NIL money at Iowa

[dbrocket]

I'm curious. Has anyone considered crowdfunding as a way to fund an NIL collective? Everything I'm seeing seems to be talking about getting a few rich guys to fund it, but 100,000 Hawkeye fans donating $100 apiece would probably be enough.

That would be $10,000,000 per year to cover 85 scholarship athletes and a handful of walk-ons. So, more than $100,000 per player, per year - not that it would be distributed evenly.

That might sound ambitious, but we sell 50,000-60,000 tickets apiece for 13 games. This would be a fraction of what fans spend on that.

And honestly, to buy tickets through the university, you have to pay money to the I-Club (whatever that is). It's more than the ticket cost. I don't see why it would be unrealistic that some of us would choose to do something similar to field a better team.


----------------------------------------------------
Update: It sounds like they're doing a crowdfunded collective called The Swarm Collective (per the most recent episode of Tom's podcast), but it's being run as a charity, which limits how much they can give guys (probably no more than $5,000/month), because they have to be able to justify the payouts to the IRS based on services performed.

I am super grateful to Tx_Hawk for setting this up, because I don't have the organizational ability to do it and apparently none of the rest of us were doing it, either. And they are coupling that with another organization that will help connect guys to companies looking for someone to promote them, etc.

But I would like us to do better and go further. I honestly think we *should* do barely-concealed pay-to-play. I think it's fair and it's allowable within the rules. And I think the way to do that here is crowd-funding. But it would need to be set up differently, so as not to be limited by the rules for non-profits.

 

[nbanflfactory]

I'm curious. Has anyone considered crowdfunding as a way to fund an NIL collective? Everything I'm seeing seems to be talking about getting a few rich guys to fund it, but 100,000 Hawkeye fans donating $100 apiece would probably be enough.

That would be $10,000,000 per year to cover 85 scholarship athletes and a handful of walk-ons. So, more than $100,000 per player, per year - not that it would be distributed evenly.

That might sound ambitious, but we sell 50,000-60,000 tickets apiece for 13 games. This would be a fraction of what fans spend on that.

And honestly, to buy tickets through the university, you have to pay money to the I-Club (whatever that is). It's more than the ticket cost. I don't see why it would be unrealistic that some of us would choose to do something similar to field a better team.

Season Tix donations should go to nil fund!!

 

[dbrocket]

Season Tix donations should go to nil fund!!

IDK if they CAN within the rules. But I wonder if we could do something like a Patreon or a GoFundMe or something for a collective? Or have a booth that sells little Hawkeye trinkets (player bobbleheads?) at a ridiculous markup outside the game and the proceeds fund the collective? Both?

I just think the broader fanbase is a stronger resource for Iowa than the pockets of our few wealthy backers.

 

[nbanflfactory]

IDK if they CAN within the rules. But I wonder if we could do something like a Patreon or a GoFundMe or something for a collective? Or have a booth that sells little Hawkeye trinkets (player bobbleheads?) at a ridiculous markup outside the game and the proceeds fund the collective? Both?

I just think the broader fanbase is a stronger resource for Iowa than the pockets of our few wealthy backers.

I'm sure a lawyer can find a way

 

[herkyhawk00]

I'm curious. Has anyone considered crowdfunding as a way to fund an NIL collective? Everything I'm seeing seems to be talking about getting a few rich guys to fund it, but 100,000 Hawkeye fans donating $100 apiece would probably be enough.

That would be $10,000,000 per year to cover 85 scholarship athletes and a handful of walk-ons. So, more than $100,000 per player, per year - not that it would be distributed evenly.

That might sound ambitious, but we sell 50,000-60,000 tickets apiece for 13 games. This would be a fraction of what fans spend on that.

And honestly, to buy tickets through the university, you have to pay money to the I-Club (whatever that is). It's more than the ticket cost. I don't see why it would be unrealistic that some of us would choose to do something similar to field a better team.

Why do we want to fund 85 scholarship athletes and a handful of walk ons? The big NIL money should be for the play makers.

 

[EvilMonkeyInTheCloset]

I'm curious. Has anyone considered crowdfunding as a way to fund an NIL collective? Everything I'm seeing seems to be talking about getting a few rich guys to fund it, but 100,000 Hawkeye fans donating $100 apiece would probably be enough.

That would be $10,000,000 per year to cover 85 scholarship athletes and a handful of walk-ons. So, more than $100,000 per player, per year - not that it would be distributed evenly.

That might sound ambitious, but we sell 50,000-60,000 tickets apiece for 13 games. This would be a fraction of what fans spend on that.

And honestly, to buy tickets through the university, you have to pay money to the I-Club (whatever that is). It's more than the ticket cost. I don't see why it would be unrealistic that some of us would choose to do something similar to field a better team.

Like I said, there's approximately 525,000 children in Iowa school systems right now.

Just have their parents give them $2 to fork over to support the Iowa NIL fund and you've got yourself a cool mil easy.

It's time we put our children to good use in our ultimate quest to help Iowa win a national championship.............

 

[dbrocket]

Why do we want to fund 85 scholarship athletes and a handful of walk ons? The big NIL money should be for the play makers.

Because we don't know who the playmakers will be until they start doing it and we want people to come here.

But, yeah, it almost certainly wouldn't be distributed evenly. I was just giving an average.

 

[Frosty7130]

IDK if they CAN within the rules. But I wonder if we could do something like a Patreon or a GoFundMe or something for a collective? Or have a booth that sells little Hawkeye trinkets (player bobbleheads?) at a ridiculous markup outside the game and the proceeds fund the collective? Both?

I just think the broader fanbase is a stronger resource for Iowa than the pockets of our few wealthy backers.

They can't. That's revenue for the AD, and the school cannot provide any funds for NIL, as that's considered pay for play.

 

[Hawk_4shur]

Certainly someone could start a GoFundme site, but -

1. How do you know it's legit? The University can sanction it, so it would have to be someone very reputable.

2. Who is going to determine how the money is spent? Or, will it be dreaded "committee"? Who will that be?

3. As an accountant, I always think about the tax ramifications. I know I won't be able to deduct my $100, but what is it? Is it a gift? To be a gift is has to be "to someone". And in this case, that someone is going to pay tax on it, so it isn't a gift (for tax purposes).

4. On the same tax theme, say someone starts a GoFundme site and raises that $10,000,000. But, by the end of 2022 the fund has only spent $6 million. Is someone going to pay tax on the remaining $4 million? I seriously doubt the sponsor would qualify for tax-exempt status. Maybe accrual accounting allows them to defer the income recognition until it's spent?

5. And finally, doesn't there have to be SOME legitimate reason for someone to sell their NIL? I suppose you could put pictures on the site as a way to gather up more money.

Very strange new world.

 

[dbrocket]

Certainly someone could start a GoFundme site, but -

1. How do you know it's legit? The University can sanction it, so it would have to be someone very reputable.

2. Who is going to determine how the money is spent? Or, will it be dreaded "committee"? Who will that be?

3. As an accountant, I always think about the tax ramifications. I know I won't be able to deduct my $100, but what is it? Is it a gift? To be a gift is has to be "to someone". And in this case, that someone is going to pay tax on it, so it isn't a gift (for tax purposes).

4. On the same tax theme, say someone starts a GoFundme site and raises that $10,000,000. But, by the end of 2022 the fund has only spent $6 million. Is someone going to pay tax on the remaining $4 million? I seriously doubt the sponsor would qualify for tax-exempt status. Maybe accrual accounting allows them to defer the income recognition until it's spent?

5. And finally, doesn't there have to be SOME legitimate reason for someone to sell their NIL? I suppose you could put pictures on the site as a way to gather up more money.

Very strange new world.

I agree with all of this, but I think it's surmountable.

1. I think the most logical thing would be an alumni, like a Chad Greenway or Brad Banks or someone. I would say a popular enough fan blogger could do it, but they kind of behave journalistically and that might be a conflict of interest.
2. This is the thing with the collectives overall. They must be coordinating with the coaches, right? But is that technically allowed?
3-4. IDK about tax things AT ALL.
5. The players would have contracts. Presumably they'd have stuff they were supposed to do. Maybe it could be signing autographs or meeting fans or taking videos? But in fact, yes, it would be a token.

 

[hawkjt]

Maybe we could use UIHospitals as the vehicle.
Fans contribute to UI Hospitals who take a piece with the rest going to players I n fees for prepping the Hospitals which they pro bono now. Everybody wins.

 

[dbrocket]

I don't think it could be officially affiliated with any part of the University. But, I could be wrong.

 

[SolarHawk]

If there isn’t already a plan in place and wheels in motion, this is a major folly on the part of Iowa Football. we are already at a huge disadvantage here, I would hope there are things happening behind the scenes.

Edit: and by “Iowa football” I’m not speaking of the university specifically but the whole universe of Iowa football if that makes sense. I realize the school has to approach this carefully as to not be in violation of the rules, whatever they may be.

 

[mikesright]

You could theoretically do NIL through ticketing and PSL/Donations. Its the same model as a lot of high schools - a booster organization runs the stadium on gameday, renting it from the school for a fee.

If the money from the new Big Ten contracts in is big enough, and by all accounts its going to be $100m + per year, the athletic department could run itself without very much or potentially any game day revenue. Remember, they have sponsor revenue through Learfield, apparel contracts, licensing, and some donor cash to kick in with that B1G money. Iowa lost about $50-60 million during Covid, some of that was lost TV money, the new TV deal is about $50 million more than before.

 

[luvmyhawks]

I agree with all of this, but I think it's surmountable.

1. I think the most logical thing would be an alumni, like a Chad Greenway or Brad Banks or someone. I would say a popular enough fan blogger could do it, but they kind of behave journalistically and that might be a conflict of interest.
2. This is the thing with the collectives overall. They must be coordinating with the coaches, right? But is that technically allowed?
3-4. IDK about tax things AT ALL.
5. The players would have contracts. Presumably they'd have stuff they were supposed to do. Maybe it could be signing autographs or meeting fans or taking videos? But in fact, yes, it would be a token.

Once you and @Hawk_4shur figure these questions out, make it happen and I am in.

 

[nbanflfactory]

Like I said, there's approximately 525,000 children in Iowa school systems right now.

Just have their parents give them $2 to fork over to support the Iowa NIL fund and you've got yourself a cool mil easy.

It's time we put our children to good use in our ultimate quest to help Iowa win a national championship.............

1 mill? that'll buy a punter for half a season

 

[EvilMonkeyInTheCloset]

1 mill? that'll buy a punter for half a season

Worth it.

 

[DogBoyRy]

If there isn’t already a plan in place and wheels in motion, this is a major folly on the part of Iowa Football. JFC, we are already at a huge disadvantage here, I would hope there are things happening behind the scenes.

Edit: and by “Iowa football” I’m not speaking of the university specifically but the whole universe of Iowa football if that makes sense. I realize the school has to approach this carefully as to not be in violation of the rules, whatever they may be.

I’ve been told a group of donors has started some work on this.
Same person said he was told it’s pushing a boulder uphill working with UI compliance, marketing, ad legal, etc.

 

[kceasthawk]

Why do we want to fund 85 scholarship athletes and a handful of walk ons? The big NIL money should be for the play makers.

And how would those playmakers do if the lineman don't block for them???????

 

[nbanflfactory]

And how would those playmakers do if the lineman don't block for them???????

i assume he is actually talking more about guys that see few if any snaps. both lines are obviously crucial

 

[herkyhawk00]

Because we don't know who the playmakers will be until they start doing it and we want people to come here.

But, yeah, it almost certainly wouldn't be distributed evenly. I was just giving an average.

Our success with walk-ons should recruit walk-ons. Not sure how a walk on can expect NIL money when he wasn’t good enough at the time to earn a scholarship.

And how would those playmakers do if the lineman don't block for them???????

You pay good OL and other good players good NIL money. It’s not hard. Proctor would probably be one of those. To me, I don’t feel a freshman should get any NIL money to make it much more about incentives and such.

 

[83Hawk]

I’ve been told a group of donors has started some work on this.
Same person said he was told it’s pushing a boulder uphill working with UI compliance, marketing, ad legal, etc.

Why does this not surprise me?

When NIL was announced my second concern (the first being that it would ruin college football), was that there would not be a sufficient NIL program in place for the University to keep up with other institutions. If what this person says is true, it is confirming my worst fears….that the University of Iowa would push back on NIL.

Hopefully that is not what is happening!

 

[SolarHawk]

Why does this not surprise me?

When NIL was announced my second concern (the first being that it would ruin college football), was that there would not be a sufficient NIL program in place for the University to keep up with other institutions. If what this person says is true, it is confirming my worst fears….that the University of Iowa would push back on NIL.

Hopefully that is not what is happening!

This times a million. Iowa has decent resources, NIL could be used to our advantage, yet it sounds like the powers that be will make it our detriment

 

[cidhawkeye]

Worth it.

Punting is winning

 

[SA_Hawk]

Pull initial money from the university endowment to fund an NIL fund that would eventually grow and be self sustaining.

 

[SA_Hawk]

The biggest wildcard in NIL money by far is Nebraska. They have a alum who is worth 200 billion dollars and at age 91. If he drops 50-100 billion into the University of Nebraska's lap to do as they wish it could tip the scales in their favor for the foreseeable future.

 

[Gonzo Bloor]

Pull initial money from the university endowment to fund an NIL fund that would eventually grow and be self sustaining.

Pretty sure any and all endowment funds would be off limits for something like this. They're off limits for most things.

 

[nbanflfactory]

The biggest wildcard in NIL money by far is Nebraska. They have a alum who is worth 200 billion dollars and at age 91. If he drops 50-100 billion into the University of Nebraska's lap to do as they wish it could tip the scales in their favor for the foreseeable future.

Lmao, never gonna happen....

 

[the24fan]

LMAO.🤣 So you’re saying take up a collection for the top recruits to come to Iowa, collect a free education to work on their skills for the pro game?
No thanks! I love college sports, but no way in hell am I making an 18 year old kid any richer for playing a damn college game! Anyone who would do this is an absolute idiot

 

[hawkjt]

Warren Buffet is way too smart to ever consider this scheme.
He is giving most of his fortune to charities to make the world a better place.

 

[cidhawkeye]

Warren Buffet is way too smart to ever consider this scheme.
He is giving most of his fortune to charities to make the world a better place.

Is there a bigger charity case than Debby athletics? Might not meet the ‘better place’ criteria.

 

[MWardT]

The director of Iowa State’s NIL fund is a law student. So I’m pretty sure any Iowa fan can start whatever they want with success.

 

[Ladell-hawk]

Pull initial money from the university endowment to fund an NIL fund that would eventually grow and be self sustaining.

Good grief man, sure hope you are kidding. The endowment is for the academicand research mission of the University, not for something that benefits athletes that are already receiving a full ride scholarship and a monthly stipend.

 

[Franisdaman]

Here's how Iowa can compete in the NIL world.

In 2018-2019, Iowa brought in $39 Million in contributions. If some of these donors instead donated to the NIL Collective, then Iowa might be good to go when it comes to making NIL deals/offers to players.

And don't forget; TV money is going to increase dramatically, so whatever Iowa loses in contributions (that goes to the NIL Collective) will be replaced by TV money.

This is what USA Today published in July, 2020 on revenues & expenses for Division I schools. This info used to be free; now you have to subscribe to access it.

As you can see below, Iowa was $56,564,000 ahead of the Clowns.

Iowa brought in $20M more in contributions compared to Clown U.

Total Revenue Rankings:

#1 Texas, $223,880,000
#2 Texas A&M, $212,748,000

The B1G Teams:
#3 Ohio State, $210,548,000
#4 Michigan, $197,820,000
#6 Penn State, $164,529,000
#11 Wisconsin, $157,660,000
#14 Iowa, $151,976,000
#18 Michigan State, $140,011,000
#21 Nebraska, $136,233,000
#24 Minnesota, $130,456,000
#25 Indiana, $127,833,000
#29 Illinois, $118,565,000
#31 Purdue, $110,845,000
#33 Maryland, $108,796,000
#39 Rutgers, $103,251,000 (@MrsScrew )

OTHERS:
#44 Iowa State, $95,412,000


TOTAL 2018-2019 REVENUE & EXPENSES of 227 TEAMS ARE HERE (Subscription required): https://sports.usatoday.com/ncaa/finances/

Click on the team to get a breakdown of the REVENUE Total & EXPENSE Total.

For IOWA (as you can see):
$27,179,000--Ticket Sales
$38,627,000--Contributions
$71,006,000--Rights/Licensing
$14,514,000--Other
$.....650,000--Student Fees
.......................................................
$151,976,000 TOTAL REVENUE



For The Clowns (as you can see):
$16,475,000--Ticket Sales
$18,207,000--Contributions
$52,016,000--Rights/Licensing
$06,659,000 --Other
$02,054,000--Student Fees
.......................................................
$95,412,000 TOTAL REVENUE

 

[dbrocket]

The director of Iowa State’s NIL fund is a law student. So I’m pretty sure any Iowa fan can start whatever they want with success.

View embedded media

I find it interesting that they're doing something like what I suggested. I wonder if Iowa will do the same.

 

[MeetTheFerentz]

All the self-proclaimed richies that peruse this board on a regular basis and Iowa doesn't have a multi-billion dollar NIL in place yet?

 

[nbanflfactory]

LMAO.🤣 So you’re saying take up a collection for the top recruits to come to Iowa, collect a free education to work on their skills for the pro game?
No thanks! I love college sports, but no way in hell am I making an 18 year old kid any richer for playing a damn college game! Anyone who would do this is an absolute idiot

But it's ok to spend 100s or 1000s to watch them??

Lmfao

 

[nbanflfactory]

Here's how Iowa can compete in the NIL world.

In 2018-2019, Iowa brought in $39 Million in contributions. If some of these donors instead donated to the NIL Collective, then Iowa might be good to go when it comes to making NIL deals/offers to players.

And don't forget; TV money is going to increase dramatically, so whatever Iowa loses in contributions (that goes to the NIL Collective) will be replaced by TV money.

This is what USA Today published in July, 2020 on revenues & expenses for Division I schools. This info used to be free; now you have to subscribe to access it.

As you can see below, Iowa was $56,564,000 ahead of the Clowns.

Iowa brought in $20M more in contributions compared to Clown U.

Total Revenue Rankings:

#1 Texas, $223,880,000
#2 Texas A&M, $212,748,000

The B1G Teams:
#3 Ohio State, $210,548,000
#4 Michigan, $197,820,000
#6 Penn State, $164,529,000
#11 Wisconsin, $157,660,000
#14 Iowa, $151,976,000
#18 Michigan State, $140,011,000
#21 Nebraska, $136,233,000
#24 Minnesota, $130,456,000
#25 Indiana, $127,833,000
#29 Illinois, $118,565,000
#31 Purdue, $110,845,000
#33 Maryland, $108,796,000
#39 Rutgers, $103,251,000 (@MrsScrew )

OTHERS:
#44 Iowa State, $95,412,000


TOTAL 2018-2019 REVENUE & EXPENSES of 227 TEAMS ARE HERE (Subscription required): https://sports.usatoday.com/ncaa/finances/

Click on the team to get a breakdown of the REVENUE Total & EXPENSE Total.

For IOWA (as you can see):
$27,179,000--Ticket Sales
$38,627,000--Contributions
$71,006,000--Rights/Licensing
$14,514,000--Other
$.....650,000--Student Fees
.......................................................
$151,976,000 TOTAL REVENUE



For The Clowns (as you can see):
$16,475,000--Ticket Sales
$18,207,000--Contributions
$52,016,000--Rights/Licensing
$06,659,000 --Other
$02,054,000--Student Fees
.......................................................
$95,412,000 TOTAL REVENUE

Schools can't pay kids so whatever schools generate other than donations doesn't matter ...

 

[MitchLL]

The director of Iowa State’s NIL fund is a law student. So I’m pretty sure any Iowa fan can start whatever they want with success.

View embedded media

I'm sure Iowa has their own base of resources, similar to the Albaugh family at ISU, that will develop a NIL program.

I agree that there's likely something already in the works.

 

[dtripp26]

I'm curious. Has anyone considered crowdfunding as a way to fund an NIL collective? Everything I'm seeing seems to be talking about getting a few rich guys to fund it, but 100,000 Hawkeye fans donating $100 apiece would probably be enough.

That would be $10,000,000 per year to cover 85 scholarship athletes and a handful of walk-ons. So, more than $100,000 per player, per year - not that it would be distributed evenly.

That might sound ambitious, but we sell 50,000-60,000 tickets apiece for 13 games. This would be a fraction of what fans spend on that.

And honestly, to buy tickets through the university, you have to pay money to the I-Club (whatever that is). It's more than the ticket cost. I don't see why it would be unrealistic that some of us would choose to do something similar to field a better team.

I'd be surprised if there are 100,000 Iowa fans willing to pony up $100. Maybe I'm wrong but I don't see it.

Season Tix donations should go to nil fund!!

First, that can't happen. Second, that is a major revenue stream for the A.D. And if more fans start contributing directly to a NIL collective rather than donate to the A.D. those season ticket donations might just be going up, along with ticket prices. The A.D. HAS to get their money.