Vendetta Sports Media has partnered with SimBull, the stock market for sports! If you are interested in buying stocks with SimBull, use the code VENDETTA for a $10 dollar bonus on your first deposit. The SimBull CFB market launched on July 1, offering shares for each of the Power 5 programs. On the same day, the new NCAA NIL policy came into effect, allowing college athletes to use their name, image, and likeness to make money. Will this new policy have implications for SimBull CFB share prices?
Will NCAA NIL Policy Influence SimBull CFB Share Prices?
The July 1 release date for SimBull CFB ensures that there will not be a day where we see the market apart from college athletes making money from NIL. The short answer to the above question is probably not. If Auburn QB Bo Nix wants to endorse Milo’s Tea, that shouldn’t have any necessary effect on the Auburn football team. Miami QB D’Eriq King’s deal with College Hunks Hauling Junk won’t mean that Miami wins or loses any more or less games next season. As far as immediate effects, we likely will not see NIL influence SimBull CFB share prices in any meaningful way.
Long-Term Effects for SimBull Prices?
However, there is a lot of potential for NIL to influence SimBull prices in the long term. NIL opens the door for big changes to recruiting in college football. Here’s an example. Let’s say that Brand A pays very lucrative endorsement deals for college athletes, but only if they go to College A. Maybe College A is local to Brand A (Nike and Oregon), or the CEO is an alumnus of College A (Kevin Plank and Maryland). In this case, college athletes would have a very strong monetary incentive to attend College A over College B, C, or D. Before NIL, this incentive did not exist, at least not publicly enough to where it would affect a share price.
Recruiting Changes Are Coming
If NIL affects recruiting, SimBull CFB share prices will naturally follow. Eventually, schools will learn to use NIL as an advantage to attract high-level recruits to their programs. This could work in both directions. Maybe a brand provides incentives for a student-athlete to enroll at a specific school, or maybe a recruit chooses a specific school in order to gain the exposure to land a bigger brand deal. In either case, NIL alters recruiting. Over time, we could observe some disruption to the power structure in college football to where more four- and five-star recruits go to colleges for the money and not for exceptional football. The thing is, elite prospects know they can be drafted out of any school. D’Eriq King is making $20K off his endorsement deal. For some athletes, that kind of money might talk louder than a winning tradition ever did. Not all, but some.
NIL is so new that there will likely be impacts on college football that no one has thought of yet. As far as SimBull CFB share prices go, NIL probably will not affect them in the short term. However, as colleges and brands learn to leverage NIL to their advantage, SimBull investors will need to evaluate the market for big value buys or programs on the way out.
Disclaimer: I want to clearly communicate that this is all my opinion and my individual assessment of value. I am not a financial advisor. Be smart with how you invest your money.
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