Good Article on Colorado and the Economic Realties of the New Age of CFB

[NorthKCHawk]

Iowa is not mentioned in this article, but it provides some good insights about the haves and the have nots in major college football. It seems that a lot of schools, especially those outside the SEC and Big10, are having to borrow substantial dollars from the school's general funds just to keep up with the arms race in coaching and NIL. Not a sustainable trendline, IMHO.

Reporting on the story through the lens of CU and Coach Prime's bloated contract was a good angle. Prime's positive impact upon CU's economics in the football program is undeniable, but they have no way to pay for what he costs. And, I would bet good money he will not be bowl eligible for two of his first three years on the job. 10 mil for that?

Colorado is paying big bucks for Deion Sanders and his players, but how? Answer is ‘TBD’

Colorado has committed to paying tens of millions for coach Deion Sanders and his players. The question is how. Right now, it's a mystery

www.usatoday.com

 

[HawkPowerlifter]

I'm waiting for the money to dry up. While it is good for programs. The payments made to players and some either failing to meet the hopes of the fan base or potentially leaving or getting injured. Like any company, they don't like to have failed investments. Will there ever be a point where big money donors decide not to take that chance?

 

[NorthKCHawk]

I'm waiting for the money to dry up. While it is good for programs. The payments made to players and some either failing to meet the hopes of the fan base or potentially leaving or getting injured. Like any company, they don't like to have failed investments. Will there ever be a point where big money donors decide not to take that chance?

Not at the Blue Bloods. These private jet donors have FU money. Why not spend it on something you are passionate about, even if the money is not always well spent. I would. If I had that kind of money.

 

[Fryowa]

Iowa is not mentioned in this article, but it provides some good insights about the haves and the have nots in major college football. It seems that a lot of schools, especially those outside the SEC and Big10, are having to borrow substantial dollars from the school's general funds just to keep up with the arms race in coaching and NIL. Not a sustainable trendline, IMHO.

Reporting on the story through the lens of CU and Coach Prime's bloated contract was a good angle. Prime's positive impact upon CU's economics in the football program is undeniable, but they have no way to pay for what he costs. And, I would bet good money he will not be bowl eligible for two of his first three years on the job. 10 mil for that?

Colorado is paying big bucks for Deion Sanders and his players, but how? Answer is ‘TBD’

Colorado has committed to paying tens of millions for coach Deion Sanders and his players. The question is how. Right now, it's a mystery

www.usatoday.com

The celebrity coach splash hires should be coming to an end here pretty quick. I really think it'll happen.

Deion and Billy Tar Heels are failing spectacularly after conning donors into giving them huge bags and buyouts for negative ROI. Those donors didn't get to be millionaires and billionaires by making a bunch of poor money decisions in a row and with this kind of investment there's no pencil pushing to make it not as bad on paper.

The intangible cost that most fans and media aren't considering is the wasteland left after the buyouts checks are cashed. How do you come back from that in the next hire? As we've seen at Iowa in the past 5 years, one laughing stock situation will haunt you for a long time.

Colorado and UNC went all in with pocket aces and got burned on the flop by a 6-J off suit. Donors at those schools aren't going to play that game again unless they have Pickens money, but the schools with Pickens money don't generally have to bring in the types of guys like Belichick and Sanders as a hail mary.

 

[HuckFinn]

I'm waiting for the money to dry up. While it is good for programs. The payments made to players and some either failing to meet the hopes of the fan base or potentially leaving or getting injured. Like any company, they don't like to have failed investments. Will there ever be a point where big money donors decide not to take that chance?

Interesting take.Hmm.

 

[dagdaj]

This was my concern with "paying the players".
Not that they don't deserve it. But, even if there is "new money" coming in, it's finite. And offset in general by rising costs. I've always said the money that used to go to "football" and "athletics" is now diluted as some of it is now going to players.

At some point, the math won't math. Some schools will be able to do better than others. Others won't.

 

[dagdaj]

Not at the Blue Bloods. These private jet donors have FU money. Why not spend it on something you are passionate about, even if the money is not always well spent. I would. If I had that kind of money.

Totally agree. I like it when I find some band or artist on TikTok when they first start posting and the algorithm feeds them to me....because it knows what I like. And I follow that band/artist and watch them take off. Go viral. Etc.

I mean...like you said, if I had FU money, I'd book these bands to play in my backyard or at a local venue and invite all my friends. And then in 2 years when that band takes off...my friends would be like "so cool we got to see them before they took off". I'd get to hang out backstage with them when they come through, or go along and party with them on their European tour. Yes, I fully realize it's all transactional and not a genuine relationship. Either with the band, or my friends. I'm buying what I want. They're selling what they have to offer.

I would totally do that. Genetically, I'm not sure I'd have the same interest for sports. But I can totally see how it would happen.

I mean it's not new. I remember seeing a Hawkeye basketballer peeling himself out of the driver's seat of a Porsche at that Randall's grocery over by Sycamore Mall. Not a store often visited by students at the time. Of course, unfolding from the passenger seat is the actual owner of the car....a mid 40s or 50s well dressed dude. Kudos for seemingly playing by the rules at the time in that respect. While quite public, that seems like an easy rule to break. "Here's the keys if you wanna run to the store. I'm just gonna sit and read my book. If anybody asks, just tell them you dropped me off at the Walgreens across the parking lot."

 

[MelroseHawkins]

I agree it is not sustainable. This is really going to separate teams drastically into different tiers with the BIG & SEC reigning the most power with $$$$. WE ARE LUCKY TO HAVE OUR FAVORITE TEAM in one of these conferences, just to at least be viewed as valid or pertinent. Can't think of the correct word.

The changes already have separated the teams into similar at least 3 tiers, similar to MLB and the lower divisions of minor baseball.

 

[HawkPowerlifter]

Interesting take.Hmm.

I agree with some of the comments. The Blue Bloods will still have their "FU" money, but I think other colleges will eventually feel the effects if they don't see the desired results. But who knows. College athletics are the cash cow for universities.

 

[MelroseHawkins]

I agree with some of the comments. The Blue Bloods will still have their "FU" money, but I think other colleges will eventually feel the effects if they don't see the desired results. But who knows. College athletics are the cash cow for universities.

The BIG and the SEC are going to be the only two real power conferences and going separate themselves from the other conferences. The 4-5* players and great coaches are all going to go after the $$$$ these two conferences will have over all the other conferences. All the good players in the portal will look at BIG & SEC teams first for the $$$ and those leftover will end up going to other P4 teams.

 

[Hawkboys]

Never thought I'd see Good Article and Colorado together in the same thread title

 

[MelroseHawkins]

I agree with some of the comments. The Blue Bloods will still have their "FU" money, but I think other colleges will eventually feel the effects if they don't see the desired results. But who knows. College athletics are the cash cow for universities.

Not all the time and not for every university and depends on the sport. Iowa football historically has supported most of the other sports at Iowa. Some are not self-sustaining. It's even more difficult now if having to support the demands of players and coaches salaries.

 

[Fryowa]

I'm waiting for the money to dry up. While it is good for programs. The payments made to players and some either failing to meet the hopes of the fan base or potentially leaving or getting injured. Like any company, they don't like to have failed investments. Will there ever be a point where big money donors decide not to take that chance?

I think the money will just shift in regards to where it comes from.

It will move away from individual donors and be more derived from other sources like private equity as mentioned in another thread, and media contracts.

One could make an argument for media contracts just being a subset of private equity, but there are enough distinctions that make me consider them separately.

All I know is that the money isn't going away, it will just move around. We're still in the Wild West phase of this thing.

 

[HawkPowerlifter]

The BIG and the SEC are going to be the only two real power conferences and going separate themselves from the other conferences. The 4-5* players and great coaches are all going to go after the $$$$ these two conferences will have over all the other conferences. All the good players in the portal will look at BIG & SEC teams first for the $$$ and those leftover will end up going to other P4 teams.

I agree. It will come to the point of having these "power" conferences and the rest will get scraps.