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University of Florida gets a 1% cut of Gatorade profits (thehustle.co)
263 points by Anon84 on Sept 19, 2021 | hide | past | favorite | 73 comments



Long ago I received my undergraduate degree from the University of Florida (UF). I remember when I started college, UF provided us a document that was entitled the IP passport, looked like a passport, and had all the IP related details you ever wanted to read about (which wasn't much for an 18 year old kid). But it was all there in plain language.

UF had (has?) 3 major IP breadwinners, Gatorade, Sentricon termite bait, and a glaucoma drug. Likely as a result, they had a sophisticated IP licensing and commercialization operation. Later, when I went to Georgia Tech, I discovered their technology licensing services were rather amateur in comparison.

There was a time when University of Florida and Florida State University, both state schools, were top 10 ranked for revenue from technology licensure. A professor at Florida State first developed the synthetic chemistry for the drug Taxol.


When I was a child the NFL was still drinking Kool-Aid, and only the Gators had Gatorade.

Other schools were envious and there was pressure to release it. It's hot down there in the SEC.

By the time I got to the University they were starting to rake in the bucks on the Gatorade and there was an emerging culture where there was widespread pressure to "invent new things or new ways of making the same old things".

It didn't usually work out and has long since faded, but it was an exciting time, not exactly shared by other universities, even some of the most prestigious.

This was quite strong in the Chemistry department where competition was very fierce in this respect, which could be seen as unsustainable at the time.

So when I was still a teenager I realized it was already too late and there would have to be a way to own my own inventions other than academic research, that had to be crossed off the list early.

It looked like a pretty smooth track but it was not headed where I wanted to go.

Therefore no PhD, no Bell Labs, no IBM, etc.

I forked early without resources which always seems premature, but in hindsight it was almost already too late for entrepreneurial effort alone to allow me to later launch without outside capital.

Interestingly, none of the other most lucrative university royalties today are nearly as many decades old as Gatorade.


i still drink gatorade all these years after being indoctrinated into it through basketball (via marketing agreements with schools), where we made it from powder in 10-gallon coolers. i still highly recommend making it from powder, so you don't pay the premium to transport water needlessly. it's also roughly 10× cheaper that way, and you can make it (much) less sweet, which is better for hydration/replenishment.


My employer has the packets in every port location so the field operators can always have some when they are out climbing the cargo tanks and boarding the ships.

If they haven't got bottled water then potable water is OK too, just need to carry an empty Gatorade bottle in the truck.

I guess Amazon workers would need two empty Gatorade bottles then, and really need to keep track of which is which.


Yes, a co-worker learned on one particularly long drive never to buy a certain color after a mix-up of which bottle was which.


All the more reason to prefer blue or red solution (just don't eat too many beets).


Gatorade doesn't even have electrolytes in it anymore. The current formulation is purely sugar water. The true original formulation used for the football team tasted really quite bad - you can emulate it by mixing "Low-sodium salt" into some water and give it a try. It's....not good.

Really - there's almost zero potassium at all in the current formulation...pretty small amounts of sodium too. It just sugar water. Now you need to buy something like "Electrolit" to use for what Gatorade used to be. Or the "Gatorade Endurance Formula".


yah, i'd heard gatorade got 'watered-down' early on for taste, but i believe there are still a few other ingredients in there other than sugar and flavoring? not saying it's enough to live up to the marketing, but i think it's not exactly zero.


Interesting enough, you can order the large things of powdered Gatorade for in-store pickup from Target, but they don't have it on the shelves. They don't want anyone to buy it, but if you're going to buy it online then they'd rather sell it to you. On their website they list it as being on a "secret shelf" that doesn't actually exist in the store.

As long as it's 50% diluted, it's still as good as all of the more modern products for most use cases.


Ironically, wikipedia lists the history as UF originally turning down a patent offer.

Then, when Robert Cade commercialized it and demonstrated sales, they sued him for a cut. The two parties settled on 20% for UF, plus reinvestment of some of the proceeds in Cade's research at the school. [0]

So apparently all schools are amateur at commercialization. UF just has more experience than most.

And generally, it seems like most universities do better spinning applied research and licensure off into an associated organization, who can focus on that. E.g. Ames, Argonne, JPL, LLNL, Lincoln Lab, ORNL

[0] https://en.m.wikipedia.org/wiki/Robert_Cade


> Then, when Robert Cade commercialized it and demonstrated sales, they sued him for a cut.

Someone once told me that no one gives a shit about your IP until you start making money.

If you start making money, then people will remember one of the following: a) your patent is invalid because they discovered it before you or b) they helped you with your discovery and they deserve a slice.


> they helped you with your discovery and they deserve a slice.

Using the "Gator" trademark entitles UF to a slice.


The word Gator is not a trademark, it's a common term for an alligator that dates back hundreds of years. "Florida Gators" is, within the context of football, athletics and academics.


It's Gatorade, not Gator


>So apparently all schools are amateur at commercialization. UF just has more experience than most.

The professor that originally created the buckey ball (forerunner to carbon nano tubes) was at a community College, and he didn't realize what he had done. Then a nearby university (the one you are thinking of) saw his research and recognized what was happening - so they bought it and expanded it. The university professors eventually got a Nobel prize out of it.


> So apparently all schools are amateur at commercialization. UF just has more experience than most.

I knew an engineering professor at a large state school with a renowned engineering program and one of his biggest complaints was how incompetent the licensing/commercialization office was at the school compared with, say, Stanford.


A recent alumni gift from NVIDIA's cofounder will "Build Fastest AI Supercomputer in Academia" for UFL.[0] When I was researching colleges to attend, Florida seemed amazing for in-state tuition. Florida is still ranked one of the best states for higher education.[1]

[0] https://blogs.nvidia.com/blog/2020/07/21/university-of-flori...

[1] https://www.usnews.com/news/best-states/rankings/education/h...


> Likely as a result, they had a sophisticated IP licensing and commercialization operation

Because UF fucked up the Gatorade deal so badly.

I went to UF and worked for a seed investment fund that spun technology out of UF's research labs (and later one of their portfolio companies).

Their research to company pipeline is a beast because they're deathly afraid of making that mistake again.


When I was a student at University of Florida, they didn't have - grades (i.e. A-, B-, etc). I heard it was due to a faculty protest against grade inflation, which in the end benefited me since a 90.0% was a full A on the 4.0 scale!

It looks like they have minus grades again, but I can't find any sources online - this was in the 2000's.

Also, it looks like the "New Engineering Building" is now just "Engineering Building". Maybe naming rights are still available if someone wants to donate a few million?


Yes they have minus grades.

NEB is still called NEB or the "ECE" building along with Larson/Benton Halls.

There is the new Herbert Wertheim Engineering Lab which is the "New"est Engineering Building. The Malachowsky Data Science Building is under construction south of the Reitz Union, replacing the parking lot at the top of the Center Drive hill.

Source: Finished masters in 2019.


Thanks for the visual. Was wondering where they'd put all that swank NVIDIA hardware. The flythrough of interior[1] immediately reminded me of the interior stairs in the Huang Center at Stanford[2]...probably not a coincidence.

[1] https://www.youtube.com/watch?v=lBctnZ2phUw

[2] https://bora.co/wp-content/uploads/2015/12/bora_StanfordHuan...


Things have certainly changed a bit! That was a pretty good parking lot, most people didn't know about it. The biggest drama in ~2007 was when they renamed North-South drive "Gale Lemerand Drive". Everyone preferred the old name!


Is there a law or rule that (indirectly?) requires the letter grading system?

I considered going to a college that used a non-linear grading system: you’d receive an in depth essay explaining your strengths and weaknesses.

They would still create a standard lettered grade, but they would not give it to you unless you asked, and they advised you not to ask.

It was implied they needed to create the lettered grade to comply with some regulation - possible to show there was no racial bias? Not sure.


Probably unrelated, but New College of Florida [1], once part of the University of Southern Florida, never used grades.

[1] https://en.wikipedia.org/wiki/New_College_of_Florida


When I was at UF they often didn't give an A+ every semester or even every year, even though it had always been considered top attainment by an outstanding student. It could not bring your GPA above 4.0 anyway.

New College, Nova University, and FAU were considered to be the destinations for the experimental high school students who attended the original Nova from 7th through 12th grade. The high school had a bizarre stanine grading system that could not directly translate to mainstream ratings.

This was years before they invented "Middle School" for everyone else to replace Junior High.


Sounds like the protest wasn't very effective!


Policies and politics like these, made the University of Florida kill its Computer Science program [http://tiny.cc/y5bjuz] - almost. So when you "Go Gators", perhaps its time to look at the UF contracts for hiring faculty.


Alumnus (of the CISE department) and staff (not of the department) here.

I interpreted that move as more internal politics. The EE and CISE programs for "doing computer stuff" compete with each other for dollars and mindshare. The squishyness of the CS tracks (there's an engineering and a liberal-arts track both) also complicates the picture.

My angle is, the reasons quoted to the press for any of these decisions is a deliberate fabrication. Don't make inferences about how the university functions from the press releases. It might be different at other multibillion-dollar businesses, but somehow I expect not.


Here's his link in non-obfuscated format: https://www.vice.com/en/article/pggwv7/university-of-florida...

And here is a video of the announcement:

https://www.youtube.com/watch?v=LFiTXdq6UDo


There must be something about CS programs that makes Universities hate them, the one I went to was horribly underfunded and I've heard similar complaints from people from other schools.


In my (albeit biased) experience, the CS department has super high demand (everyone is trying to switch into it or apply to it) but to the university, it's just 1 out of 100 different departments so it feels underfunded compared to the demand it has.


It's been that way since the beginning. I went to a small school in Northern Indiana in the mid/late 80s. The board refused to invest in any computer technology other than the DEC they had because they felt that computers were a passing fad.


There’s a lot of politics involved. All the students want to take CS classes because they understand it can be a path to a high lying career. This leaves other less popular departments scraping to justify their existence.

Basically the gap in demand is huge, but the gap in funding can never be proportionate because it would mean other departments barely get anything. So the CS department is perpetually underfunded, but e.g. the philosophy department probably has more money than it really needs based on natural demand (demand is artificially propped up by required courses)


They did not end up killing the CS program.

In fact in recent years, CISE has really helped to propel UF. See: [https://news.ufl.edu/2021/06/top500-rankings/].


That's a cool story about Chris Malachowsky donating $80M for the supercomputer. Chris is one of the cofounders of Nvidia and a UF alum. I met him in 2012 when I went to school there (he did a talk then). Very approachable, down-to-earth guy.


I remember that. I believe it was pushback that the state government was cutting funds and UF wanted to make a media splash to bring light to the situation. UF has a CS department as seen here:

https://catalog.ufl.edu/UGRD/colleges-schools/UGENG/CPS_BSCS...


No it was purely a university political issue, not a state funding issue. The UF CISE was a revenue a producing department and more than made up for its costs in tuition and grants.


When I was there (2001-2005), the campus had a contract w/ Coca Cola where all the vending machines on campus were Coke products only - only exception was that there were Gatorade machines everywhere.

Go Gators!


I find this kind of connection between commerce and university a bad influence.


These types of contacts are very common at US universities. They’re bad in that students might have fewer choices of sugary beverage on campus. But it’s not like these deals are influencing academics or anything. These deals mostly amount to the director of food service getting a better deal when stocking the concession stands and the dining halls.

If you deal in any kind of bulk good, you will typically sign a contract with your distributor with some sort of terms.


Well, but on the bright side "it got electrolytes!"


in what way?


What drinks should they have for sale on campus?


Whatever the students request, and with the size of a typical university that's probably a fairly large selection, as long as it can be sold before the best-before date it should be fine.

Note that that no doubt will include the products of the companies that now have the monopoly.


So how should they should stock a 12 can vending machine?

Coke Pepsi Diet Coke Diet Pepsi

etc


And then proceeds to replace tenure track teaching positions with adjuncts paid poverty-level wages.


It depends on the field.

Center for Latin American Studies Director is around $210K - Carlos De La Torre Espinosa.

Others make a lot more - would be curious if this includes some type of payout that is not standard

UF DAVID NELSON PROFESSOR $957,900.00 UF BRIAN HOH PROFESSOR $942,946.10 UF LEON HALEY PROFESSOR $874,750.00 UCF DEBORAH GERMAN PROFESSOR $850,000.00 UF THIAGO BEDUSCHI PROFESSOR $830,000.00 UF MARK SCARBOROUGH PROFESSOR $812,528.74 UF TOMAS MARTIN PROFESSOR $801,940.00 UF GILES PEEK PROFESSOR $781,740.00 UF PHILIPP ALDANA PROFESSOR $750,236.01 UF WESLEY FUCHS PROFESSOR $731,587.09 UF THOMAS BEAVER PROFESSOR $705,956.38 UF PAUL DOUGHERTY PROFESSOR $702,960.00


Those are mostly doctors. Any school with a decent med school will have top earners like this.


Yes and they should get paid that much. When I went to school at University of California we would look up the salaries of our teachers. Most of the highest paid people were football coaches. But a few doctors making around 1.5 million. Looked the person up they invented a way to do liver transplants. They have done over 800 transplants over there career at the school. They also taught how to do the surgery. That is money well spent.


The existence of highly-paid tenure track faculty does not change the fact that too many classrooms are led by adjuncts who could make more at McDonald's than they do teaching.

Your argument is akin to saying that poverty isn't an issue in the U.S. because Bill Gates.


Can't speak for your alma mater (or am I??), but during my time at UF, adjuncts in engineering simply weren't a thing; never took a course taught by one for anything lower division either...YMMV, I suppose.

Somewhere in between, full-time lecturers (called "instructional professors" these days?) were and still are exceedingly rare (albeit probably safe to assert all ECE alumni of roughly the past 2 decades were Schwartz'd and/or Gugel'd in some capacity).


Must've been a long time ago because now there's an army of non-tenure faculty teaching classes for every engineering department and in CISE. Whether they get paid less than they would at McDonald's is another matter but without a doubt they are a cost cutting measure (along with online classes and various other edtech BS like proctoring services).


>instructional professor

The fancy/official term for this is usually Lecturer. It’s a permanent position that’s usually not equal to professor in power and prestige, but it’s permanent, the pay can be good and you don’t have any expectation of research.

Graduate students and adjunct professors have largely taken over this responsibility because they are much cheaper.


> The fancy/official term for this is usually Lecturer.

Not sure about that[1], but acknowledged.

Graduate TAs were par for any course with a lab component or recitation, even courses that were taught by a lecturer; never felt like I was somehow being shorted opportunity in those though. It's the infamous adjunct part that my experience draws a blank on.

[1] https://fora.aa.ufl.edu/docs/10/2019-2020/Faculty%20Senate%2...


All those salaries put together are only about 50% more than what UF pays the football head coach alone. ($7.6mm)


Their football program makes more than double the profit of Gatorade royalties, though.


Isn't it kind of weird that we need to sell "juice rights" in order to fund education?


You prefer the European model, where, instead of universities directly seeing where their money comes from, it’s instead laundried through the government, which collects the taxes from juice makers, construction workers, night clubs, and booze sales, then commingles everything together and gives it to universities, so that they don’t see how their bread is being buttered, and can keep pretending it’s pure and untainted by real world considerations?

Either way, unless you eliminate government subsidies, education is paid for by getting a cut on the productive industries. I in fact prefer the UF getting royalties from juice, because at least they earned it.


And it provides a clearer feedback mechanism. Maybe give promotions / tenure to the juice inventors (in this case, Robert Cade's team)?


Other than Fuchs (who is the current UF president), everyone you listed is a MD.


[flagged]


Brawndo. Indeed, straight out of Idiocracy!


[flagged]


Please don't fulminate on HN, despite the social ills of soft drinks. I'm sure you can make your substantive points thoughtfully; please do that instead.

https://news.ycombinator.com/newsguidelines.html


What does Frost Glacier Freeze Gatorade taste like?


Hurricane Matilda.


I hope they use some of that money for a study regarding the nutritional value of Gatorade fed plants.


With that kind of free money in its coffer, you'd think factulty and students would get a cut of the share and be better off. Yet one of the most high-profile cases of grad student suicide in recent years happened over there- https://www.wuft.org/news/2021/04/23/university-of-florida-p...


That's not much money at all for a large institution. This statement seems a bit ... tripe in light of real world complexities.


Trite? Tripe is something else.


Tripe is also another slang word for bullshit.


That's a lot of money for graduate researchers who make <30k a year.


It wouldn't even cover 100 of them.


From your link it doesn't sound like the suicide was due to financial reasons.

Regardless, $20m split tens of thousands of ways also doesn't go very far. On the order of like $300 per person per year.


Are you suggesting this person's mental health issues and other contributing factors would have all gone away had he been handed a check for a few hundred dollars?




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