Let’s Play Ethics

[shoxlax]

You are the AD here. A new money booster pops in and says he would like to give you $2 mil to use any way you see fit. However, you know for a fact that your NIL is lagging way behind and you are not only going to lose out on several recruits but also will likely see your best two pitchers enter the portal. Furthermore your basketball team is having similar problems. Do you steer the booster to Armchair and ask that all or even half of the money be given to them? If so have you breached your fiduciary duty to the university?

[SubGod22]

You could argue that directing the funds to NIL could actually benefit the university and athletic department more than the money alone would have done. I'd have to take the time to run the numbers to see if that were entirely true, but on the surface, I'd say it would be. And that would mostly be about basketball, which is the revenue engine of the athletic department. Better players and success there leads to more tickets sold, and you would hope more wins which could lead to national rankings and post-season play which in itself generates what is essentially free publicity that can exceed the original $2M.

Now, there are zero guarantees it works out that way and the money could be squandered or the athletes we get don't live up to the expectations in which case it could be a poor investment. But you could still argue the case that there was a higher benefit to be had than simply accepting the money and immediately putting it towards facilities and going with the status quo elsewhere.

[Kung Wu]

You are the AD here. A new money booster pops in and says he would like to give you $2 mil to use any way you see fit. However, you know for a fact that your NIL is lagging way behind and you are not only going to lose out on several recruits but also will likely see your best two pitchers enter the portal. Furthermore your basketball team is having similar problems. Do you steer the booster to Armchair and ask that all or even half of the money be given to them? If so have you breached your fiduciary duty to the university?

Now let's say it's your wife that is running the NIL collective ....

[shoxlax]

You could argue that directing the funds to NIL could actually benefit the university and athletic department more than the money alone would have done. I'd have to take the time to run the numbers to see if that were entirely true, but on the surface, I'd say it would be. And that would mostly be about basketball, which is the revenue engine of the athletic department. Better players and success there leads to more tickets sold, and you would hope more wins which could lead to national rankings and post-season play which in itself generates what is essentially free publicity that can exceed the original $2M.

Now, there are zero guarantees it works out that way and the money could be squandered or the athletes we get don't live up to the expectations in which case it could be a poor investment. But you could still argue the case that there was a higher benefit to be had than simply accepting the money and immediately putting it towards facilities and going with the status quo elsewhere.

Interesting reply, Sub. Not saying you are wrong but you know if you ran it by the ethics counselor for the University, what would they say?

[shoxlax]

Now let's say it's your wife that is running the NIL collective ....

You would go to jail, right after you were fired. Then you would become a politician where such conduct would be ignored.

[Kung Wu]

An executive that is offered a gift of $2M and turns it away to some outside firm completely out of their control should be taken out back, stripped naked, and flogged mercilessly with catfish.

[Kung Wu]

You would go to jail, right after you were fired. Then you would become a politician where such conduct would be ignored.

Do I --- uhhh --- she get to keep the money?

[Downtown Shocker Brown]

An executive that is offered a gift of $2M and turns it away to some outside firm completely out of their control should be taken out back, stripped naked, and flogged mercilessly with catfish.

This not totally accurate. If you could build a business case showing a greater than $2M impact to the university, you could meet your fiduciary duty without accepting directly.

[shoxlax]

An executive that is offered a gift of $2M and turns it away to some outside firm completely out of their control should be taken out back, stripped naked, and flogged mercilessly with catfish.

To Sub’s point, what if half of it guaranteed your basketball coach three P5 all league transfers for two years?

[shoxlax]

This not totally accurate. If you could build a business case showing a greater than $2M impact to the university, you could meet your fiduciary duty without accepting directly.

Bingo. That’s what I wanted someone to say.

[Kung Wu]

This not totally accurate. If you could build a business case showing a greater than $2M impact to the university, you could meet your fiduciary duty without accepting directly.

Don't make me get Kevin the Catfish outta the tub.

[Kung Wu]

To Sub’s point, what if half of it guaranteed your basketball coach three P5 all league transfers for two years?

How do you know the guarantee fairy isn't a crazy glue sniffer?

You SURE that half of it isn't paid out in agent fees, and then the other half mysteriously never gets paid out, or goes to some other kid or something? You have no control over it, aren't allowed to participate in those conversations, have no right to audit it. Next thing you know, there's money missing off the dresser, and your daughter's knocked up, I've seen it a hundred times.

[shoxlax]

This not totally accurate. If you could build a business case showing a greater than $2M impact to the university, you could meet your fiduciary duty without accepting directly.

Living in SEC country, do you think the scenario I posed is unlikely (especially for teams at the bottom of the league or even non P5 teams like Coastal Carolina desperate to keep up)?

[shoxlax]

How do you know the guarantee fairy isn't a crazy glue sniffer?

You SURE that half of it isn't paid out in agent fees, and then the other half mysteriously never gets paid out, or goes to some other kid or something? You have no control over it, aren't allowed to participate in those conversations, have no right to audit it. Next thing you know, there's money missing off the dresser, and your daughter's knocked up, I've seen it a hundred times.

Leave it you to take a whizz on my one good philosophical scenario I’ve dreamed up in the last five years.

[Downtown Shocker Brown]

Living in SEC country, do you think the scenario I posed is unlikely (especially for teams at the bottom of the league or even non P5 teams like Coastal Carolina desperate to keep up)?

To relate, from my personal experience, the Brent Kimnitz type person has (with permission) shared with the ACS people the list of donors. They all know the difference.

When a new donor comes in to one or the other, they are asked whether to have info shared. Standard practice. So by the time a gift is processed, discussions on how has happened.

The constant unchecked evolution has this process changing what seems like weekly, but with the amount of TV money coming in, the athletic budgets aren’t hurting.