Big Boosters Are Done Writing NIL Checks — And They’re Right

As the transfer portal continues to go wild in college football, there are some big boosters who are finally putting their foot down on donations.

Dan Stroh has been a member of Colorado‘s Buffs Club for over 40 years and told The Denver Post, he’s basically done. “We’re not just going to write checks and hope (the players) come,” he said. “You give them (that) check and the guy’s gone tomorrow. To hell with that. That ain’t happening to me. No allegiance, no money.”

He’s right, and he’s not alone. I’ve long made the case that for those in the financial positions to give six, seven or eight figures to a University, are you going to do it for a couple of players who are there one year and gone the next? Or might you donate to put your name on or in a building somewhere on campus? Somewhere your grandkids could see their family name one day? Instead, you’re being asked to fund football or basketball players who often have zero loyalty or care for the University they’re attending, because it’s all about the bag.

Pre-NIL and Transfer Portal

At least in the pre-NIL and pre-transfer portal world, there was a sense that many players had a relationship with their college. They were in classes (sometimes), seen around campus, part of the social fabric, often times for upwards of four or fives years. Those days are over. So what are the big boosters paying for exactly?

“They need to talk to (former Alabama coach) Nick Saban,” Stroh told the Post. “He is very critical of how they’ve administered this. I don’t know Nick Saban, but I respect him. And so we need to listen. With this, with the NIL, it’s unsustainable.”

It’s absolutely unsustainable. And deep down, everyone knows it. That’s why I believe you’ll also see more private equity deals, like the one Utah recently signed. How does it work?

Private Equity in College Sports

Utah is creating a new for-profit entity called Utah Brands & Entertainment LLC. All the business arms of the athletic department, ticketing, concessions, sponsorships, licensing, and even media rights, would move under this new umbrella. This company will oversee major revenue streams for Utah athletics. Otro Capital would buy in as a minority partner, while the University, through its foundation, keeps controlling interest and governance. So it’s not a full sale or a handover, but it is a serious financial play that would immediately give Utah more cash on hand than just about any athletic department in the country.

Otro Capital co-founder and partner Alec Scheiner was the president of the NFL’s Cleveland Browns from 2013-16. Before showing interest in collegiate athletics, Otro invested in BWT Alpine Racing, one of the 11 racing teams in Formula One. Otro Capital has held a 24% stake with Alpine since June 2023, when it valued the team at around $900 million. In fact, Patrick Mahomes and Travis Kelce are invested in Alpine Racing through Otro Capital, according to an ESPN report in 2023.

This is where college sports is trending, because until the NIL and transfer portal gets under control, more boosters are going to come to the conclusion of Dan Stroh: They’re tapped out. And they should be.

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