$500/month/athlete NIL payout for Mich St football & men's hoops

[YouSayPotato]

The linked story is dated Sept 8 but was updated in today's USA Today (Oct 8th) print edition. I can't find the update online. Each member of MSU's football team and men's basketball team, a total of 133 athletes, will receive $500/month for the entire 12 months of the year. This payout will continue as long as they remain in the "Spartan family". In return they are expected to use social media to promote United Wholesale Mortgage a few times each month.

NIL at Michigan State

 

[TC4THREE]

The linked story is dated Sept 8 but was updated in today's USA Today (Oct 8th) print edition. I can't find the update online. Each member of MSU's football team and men's basketball team, a total of 133 athletes, will receive $500/month for the entire 12 months of the year. This payout will continue as long as they remain in the "Spartan family". In return they are expected to use social media to promote United Wholesale Mortgage a few times each month.

NIL at Michigan State

Said it when this circus first got started. Build up a pool that you can use to compare against other programs to give you an advantage across the 85 roster spots rather than just letting the QB or a few star players reap all the benefit (they still will anyway).

If I'm an athlete with MSU on his list, that 6k per year guaranteed is certainly a factor. It won't be long before that number goes even higher for other programs.

 

[TMFT]

Said it when this circus first got started. Build up a pool that you can use to compare against other programs to give you an advantage across the 85 roster spots rather than just letting the QB or a few start players reap all the benefit (they still will anyway).

If I'm an athlete with MSU on his list, that 6k per year guaranteed is certainly a factor. It won't be long before that number goes even higher for other programs.

The real nightmare for college football is when Bama, Clemson, Georgia, OSU, and/or Notre Dame boosters take the idea they're using at BYU where a company agreed to pay full tuition for all walk-ons at the program in exchange for the promotional activities. LINK

The big boys are already able to load up on big classes of top recruits each year because natural attrition allows kids to shoot their shot with top programs but move on if it doesn't work out. If kids could walk on to those programs and still basically have a full ride scholarship, they'll migrate that direction to have their chance and it'll basically be the 1960s all over again.

 

[ImRonBurgandy?]

How long is the contract with United Wholesale would be my question?

 

[TC4THREE]

How long is the contract with United Wholesale would be my question?

Until UW realizes that 800k a year isn't worth the endorsement of a bunch of college athletes.

Or I guess if the booster strictly looks at it as an investment in MSU athletics that they can write off through their business it could go on forever or even grow.

I find it hard to believe any business would invest under the premise that these athletes are going to drive significant business their way. Probably more the latter situation.

 

[New Pal Boiler]

The real nightmare for college football is when Bama, Clemson, Georgia, OSU, and/or Notre Dame boosters take the idea they're using at BYU where a company agreed to pay full tuition for all walk-ons at the program in exchange for the promotional activities. LINK

The big boys are already able to load up on big classes of top recruits each year because natural attrition allows kids to shoot their shot with top programs but move on if it doesn't work out. If kids could walk on to those programs and still basically have a full ride scholarship, they'll migrate that direction to have their chance and it'll basically be the 1960s all over again.

I’ve made this exact point multiple times.

The relevant example here would be Ohio State. They recruit nationally and pass on tons of really good Ohio kids, who then end up at Purdue, IU, MSU, etc.

If they can get some of those kids to “walk on” in Columbus, (think Markus Bailey, Matt Light) that will further the gap between them and everyone else.

And instate tuition at OSU is super cheep.

 

[New Pal Boiler]

Until UW realizes that 800k a year isn't worth the endorsement of a bunch of college athletes.

Isn’t the UWM guy a former Spartan athlete ?

 

[ImRonBurgandy?]

Until UW realizes that 800k a year isn't worth the endorsement of a bunch of college athletes.

Right. Not a lot of people that follow college athletes on social media probably even know what a mortgage is. That being said, I'm sure the brass at UWM have it figured out...ie tax purposes, MSU donors already.

Not sure how I'd feel about if I were a share holder. Seems like wasted money on the surface.

 

[New Pal Boiler]

Right. Not a lot of people that follow college athletes on social media probably even know what a mortgage is. That being said, I'm sure the brass at UWM have it figured out...ie tax purposes, MSU donors already.

Not sure how I'd feel about if I were a share holder. Seems like wasted money on the surface.

How Mat Ishbia Cashed In On The Biggest SPAC Ever: From Benchwarmer To $13 Billion

After winning a national basketball championship at Michigan State, this billionaire turned his father’s 12-person mortgage outfit into a lending powerhouse that underwrites more mortgage than JPMorgan.

www.forbes.com

 

[purduepat1969]

Until UW realizes that 800k a year isn't worth the endorsement of a bunch of college athletes.

Or I guess if the booster strictly looks at it as an investment in MSU athletics that they can write off through their business it could go on forever or even grow.

I find it hard to believe any business would invest under the premise that these athletes are going to drive significant business their way. Probably more the latter situation.

Boosters that illegally pay money under the table will now do it over the table, in the open, per your point. I'd say it's highly likely that boosters will create "John Purdue Clubs" as an LLC that will pool booster money and give it directly to the kids as NIL promotions. The "John Purdue Club" could have the kids sign and promote memorabilia that they sell to keep a status as an LLC.

 

[TC4THREE]

The linked story is dated Sept 8 but was updated in today's USA Today (Oct 8th) print edition. I can't find the update online. Each member of MSU's football team and men's basketball team, a total of 133 athletes, will receive $500/month for the entire 12 months of the year. This payout will continue as long as they remain in the "Spartan family". In return they are expected to use social media to promote United Wholesale Mortgage a few times each month.

NIL at Michigan State

Just struck me that 133 is way more than the scholarship limits for the two programs combined (85 and 13 currently if I'm not mistaken). Another 35 baked into that. Do they have that many walk-ons?

 

[boilerpt]

The linked story is dated Sept 8 but was updated in today's USA Today (Oct 8th) print edition. I can't find the update online. Each member of MSU's football team and men's basketball team, a total of 133 athletes, will receive $500/month for the entire 12 months of the year. This payout will continue as long as they remain in the "Spartan family". In return they are expected to use social media to promote United Wholesale Mortgage a few times each month.

NIL at Michigan State

That’s big for MSU athletics. That kind of money will buy a lot of ribbons.

 

[TC4THREE]

Boosters that illegally pay money under the table will now do it over the table, in the open, per your point. I'd say it's highly likely that boosters will create "John Purdue Clubs" as an LLC that will pool booster money and give it directly to the kids as NIL promotions. The "John Purdue Club" could have the kids sign and promote memorabilia that they sell to keep a status as an LLC.

My thought when this first kicked off was that we should organize a group of people to contribute money towards a Purdue basketball NIL fund (because it's easier and a bigger impact to pay 13 players instead of 85). Go hit up donors/sponsors to donate to the fund. In exchange, they get exclusive rights to a tailgate organized for that group before each home football game. Over the course of the season, all 13 basketball players are invited to come sign autographs for an hour at one of those tailgates in exchange for an appearance fee. It's understood by all that the money donated to join this group is essentially money to pay the players for as minimal amount of any extra participation as possible. Set the minimum donation at 1k or something. Find a sponsor to kick in 800k like MSU did, but just distribute to basketball players, and all of a sudden those players are making 60k per year just off that.

 

[New Pal Boiler]

My thought when this first kicked off was that we should organize a group of people to contribute money towards a Purdue basketball NIL fund (because it's easier and a bigger impact to pay 13 players instead of 85). Go hit up donors/sponsors to donate to the fund. In exchange, they get exclusive rights to a tailgate organized for that group before each home football game. Over the course of the season, all 13 basketball players are invited to come sign autographs for an hour at one of those tailgates in exchange for an appearance fee. It's understood by all that the money donated to join this group is essentially money to pay the players for as minimal amount of any extra participation as possible. Set the minimum donation at 1k or something. Find a sponsor to kick in 800k like MSU did, but just distribute to basketball players, and all of a sudden those players are making 60k per year just off that.

We need our own Mat Ishbia.

 

[YouSayPotato]

Just struck me that 133 is way more than the scholarship limits for the two programs combined (85 and 13 currently if I'm not mistaken). Another 35 baked into that. Do they have that many walk-ons?

That was the number cited in the article. It seems like a lot of walk-ons but they may be including a large group incoming in the freshman class. I imagine MSU has been using the promise of this payout to lure some walk-ons during the past few months.

 

[PushupMan]

Right. Not a lot of people that follow college athletes on social media probably even know what a mortgage is. That being said, I'm sure the brass at UWM have it figured out...ie tax purposes, MSU donors already.

Not sure how I'd feel about if I were a share holder. Seems like wasted money on the surface.

You’re probably being a little too bottom-line here … will their endorsement generate $800K per year in mortgage sales over and above what the company would have had without these endorsements? Likely not.

But will this deal generate brand loyalty among likely future mortgage customers (ie, the student athletes and their families)? Very likely yes.

 

[New Pal Boiler]

You’re probably being a little too bottom-line here … will their endorsement generate $800K per year in mortgage sales over and above what the company would have had without these endorsements? Likely not.

But will this deal generate brand loyalty among likely future mortgage customers (ie, the student athletes and their families)? Very likely yes.

Flipside: if I’m a UM grad, I’m not using UWM any longer.

 

[TC4THREE]

You’re probably being a little too bottom-line here … will their endorsement generate $800K per year in mortgage sales over and above what the company would have had without these endorsements? Likely not.

But will this deal generate brand loyalty among likely future mortgage customers (ie, the student athletes and their families)? Very likely yes.

Why would anyone have brand loyalty when it comes to a mortgage? It's the largest amount of debt most people ever take on in their life. If you're factoring in anything but the best numbers, you're doing it wrong.

 

[PushupMan]

Why would anyone have brand loyalty when it comes to a mortgage? It's the largest amount of debt most people ever take on in their life. If you're factoring in anything but the best numbers, you're doing it wrong.

Brand loyalty might be a bit of poor phrasing on my part. Of course you should take the best deal in a mortgage regardless of brand. But not everyone “does it right” by taking the time and effort to find the very best deal regardless of the company. By advertising in this way, UWM expects that when those former student athletes look for a mortgage, they will think of UWM as a great company to get one with and will start their search by looking at UWM products. So “name recognition” rather than “brand loyalty” is better phrasing.

 

[PushupMan]

Flipside: if I’m a UM grad, I’m not using UWM any longer.

For UM grads who have read the story, hate MSU, and allow a sports rivalry to dictate their mortgage company, you’re correct.

But as a UofL grad and fan, what the UWM NIL deal at MSU has done for me is to introduce me to a new mortgage company at a time when I’m actually looking for a mortgage.

 

[KentuckyBoiler]

We all know big time athletes at Michigan and Michigan State have been getting a lot more than that a month over the last 25 to 30 years. At least, everyone there gets some of that booster money now.

 

[YouSayPotato]

We all know big time athletes at Michigan and Michigan State have been getting a lot more than that a month over the last 25 to 30 years. At least, everyone there gets some of that booster money now.

The key is the walk-ons. Are you gonna walk on at Michigan and get nothing or at MSU and get a guaranteed $500/month? These NIL payouts will end up being a method for schools like MSU to recruit 70 walk-ons per year.

 

[New Pal Boiler]

For UM grads who have read the story, hate MSU, and allow a sports rivalry to dictate their mortgage company, you’re correct.

But as a UofL grad and fan, what the UWM NIL deal at MSU has done for me is to introduce me to a new mortgage company at a time when I’m actually looking for a mortgage.

Ok let me put it to you this way: would you buy a car from a car dealer who is giving money to UK players, or the same car for the same price from the car dealer giving money to UL players?

 

[BSIT]

I’ve made this exact point multiple times.

The relevant example here would be Ohio State. They recruit nationally and pass on tons of really good Ohio kids, who then end up at Purdue, IU, MSU, etc.

If they can get some of those kids to “walk on” in Columbus, (think Markus Bailey, Matt Light) that will further the gap between them and everyone else.

And instate tuition at OSU is super cheep.

But would these players see much playing time? If I were one of those guys who had some talent, I’d want to go Purdue and make a name for myself

 

[SIBoiler2]

At least UWM never has to worry about one of their "student athletes" being criminally prosecuted while on campus.

 

[New Pal Boiler]

But would these players see much playing time? If I were one of those guys who had some talent, I’d want to go Purdue and make a name for myself

Yep- that’s the major selling point that schools like Purdue will have.

 

[PushupMan]

Ok let me put it to you this way: would you buy a car from a car dealer who is giving money to UK players, or the same car for the same price from the car dealer giving money to UL players?

Well, back when Papa John’s was the title sponsor for UofL’s football stadium, I did choose to eat a little more Papa John’s pizza than I did before that company helped to build the stadium.

But I still buy groceries at my local Kroger store even though that company sponsored Kentucky’s football field.

So I guess I tend to reward companies that sponsor UofL, but I don’t punish companies that sponsor my rival.

 

[Wolegib]

The impact this has is on the non-glamour positions. Star players will always receive under and over the counter payments. However, backup linemen who would receive nothing are now going to receive a little extra if they go to certain colleges. My son was a walk-on before receiving an actual scholarship. If some school had come along and said here is $500 a month, he may have chosen a different school.

 

[purduepat1969]

The impact this has is on the non-glamour positions. Star players will always receive under and over the counter payments. However, backup linemen who would receive nothing are now going to receive a little extra if they go to certain colleges. My son was a walk-on before receiving an actual scholarship. If some school had come along and said here is $500 a month, he may have chosen a different school.

And there's the obligatory "my son was a D1 athlete" routine...