Montlake Futures Interview - KJR/Softy
1/23 Podcast - Hour 3
I'll follow-up with my thoughts summarizing the interview and my takeaways
Comments
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Please don't.
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I heard it live driving up for a Kraken game last week. It’s worth a listen if you want to know where UW’s NIL stacks up.
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Key information that I found in the interview:
- Number of people giving money through Montlake Future is quite low … membership is at about 10% of the top SEC levels (Ole Miss was cited)
- We're driven primarily by some big donors … particularly true for hoops (I suspect that that's Ballmer)
- Numbers framed against seating capacity at Husky Stadium
- NIL fund for this year for football is projected at about $15M and includes when schools can start paying players directly about halfway through the year
- Top programs in 2024 were north of $20M paid through collectives
- Called out that some of the top-end spending was linked to watching rivals have success … in other words the spending isn't rational
- Once the programs themselves are able to pay directly it will establish a soft cap … UW appears to be committed to pay to the top end of what is allowed with an allocation of funding to football consistent with the top end of the market
- Recognition that we're a market with a lot of options whether it's other sporting interests, what we do with our time/money, and other charitable interests
- Recognition that corporate dollars needs to be unlocked better
My Key Takeaways and Observations
- There's a massive disconnect between the Collective and the general fan and/or alum in terms of awareness and engagement
- Current approach by Montlake Futures (and the Athletic Department) of "we need money" is dated and doesn't reflect the changing environment
- There is a lot of competition for money flowing into the football program and athletics in general … a compelling value proposition needs to be established that explains why money flowing to UW is a prudent use of the donator's resources
- An understanding that by asking for supporters to fund the payment of players in the program that by default those supporters are now stakeholders of the program that want to see some kind of return on their investment … there's a different level of accountability in the past
- With the freedom of player movement and lack of overall player investment in programs in general, the prior value propositions that supporters were asked to buy into through Athletic Departments (funding facilities, academic services, the education/growth journey of the athlete) are ever evolving and are changing … this has to be recognized by all
- Speaking of value propositions, if you're struggling to get corporate money to invest then that means that you're not offering a compelling return for them on their investment … corporate dollars aren't throwing money around like its charity
- A market that has a foundational element tied to irrational spending for spite, dick measuring, etc. is not a sustainable market … trying to shame or guilt trip your fanbase based on "how badly do you want to win" is at minimum going to be poorly received by some portion of your "customers"
- Clear need for public education as to how Collectives fit in come the 25-26 Academic Year when programs can pay directly through Athletic Departments … if you're asking the "customers" to effectively be investors and financial stakeholders in the program then you have to make sure that they understand what is being asked of them
My Recommendations
- Need to clearly communicate what the financial targets/needs are for the key programs and ensure that there is education/transparency as to what is required … must move away from "we need money"
- Regular communication from the Athletic Department and Collective is required … think something similar to how a public company is tied into quarterly financial results and having earnings calls where they are accountable to their shareholders
- Clearly link asks to season ticket holders as part of their annual payment processes
- Integrate "donation" opportunities at home games through POS for concessions and merchandise … pilot a program on this ASAP
- Better understand the uniqueness of this market and be aware that a value proposition matters to both individuals and corporations … if you're not unlocking it then the starting point is looking in the mirror
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My dad said they're spending 15 million this year.
No gay wannabe ChatGPT output needed.
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Context matters
They are expecting $15M which includes half a year when the Athletic Department is able to pay (the $20.5M max for the AD at roughly 70% allocated to football
The quick math looks like:
Collective: $7.8M (solve)
AD: $7.2M ($20.5M x 70% x 0.5 years)
Total: $15M
For perspective, the estimates/rumors this year were that Oregon, Ohio St, etc. were spending $20M+ via their collectives
So yeah, UW is behind from a collective standpoint
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POS was my idea. I’m lazy and more willing to donate money when I’m drunk. Everyone wins but my meager bank account.
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All the collective numbers are bullshit anyways.
Fuck radio interviews.
Shut up about context.
Imagine spending time on this.
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Wilner had a decent interview today on iheart … mentioned UW paying the $15 million/yr number to the players but if they want to compete tOSU, Michigan, Penn St plus Nike University - Montlake Futures will need to pony up an additional $10 million/yr on top of the $15 million players salary ($25million in total)
He made some good points about keeping the Apples Cup and that their fans that don’t want the game on principle are retarded. I’d rather watch the Apple Cup but dictate 1 game in Pullman equals one in HS and 1 neutral game 50/50 in the link or quest whatever it’s called these days and I’m sure many west side cougar fans would rather not drive 5 hours in each direction.
If Tequila mentioned any of this apologyies because I haven’t read his long post yet. Wilner also mentioned WSU got a home and home with Arizona and he expects the former pac schools including Cal/Stanford to schedule these games do to pac familiarity and west coast fans would mostly prefer rather than Eastern Michigan types. This maybe unpopular but I would like to see the Apple Cup not go poof.
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One thing I remember being a frustration with past ADs and people in the NIL staff positions and collectives was being frustrated for not tapping into the corporate opportunities in Seattle enough. Can remember if that was here or in a Twitter group I'm in. I'm curious how that's going.
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We're behind Ohio State's version of the 2023 UW football team?
Damn, I hope our 15m roster doesn't run into them this coming season.
