🏅An economist called it in 2014

Hey there,

It’s the weirdest time of the year – that sandwich in between Christmas and New Year’s, where everyone acts like they’re working but no one actually intends on getting anything done. Oh, and some fun stuff happens in this period of time too – the College Football Playoff resumes very soon. It’s a good time, even if unproductive.

Don’t worry though – we’ve been chugging away to get you the NIL news. Today’s edition has a few really interesting stories: First, an economist’s prediction about how college athletics distribute money has finally come true ten years later; then, Deion Sanders just secured an incredible deal to incentivize his players to play in the bowl game; lastly, the numbers behind how much the CFP pays out to the teams that make it to the playoff.

It’s all coming up right now – let’s get into it!

— Cole, Justin and Collin

The Big 3

This Economist Saw the Problem with CFB a Decade Ago

Economist Roger Noll, who testified in the O’Bannon v. NCAA case, can’t help but say “I told you so.” His decade-old theory about how college athletics operates has proven correct over the past few months.

In 2014, one of his key arguments against the NCAA’s compensation restrictions surrounded the idea of “inefficient substitution” – with so much money coming into college sports, bloating certain pieces of the system was inevitable. That’s exactly what happened with coaching salaries over the past decade-plus.

But now we’re seeing a slight market correction. With rev-share on the horizon, many coaches – like FSU’s Mike Norvell and Oklahoma State’s Mike Gundy – are taking substantial pay cuts to help pay for player compensation. (More)

Primetime Insurance for Colorado Players

Colorado head coach Deion Sanders just secured historic disability insurance deals for his players ahead of the team’s Alamo Bowl appearance. The deals will protect his guys – two of which are expected to become top picks in the 2025 NFL draft – from injury in their final collegiate game. 

“We have a multitude of players that are draftable, that they received a draft grade,” Coach Prime said, “They had visibility (insurance) all season long, we want to make sure that if something were to happen, they would cover it.” 

The move is a win-win it seems. The players get to play in their bowl game with a mitigated risk of losing out on future earnings, and the fans get to watch the best players play in the bowl game. (More)

Making the CFP is Great for Business

Reaching the College Football Playoff isn’t just exciting for fans – it’s actually very lucrative for the schools themselves. In fact, merely making it into the field of twelve results in millions for every school involved. 

First there’s the ticket revenue, which – interestingly enough – is actually distributed to the participating conferences at the tournament’s conclusion, not simply taken in by whoever hosts the first-round home games. That’s so as not to punish the teams with first-round byes from losing out on money. 

Secondly, the TV payouts balloon depending on what conference the team comes from. Big Ten teams like Indiana, Penn State, and Ohio State got $4M each just for making the field. Oregon got $8 because of their first-round bye. If a Big Ten team wins it all, payouts could amount to $50 million. (More)

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ATHLETE SPOTLIGHT

Flau’jae Johnson

• School: LSU

• Position: Guard 

• Sport: Basketball

• Class: Junior

• Accolades: 

• 2024 Second Team All-SEC

• 2024 Albany 2 All-Region Team

• 2023 SEC Freshman of the Year

• 2023 SEC All-Freshman Team

• 2023 SEC Freshman of the Week (11/15/22, 11/22/22, 1/2/23)

• 2022 Goombay Splash All-Tournament Team

• NIL: Most athletes stick to sports content but Flau’Jae shares unfiltered behind-the-scenes access, while staying true to herself. She’s also mastered media partnerships, using every opportunity to collaborate and expand her reach.

NIL BLITZ

♦️ Marquette men’s basketball players are pooling some NIL earnings together to give to the team’s walk-ons

♦️ Arkansas’ holiday NIL auction was a massive flop, selling only two items

♦️ Alabama GM says that the pressure to win at ‘Bama is “a heavy weight” on the staff’s shoulders

♦️ Brian Kelly says recent NIL influx allows LSU to be “aggressive” with their portal recruitment

♦️ NIL has completely overhauled the trading card industry

♦️ This Pitt emeritus trustee is suing the school’s board over NIL policies

♦️ The Diego Pavia injunction could allow for seven-year college football careers

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

How does seeing the House lawyers' half-a-billion dollar compensation ask sit with you?

• Fine: they worked on a massive case and the price-tag itself obscures the fact that their work was market rate - 43%

• Don't love it: half-a-billion seems like they're grabbing for extra money - 57%