D2 Question for Brandon and other Admin of D2Football

[SW_Mustang]

Explain professional wrestling then. They are all "independent contractors".

Probably because nobody has challenged it yet.

Pro-wrestling is a near-monopoly. Khan is running a minor-league organization. A guy could work the indy circuit and make a living like Cardona is doing, but I'm guessing most of the talent don't want to bite the hand.

[MooseLodge]

Explain professional wrestling then. They are all "independent contractors".

I do not know one thing about pro wrestling.

[Predatory Primates]

Schools at the highest level make a ton of revenue, but are not making a profit. The revenue from football is used to prop up all the other athletic programs that operate at a loss. Now football players want more, more, more whether it be through NIL or "pay to play". Some of the best players (who will be millionaires in the NFL in a few years, can't get enough. Something doesn't seem right about that. The rich get richer. The vast majority of college football players get nothing more than a scholarship and a college degree from a great institution. That use to be a great deal for them. But now, nope. Just not enough. Sad what college football has become.

If you believe your first 2 sentences, I have an investment opportunity for you.

[MooseLodge]

If you believe your first 2 sentences, I have an investment opportunity for you.

Even the schools at the highest level are generally spending every penny they bring in. Many have amassed deficits in the several hundred $ million. OU is in debt at just under $200 million. The median debt per school in the Big 10 is $150 million. Illinois has athletic department debt of $315 million. Rutgers is bleeding $30 million per year.

The Big 10/SEC better hope that their attempted foreclosure of college football works. If it's a bust, there are a lot of schools in big financial trouble.

[Predatory Primates]

Even the schools at the highest level are generally spending every penny they bring in. Many have amassed deficits in the several hundred $ million. OU is in debt at just under $200 million. The median debt per school in the Big 10 is $150 million. Illinois has athletic department debt of $315 million. Rutgers is bleeding $30 million per year.

The Big 10/SEC better hope that their attempted foreclosure of college football works. If it's a bust, there are a lot of schools in big financial trouble.

There is no standard for reporting. Bama and Auburn report profits, others have been claiming losses for decades, which is not possible. Most claim to break even or close to it. They are all allowed to cook the books, and at least for most public schools, penalized if they don't.

I have no doubt that there are schools losing money doing it, but they aren't named Ohio State, or Texas, Or Alabama, etc...

I guess the caveat is they have overspendt and gone into debt on facilities, so they have an easy way to claim the loss/spend the profits.

[MooseLodge]

There is no standard for reporting. Bama and Auburn report profits, others have been claiming losses for decades, which is not possible. Most claim to break even or close to it. They are all allowed to cook the books, and at least for most public schools, penalized if they don't.

I have no doubt that there are schools losing money doing it, but they aren't named Ohio State, or Texas, Or Alabama, etc...

I guess the caveat is they have overspendt and gone into debt on facilities, so they have an easy way to claim the loss/spend the profits.

There is but a handful of schools that "make money" off of their sports teams without subsidy. Almost all are spending every dime they bring in, most more than that. It will be interesting to see how the D1s fund another $20 million a year in player salaries. If and when the media money train slows down, things are going to get fun.

[GorillaTeacher]

Michigan probably rakes in upwards of 30 million in a football season in just ticket sales. Probably similar in the top handful of big ten teams. Probably similar numbers for the top SEC teams. Half that for big 12 and ACC? That’s just tickets.

Then figure in TV deals, concessions, merch, licensing, and donations. Ain’t no way they’re losing money in that athletic department.

The vast majority of D1 athletics isn’t P4, which is why they are asking to be treated differently and why this settlement is happening.

[Bballfan]

There is but a handful of schools that "make money" off of their sports teams without subsidy. Almost all are spending every dime they bring in, most more than that. It will be interesting to see how the D1s fund another $20 million a year in player salaries. If and when the media money train slows down, things are going to get fun.

Correct. And I have no idea how some of these schools will be able to do it. Northwestern? Stanford? Rutgers? And for those that think the sports that operate at a loss will get cut, good luck disenfranchising thousands of student athletes who depend on an athletic scholarship to help get a college degree. Many of those athletes are poor and/or minorities. Can't wait to see what the reaction to that will be.

[MooseLodge]

Correct. And I have no idea how some of these schools will be able to do it. Northwestern? Stanford? Rutgers? And for those that think the sports that operate at a loss will get cut, good luck disenfranchising thousands of student athletes who depend on an athletic scholarship to help get a college degree. Many of those athletes are poor and/or minorities. Can't wait to see what the reaction to that will be.

Stanford and Northwestern have sufficient loot to do whatever they want. There is a group of around ten programs that have money to spend everyone else under the table. That would be, in no particular order, Michigan, Ohio State, Texas, A&M, SMU, Stanford, Notre Dame, USC, and possibly Penn State and Northwestern. Everyone holds Alabama up as a player, but if you peel back the onion a bit, that is not a rich school by any stretch. It is also in a very poor state. I think Nick Saban understood this all too well as things began to unfold. If things get silly spendy, it's going to come down to 5-6 programs, three of which are in Texas.

A big question will be how many of the private, high academic schools, such as USC and Stanford, will whore themselves out to play pro ball. USC has been bending their admissions to get ballers in, as has Notre Dame and possibly Northwestern. No for Stanford.

[GorillaTeacher]

Correct. And I have no idea how some of these schools will be able to do it. Northwestern? Stanford? Rutgers? And for those that think the sports that operate at a loss will get cut, good luck disenfranchising thousands of student athletes who depend on an athletic scholarship to help get a college degree. Many of those athletes are poor and/or minorities. Can't wait to see what the reaction to that will be.

I think the opposite is true. Much more are making money, at least in the P4 than we think. Even the dregs of the conferences, due to media deals, donors, revenue sharing and student fees.