So some of you guys have asked me on the boards or in PMs about how all the money in the system works. For some reason, I agreed to make a post even though I knew it would be a time sink since there are so many ways that funds and other enticements are injected into the system and distributed. The whole ecosystem is rather complex and intertwined, so I'll go with a few generalizations. Since this is just going to be a bunch of random thoughts, let this first post be a primer and if you have any other questions or prompts, I'll be able to expound and elucidate.
One of the first myths to dispel is that people are randomly showing up on a doorstep with a duffel bag full of cash and a LOI for the recruit. Instead, smaller payments and gifts are made over time to build up a relationship with the recruit. Needless to say, the recruit is generally getting money from multiple sources and generally ends up with the school/handler/whoever that they end up feeling most comfortable with. With the new NIL rules, this also includes showing the recruit they will have access to "network" guys that can further their careers and bank accounts through being well-connected in certain industries.
At this stage of life, there are plenty of people trying to get into a recruit's circle which include Uncle Bob, wannabe agents, financial planners, super fans, "managers," and other low level guys with varying motives that I think of as street urchins.
Let's break these down into a few groups that are all trying to benefit in some way:
1) Super Fans: These are what you would think of as the traditional booster or the old boys club that simply loves their school and wants to support their team in any way possible. These guys are best described by that article on SBNation, although the methods have evolved: https://www.bannersociety.com/2014/4/10/20703758/bag-man-paying-college-football-players
2) Hanger-ons: These are the types that want to benefit off the athlete simply for being around early in their life. This will include guys like Uncle Bob and other people who "grew up" with the recruit. Think Entourage, but at a lower level.
3) Wanna-Be's / Street Urchins: This group includes the outsiders who actively want to manage the athlete's career in some fashion. This can also include the Uncle Bobs, but generally refer to wannabe agents and financial managers who are hoping to snag their first big client (think Maverick Carter).
4) Professionals: These are the real agents/agencies and big brands/corporations.
All of these guys are intertwined in some way, but the most "action" comes from the guys in categories 3 and 4. This all starts in the kid's Freshman year if he shows some promise on their 7-on-7 or AAU team. The coaches of these youth teams hold (varying) degrees of power and influence over where a recruit may attend college.
If an AAU team wants to go play at a tourney at Disney WWOS but can't afford the travel expense. The first guys the coach calls and mentions their hardship to are the Wanna-Be's who will generally toss them a few thousand bucks to cover the expenses. Need jerseys? They might call their Nike rep.
They see this as relationship building so the coach might influence their guy to sign with them in the future. Some of this money gets pocketed by the coach while some of it gets filtered down to the players' families. If they've been in the game for awhile, they probably also have connections with real agents and big brands/corporations. The real risk is that there are tons of street urchins out there that pretend to have influence over recruits and attempt to sell that access to the wanna-be's and professionals. They're the stereotypical guy that plays Xbox with recruits to try and befriend them so they can insert themselves into their financial situations.
Now another misconception with the big agents and brands is that they want to steer them to a certain school. Contrary to belief, these brands don't care if a kid goes to a specific school. Mostly they're interested in them going to a place that will get them to the NFL as quickly as possible to increase their ROI while lowering their risk. For an agent, that extra year the player might stay in school gives others extra time to get in their ear and sway their decision to sign with them when they are entering finally entering the draft.
The money also doesn't stop when the player signs their LOI. There are upkeep payments because most of the time these recruits are from impoverished areas and are just scraping by even while on scholarship. This is where you see things pop up like Laremy Tunsil texting Barney Farrar about paying for a utility bill.
This might be a taboo to post and could get me in trouble, but some of the contributors to the financial system are also assistant coaches and other staffers themselves. They don't do the payments directly and instead run them through the "network" guys. Why? It helps them build that "great recruiter" persona and can help them earn raises and have better job security. Do all of them do it? No, but they all know it's going on.
Another example of how recruits and current players are taken care of:
1) If a player/recruit wants to go on a beach trip. Whoever is funding the trip will send the money to their cousin/friend/whoever is on the trip with them instead of the athlete themselves who then books the hotels in their own names and has the spending money. The other ancillary benefits might show themselves if players are hypothetically in Vegas over the Summer on a holiday weekend and know a big spender from their school/area is dropping $30,000 on a table to see Tiesto. The guy might like some of the players and let them hang around for free.
2) A player wants to take his girl out to dinner in the big city, but doesn't have money? Someone will Venmo a manager/promoter/whoever at a restaurant/club and that venue then comps the meal/alcohol with only a token $20 charge for 3 beers rang up on the player's debit card.
3) A player needs more money and is definitely being drafted high? Some agent or brand will arrange a "marketing advance"
One of the first myths to dispel is that people are randomly showing up on a doorstep with a duffel bag full of cash and a LOI for the recruit. Instead, smaller payments and gifts are made over time to build up a relationship with the recruit. Needless to say, the recruit is generally getting money from multiple sources and generally ends up with the school/handler/whoever that they end up feeling most comfortable with. With the new NIL rules, this also includes showing the recruit they will have access to "network" guys that can further their careers and bank accounts through being well-connected in certain industries.
At this stage of life, there are plenty of people trying to get into a recruit's circle which include Uncle Bob, wannabe agents, financial planners, super fans, "managers," and other low level guys with varying motives that I think of as street urchins.
Let's break these down into a few groups that are all trying to benefit in some way:
1) Super Fans: These are what you would think of as the traditional booster or the old boys club that simply loves their school and wants to support their team in any way possible. These guys are best described by that article on SBNation, although the methods have evolved: https://www.bannersociety.com/2014/4/10/20703758/bag-man-paying-college-football-players
2) Hanger-ons: These are the types that want to benefit off the athlete simply for being around early in their life. This will include guys like Uncle Bob and other people who "grew up" with the recruit. Think Entourage, but at a lower level.
3) Wanna-Be's / Street Urchins: This group includes the outsiders who actively want to manage the athlete's career in some fashion. This can also include the Uncle Bobs, but generally refer to wannabe agents and financial managers who are hoping to snag their first big client (think Maverick Carter).
4) Professionals: These are the real agents/agencies and big brands/corporations.
All of these guys are intertwined in some way, but the most "action" comes from the guys in categories 3 and 4. This all starts in the kid's Freshman year if he shows some promise on their 7-on-7 or AAU team. The coaches of these youth teams hold (varying) degrees of power and influence over where a recruit may attend college.
If an AAU team wants to go play at a tourney at Disney WWOS but can't afford the travel expense. The first guys the coach calls and mentions their hardship to are the Wanna-Be's who will generally toss them a few thousand bucks to cover the expenses. Need jerseys? They might call their Nike rep.
They see this as relationship building so the coach might influence their guy to sign with them in the future. Some of this money gets pocketed by the coach while some of it gets filtered down to the players' families. If they've been in the game for awhile, they probably also have connections with real agents and big brands/corporations. The real risk is that there are tons of street urchins out there that pretend to have influence over recruits and attempt to sell that access to the wanna-be's and professionals. They're the stereotypical guy that plays Xbox with recruits to try and befriend them so they can insert themselves into their financial situations.
Now another misconception with the big agents and brands is that they want to steer them to a certain school. Contrary to belief, these brands don't care if a kid goes to a specific school. Mostly they're interested in them going to a place that will get them to the NFL as quickly as possible to increase their ROI while lowering their risk. For an agent, that extra year the player might stay in school gives others extra time to get in their ear and sway their decision to sign with them when they are entering finally entering the draft.
The money also doesn't stop when the player signs their LOI. There are upkeep payments because most of the time these recruits are from impoverished areas and are just scraping by even while on scholarship. This is where you see things pop up like Laremy Tunsil texting Barney Farrar about paying for a utility bill.
This might be a taboo to post and could get me in trouble, but some of the contributors to the financial system are also assistant coaches and other staffers themselves. They don't do the payments directly and instead run them through the "network" guys. Why? It helps them build that "great recruiter" persona and can help them earn raises and have better job security. Do all of them do it? No, but they all know it's going on.
Another example of how recruits and current players are taken care of:
1) If a player/recruit wants to go on a beach trip. Whoever is funding the trip will send the money to their cousin/friend/whoever is on the trip with them instead of the athlete themselves who then books the hotels in their own names and has the spending money. The other ancillary benefits might show themselves if players are hypothetically in Vegas over the Summer on a holiday weekend and know a big spender from their school/area is dropping $30,000 on a table to see Tiesto. The guy might like some of the players and let them hang around for free.
2) A player wants to take his girl out to dinner in the big city, but doesn't have money? Someone will Venmo a manager/promoter/whoever at a restaurant/club and that venue then comps the meal/alcohol with only a token $20 charge for 3 beers rang up on the player's debit card.
3) A player needs more money and is definitely being drafted high? Some agent or brand will arrange a "marketing advance"
