Texas A&M boosters paying $30M NIL

[javadoc]

Ah, but that's a salary cap.

NIL is endorsement money. Endorsements aren't salary. A salary cap comparison doesn't apply.

There aren't limits on endorsements.

Can you name a circumstance where there's a limit on endorsements on anyone else in the world that limits how much they can profit from their own personal identity?

Purely for the mechanics of it...

Student athletes are already in a weird gray area of the law, I think. Scholarships being non-taxable - especially in an athletics context where they are in essence a payment in kind for services rendered - has to have been considered by the IRS at some point. Today we're talking about someone being comped for what can be hundreds of thousands of dollars of services, in exchange for labor and services in return. That's not "wages, salaries, and tips"? It's not being treated as such, but isn't that a conscious decision that was made - to grant an exemption for that activity?

Endorsement money would also be taxable income in the WST line atop your 1040. Right? And since there is already some fudging going on with that line for student athletes, what's to say there couldn't be further fudging?

I don't see it as a case limited to endorsements, per se. It's everything that can go into the WST for IRS purposes.

 

[CousCuse]

The Yankees have spent more money than anybody else in baseball but their success has come when they developed players from their farm system.

 

[RandomGuy]

If this is true, are they going to be able to come up with &30 million every year? Maybe once, not every year.

I seriously doubt the veracity of that article.

While it was deemed reliable from an OU insider, it could be speculation. However, it is certainly plausible, and an eventual likelihood. I wouldn't be surprised in the least.

 

[All4SU]

We are precariously close to colleges simply doing away with the “student” part of student/athlete. No more scholarships or academic expectations. Perhaps that’s what they should do. Then maybe, just maybe, we can get back to kids getting scholarships and getting an education.

 

[bnoro]

There are going to be a million fake stories about NIL deals created by salty fanbases/local writers/twitter trolls over the next few seasons. I'm not believing any of it.

This is the same as the supposed Barstool deal with Travis Hunter that wasn't true but for some reason everyone believes. It started from one random account on twitter.

An Oklahoma fan on a message board posted this, how would he know? Why have so many people on here taken this at face value? If this was true, I'd assume it would be national news by now, not having the only link be BroBible.

 

[the villager]

Be careful what you wish for ! The idea to get players compensated for their efforts that made big money for the school : TV, admissions,concession’s and parking is a noble one. The results are the same as before the big stars get the bag drops legally and the rest play for tuition and meals.

 

[TexanMark]

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

If a player gets say a couple thousand in NIL money and he or she is a PELL recipient...the PELL grant just may go away. Players need some serious advice as to what is worth it.

Who are we kidding? A premier league of 15-30 teams will be formed in the next 5-7 years if nothing is done. The AAA will be formed for the NFL. I wonder how some of these schools who regularly fill stadiums and are virtually guaranteed 9-11 wins will like it when NFL type records happen? Will you like several years under .500%, then your boosters start withholding money? Fun times. Ask Bills, Jets and Giants fans.

We'll be in the AA with 60-90 other schools. So be it. Our games will still be televised and we'll learn to love playing old rivals again. A school like Cuse might actually thrive in this environment.

BL: No sense worrying about it. Just support the team in the present with ticket buying, attending, and $$$ support.

 

[RandomGuy]

Purely for the mechanics of it...

Student athletes are already in a weird gray area of the law, I think. Scholarships being non-taxable - especially in an athletics context where they are in essence a payment in kind for services rendered - has to have been considered by the IRS at some point. Today we're talking about someone being comped for what can be hundreds of thousands of dollars of services, in exchange for labor and services in return. That's not "wages, salaries, and tips"? It's not being treated as such, but isn't that a conscious decision that was made - to grant an exemption for that activity?

Endorsement money would also be taxable income in the WST line atop your 1040. Right? And since there is already some fudging going on with that line for student athletes, what's to say there couldn't be further fudging?

I don't see it as a case limited to endorsements, per se. It's everything that can go into the WST for IRS purposes.

Gray area, for sure. If we have numerous scholly musicians in our Marching band? Are they technically paid performers? I will continue to classify them as students. The only difference from their unique gifts/excellence is that the student athletes can generate a billion dollar industry. Both have inherent value in representing their University, and equally deserve the scholly for such gifts. Same as the academic excellence scholarships. I would put none of those schollys in the income column.

With money (salaries) flowing directly to players, I can't imagine that the IRS won't view some of theses cases as skirting labor laws- by having a 3rd party pay the "salary."

We can be fairly certain that every contender will have sweeping " NIL" salaries for their whole team. This is above and beyond the earned scholarship to be part of the University.

 

[All4SU]

Do Universities and the NCAA still have academic requirements? Why?

 

[JustPherU]

The Yankees have spent more money than anybody else in baseball but their success has come when they developed players from their farm system.

Yeah but they have been able to keep those guys they developed unlike a lot of teams. Teams like Cleveland develop guys and then can’t afford to pay them.

 

[Ozone!]

Yes, the SEC will take over unless the other schools Presidents/Chancellor’s grow spines and push back against this current insanity! They actually have votes that can impact what the feckless NCAA does.
Currently, the vast majority of schools are acting like ‘Chicken Little’. They are so fearful of the SEC forming their own governing body that they are allowing the SEC to set the agenda! IMO, this is why they are getting away with this piracy which eventually will destroy The Basketball Tournament, as we know it!

 

[Sudano]

The Yankees have spent more money than anybody else in baseball but their success has come when they developed players from their farm system.

So Syracuse Football only has to fund and develop a HS football farm system to succeed! Wait what?

 

[CousCuse]

Yeah but they have been able to keep those guys they developed unlike a lot of teams. Teams like Cleveland develop guys and then can’t afford to pay them.

Tampa seems to have found a viable system. Teams like SU in college football should study their model as some aspects may apply.

 

[Sudano]

Do Universities and the NCAA still have academic requirements? Why?

Why do Universities even have football? Have these football teams just form professional teams owned by the state entities and have no connection to academics.

 

[kcsu]

Who needs 30 mil
SU is offering a class on nil for the players. What else do they expect.
But seriously. SU should do everything possible to stay on top of this. I actually think that NIL and the portal might help us in the long run once the dust settles

 

[CousCuse]

So Syracuse Football only has to fund and develop a HS football farm system to succeed! Wait what?

No silly, we have to recruit the kind of people that will stay and develop for 5 years. That's our farm system.

 

[Sudano]

Tampa seems to have found a viable system. Teams like SU in college football should study their model as some aspects may apply.

Now we just have to have a draft, sign free agents, under a salary cap and all is well!

 

[Sudano]

No silly, we have to recruit the kind of people that will stay and develop for 5 years. That's our farm system.

#1: that's not a farm system, #2 it's what we are trying to do now, and where are these players that we will find if we call it a farm system that we can't find now.

 

[CousCuse]

Now we just have to have a draft, sign free agents, under a salary cap and all is well!

It's different, but are lessons to be learned with how Tampa has managed their situation.

 

[CousCuse]

#1: that's not a farm system, #2 it's what we are trying to do now, and where are these players that we will find if we call it a farm system that we can't find now.

Used to have frosh and jv teams, maybe they should go back to that.

 

[Reilly35]

For the nations #1 recruiting class, it will cost you $30M.

Texas A&M Boosters Spent Unfathomable Amount Of Money To Land No. 1 Recruiting Class, Per Report

Getty Image / iStockphoto Head coach Jimbo Fisher and the Texas A&M Aggies signed one of the best recruiting classes of all-time this year. To do so,

brobible.com

LLCs are such b*lls*it

 

[rrlbees]

Who needs 30 mil
SU is offering a class on nil for the players. What else do they expect.
But seriously. SU should do everything possible to stay on top of this. I actually think that NIL and the portal might help us in the long run once the dust settles

Clown post that shows you don’t understand this at all. For the 99th time they do more than just offer a class. For the 98th time, 30mil or 30 dollars, nothing can come from the school. Why don’t you gather your friends to come up with 30mil? Put your money where your mouth is.

 

[mscanlo]

There are going to be a million fake stories about NIL deals created by salty fanbases/local writers/twitter trolls over the next few seasons. I'm not believing any of it.

This is the same as the supposed Barstool deal with Travis Hunter that wasn't true but for some reason everyone believes. It started from one random account on twitter.

An Oklahoma fan on a message board posted this, how would he know? Why have so many people on here taken this at face value? If this was true, I'd assume it would be national news by now, not having the only link be BroBible.

Regardless if the Texas A&M rumor is true or not, it's probably the direction we are headed.

Boosters will toss tens of millions of dollars right now for top coaches. However, people are saying recruiting is now 80% (to 90%) of what wins national championships (i.e. without a top 5 recruiting class you wont win the national championship). Someone is going to do the math and deem it a worthy "investment" to throw tens of millions of dollars, via NIL, to help recruiting.

The other issue is, yes, boosters have been giving money to players for decades. However, now this is above table and public, which will trigger an arms race at least for the interim as what happened with coaching salaries (especially this year).

 

[RandomGuy]

If people are starting charities to pay players then that’s **ked up. Sounds like the Trump ”charity”.

Isn't that what Texas did for linemen?

 

[RandomGuy]

Regardless if the Texas A&M rumor is true or not, it's probably the direction we are headed.

Boosters will toss tens of millions of dollars right now for top coaches. However, people are saying recruiting is now 80% (to 90%) of what wins national championships (i.e. without a top 5 recruiting class you wont win the national championship). Someone is going to do the math and deem it a worthy "investment" to throw tens of millions of dollars, via NIL, to help recruiting.

The other issue is, yes, boosters have been giving money to players for decades. However, now this is above table and public, which will trigger an arms race at least for the interim as what happened with coaching salaries (especially this year).

Agreed. The interesting part is that it is supposedly from a 247staffmember. Stephan Bailey type, I presume. If hogwash, its certainly the direction its headed - Like Miamis whole team NIL deal. Currently under investigation. (I'm not sure why an entity couldn't endorse every player, though)

Report: Miami, BYU Investigated by NCAA Enforcement over Potential NIL Violations

The NCAA is investigating two "high-profile" NIL deals involving football players at BYU and Miami "for potential violations of the association's interim rules...

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