Sports illustrated drops a bomb on NIL

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The student-athletes that benefit from NIL should pay income taxes just like any ordinary citizen.

Well-off colleges with NIL collectives that pay NIL money to PWOs theoretically can have the equivalent of multiple undeclared scholarships. This will be an unfair advantage.
 

In the SEC, a couple of NIL collectives organized as non-profits and tried to make donations to the collective deductible as charitable donations. Total bullshit, of course, as the donations to a collective that intends to commercialize players’ names, images and likenesses are contributions to a business, not to a charity.
 


Gophergrandpa said:
In the SEC, a couple of NIL collectives organized as non-profits and tried to make donations to the collective deductible as charitable donations. Total bullshit, of course, as the donations to a collective that intends to commercialize players’ names, images and likenesses are contributions to a business, not to a charity.
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I wonder if any of the Gopher NIL collectives operate in the same or different manner.
 


hungan1 said:
The student-athletes that benefit from NIL should pay income taxes just like any ordinary citizen.

Well-off colleges with NIL collectives that pay NIL money to PWOs theoretically can have the equivalent of multiple undeclared scholarships. This will be an unfair advantage.
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They do pay income taxes like any ordinary citizen.
 

another reason, IMHO, in favor of National NIL legislation that could impose rules and regulations which would have to be followed in all states and conferences. provide a structure that everyone has to follow.

BTW, I saw that the SEC had a bunch of coaches and administrators in Washington, DC recently to do some meet-and-greets with members of Congress and the Senate, and to lobby on behalf of national NIL legislation.
 



Seany said:
I kind of wish they’d blow that whole NIL thing up, as I pretty much hate it. It is just sketchier than hell and is just a wide open doorway to massive financial malfeasance.
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That ship has sailed.
 

Gophers1992 said:
I too hate when people are paid for the value of their abilities.
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I'm certain Seany was referring to how the collectives are just pay for play shams and really have nothing to do with NIL. Though the recruits and players who take advantage of this knowing that it truly isn't NIL aren't completely innocent either.
 

Gophers7NatTitlesBadgers0 said:
I'm certain Seany was referring to how the collectives are just pay for play shams and really have nothing to do with NIL. Though the recruits and players who take advantage of this knowing that it truly isn't NIL aren't completely innocent either.
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It’s not NIL per se, but they pay for play schemes in collectives that are unseemly. Even in a politically driven IRS, there’s no way they could conclude the collectives are doing any charitable or social good to justify a 501c3 status. That’s a no brained if there ever was one. If you can’t deduct your scholarship donation tied to tickets, there is no way your donation to pay players can be either.
 




I'm just a bit surprised that some of these entities were allowed to organize under a 501(c)3. That seems like a stretch. I don't have that big of a problem with the NIL except that it will likely make a lot of unsavory booster club stuff basically legal, but wading into the non-profit sector to accomplish the purpose seems odd to me.

Like SON said, there needs to be some type of national guidance on this. I don't trust the NCAA to do it right and if it heads to Congress it likely gets embroiled in all kinds of tertiary issues. The tax angles do have to be cleared up though and as much as folks hate the IRS, there's a fair amount of shenanigans in the non-profit sector that should be reined in.
 

Gophers7NatTitlesBadgers0 said:
I'm certain Seany was referring to how the collectives are just pay for play shams and really have nothing to do with NIL. Though the recruits and players who take advantage of this knowing that it truly isn't NIL aren't completely innocent either.
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They really just need to stop trying to distinguish between NIL, pay for play, and whatever else and just let players get paid whatever someone is willing to pay them.
Simple
 

NIL collectives = paying athletes as employees.

Trying to argue otherwise is lying.


Just do it the right way. Make P5 schools share their profits directly with the athletes. Tax it as income (which it is).

And then all the donations to the collectives that are effectively bags to the athletes that are getting laundered as "NIL" can just be made directly to the athletic department. Then they probably would be tax deductible?
 
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Holy Man said:
It’s not NIL per se, but they pay for play schemes in collectives that are unseemly. Even in a politically driven IRS, there’s no way they could conclude the collectives are doing any charitable or social good to justify a 501c3 status. That’s a no brained if there ever was one. If you can’t deduct your scholarship donation tied to tickets, there is no way your donation to pay players can be either.
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The business activities eg tv contracts, revenue distributions of the conferences, NCAA, schools has always required some pretty heavy mental gymnastics to justify escape from taxation as non-profit entity... I believe the recent tax reform under the prior administration did levy a hefty tax on coaches and administrator salaries over $1M but there are probably some tax loopholes there and hey, is anyone enforcing it anyway?

I wonder, would the good senators and representatives of P5 states like Georgia or Ohio support closing the tax loopholes of these unrelated business revenue streams? Small beans, really. Public sentiment says: don’t care, most likely, so DOA. I don’t think they’ve reached the necessary level of villainy to attract the attention.
 

Gophers_4life said:
NIL collectives = paying athletes as employees.

Trying to argue otherwise is lying.


Just do it the right way. Make P5 schools share their profits directly with the athletes. Tax it as income (which it is).

And then all the donations to the collectives that are effectively bags to the athletes that are getting laundered as "NIL" can just be made directly to the athletic department. Then they probably would be tax deductible?
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If the revenue from tv had been aggregated and collated into general funds and scholarships to deserving academically gifted students or those climbing the ladder rather than lining the pockets of administrators, coaches, and facilities contractors it may have avoided the vitriol and mess college athletics currently finds itself in.
 

Gophers1992 said:
They really just need to stop trying to distinguish between NIL, pay for play, and whatever else and just let players get paid whatever someone is willing to pay them.
Simple
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The only way that will happen is if a independent minor league system is set up. Not going to happen in CFB!
 

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