Myth: The Michigan Money Cannon and NIL
Obviously, been a ton of posts over the years on the "Michigan Money Cannon". More so recently a lot of sarcastic comments in regards to our lack of NIL/collective funding.
Michigan is obviously not short on financially successful alumni. Even at the billionaire level. So why the struggle (outside of the athletic departments current policy)?
If you look around the country, in most cases, the highly funded NIL schools (schools that have been reported to be most active in pay for play) are not being funded by a massive group of donors all chipping in small amounts. It is a small group of ultra wealthy individuals (or in some cases literally just one) that is a superfan of athletics. Phil Knight at Oregon. John Ruiz at Miami. A couple of very wealthy oil businessman at TAMU.
The ROI on your money for pay for play, cash incentives, "bag man" is basically 0. You get no financial return. The return is you help the football program secure high profile recruits. Which may or may not lead to on field success. You basically need someone that is such a rapid fan, and so wealthy, they have no issue burning millions of dollars annually that will see little to no financial return. And in some cases (under the table payments) cannot even be used as a charity donation write-off.
I am personally a big Michigan football and athletics fan, but I do not have any interest in funding athlete salaries. And my personal opinion is these athletes should be getting a piece of the massive TV revenue (as the pro leagues do).
Maybe Stephen Ross decides he wants to be Phil Knight. But unless that happens I think most schools (including Michigan) without one of these mega NIL donors that choose to burn millions annually on recruiting, will have challenges competing for the highest level of recruits.
December 14th, 2022 at 9:54 PM ^
I look at it as a big experiment, or proof of concept. I don't like it but here we are.
No one can say TAMU etc. or the concept is a fail because these are teenagers getting through year one.
Just like we can't say Michigan's opposite end approach of throwing NIL money @ only proven players is the right path.
What we do know is that this is how teams have been operating all along under the table now the cards are on the table. Check back in 18 months and we'll see the true results of the money cannons.
December 14th, 2022 at 11:23 PM ^
DH, there’s one difference between the old “brown bag” approach, and NIL. That difference is.. taxes.
December 14th, 2022 at 10:26 PM ^
<Wiggums voice> I'm helping
Just bought it.
December 15th, 2022 at 7:28 AM ^
What about asking for donations on Twitter? Heard that was a viable option
December 15th, 2022 at 7:33 AM ^
I haven't read through the entire thread, so forgive me if my points have already been made.
The current NIL situation is another indictment on the NCAA. I have felt for a long time that it is immensely unfair, hypocritical and maybe illegal for everyone around athletics to be making a fortune except for the actual players. The NCAA responded to this not by figuring out a fair way to use it's revenue to help players but to simply open up payments to players essentially by fans.
The NCAA could have structured a system of equal stipends to all players along with increased educational benefits to allow those not going to the NFL additional payments to complete college or grad school after their playing days are done. And using NCAA money.
I don't see how the appeal of college sports will be maintained if the strength of a team is determined by the degree of fandom of the local Chevy dealer or megamillionaire alumnus.
December 15th, 2022 at 8:21 AM ^
I wouldn't consider myself a rapid fan....i'm more in the 4.9 40 range. I am a rabid fan though.
December 15th, 2022 at 8:27 AM ^
we don't know, obviously, but your take makes sense to me.
December 15th, 2022 at 10:14 AM ^
Can anyone tell me anything concrete about NIL? Are these payments lump sum? Or over the course of enrollment? What happens if a player transfers? Are there requirements on these payments, appearances, autographs, etc.?
Why is it pay for play if a player gets paid to play at Michigan before he enrolls but not if a player gets paid to play for Michigan after he enrolls?
December 15th, 2022 at 12:04 PM ^
NIL or not , Bellamey not doing squat in wide out recruiting
December 17th, 2022 at 3:58 PM ^
You basically need someone that is such a rapid fan, and so wealthy, they have no issue burning millions of dollars annually that will see little to no financial return.
Hey, that's me!
You just have to wait a little while. You can trust me.