Eleven Warriors starts new “for-profit” NIL collective

Submitted by Blue@LSU on April 12th, 2023 at 11:46 AM

11 Warriors has started The 1879 Society (or is it THE 1870 Society?), a for-profit NIL collective. 

INTRODUCING THE 1870 SOCIETY

Here are some of the “perks” of donating:

So how does this all work? Ohio State has been a great partner as we've planned this out, and they've stepped up to provide a series of extraordinary perks and rewards for members, whether you're a fan, you own a small business, or you're a decision-maker at a Fortune 500 company. And it was important to us to get this right because our goal is to assist in bringing NIL opportunities to all Ohio State student-athletes across all sports.

First, every member will receive access to unique and exclusive content at The 1870 Society, and we have some great ideas in store for you. I'm excited about The Ryan Day Podcast, a new podcast that will dive deep into football topics and give you a chance to know the man away from football better, which will be exclusive to members.

From there, depending on what you're comfortable contributing, everything from a virtual film session with a coach and/or athlete and access to watch football practice to a football autographed by the freshman class and participation in the team walk to the Shoe for a game is available.

Personally, I really like the idea of “Hail! Impact” where players are expected to give something back to society. I haven't looked into the 1870 Society enough to see what players are doing to earn the money.

Questions from someone that has the business sense of a newborn:

  • how does a for-profit model differ from a not for-profit model?
  • what are the benefits of the for-profit model?

And a bonus question:

  • how long before your Average Joe at 11W believes they should have input into game day decisions in return for their $10 donation?

kookie

April 12th, 2023 at 1:52 PM ^

I'm kinda shocked the coaches can be this involved. I know it is the wild west at the moment, but directly providing services to the collective seems a bit over the line.

Amazinblu

April 12th, 2023 at 1:56 PM ^

It reminds me of The Beatles “Taxman”… 

One of the lyrics.. “Here’s one for you, nineteen for me.”  (Which reflects a 95% tax rate.)

For every dollar that goes to the players.. “X$” could be for their coaching staff, and “Y$” for Administration and Governance / Leadership.  The latter is common, as others have pointed out.

A Lot of Milk

April 12th, 2023 at 4:30 PM ^

If you thought they were livid when they watched a defense they DIDN’T pay for get paved, wait till you see how they react when they spend half their paycheck on a defense that gives up 300 rushing yards on 30 carries against Michigan

Amazinblu

April 13th, 2023 at 11:44 AM ^

IIRC, Bama had players who didn’t pan out in the NFL join in their football activities.  I don’t know how they did this - but, it is something I’ve read on more than one occasion.

And - an update - it was something Bama and Clemson did in the past - however, the NCAA created a rule a few years ago to stop this practice.

To no surprise, Bama fans felt the NCAA was targeting Saban and Alabama football.

 

Ernis

April 13th, 2023 at 9:04 AM ^

A for-profit model exists to maximize shareholder returns, typically over the short term. Every aspect of strategy and operations serves the goal, ultimately, to extract as much value from transactions while minimizing cost and value delivered. 

A non-profit model serves missions other than profit maximization, typically of some community, charitable, or other public interest.

Non-profits have to jump through some regulatory hoops to qualify for tax exemption but it’s pretty mild. You can definitely rake in a lot of cash, but the revenue gains and growth don’t boost an equity valuation for investors; ostensibly, the money is reinvested into the company itself (salary, overhead, other cost centers).

There are plenty of non-profit business models that are very lucrative (AARP for example) and some that are exploitative (televangelists, sports leagues). In some settings, such as healthcare delivery, non-profit models are associated with higher quality and better pay & benefits for staff.

jsquigg

April 13th, 2023 at 12:21 PM ^

Fuck that homer cesspool. May they land the most elite soft recruits that will get ground into dust annually Michigan, not unlike expensive single origin coffee beans.