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re: Honest discussion about NIL. Would love to hear thoughts.

Posted on 4/25/24 at 10:38 am to
Posted by 3down10
Member since Sep 2014
23045 posts
Posted on 4/25/24 at 10:38 am to
quote:

Perhaps you would but it's standard in sports leagues.

There are also other industries (sales, certain medical businesses, insurance, property management, collections, among others) where % of revenue is not an uncommon split with the professional generating said revenue.

Just because you have life experience limited to a particular industry doesn't mean all industries follow that comp model.


False, they only get a % of the revenue they generated, and then they are responsible for their own expenses etc. Which is where the 60% I mentioned above comes from in my business.

So if you want to say that 60% gets a % of the revenue they generated, sure. But they actually generated 100% and I kept 40% for myself and gave them 60%.

That's not the same thing as one of them coming and saying they want a % of all the revenue. That would be ridiculous and never happen.
This post was edited on 4/25/24 at 10:39 am
Posted by ALhunter
Member since Dec 2018
2973 posts
Posted on 4/25/24 at 1:35 pm to
quote:

False, they only get a % of the revenue they generated, and then they are responsible for their own expenses etc.
This is incorrect. I've worked in finance/private equity my entire career so have seen comp structures of many industries and businesses large and small. One such structure includes a base salary and a revenue goal - over that goal an increasing % of generated revenue directly goes to the revenue generator.

Don't take my word for it look up the NBA and NFL revenue splits.

quote:

form together and abide by it's own set of rules to create a product/service

This is definitionally collusion under antitrust law and was directly addressed in the legal decisions. The judge's example was restaurants colluding to pay chefs less because it "makes the food taste better" - great argument.

You're effectively arguing for price fixing by saying it makes "college football taste better".

Collusion in Antitrust Law: Horizontal collusion exists where competitors at the same market level agree to fix or control the prices they will charge for their respective goods or services. For instance, two parties may collude by limiting or restricting supply, sharing insider information, or dividing the market.

If it creates more consumer protections then "collusion" can be allowable - for example industry standards. Whether that be around cleanliness of certain facilities, certification of technicians, or standardizating USB plugs. However, even this type of "collusion" can be challenged if it limits consumer choice, competition, etc.
This post was edited on 4/25/24 at 2:35 pm
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