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the elephant in the room of the BK buyout
Posted on 11/22/24 at 2:13 pm
Posted on 11/22/24 at 2:13 pm
There is so much talk here about how LSU can't afford the BK buyout for years and laughing at them for letting their AD write checks they can't afford to cash, but I think we are missing the discussion of a bigger problem that will impact almost every SEC program.
Once the House settlement is completed each program will have a player payroll (funded by the AD not boosters like NIL is) of $20-ish million a year.
Some of that $20 million will come from cutting other sports, some will come from asking more from fans, but those two options have limits. Its clear that the biggest cut HAS TO come in coaching salaries. Many college coaches make what NFL coaches make or more with bigger buyouts despite being in a league that generates way smaller revenues. In many ways coaching salaries being so large are an artifact from the old era where you couldn't pay players and so paying coaches obscene rates was the only way an AD budget could improve the football product.
Something has to give.
But how do we get from A to B? Any program that already has a good coach the day of the House settlement that has a reasonable salary will be fine, but as we have seen all it takes is one magic season and their agents will demand market rates again. Everyone else who wants to hire a coach will have to deal with current day salary comps which won't be affordable post-House.
There is no one in charge, and no SEC program is going to want to sacrifice their success and let a great coach leave because "they wanted too much money after one good season." I foresee programs taking out loans and playing chicken with each other hoping that SOME OTHER PROGRAM will pop the bubble and take the hit and move the coaching salary market backwards. But playing chicken is why NIL became the monster it is.
What do yall think is the answer? A conference cap on coaching salaries? Personal liability for ADs like when CEOs of publicly traded companies sign off on bunk quarterly statements?
Once the House settlement is completed each program will have a player payroll (funded by the AD not boosters like NIL is) of $20-ish million a year.
Some of that $20 million will come from cutting other sports, some will come from asking more from fans, but those two options have limits. Its clear that the biggest cut HAS TO come in coaching salaries. Many college coaches make what NFL coaches make or more with bigger buyouts despite being in a league that generates way smaller revenues. In many ways coaching salaries being so large are an artifact from the old era where you couldn't pay players and so paying coaches obscene rates was the only way an AD budget could improve the football product.
Something has to give.
But how do we get from A to B? Any program that already has a good coach the day of the House settlement that has a reasonable salary will be fine, but as we have seen all it takes is one magic season and their agents will demand market rates again. Everyone else who wants to hire a coach will have to deal with current day salary comps which won't be affordable post-House.
There is no one in charge, and no SEC program is going to want to sacrifice their success and let a great coach leave because "they wanted too much money after one good season." I foresee programs taking out loans and playing chicken with each other hoping that SOME OTHER PROGRAM will pop the bubble and take the hit and move the coaching salary market backwards. But playing chicken is why NIL became the monster it is.
What do yall think is the answer? A conference cap on coaching salaries? Personal liability for ADs like when CEOs of publicly traded companies sign off on bunk quarterly statements?
8
Posted on 11/22/24 at 2:24 pm to cardboardboxer
the revenue sharing will be legal and the rest of the player payments will go back to being under the table like it was before
the revenue sharing is going to put a strain on the mega staffs you see now at all these schools
something will have to be cut to balance the books over time
the revenue sharing is going to put a strain on the mega staffs you see now at all these schools
something will have to be cut to balance the books over time
Posted on 11/22/24 at 2:26 pm to cardboardboxer
Get this poliboard shite out of here, cardinal
Posted on 11/22/24 at 2:33 pm to cardboardboxer
you have a very active imagination
Posted on 11/22/24 at 2:33 pm to cardboardboxer
Coaching salaries have been growing out of control, and now with the House settlement, it’s clear that something has to change to keep things sustainable. A conference cap could be a good idea, but I feel like the real challenge will be finding a balance one that keeps coaches happy but doesn’t bankrupt athletic departments. I wouldn't be surprised if ADs start pushing for more financial accountability or loans to cover these costs, but that only digs the hole deeper.
This post was edited on 11/22/24 at 2:34 pm
Posted on 11/22/24 at 2:56 pm to Combaro01
quote:
A conference cap could be a good idea, but I feel like the real challenge will be finding a balance one that keeps coaches happy but doesn’t bankrupt athletic departments.
Maybe if the SEC and the B1G break away whatever new league they join can have a single commissioner and that person could set the rules for the entire top tier.
The problem now is neither would want to do that and give the other a competitive advantage even if it bankrupts their programs to not do it.
Posted on 11/22/24 at 2:58 pm to teamjackson
quote:
Get this poliboard shite out of here, cardinal
HAHA I love how LSU fans think any thought that is more than a paragraph is pollical. I used to call paragraphs the "LSU fan filter" on here.
With that said, maybe the answer is political at a state level. That law Mississippi has about coaching contracts have probably kept MSU and Ole Miss from wasting money on coaches. I could see other states copying that if the big program in the state ends up on the bad end of a few coaching hires.
Posted on 11/22/24 at 3:01 pm to cardboardboxer
The obvious answer is set up a super conference to act as a league and bargain TV rights and act as the agent for payment in exchange for scheduling rights and licensing rights. They cut a check to the schools but they pay the players and run the league.
Posted on 11/22/24 at 3:07 pm to nicholastiger
quote:
the revenue sharing is going to put a strain on the mega staffs you see now at all these schools
something will have to be cut to balance the books over time
Exactly the question: how do you cut and not lose to the competition that doesn't?
And given that, how will programs avoid financial ruin (ie loans) when fans demand success and there are few rewards for being the program that resets the clock for everyone?
Posted on 11/22/24 at 3:17 pm to cardboardboxer
tldr
Posted on 11/22/24 at 3:18 pm to cardboardboxer
quote:
What do yall think is the answer?
A LOT of non-revenue producing sports will be cut. Big football program are still producing massive net revenues even with bloated coaching salaries. Those revenues fund the non-revenue sports. When those net revenues are significantly cut, they're not going to cut the knees out from their life blood, the football programs. They will cut the fat, the non revenue producing sports. I think you may also see some struggling G5 programs shut down or drop divisions. They won't be able to stay afloat when revenue sharing starts
It's honestly sad. That's tens of thousands of true student athletes nation-wide that can't make money playing their sports professionally but can use their athletic ability to get an education that many of them, otherwise, never would receive.
This post was edited on 11/22/24 at 3:21 pm
Posted on 11/22/24 at 3:26 pm to lsufball19
quote:
A LOT of non-revenue producing sports will be cut.
I think that is why A&M hired the last AD that we did, he has blood on his hands from doing this at previous stops.
quote:
They will cut the fat, the non revenue producing sports.
Title IX is a big wrinkle in that plan. I have a bad feeling just like everything else in college football recently its going to be a group of judges that really make these decisions.
Posted on 11/22/24 at 3:34 pm to cardboardboxer
Coach salaries are not just a SEC problem, everybody is overpaying. If SEC instituted a coach salary cap, the best coaches would just go to the B1G, ACC or Big 12.
Dabo and Norvell are getting paid boatloads. Dabo will never win another championship in this era, Clemson is too poor to compete and Dabo doesn't believe in the portal. FSU is stuck with Norvell who is the most fraudulent HC in FBS. Supposedly a offensive wizard and the first year he doesn't have boatloads of NFL talent that his boosters bought him he has the worst offense in FBS, playing in a garbage conference.
Look at the B1G. Those fricks are overpaying substantially. Lincoln Riley supposedly has a $90m buyout to get his arse kicked by the likes of Minnesota and Maryland. Michigan State and Washington are both paying $7.5m a year for guys who are in dog fights to get bowl eligible against weak schedules. Wisconsin is paying Fickell $8m+ a year to destroy their program. Shite, Indiana just gave Cignetti a monster deal (8 year $9m a year before bonuses) for having one good season against the weakest schedule he will ever have.
Dabo and Norvell are getting paid boatloads. Dabo will never win another championship in this era, Clemson is too poor to compete and Dabo doesn't believe in the portal. FSU is stuck with Norvell who is the most fraudulent HC in FBS. Supposedly a offensive wizard and the first year he doesn't have boatloads of NFL talent that his boosters bought him he has the worst offense in FBS, playing in a garbage conference.
Look at the B1G. Those fricks are overpaying substantially. Lincoln Riley supposedly has a $90m buyout to get his arse kicked by the likes of Minnesota and Maryland. Michigan State and Washington are both paying $7.5m a year for guys who are in dog fights to get bowl eligible against weak schedules. Wisconsin is paying Fickell $8m+ a year to destroy their program. Shite, Indiana just gave Cignetti a monster deal (8 year $9m a year before bonuses) for having one good season against the weakest schedule he will ever have.
This post was edited on 11/22/24 at 3:35 pm
Posted on 11/22/24 at 4:25 pm to cardboardboxer
quote:
Title IX is a big wrinkle in that plan. I have a bad feeling just like everything else in college football recently its going to be a group of judges that really make these decisions.
If football players become paid employees, removing the academic component, Title IX won’t matter like it does now
Posted on 11/22/24 at 5:35 pm to cardboardboxer
That turd is not an LSU fan
Posted on 11/22/24 at 5:37 pm to lsufball19
quote:
If football players become paid employees, removing the academic component, Title IX won’t matter like it does now
I just don't see how to get from here to their without more lawsuits. The House proposal is a "rolling" status where players have to sign over their rights every year or not get on the payroll. But even at $20 million the players will get paid WAY less as a percentage of revenue than NFL players are paid.
I think it won't end until Congress acts or college football is a minor league.
Posted on 11/22/24 at 6:12 pm to cardboardboxer
quote:
I think it won't end until Congress acts or college football is a minor league.
And at that point, I think fan interest decreases significantly and value of the product follows. People seems to forget that the interest in college sports has to do with fans’ connections to the school, not the marketability of the athletes. When fans lose that connection, college football becomes as interesting as minor league baseball.
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