whatithink
GOLD
cont .. I then asked ChatGPT what proportion was new/redistributed and it said
There is no definitive, widely accepted percentage breakdown of how much NIL revenue in college sports comes from "new" money versus "redistributed" money, as the market is still evolving and lacks comprehensive tracking. However, there are some observations and estimates based on current trends:
There is no definitive, widely accepted percentage breakdown of how much NIL revenue in college sports comes from "new" money versus "redistributed" money, as the market is still evolving and lacks comprehensive tracking. However, there are some observations and estimates based on current trends:
Estimates and Observations
- Redistributed Money: ~60-80%
- A significant portion of NIL revenue appears to come from existing sources in the sports ecosystem:
- Sponsorship Reallocation: Brands redirect budgets from sponsoring teams, conferences, or events to sponsoring individual athletes. For example, a company may shift part of its college football advertising budget to work directly with a star quarterback.
- Booster Contributions: Money from boosters, previously directed to athletic departments or facilities, is now funneled into NIL collectives to support athletes directly.
- University-related Funds: Some NIL agreements involve indirect funding tied to universities, such as collectives formed by alumni or boosters.
- A significant portion of NIL revenue appears to come from existing sources in the sports ecosystem:
- New Money: ~20-40%
- New revenue is entering the ecosystem from previously untapped sources:
- Local Businesses: Smaller businesses that couldn’t afford traditional sponsorships with universities now find NIL deals with athletes more accessible and affordable.
- Emerging Industries: NIL deals from non-traditional sectors, such as tech startups, fitness apps, and social media influencers, contribute new money.
- Athlete-driven Initiatives: Opportunities like personalized merchandise, social media monetization, and hosting camps are creating entirely new revenue streams for athletes.
- New revenue is entering the ecosystem from previously untapped sources:
Challenges in Estimation
- Lack of Centralized Data: The NCAA and universities don’t systematically track the origins of NIL money.
- Varied Athlete Reach: High-profile athletes may attract more redistributed money from existing sponsors, while lesser-known athletes might generate new revenue from niche opportunities.
Potential for More New Money
As the NIL ecosystem matures, the percentage of new money may grow as:- More brands recognize the value of individual athletes over institutional sponsorships.
- Athlete-driven content, e-commerce, and social media platforms continue to expand their role in monetization.