Bruce Dowbiggin
Destroying The Development System: Expect Turbulence
News Item: Child golf phenom Xavier Perez has scored a major NIL deal before even becoming a teenager. The 12-year-old, who has won more than 250 tournaments since he began playing golf competitively nine years ago, landed a name, image and likeness deal with Cobra Puma.
NIL, to the uninitiated, means Name Image Likeness. And it’s about to blow up the development models for a number of sports— including hockey. The right of athletes to profit from NIL is the result of decades of legal challenges by “student” athletes in the U.S. who saw coaches, programs and networks get phenomenally rich while they received only a scholarship in return (only one percent of all collegiate student-athletes receive a full ride.)
If an athlete was seen to be receiving even a meal or a job from an outside party they lost their “amateur” status and were ineligible for play in the U.S. college system that supplies talent to the NFL, NBA, NHL and MLB. Ditto if they used an agent. For decades the system prevailed. Until the explosion in the digital world of video games, when greedy colleges reaped a fortune using the NIL of athletes— never thinking they’d need to compensate them.
The result was O’Bannon v NCAA, a challenge to U.S. antitrust law in which former UCLA star Ed O’Bannon and a number of other former NCAA athletes won the right in 2014 to be compensated for their NIL in the EA Sports series. That produced years of negotiations in which the NCAA tried to create a system that would preserve college athletics while staying within the terms of the decision.
On July 1, 2021, the NCAA announced it had agreed to rules that “removed restrictions on college athletes from entering paid endorsements and other sponsorship deals, and from using agents to manage their publicity”. The only caveat is that athletes can’t use the symbols, uniforms or logos of the school in their advertising. And universities can’t pay athletes directly.
What they created is a wide-open system that 12-year-old Xavier Perez is now exploiting. What does it mean? It means that the top prospects headed to the NFL, NBA, NHL and MLB could now be making millions even as they play FBS bowl games, March Madness, the Frozen Four etc. They will be able to make decisions on what school to attend based on financial remuneration as well as opportunity to play. They’ll also be able to make significant money years before they enter college.
Because the remuneration comes from booster groups, outsider sponsors and equipment companies, schools will not have the ultimate control they’ve exercised for over a century. An athlete who has financial security will not be forced to go pro before he/ she is ready or go to a team they don’t want to play for. (Or he/ she can use the new transfer portals to switch schools as they see fit.)
“I definitely would’ve stayed for a fifth year [if there were NIL laws],” said Cardale Jones, a former star quarterback at Ohio State. “With my draft status, and still having a household name in college football in Columbus, [Ohio,] I’m pretty sure I would’ve made a lot more money than being drafted in the fourth round.”
NIL is not a panacea for all athletes. Even at the top schools opportunities will be limited for low-profile players in the non-glamour positions. There will conceivably be millionaire QBs playing with OL grunts who might have a deal with a sandwich shop. Smaller schools will have trouble competing with the big boys of Div One.
ESPN reported on what Georgia Tech players received for becoming social influencers. “Swanky PJs are part of what Yellow Jackets players received in exchange for agreeing to promote TiVo on social media this month. They also got a prepaid debit card worth $404 (Atlanta’s area code is 404) and the company’s 4k streaming device… the total value is more than $100,000, according to TiVo, who said 90 of the team’s players have signed a contract for the endorsement.”
The system is only now being implemented; dramatic changes will doubtless appear. Already there is tension among the coaches who must now deal with the new rules. Alabama’s football legend Nick Sabin and Texas A&M’s Jimbo Fisher recently got into a heated public bitch slapping over the ethics and inducements of recruiting. “That creates a situation where you can basically buy players,” said Saban, who makes about $10 million a year. “You can do it in recruiting. I mean, if that’s what we want college football to be, I don’t know.”
Prize recruit Bryce Young, who had yet to start a game for Saban at Alabama, had NIL deals closing in on $1 million. Clearly, football and basketball will need to streamline their development system. If colleges are now a pay-for-play system, how does that affect their status as institutions of learning? What happens if excesses in NIL force government into stripping colleges of the development role and giving it to pro leagues?
There has been zero information on how NIL affects the development system of NHL prospects? At the moment a majority of them go to Canada’s low-paying CHL teams which play far more games a season than does the NCAA. One game in CHL disqualified a prospect from playing in the NCAA’s formerly simon-pure amateur system.
But now a Connor McDavid can sign an NIL contract at 14 years old, play in the NCAA and— rich already— still be drafted No. 1 overall. Yes, college hockey has a lower profile and fewer opportunities for endorsements. Some will want the CHL’s experience. But a McDavid-type player would be a prize catch for an equipment company or a video game manufacturer. Or even as an influencer. All things currently not allowed in the CHL.
NIL won’t kill the CHL but it could strip away a significant portion of its stars who choose guaranteed money over long bus rides and billeting with other players. It’s early days, of course, but be prepared for an NHL No. 1 draft pick being a millionaire before his name is even called in the draft.
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster (http://www.notthepublicbroadcaster.com). The best-selling author was nominated for the BBN Business Book award of 2020 for Personal Account with Tony Comper. A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s also a regular contributor to Sirius XM Canada Talks Ch. 167. His new book with his son Evan Inexact Science: The Six Most Compelling Draft Years In NHL History is now available on http://brucedowbigginbooks.ca/book-personalaccount.aspx
Bruce Dowbiggin
How The NFL Grinch Bought Xmas: Drowning In A Sea of Football
After rummaging about for two months to no great effect the NHL has now embarked in its traditional Xmas break. Under the NHL’s collective agreement, no one plays any games from Dec. 24-27. This comes after a roster freeze that forbids trading a player during said holiday season. The annual World Junior champions, too, doesn’t crank it up till Boxing Day.
It’s a throwback to a more tranquil time when most of the Western world went home to eat too much and fall asleep on the sofa for three days. Then go shopping. So props to Gary Bettman’s NHL for keeping to their family stance. In such frenetic times there’s something to be said for pausing to sniff the frozen roses.
But catching your breath in the sports world is now an anachronism, driven by the massive dollars paid by networks and digital providers to sports leagues. In a time when the NFL rakes in $105 B ($2.1 billion a year) from its broadcast partners while the 32 teams collect a tidy $300 million each it’s no wonder the equity in NFL franchises has soared of late.
And that means using every minute of the calendar to schedule games— especially on days like Christmas when hundreds of millions are sitting at home after opening the prezzies, itching for something to watch besides It’s A Wonderful Life. So the Xmas break this year features two games on the day and another on Boxing Day. Followed by a full weekend of games on Saturday, Sunday and Monday.
In doing so it big foots the NCAA CFS’s new 12-team playoff and bowl-game format which also uses every day but Sunday this time of year. On the past Saturday FS games were given a head start before the NFL stole eyeballs with its own games an hour later. Tough luck college boys. It’s unlikely to change as the CFS is eager to expand the playoffs in the future.
The NFL is not the first to exploit this previously virgin calendar break, of course. Th NBA broached the prohibition against Xmas Day in 1947, first placing a single high-profile game that day. Later it expanded to an all-day menu of games. Anything sacred about the family day went bye-bye as folks either went to the TV or the kitchen for the rest of the day.
The reason that pro sports is creating also many windows for their product is the sudden arrival of so many new outlets for games. Where legacy TV/ cable networks had exclusive dibs on buying rights for decades, cable cutting has now exploded the bidders. As GTM expert Rhys Dowbiggin told us in our July 29, 2024 column the model was UFC. Yup. UFC. “ESPN+ (Disney) has been working directly with the UFC for a number of year and packaging their events on the streamer.
And let’s not ignore the monkey in the room: YouTube, which dominates all the streamers for eyeballs – YouTube (Google) has more live sports than any of the other streamers. Just for context, there is a massive amount of money in these deals: the recent NBA media rights deal is going to be 70B+ – split across a number of media partners. All the streamers took a similar GTM strategy – and they’ve led us back to 2001.”
Disgruntled consumers dumping cable/ satellite carriers sought other outlets for their spots viewing for NFL, NBA, NHL and NCAA. Leagues responded so we now have special placement games for YouTube, Amazon Prime, Apple, Disney and Google. And the Xmas season cornucopia of games. Watching whatever you wanted. The strategy was to compete on bidding for original content to bring in the subscribers.
Then a funny thing happened. It was now only some of what you wanted. The expansion of carriers pissed off viewers just as much as the arbitrary cable companies. the magic solution of cable cutting is now the tragic solution. Explains Dowbiggin, “The original product fit for streaming was the promise of all the content you could need was in a single place, on-demand. You only needed Netflix (in a sense) and you never had to wait or choose what to watch. Once the market fragmented into multiple players, the fit evaporated. Half the problem that was solved by streaming was now gone:
Watching whatever you wanted. It was now only some of what you wanted. The streamers GTM strategy was to compete on original content to bring in the subscribers. But creating content and not consolidating content exasperated the issue.”
The latest strategy is to bundle services across outlets to give consumers easier packaging. Says Dowbiggin, “Will bundling partnerships change things? It can’t hurt. But unless it drastically shrinks the numbers of players at the top to 2-3, the problem of ‘watching whatever you want’ won’t be solved, because I’ll still need Disney for my Star Wars.
All I know is, I’ve kept my library card for years, because I always saw this coming. And I don’t plan on getting rid of it anytime soon.”
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster. His new book Deal With It: The Trades That Stunned The NHL And Changed Hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org. You can see all his books at brucedowbigginbooks.ca.
Bruce Dowbiggin
Hero Or Villain: How Chrystia Freeland Wears Both Masks
“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.”
This Ernest Hemingway gem from The Sun Also Rises has gotten a workout in this time of progressive economic policy. But it’s worth repeating in the case of Justin Trudeau’s Canada where the F word is fiscal. The “gradually” part of Liberal fiscal policy has now passed. Leaving the “suddenly” of $60 B deficits with no plan for recovery
You’d think that missing your deficit estimate by $40B might have cost the finance minister Chrystia Freeland her job. But no! In Trudeaupia it was the failure of Freeland to embrace even more wack-a-doodle spending plans by the prime minister and his brain trust of former groomsmen and climate acolytes. Yes, the cratering of finances is the ideal time to award a GST holiday and $250 cheques to much of the nation. It has been noticed.
You know how Canadians are always bitter that America pays no attention to Canada? (Doug Ford appeared Tuesday on @CNN which identified him as Premier of “Ontaria”.) Well, the Collapse By The Canal in Ottawa has brought much attention to the nation. Specifically, president-elect Donald Trump, the Shecky Green of presidents, has noticed the chaos. ““The Great State of Canada is stunned as the Finance Minister resigns, or was fired, from her position by Governor Justin Trudeau,” Trump wrote, using his barb that Trudeau is not a PM but a lowly governor.
Adding for good measure, that Freeland’s “behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada… She will not be missed!!!” Three exclamation points if you get that far.
Certainly no-one with a memory longer than two weeks will miss the deputy PM who gleefully wiped out the personal finances and freedoms of the Freedom Convoy truckers. Or the cabinet minister who promoted a standing O in the Commons for a former Nazi soldier. Or the senior government official who demanded legal restrictions against voters shouting at her in public.
Or the feminist who stood aside while her boss Trudeau expelled an indigenous female finance minister for allowing the RCMP to investigate PMJT’s nefarious activities on behalf of his donors. Or who… never mind. Just look up Blackface.
No, the current version of Freeland is the plucky woman who was fired on a Zoom call by a man. A woman of integrity who then sent off a stinging letter of resignation in which she revealed she was being pushed aside for a Trudeau buddy Mark Carney. A fiscal warrior who resisted going $60B in the red (she was cool at $40B, however). And, BTW, could she please deliver the government’s financial statement before she’s fired?
See how it works? She’s now a victim. “She didn’t just quit. She said ‘f**k you’ to Trudeau on the way out.” This is another case of somethingvblogger Melissa Chen calls Schrödinger’s Feminist, defined as a woman who is simultaneously a victim and empowered. Until something happens and she collapses into one of either states, whichever is politically expedient for her circumstance.
Chen expands on the notion. “A major component of the angst that characterizes much of the modern dynamics between men and women today comes down to the fact that women have demanded equal rights but also wish for preferred treatment.” A week’s viewing of The View will serve to illustrate this concept.
One of The View’s textbook cases of Schrödinger’s Feminist was Kamala Harris. The treatment of the defeated Democratic Party presidential candidate was guard-railed between her brave quest to become America’s first menstruating president and, on the other side, her victim status as a woman, the unfair way she was treated. It was enough to make Joy Behar’s head spin.
Forget that everyone in the mainstream media from pollsters to networks to Hollywood stars was all-in on Kamala as a “joyful “warrior. Even though they knew she was losing they cooked the polls the whole way for her. She was a victim, the kind Hillary Clinton meant when she said all women should be believed if they’re trying to destroy Justice Kavanaugh. Or, like serial fabulist E. Jean Carroll, waiting 30 years to bankrupt Trump and disqualify him from the presidential race, with a Law & Order script. How could a woman ever invent a story about getting trapped in a change room at Bergdorf Goodman with Trump?
Oh, Kamala played the brave front as she blundered to her record defeat. (Still called “a perfect campaign” by her apologists.) But underpinning it all was her status as a woman, a woman for whom her followers on The View demanded a double standard. In the end, only the Schrödinger feminists in the Dems coalition stayed loyal to Harris, (Kamala Harris Did A Good Job!) explaining away her failure to tell the world that Joe Biden was koo-koo for Coco Puffs as her innate decency.
And so Freeland, too, is being gifted with Schrödinger’s Feminism. Having Justin Trudeau, the Trust Fund twit, as your antagonist sure helps. So does the Woke media corps now in Ottawa painting sympathetic portraits of your sacrifice. Your dubious resumé since donning Liberal colours is forgotten. You will receive the get out of jail free card .
Hell, even the leader of the opposition will give you a tongue bath. “Instead of taking responsibility, the prime minister told her that she should take all the blame,” Pierre Poilievre said. “The good old boys in the back room would protect themselves and make the then-finance minister take all the blame.” Trudeau, who rejects bankers in favour of poets, will take the fall.
Which summons up this nugget from F. Scott Fitzgerald. “Life is a comedy for those who think and a tragedy for those who feel. Show me a hero and I will write you a tragedy.”
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.
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