The difference is we can’t spend our money over the $20M cap. We have to spend donations beyond that. So it’s less about franchise value/ media rights/ merch sales/ fan base and more about big dollar donors, particularly billionaires.
Even when you dig into billionaires guys like Phil knight ($35B) could drop $40-50M a year and it’s pocket change. Mark cuban at $6B has more of a limit where $20-30M might be hard to sustain. Matt Campbell at TTech is probably in the 5-10B range. Even if we were to get a guy like LeBron at $1.5B $20M a year would be a lot. Not bad if it were a 1 time donation, but the schools need that money every year and that’s a lot to ask. Particularly when most of their assets likely aren’t liquid.
OSU has a supposedly great business school. If the people inside of it can't figure out a way to make a profitable business venture out of this that oh-by-the-way is based on the first or second most valuable sports franchise in CFB then they shouldn't be able to hold their head up on campus.
Look at what the Guggenheim group is doing with the Dodgers in MLB for starters. It's a lot more than just dumb luck of being in the L.A. tv market and think to ourselves "How do we build an eco system that creates non-capped advantages to the OSU football franchise"? We need to quit thinking in such linear terms as "donate money to the NIL fund."
I would take advantage of a huge alumni base that didn't have the black swan billionaire and make the Buckeye Venture fund. People invest rather than donate. It needs to be successful obviously but given that it is-you have cap workaround #1- offer players an equity share and or get paid to advertise for it. It would invest in many things (like all the midwest tech hub stuff in Columbus) but for sure I'd look at doing these:
Real estate development: Olentangy district development-get into the land development business as part of the Buckeye Venture fund.
Media: Create a direct to public media company that gets around the shared BTN/FOX money. Distribute content directly to consumers, Netfilx etc etc
Marketing company: They are doing this with the uniform patch project. When a player signs with OSU he gets to participate in the "Buckeye sports group" or whatever you call it. The money earned off the brand is for OSU only and is distributed around the cap, directly to players. Also what I feel we are lite on is marketing the NIL value of our guys more aggressively. I mean the real NIL value, not this fake donation/write off shit. Continue it for them after OSU...become a sports agency inside our version of Guggenheim.
Last but not least, look at the deferral play the Dodgers are using. Your investments from alumni/public give you a "float" use it, make it grow and then pay players more but later. It's a trade off as old as time and it works for both parties.
They need to stop fucking around and trying to compete under the old system of a University's hierarchy. It creates blind spots, mis-alignment and lethargy. Like it or not, you are in a different environment now. Adapt or die.
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