to add NIL collective money on top of their tickets costs and boosters organizations.

The have NIL players which are few are killing it for the majority of the have not players. Look at the players in the portal that are no longer in school getting a free college degree. The entire thing is a mess. When an SEC school cannot keep up with Oregon and Michigan, college football is on life support.

Is any college football player worth 2.7 million?

Yes***