Pourover: The diminishing returns of an increased NIL budget

Feb 11, 2023; Knoxville, Tennessee, USA; Tennessee Volunteers head coach Rick Barnes and Missouri Tigers head coach Dennis Gates before the game at Thompson-Boling Arena. Mandatory Credit: Randy Sartin-Imagn Images When Will Wade left North Carolina State to return to LSU, much was made about his NIL and revenue sharing budget set up to help him build the roster. Last season at NC State, it was rumored Wade was dealing with a roster in the $9-10 million range.

LSU was apparently offering $12 million. Why $12 million? Well, that’s the new number you “have” to hit… In trouble if you’re under $12 million says this Big 10 coach.

For as long as I’ve written here, and even before that, I’ve talked about a level of investment into your program that is required to compete at the highest levels. However, we’ve also known for years that the higher you go in spending, the more returns are diminishing. This was true 20 years ago with no money going to players, and it’s true today.

On top of financial commitment, you also need universal alignment from the athletic department and university. But lots of money helps. The problem being while there are an unlimited amount of players available, the number of good players who can help you win at a high level is a lot lower.