Michigan launches non-profit NIL organization Hail!Impact
There's been some chatter in the Twitterverse that there would be some NIL news later this week. My speculation (considering how new it is and how I haven't heard about it until now) is that this is what the hype has been about:
It's basically Michigan's version of other schools 501c3 non-profit collectives (Ohio States "Foundation" and Notre Dame's "FUND") where they take donations and then distribute payments to players in exchange for their participation in charitable events/activities.
Their goal is to raise 5 million dollars so as to pay each player on the team 40k.
Hey, not everyone can have as appropriate name for their NIL program as "F.U. ND".
March 30th, 2023 at 10:34 AM ^
I've got 5 on it.
March 30th, 2023 at 10:46 AM ^
The terms hail and impact... Good for Michigan, bad for roofing and siding.
Great for roofing and siding installers!
No kidding, they're like locusts right now down here. Making that $$$.
March 30th, 2023 at 10:47 AM ^
This is a huge win in the #crootin realm. Some may clutch their pearls, but this is the way business is done now. It is encouraging to see Michigan getting up to speed on NIL.
March 30th, 2023 at 11:37 AM ^
A general comment / perspective about NIL. I'm "old school", but - hopefully, also understand the direction of certain things - like collegiate athletics and markets.
First, I place value in a scholarship. An education prepares someone for life and contributing / leading in society, raising / providing for a family, and getting value from the gifts we've been given.
Second, I do believe the monies associated with collegiate (and professional) sports is incredible - and it's direction isn't going to change. Nothing you or I can say or do will impact that.
Third, the commitment that many athletes make to achieve in their given sport is very significant. It takes a great deal of time - and, balancing competitive athletics and rigorous academic requirements is not easy. In season, most student athletes (regardless of their sport - whether revenue generating or not) have a non-stop calendar - between attending classes, S&C, practices, travel to/from games, etc. - there's barely time to watch a movie. "Regular" students are very busy - student athletes are even busier.
Fourth - what do I think is "ok" with NIL. This falls into a lot of categories - and what's appropriate for associated compensation.
NIL - in what I perceive as its initial state - Name, Image, and Likeness - whether it's in a video game, or on a poster for an athletic goods / apparel company - I have no problem with this.
Jerseys - a share of jersey revenue to go to the student athlete - I have no problem with this.
Autograph sessions. Student athletes receiving compensation, or stipend, for specific marketing events / activities - I have no problem with this. Across the collegiate landscape - a question might be - "How much should be paid for an autograph, or autograph session?" I would defer to the market - but, this isn't realistic. You could have a booster / donor pay between $100 and $ 1,000 for an autograph session - which would seem ok. Another school could pay $ 250K - which I would perceive as excessive - but, it's a market system - and who is to define what the true value of anything is.
This thread discussed 501 (c) (3) organizations. If student athletes are involved in increasing awareness and fundraising for recognized organizations - such as Mott's, I have no problem with this. Though, I would hope the student athletes would have a sense of support, interest, commitment, and community to keep visiting Mott's patients - sharing the "joy" of a conversation and time together with those who are dealing with something that brought them to Mott.
Media revenue sharing. Harbaugh has mentioned this - and, I would be fine with it. However, any revenue sharing has to address students in non-revenue generating sports as well. I'm not proposing a specific solution - but, taking all student athletes into consideration is important. SO, media sharing - especially for conference specific (e.g. Big Ten Network) programming / media agreements - seems fair.
Using the "Block M" and other trademarked content. This must follow very defined guidelines. Use of trademarked symbols reflects an association with the university - which, though some may disagree - is bigger than the athletic department.
So, what "doesn't work" for me. I'd begin with "pay for play". Let's be honest - this is going on all over the country - and, certain schools are more visible than others. This won't be figured out or addressed for a while. It doesn't matter if it's Texas A&M or Florida - NIL has replaced traditional bag men. Michigan's approach seems to be - "Play for play is not aligned with our principles."
The next is noticeable / significant compensation that might create dissension in the locker room. One example might be cruising around in an AMG Mercedes. Students having cars, or aligned with a dealership is one thing - there's a point of "excess". Supreme Court Justice Potter Stewart once said "I know it when I see it." And, I recognize this one is qualitative in nature.
Endorsing organizations that may not be aligned with the university's goals and mission. Again, this is qualitative - it could be a liquor store, cannabis retailer, etc. I would not support this. These private entities could structure an agreement / marketing activity with a student athlete - though, my preference would be that these relationships not be pursued. One factor could be legal age.
The key - again - in my mind, is balance - with a focus on when and how an association with the university could be drawn.
As I mentioned in another comment - understanding this landscape, which has evolved noticeably since it's introduction - is essential to create entities that the entire Michigan ecosystem - academics, athletics, community, etc. - can support. It's taking time - but, it does seem to have been well thought out.
P.S. - On a tangent - what would seem to be "an appropriate cost" - or perhaps "limit" for a prospect's official visit to a school Yes, I think of a highly recruited QB's official visit to Texas last year. The cost for that visit - $280K. I'm not sure what you think - but, I think that amount of money for a single prospect's visit is excessive, ridiculous, and absurd. I guess I need to familiarize myself with the NCAA's recruiting guidelines and limits. Oh - it doesn't look like there is a limit. Yes - the NCAA doing - or not doing - their thing.
Amazinblue, you make lots of good points.
But boiled down, aren't you just saying what all of us agree on, that "certain things" should be considered? The trouble has been and will continue to be the details involved in all the NIL things.
Also, I would have figured being "old school" would include knowing the difference between it's and its.
Vet,
First, thank you for calling me out - grammatically - I’ve corrected my comment.
The detail - is really where the rubber meets the road. I think the challenge is answering the question of “what is something worth”?
I think Michigan is taking a thoughtful approach - which may be “too” thought provoking and detail oriented. Unless, or until, there is a set of defined fees for specific activities - it seems as if the playing field will remain unlevel, with the amount a given entity, or business, is willing to pay for services.
A couple simple scenarios would be autograph signing, or an athlete’s endorsement. What is a fair fee for these services. The beauty is in the eye of the beholder. We have already seen agreements worth hundreds of thousands of dollars. Could there be legislation, or guidelines, that set a price for an activity? Theoretically, it’s possible - but, in a free market - unlikely to be enforceable or even legal.
My guess is that most fans are ok with NIL, but - are afraid it will turn into a highest bidder scenario. And, the unanswered question is - how long will boosters / NIL collectives provide funds without a return. Will they do it for decades just to maintain their status and be an influencer at a school?
Unfortunately, I think Pandora’s Box has been opened and creating any controls to create a level playing field between schools and conferences seems impossible, or at the least, unlikely.
Amazin,
My hopeful side thinks it will all sort itself out well.
However, my hopeful side is closely connected to my naive side, so I'm not confident. Instead, we may see the Pandora's Box you envision. One particularly worrisome possibility is that boosters of schools where the classroom is subordinate to the football field may simply outpace attempts to take a moderate approach, that any "moderate approach" becomes a euphemism for not doing much.
Back to hope.
Vet,
We may have similar perspectives - I'd like to believe there are principles of right and wrong that I live by. However, I also realize the world doesn't necessarily operate in that fashion.
IMO, as you point out - there are boosters that will subordinate (great word to describe it) academic priorities to support athletic performance. And, I believe Michigan's academic and athletic leadership are being especially cautious and structured to ensure the principles they adhere to are not compromised through NIL, or rouge agents.
If there is one thing that I believe is happening in Ann Arbor it's the focus on principles - and balance - of academic and athletics. This is manifest through the culture we've seen evolve over the past two or three seasons. There seems to be an emphasis in these principles / culture of "doing it right" - and, associated with that is the rationale of WHY Michigan is structuring and executing NIL in the manner it is - as well as that NIL is only a portion of the athletic experience.
My perspective is that certain schools are promoted NIL as a "YOU get paid now", while Michigan emphasizes "the forty year plan" and being prepared for life. This is part of the reason Michigan's approach may appeal more to a individual who possesses certain characteristics - one of which may be "Team, Team, Team" - and, that is part of the culture.
Oh, how wonderful it would be to have a crystal ball that showed what the future may be.
Go Blue!
March 30th, 2023 at 12:12 PM ^
Is this the Todd Anson thing he’s been bitching about all these months? How much is his cut off the top?
March 30th, 2023 at 12:49 PM ^
I thought the same thing but it looks like Todd just wants to be in the know.
He's not listed anywhere on the formal board. Not even as an advisor. My guess is that he heard about this initiative through Harbaugh or others and just tweeted about it to push it forward (and look like he's in the know).
Looks like a well-designed program. We weren’t the first, but hopefully we can be the best!
How rigorous is the qualification for the 501(c)(3) classification? The article noted that this was still in process.
I have to wonder if an organization that is only giving 20% of funds to charity would qualify (10% to operating expenses, 70% to players).
The program also mandates and coordinates over 2000 hours of community service to local nonprofits (that the nonprofits design) and does a full educational series for the student athlete. You could argue that each of those focuses gives em a good shot at a 501c3. The fact they have all three, and a high powered attorney as their co founder, makes me feel like this is in the bag.