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Good morning. It's Friday, January 16, and here are three ideas to consider as you read today's CRO.ticker:

➤ The Financial Reality in the FCS: Montana’s reality of a 10x NIL gap between a Griz star and a P4 offer proves that culture alone can no longer bridge the financial divide. Small-school administrators must decide if they are fighting to maintain traditional rosters or leaning into a new role as "development academies" for the sport's potential breakaway Premier League.

➤ Monetizing the "Off-Hours": NASCAR’s move to open its $60M production hub to outside clients is a masterclass in asset utilization. It suggests a new revenue frontier for college departments: transforming facilities from fixed costs into profit centers by serving local communities or corporate clients during the off-season.

➤ Premium-First Growth: From Delta’s luxury-focused seat strategy to Barclays Center’s $140M renovation of its high-end clubs, the market is signaling that growth is found at the top of the pyramid. The mandate for CROs is to pivot away from an "economy" mindset and double down on the exclusive, membership-driven experiences that fans are still willing to pay a premium for.

➤ Lots more!

We'd love to hear what you think of CRO.ticker so far! What do you find valuable? What don't you like? Share any and all thoughts here!

- Matt

Montana CRO Marcus Welnel joined the A New Angle podcast alongside economist Parker Fleming to discuss the financial realities facing FCS programs in the NIL era. Welnel emphasized that while most athletes at Montana won't see dramatic changes, the department faces a retention challenge with star players who could command "life-changing money" elsewhere. Other key takeaways…

➤ Welnel on the shift in team culture due to the portal: "My class that grew up kind of one of the last classes to not really have to deal with this, we had people on our team that were here as a freshman grew until we were seniors. ... It's not really like you're here, you build that tradition for four or five years, you know what being a Griz is all about or wherever you're at. And now it's like you kind of get placed here for one year, then you go here for one year. ... It's really tough to kind of establish that culture."

➤ Welnel on the retention reality for star players at the FCS level: "Our star athletes in the past came into Montana, they were on most likely a full-ride scholarship. They had the best facilities. They loved the atmosphere. They loved the fans. They loved everything about Montana. So there's no real reason to move up or leave. But now when they offer a dollar amount the University of Montana can offer versus a dollar amount that the University of Alabama or Tennessee can offer, those are two very different dollar amounts. ... Easy $100K at Montana versus a million dollars at Alabama."

➤ Fleming, who advises schools on roster valuation, predicted a future "Premier League breakaway" between the Big Ten and SEC that could turn mid-tier programs into development academies, where smaller schools "invest in player development...and just make their revenue by selling their players" via transfer payments. Both agreed that while the House settlement provides a template, the lack of public salary data makes market valuation difficult for coaches who have "never had to do this before." 

➤ Fleming on the "level of crazy" in donor funding: "There is a level of crazy associated with college athletics that might not exist anywhere else in the world. And that motivated crazy to help your team succeed, you can find money pretty easily. And I think there's been a couple cases of schools I can recall where a single booster said, 'I'll take care of it. Get this done.'"

➤ Full podcast. (link)

🎙️ The NACMA Timeout Podcast: Adam Schemm

From External Strategist to Executive Chair

Wisconsin-Parkside AD Adam Schemm joins host Zach Dayton to discuss the transition from a career in D1 external relations to the AD chair at his D2 alma mater. Here are three key takeaways:

➤ The "Dangerous" Skill Set Advantage: Schemm emphasizes the value of having a broad background in external relations—spanning marketing, ticket sales, digital media, and facilities. While he admits this makes him "dangerous" because he knows exactly what his staff is going through, it allows him to set clear, realistic expectations for how the department should operate and present itself.

➤ The "In the Bunker" Leadership Style: Schemm advocates for a leadership approach based on consistency and accessibility. While he maintains formal monthly budget and academic reviews, he finds the most value in casual "check-ins" on the coaches' turf—building the trust necessary to solve problems alongside them in the "arena."

➤ Embracing the "Insurance" Role of the AD: Schemm speaks candidly about overcoming imposter syndrome by realizing he didn't need to be at every single event. By focusing his energy only where he could make the greatest strategic impact, he was able to lead more authentically while maintaining a sustainable balance between the job and his family life.

CLICK HERE for the full episode >> 

Goldman Sachs and Morgan Stanley posted "bumper earnings" to close 2025, with Goldman's net income rising 12% to $4.6B and Morgan Stanley's up 18% to $4.4B, as Wall Street enjoyed its best year for investment banking since 2021, according to Financial Times’ Joshua Franklin. Fueled by deregulatory optimism under the Trump administration, Morgan Stanley saw a 45% surge in advisory fees—leapfrogging JPMorgan Chase in that metric—while Goldman set a record with $4.3B in equity trading revenue for the quarter. CEOs David Solomon (Goldman) and Ted Pick (Morgan Stanley) cited a shift in corporate mentality, with Pick noting that corporate America is coming out of a “stuck boardroom mentality” with executives more willing to borrow and make big acquisitions as interest rates ease. “Now there is really no more time to waste.” (link)

In another example that premium pays, Delta is doubling down on its premium strategy, with CEO Ed Bastian declaring: "Virtually all [growth in seats] will be in the premium sector" for the coming year. The airline expects 60% of revenue to come from luxury and corporate customers in 2026, projecting a 20% rise in earnings per share despite missing revenue estimates in Q4 ($14.61B vs. $14.68B expected). Delta also announced an order for 30 Boeing 787 Dreamliners (with options for 30 more) to serve high-demand trans-Atlantic and South American routes, diversifying its wide-body fleet beyond Airbus as corporate travel confidence rebounds. (link)

Coca-Cola is restructuring its leadership team to accelerate digital transformation ahead of Henrique Braun's ascension to CEO on March 31. The Wall Street Journal's Connor Hart shares the details: “Sedef Salingan Sahin, currently president of the company’s Eurasia and Middle East operating unit, will take on the newly created role of chief digital officer and will report to Braun, the company said. In the role, Sahin will lead the next phase of Coca-Cola’s digital transformation, integrating the company’s digital network and coordinating work across related functions, it said. Coca-Cola’s digital-strategy efforts are currently overseen by Finance Chief John Murphy, who will continue to serve in the role, the company said. As CFO, Murphy will continue to oversee areas including global strategy, corporate development and investor relations, it said. Customer and commercial-leadership responsibilities will additionally shift from Murphy to Manolo Arroyo, currently chief marketing officer, who will take on the expanded title of chief marketing and customer commercial officer, the company said. (link)

The Hershey Company is boosting the marketing budget for its 131-year-old flagship brand by 20% to launch its first new ad campaign in eight years, signaling a shift away from a strictly seasonal playbook toward a 365-day engagement model. Following the lead of Chief Growth Officer Stacy Taffet, the brand is moving beyond its traditional focus on Halloween and Valentine's Day to "fill the gaps" by targeting households without children and chasing cultural relevance through TikTok influencers, live events, and even a forthcoming "Hershey" feature film. This pivot comes as the company seeks to revitalize its core chocolate brand, which has recently been overshadowed by the social-media-driven success of stablemate Reese’s, and aims to leverage Hershey's "heritage" status to navigate rising cocoa costs and a more price-sensitive consumer base. (link)

NASCAR is opening its $60M production facility in Concord, N.C., to third-party clients, aiming to create a new revenue stream by offering its studios and engineering capabilities to other leagues and sports properties. EVP/Chief Media & Revenue Officer Brian Herbst tells SBJ’s Ethan Joyce that the facility already produces around 600 live events annually, but weekday and offseason capacity allows for expansion into non-motorsports projects. The concept was validated in 2024 when NASCAR successfully hosted the PGA Tour's production operations on two days' notice during a hurricane evacuation. Herbst emphasizes the flexibility of the offering: "[NASCAR’s involvement] can be customized for each one of the projects. For instance, we have motorsports expertise today, so we feel perfectly comfortable making recommendations around talent for the CW programs. But if we end up being in the golf business or the college basketball business, that’s probably one where we would expect the third party to play a larger role in the talent side, and maybe we’re more just a technical resource for them.” (link)

The Cleveland Cavaliers are raising season ticket prices by an average of 5% for the 2026-27 season, citing rising operating costs consistent with NBA trends. While some premium lower-bowl seats will see larger increases, other sections will decrease in price, and the overall hike is notably smaller than the ~15% jump implemented last year. The franchise has sold out 169 consecutive home games, a streak driven heavily by its Cavs United membership program, per Crain’s Cleveland Business’ Joe Scalzo. (link)

Barclays Center will undergo the third phase of its multiyear $140M renovation project, focusing on a redesign of the 9K-square-foot event level club set to open for the 2026-27 NBA season. The Populous-designed space, inspired by Brooklyn's Dumbo neighborhood with exposed concrete and steel finishes, will feature views of Brooklyn Nets players moving between the locker room and court, a 94-foot LED board, and show kitchens operated by Levy. Construction will be handled by Shawmut Design and Construction, continuing a venue refresh that previously introduced the Gallagher Terrace, The Bridge, Toki Row, and JetBlue at The Key. (link)

The Houston Rockets have a new postgame ritual for wins in which it appears a player is chosen to press a button that begins a countdown to what seems might be a digital launch? Not sure. Anyway, Greenfly Senior Analyst Neil Horowitz weighs in: “Not sure I love this one, but def like more and more teams creating unique pregame and postgame traditions. Get fans to arrive early and stay till the end. Opportunity to involve a local or nat’l celeb or honoree and/or highlight a player. Brand activation. Share-able moments.” (link)