Tothehoopyall1 wrote:I appreciate the insights here.. My question would be.. If we are struggling with NIL now, what would change if we moved to a P4 conference that would put us in a better position on NIL? I know being in a smaller market hurts us, but I continue to struggle with how poorly it seems we are doing with NIL, especially with the increasingly large alumni base we have. Liberty has a ton of wealthy connections associated with the university. I guess I'm a little lost on this part of NIL.
We are not struggling with NIL. At least not amongst our G5 and conference peers. NIL has been replaced by Revenue Share though, with schools now being able to pay the athletes directly up to $20.5M (or 22% of Athletics Generated Revenues). There are still commercial NIL opportunities for athletes, but those must all individually go through the Deloitte Clearinghouse. With respect to the Revenue Sharing, LU has the ability to go all the way up to the Max of $20.5M if they choose to do so. We do not have to abide by the 22% of Athletics Generated Revenues. If all schools at the G5 level followed the 22% guidance, then the avg G5 would payout about $4M per year to their student athletes. While it has not been stated publicly, I would bet that LU will be over $10M per year.
So, to reiterate, we are not going to be struggling with "NIL" for the foreseeable future from a funding perspective. The most recent changes should actually accentuate LU's competitive advantages simply because LU's financial model is far healthier than most colleges and universities in the country thanks to LUO.
jbock13 wrote:Being the “best team in the state” doesn’t matter when most of your alumni are out of state.
Since I’m from Roanoke, it matters to me, but I realize it doesn’t matter to most of the fan base.
It's been a long while since I worked at LU, but a little over a third of LU's alumni was in VA at the time if I recall correctly. This is much lower than most in-state schools for obvious reasons, and it presents a challenge to LU from an ability to generate athletics focused revenue. We have far greater numbers of our alumni base outside what most would consider to be feasible when it comes to travel to attend a game. To keep the ones within driving range of attending a game excited about the program, having us be one of the best as compared to our in-state peers does matter.