Irrational Exuberance

Feb 16, 2025, 10:19 AM

I believe the current market of compensation of NIL is is irrational exuberant. Players are not being payed their actual value, they are being payed far over it. I know probably no one here watches esports, but I saw this exact thing go down in esports about 10 years ago. They thought the ROI warranted the top dollar they were spending on talent. In a game like League of Legends an unproven rookie contract was around 300,000 $. Top players were signing multi million dollar contracts. It started small, but a domino effect of others teams spending money in order to compete for top talent occurred. Now, there are some real differences. Despite getting viewership in the millions, the teams failed to properly monetize and are now in esports winter. The large VC's are pulling out. College Football has no monetization problems. Nevertheless, will programs like Duke now shelling out millions for a QB, I believe the market for players is a bubble. And it will burst when teams like Duke fail to make the money that spending Millions on a player that would make it worth it. I could be wrong. Maybe a QB is worth 7 million or whatever they are paying.

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