Texas A&M boosters paying $30M NIL

[RandomGuy]

I presume this has been going on, all along. I imagine the $$ has increased, as a business can write it off as a legitimate expense.

Interesting that the Class is averaging about $1M per player. Using the NFL model, each player at Texas was worth $1.6M/year.. That's with ignoring title ix, etc. And just analyzing football revenue.

It will be interesting to see how much boosters will try to meet that #. Essentially salary donations to the AD department. (With schools avoiding labor laws, paying their share of SS, insurance, etc..) I imagine the IRS will want that $$, and it will drive players to be classified as employees.

 

[DMDMD]

If this is what people want to spend their money on, that's fine with me.

 

[jgeorge322]

Almost seems weird that we have a campaign to raise $150M to build a shiny new facility.

Maybe it should be a campaign to raise $150M to give to recruits over the next several years.

I hope we're not more behind than we think. Will the facilities be important to the college football recruit of the roaring 20s? Or will cold hard cash.

Cash is king. These places can do both—facilities and pay players.

 

[GreekFreak]

This is what I mean when I say that this is a very serious problem for Syracuse. I am not sure we will survive it. The SEC is going to take over.

They already have.

 

[djorange1989]

we are never going to compete for recruits with the likes of Texas A&M anyway, we have to make sure we can compete when it comes to NIL with BC, Wake, Pitt, Rutgers, Maryland etc, just as always.

 

[grepal]

I would like to believe that SU has a built in NIL advantage with the resources and alumni from Newhouse. Advertising and Marketing should be in our wheelhouse. I get it that we need people to purchase the NIL products but we ought to be able to produce a very slick, professional product for our student athletes. That being said 30 million is mucho cabbage.

 

[Janner]

I apologize for asking the question because I am sure it was answer somewhere before but, how are taxes factored into the NIL deals? Are the students receiving these funds considered workers? If so some of these kids tax brackets are going to jump significantly, right along with their tax obligations. Hope they are being counseled on this if this is the case.

Another question for the accountants. Seems like a lot of money that will be going from, what I presume to be, formally non-taxable educational non-profit funds, to individual taxable funds. Wouldn't this be good for state coffers/revenue adding all these "employees" to the work force (maybe I am looking at this completely wrong)?

 

[TheCusian]

When it comes to this stuff, we don't have a chance. It's been true for a long time; now we can see it more clearly. The truth is that if it's that important to you as a region, alumni base, etc - then you'll do crazy crap.

I've said it prior, if that's the cost to play at the every top, go for it. The powers in CFB could have used all this money and energy to grow the sport but instead will fight over an ever-increasing regional sport.

The same "football not being played by enough HS/athletes" thing that happened in NYS is happening on the west coast. Those chasing the money instead of growing things will wake up in 20 years and wonder what happened.

It's cool. I welcome our soccer overlords

 

[cayugacuse]

“Multi-year contract.” That’s the operative phrase in that article. This is players being paid to play. Which means, of course… this is income. It’s taxable. Making their scholarship money likely taxable too.

I’ve said it too many times on here. I hate where college sports is headed. Heck, not headed… we’re there.

I had never given the tax liability any thought. Seems fair to me. Athletes likely to disagree though.

 

[bigmike]

we are never going to compete for recruits with the likes of Texas A&M anyway, we have to make sure we can compete when it comes to NIL with BC, Wake, Pitt, Rutgers, Maryland etc, just as always.

Beat them out (or held on) to a former elite 11 QB recruit..

 

[richmondcuse03]

I apologize for asking the question because I am sure it was answer somewhere before but, how are taxes factored into the NIL deals? Are the students receiving these funds considered workers? If so some of these kids tax brackets are going to jump significantly, right along with their tax obligations. Hope they are being counseled on this if this is the case.

Another question for the accountants. Seems like a lot of money that will be going from, what I presume to be, formally non-taxable educational non-profit funds, to individual taxable funds. Wouldn't this be good for state coffers/revenue adding all these "employees" to the work force (maybe I am looking at this completely wrong)?

Hopefully the boosters are providing accounting advice and support as part of these deals. I find it interesting that a booster would want to do this vs donate to the AD directly. One is a tax advantage - this is a marketing expense for the LLC no? Do they just write it off? Get the athlete to do a few promos for some Business or charity they have a relationship with and write that off as something in mind? I’m not an accountant but find it interesting. Sure shady stuff will go on.

 

[Louie and Bouie]

“Multi-year contract.” That’s the operative phrase in that article. This is players being paid to play. Which means, of course… this is income. It’s taxable. Making their scholarship money likely taxable too.

I’ve said it too many times on here. I hate where college sports is headed. Heck, not headed… we’re there.

How do you connect the athlete receiving money from a 3rd party LLC (taxable income) under NIL to the scholarship from the University being taxable? I don't see it.

 

[gmoney44]

yep, and its why I've nearly completly checked out interest wise for anything not Syracuse. Even with us and our games my urgency to make sure I miss nothing is waning fast, very fast. And I'll end this post by saying get off my lawn and who moved my friggin cheese...

I’m right there with you. This will be the first year since I was like 9 that I haven’t watched any bowl games and I am 45. I use to watch anywhere from 6 to 12 a year for a majority of those years too. College basketball is all but dead to me now too.

 

[Shrmdougluvr]

I would says the odds on this report being true are pretty close to zero.

 

[rrlbees]

NIL deals are not permitted to be contingent on a player's on field performance.

It’s also not permitted to be used for recruiting. This obviously is. This is not NIL.

 

[richmondcuse03]

It’s also not permitted to be used for recruiting. This obviously is. This is not NIL.

It’s also from an OU poster so probably can be taken with a huge grain of salt for a lot of reasons. Could be sour grapes at one of their peers.

 

[rocklloyd]

yep, and its why I've nearly completly checked out interest wise for anything not Syracuse. Even with us and our games my urgency to make sure I miss nothing is waning fast, very fast. And I'll end this post by saying get off my lawn and who moved my friggin cheese...

I'm right there with you.

 

[OttoinGrotto]

It’s also not permitted to be used for recruiting. This obviously is. This is not NIL.

I suppose we'll see how the NCAA elects to handle that.

 

[Bayside44]

Diminishing return outcomes are going to be great over the next few seasons, esp in football.

 

[PhatOrange]

I don't pay attention to this stuff so forgive my ignorance to it in advance...but why can't NIL and any of this money be capped? Maximum earnings on images and likenesses to keep it fair and balanced?

 

[phil77]

I wonder if now this is legal was this 30 mil cheaper or right in line with what they have been paying in previous years?

 

[Toga]

I mean it's not as bad as some players making a hundred bucks reffing games at the Y.

 

[rrlbees]

I suppose we'll see how the NCAA elects to handle that.

They won’t

 

[HRE Otto IV]

We do not compete against SEC teams. Stuff like this has no real impact on SU. Clemson and FSU is a different story. They will be impacted.

The SEC won't split off and become a G League. The TV partners want markets. People in the Northeast, Midwest, and West Coast won't watch an SEC only league. You could try taking the best schools from all over the country, and/or have promotion/relegation. But that would be hard to accomplish as you need to have schools agree to not being in the top league. How do you think Texas would feel being in the B league while Arizona State is in the A league?

Even a closed Super League will need 36+ teams and that means cutting 1/3 of the SEC out. You also need to account for other sports. Schools left behind will not want to allow the Super League schools in their conference for non Football sports.

Teams that I think would definitely make a Super League - 24. Then you can fill in based mainly on TV market to get to 40/42. SU gets left out as would about 30 other P5 schools.



SEC
Yes- UGA, Tennessee, Florida, Oklahoma, Texas, Bama, A&M, Auburn, LSU
Maybe- Kentucky, Mizzou, Ole Miss, Arkansas
No- South Carolina, Vandy, Miss State

ACC
Yes- Clemson, FSU, VA Tech, UNC, Notre Dame
Maybe- SU, BC, Pitt, Miami
No- Wake, NC State, Louisville, UVA, GA Tech, Duke

B12
Yes- BYU
Maybe- Okie State, WV, Kansas, UCF, Houston
No- Baylor, Iowa State, Kansas State, TCU, Texas Tech, Cincy

B1G
Yes- Michigan, Ohio State, Penn State, Iowa, Wisconsin, Nebraska
Maybe- Michigan State, Maryland, Rutgers, Indiana, Minnesota, Illinois
No- Purdue, Northwestern

P12
Yes- Oregon, Washington, USC
Maybe- Utah, Arizona State, UCLA, Colorado
No- Washington State, Oregon State, Cal, Stanford, Arizona

G5
Maybe- SD State, Fresno State, Boise State, UNLV, New Mexico, UMass

 

[supp]

Almost seems weird that we have a campaign to raise $150M to build a shiny new facility.

Maybe it should be a campaign to raise $150M to give to recruits over the next several years.

I hope we're not more behind than we think. Will the facilities be important to the college football recruit of the roaring 20s? Or will cold hard cash.

Thought that too. Except at this rate, it works out to about 5 recruiting classes. The building projects have a longer shelf life. I can't see how this is sustainable in the long-term, even in the SEC. If true, you're adding $30 million to your yearly donations to make this work...for now. There will be always be pressure to increase that number in order to compete. Anyway, that's on top of regular donations for season tix and other perks. No doubt facilities will continue to matter. It's part of the competition. And those donors who want to secure a long-term legacy will want their name on a building. NIL doesn't do that. It's ephemeral. We might be talking about $60-75 million a year in donations. How much money do these idiot SEC fans have to piss away?