Schertz looks to be Gone!

[BirdGrad2011]

I brought this up earlier somewhere, and was half kidding, but...could NIL money be baked into student fees? If the university added another $50-100 for each student, that's an extra 1-2 mil right there.

Dunno if that's feasible or even legal. It's certainly pathetic and off-putting in a way, basically asking students to pay other students, the majority of which would have no clue where it's going. But on the other hand, it wouldn't surprise me as an option if it were possible.

Part of me still can't believe I just typed that and this is what college athletics has come to.

No, the university can’t fund NIL. We’d be better of selling our souls to State Farm, Country, any big donor we may have.

 

[Redbird222]

No, the university can’t fund NIL. We’d be better of selling our souls to State Farm, Country, any big donor we may have.

I think the next step they are working on is switching donations from Weisbecker to NIL. The season ticket holder would have an option. I am sure this is all going through legal and compliance.

Serious question - how do collectives continue to be non for profits. I see this getting challenged at some point by the IRS

 

[Hamdonger]

I think the next step they are working on is switching donations from Weisbecker to NIL. The season ticket holder would have an option. I am sure this is all going through legal and compliance.

Serious question - how do collectives continue to be non for profits. I see this getting challenged at some point by the IRS

100000000000000 percent.

 

[StLRedbird]

This definitely presents an interesting dilemma. My understanding is donors can't tax deduct their contributions to an NIL collective in the same way they could to a non profit/school. Businesses "can" deduct NIL contributions as long as it can be documented they are receiving real value for their sponsorship (ie. photo shoots, branding, videos, etc.)

Perhaps the laws will continue to change and be challenged in court. My sense is this is just a first step in what will be a continually evolving legal structure.

Illinois schools need some help from Springfield. Definitely not a level playing field, if the "field" can even be accurately scoped right now.

Link to article about Mizzurah NIL law

 

[isuquinndog]

And NIL groups can't just give cash for nothing. That's the point of NIL. The player has to do something (even if it's samll like make social media posts or make an appearance).

Obviously, that's easy to get around, just saying it's not just a flat payment.

 

[Hamdonger]

And NIL groups can't just give cash for nothing. That's the point of NIL. The player has to do something (even if it's samll like make social media posts or make an appearance).

Obviously, that's easy to get around, just saying it's not just a flat payment.

"Hey SuperStar basketball/football player. It's collective, here. We need a selfie to post on our X account, reminding people of what a great player you are and telling kids to be sure and get their GED. Ohh, here's a million dollars. Thanks. Wish it could be more, sorry about that. Get us the selfie and we'll send the Brinks by 3pm this afternoon."

 

[Hamdonger]

I think the next step they are working on is switching donations from Weisbecker to NIL. The season ticket holder would have an option. I am sure this is all going through legal and compliance.

Serious question - how do collectives continue to be non for profits. I see this getting challenged at some point by the IRS

I am curious how these players' CPA's are structuring said tax returns...cause on paper you've got some kids with upcoming ENORMOUS tax bills as contracted income from the NIL collective.

 

[BirdGrad2011]

So I’m in no way against these kids getting their fair share. Just imagine being 19-21 and you get free schooling and $100k+ just for playing ball. I’d be balling out. I hope these kids getting those massive pay days are getting good advice.

 

[Redbird222]

I am curious how these players' CPA's are structuring said tax returns...cause on paper you've got some kids with upcoming ENORMOUS tax bills as contracted income from the NIL collective.

States will start looking at different ways get a piece of their pie including where the income is earned

 

[Hamdonger]

States will start looking at different ways get a piece of their pie including where the income is earned

No doubt about it. Players, I'm sure, set up their NIL income as a shell business and now you're dealing with corps and LLC's and...

But it's still taxable income and I'm not seeing the write offs. I'm sure there's a tax firm out there, though, that has re-invented itself to serve 6 figure NIL athletes and get creative in writing off income for those players.

 

[DougSutton]

No doubt about it. Players, I'm sure, set up their NIL income as a shell business and now you're dealing with corps and LLC's and...

But it's still taxable income and I'm not seeing the write offs. I'm sure there's a tax firm out there, though, that has re-invented itself to serve 6 figure NIL athletes and get creative in writing off income for those players.

Agreed. While there are certainly many, many more kids earning money through a structure like NIL, there have been a good number of young kids that have had sponsorship deals from sports (Tiger Woods, Shaun White, the Williams sisters as just a few examples), so the model of how to navigate this from a tax perspective is there. It's just that there's way more kids now earning money.

 

[Rollbirds5]

So I’m in no way against these kids getting their fair share. Just imagine being 19-21 and you get free schooling and $100k+ just for playing ball. I’d be balling out. I hope these kids getting those massive pay days are getting good advice.

Agreed The pitchers at Pub II would be flowing Wednesday nights that’s for sure

 

[ChiRedbirdfan]

I think the next step they are working on is switching donations from Weisbecker to NIL. The season ticket holder would have an option. I am sure this is all going through legal and compliance.

Serious question - how do collectives continue to be non for profits. I see this getting challenged at some point by the IRS

If an entity (the collective) collects revenue and disperses (expenses) it all out to players then what is left to tax? They broke even, and possible loss money depending on how they handle their operating expenses, so no income tax to pay, imo. The players will have to pay income taxes on what they collect/receive. Beyond that I believe some of the players earnings may come directly from businesses so the collective may not even be involved in some transactions. The collective just facilitated the transaction.

 

[Redbird222]

If an entity (the collective) collects revenue and disperses (expenses) it all out to players than what is left to tax? They broke even, and possible loss money depending on how they handle their operating expenses, so no income tax to pay, imo. The players will have to pay income taxes on what they collect/receive. Beyond that I believe some of the players earnings may come directly from businesses so the collective may not even be involved in some transactions. The collective just facilitated the transaction.

1. They will take away the tax deduction to the donor if it not a 501c or charitable organization. It doesn't have to break even or lose money to lose that distinction. The government alresdy took away contributions with season tickets as chartitable donations.
2. The part about States going after it is more a discussion that is happening more frequesntly ... where is you oncome earned. With increasing budget pressure states are getting more and more creative to determine where the income is earned. The state of Illinois may go after players in Tennessee (no state income tax) if they argue that part of revenue is earned in Illinois ... games, phot shoots etc...

Schools are directing how funds are distrubuted and while there is an agreement, there does not seem to be more correlation between what is received vs and the activity. I think States will could eventually challenge that the compensation is for playing basketball versus NIL. If that were to happen the income could get prorated by where games are played.

 

[ChiRedbirdfan]

1. They will take away the tax deduction to the donor if it not a 501c or charitable organization. It doesn't have to break even or lose money to lose that distinction. The government alresdy took away contributions with season tickets as chartitable donations.
2. The part about States going after it is more a discussion that is happening more frequesntly ... where is you oncome earned. With increasing budget pressure states are getting more and more creative to determine where the income is earned. The state of Illinois may go after players in Tennessee (no state income tax) if they argue that part of revenue is earned in Illinois ... games, phot shoots etc...

Schools are directing how funds are distrubuted and while there is an agreement, there does not seem to be more correlation between what is received vs and the activity. I think States will could eventually challenge that the compensation is for playing basketball versus NIL. If that were to happen the income could get prorated by where games are played.

 

[ChiRedbirdfan]

The donations from private individuals could be impacted by a non-for-profit status change but it seems to me that the biggest portions of NIL donations have been coming from businesses. Good example is the Ford dealership/anexsted(sp?) car he received and commercials he was a part of for the ford delaler. If a business hires a an athlete to help promote their business and compensates the player for doing that promotion then the business would expense the player promotion costs just like any other business expense and therefor not pay taxes on that “nil” expense ….which in the Zach example was really promotion/marketing/advertising expense for the Ford dealer.

 

[SgtHulka]

No doubt about it. Players, I'm sure, set up their NIL income as a shell business and now you're dealing with corps and LLC's and...

But it's still taxable income and I'm not seeing the write offs. I'm sure there's a tax firm out there, though, that has re-invented itself to serve 6 figure NIL athletes and get creative in writing off income for those players.

There are ways to navigate the tax world, but I doubt most of them will concern themselves with that (except where huge moneys in play) until the bills come due.

When I worked at Mitsubishi they were offering buyouts to thin the masses. Some took that money and invested it, or used it to better themselves for the job market. Others raced out to buy a new truck and motorcycle and were broke by the end of the day. I’m guessing the scales of balance will lean more towards broke ass than set for life in the NIL world.

 

[Hamdonger]

There are ways to navigate the tax world, but I doubt most of them will concern themselves with that (except where huge moneys in play) until the bills come due.

When I worked at Mitsubishi they were offering buyouts to thin the masses. Some took that money and invested it, or used it to better themselves for the job market. Others raced out to buy a new truck and motorcycle and were broke by the end of the day. I’m guessing the scales of balance will lean more towards broke ass than set for life in the NIL world.

Pretty much my point exactly.

 

[Aggie]

He threw out the first pitch at tonight’s Cardinal game. Was in a Cardinal jersey with a blue hat which I think was an SLU cap. Jim Hayes interviewed him. He was asked if his players were following him there. He indirectly answered with a somewhat “we have the resources and an attractive set up here.” Plus a few other get to know you questions. He also said he was goin* to Blues game. Smart guy.

 

[cpacmel]