Texas A&M boosters paying $30M NIL | Page 8 | Syracusefan.com

Texas A&M boosters paying $30M NIL

fair enough. I still think this is the beginning of the end. To be competitive, schools will need more money than ever and there will be a disparity...enough so I think that it won't make any sense for many schools to field teams. In the end, I think there will be less schools playing which means less student athletes getting scholarship which = less educational opportunities. Maybe 20 schools stay in the race and that subset of athletes gets the benefit of education (if they choose) and cash. They will be the feeders to the NFL, which will have a smaller pool to deal with.
I think we're in for a rocky transition that will last a few years; but ultimately schools like ours will figure it out.
 
I think we're in for a rocky transition that will last a few years; but ultimately schools like ours will figure it out.
You are more optimistic than I. I hope I am wrong .
 
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.
I would rather set up NLI deals. Kids would jump at that more than facilities. These schools have coordinated attack plans for the NLI’s. It’s just a different level right now.
 
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.

Yep, it's painful as a lifetime Cleveland fan. From Craig Nettles, Chris Chambliss, Albert (don't call be Joey) Belle, Manny Ramirez, Jim Thome, Julio Franco, Cliff Lee, Dennis Eckersley, CC Sabathia, Franscisco Lindor, and on and on.

It's why MLB still struggles so much, as they don't know their arse from third base; no true salary cap, regional TV deals substantially benefiting the large market teams, etc. Middle market teams can't compete with bigger market teams, certainly not consistently. It's largely, in part, of what makes the NFL night and day better than any other US professional team sports league hands down.
 
Nothing new under the sun:


"Post-War Talent Boom
With all the football talent returning from the war, and many former football players having access to extra years of eligibility due to wartime eligibility rules, college football was sharply transformed in 1946. A bidding war broke out for the services of the best available players, and the South was a particularly active purchaser of football talent. But in hindsight the most notable purchaser was Oklahoma, a nobody before the war that was about to become an elite football power overnight. How? Cold, hard cash. For players.

Francis Wallace published an article in the November 9th Saturday Evening Post, "Football's Black Market," that exposed the sordid scene and made quite the splash. According to the article, eight war veterans who had played for Tulsa's 1944 team (8-2, #7) were purchased by Oklahoma, and Oklahoma would continue buying top recruits for decades afterward. But Oklahoma was not alone.

Former Illinois star Buddy Young received 25 offers, but chose to return to Illinois for several thousand dollars. Shorty McWilliams, a halfback at Army in 1945, was alleged to have been offered $15,000, a car, a job, and a post-graduation job to transfer to an unnamed team (presumably Mississippi State, where he did transfer). Army initially refused to allow the transfer, citing knowledge of the impropriety, but they ultimately let him go."

From the 1949 article:

"The coach in 1946 was Hall of Famer Jim Tatum. He only stuck around that one season, but that was okay, because the school had really wanted to hire his assistant, Bud Wilkinson (at right in photo), in the first place. Also in the Hall of Fame, Wilkinson ascended to head coach and led Oklahoma to the top of the college football world. Tatum's 1946 recruiting class featured 9 players who would make All American lists during their careers. Oklahoma was a major player in the "black market" of football talent returning from the war. Recruits were matched up with "sugar daddies" who gave them money and bought them clothes. This was a system that Oklahoma continued, more or less, through the 1980s, despite the periodic affliction of NCAA penalties for cheating along the way."
 
For the nations #1 recruiting class, it will cost you $30M.

If any of those SMU boosters from the 80's are still alive today here's their reaction

justin-timberlake-stare.gif
 
Those boosters are gonna want return on their investment. Four losses and players opting out of bowl games isn’t going to sustain that sort of structure.

It’ll take time to shake out but most of the schools setting up stuff like this aren’t gonna be happy with the results, which will put some interesting pressure on coaches and administrations.
 
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.

Apples and oranges. I’d bet the donors who will eventually donate the $150m for the facility, including the ones who put down the seed money of $25m, would not come close to wanting to put that money towards buying recruits.
 
UGA reportedly has a $1-2 mil NIL on the table for Caleb Williams if he transfers there.

You mean some booster or business?
 
Not sure.. that’s just what is being reported by people familiar with Caleb’s decision. This is as of this afternoon.


Has to be boosters. Miamis already under investigation for what, if any role, the school played in the NIL deal players got.
 
Wouldn’t this be performance based? rrlbees said that’s illegal.

What bees has said is that the schools can’t play a role in securing NIL deals nor pay players themselves. And it’s not supposed to be used for recurring purposes.
 
What bees has said is that the schools can’t play a role in securing NIL deals nor pay players themselves. And it’s not supposed to be used for recurring purposes.
Sorry. it was OttoinGrotto who said nil cant be tied to performance.
 
Apples and oranges. I’d bet the donors who will eventually donate the $150m for the facility, including the ones who put down the seed money of $25m, would not come close to wanting to put that money towards buying recruits.

It's not as much different as you think. But you did list two fruits, so I guess in the same family.

If you're willing to put up $25M for this program, I assume you want to see them win, and you want to do what it takes. You're told what it takes is to build some supersize shiny facility so more recruits will come. But what if what it takes is to create some LLC that somehow provides NIL money directly to the players.

I guess it comes down to whether or not said donor thinks players deserve much more compensation.
 
It's not as much different as you think. But you did list two fruits, so I guess in the same family.

If you're willing to put up $25M for this program, I assume you want to see them win, and you want to do what it takes. You're told what it takes is to build some supersize shiny facility so more recruits will come. But what if what it takes is to create some LLC that somehow provides NIL money directly to the players.

I guess it comes down to whether or not said donor thinks players deserve much more compensation.

I’m also not sure about this, but I think donating to the school for facilities is tax deductible. Giving money to a kid I doubt is.
 
I’m also not sure about this, but I think donating to the school for facilities is tax deductible. Giving money to a kid I doubt is.
That depends. Bagmen $$ was not taxable. Why the IRS hated it. Recipient paid no tax. The bag $$ would have come from disposable income from the giver. Already taxed.

In the new scenario? The booster could write off the player $$ as a legitimate biz expense, lessening their own tax burden. In this case, they could pay more than previously, as long as a service is provided, and write it off.

Even sketchier would be to pay players huge $$ for charity appearances, if it lessened the tax burden of the giver even more.

I think in each scenario, it provides a currently legal path for the booster to receive a tax benefit, not previously available. Yes. The recipient will pay the tax, so the IRS is better off.

Even still. I dunno how the IRS will be fine with that. Its a condition of EMPLOYMENT at said University. Some NIL deals should certainly pass the IRS lense. Many of the new ones? We all know its to provide a service on the field. I can't imagine the IRS doesn't subject these to labor law.

NIL is a good thing. Using it to skirt labor law for providing a service to a particular University, is an employment contract.
 
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I'm not convinced NIL is such a good thing in the current iteration. What I see is a select few players making possible 7 figure payouts. (Money given to them before even playing a down in some cases). This inequity surely will create locker room dysfunction.

I also see that college sports spending is out of control and the "inmates (boosters and star players) are running the asylum". All while the NCAA punishes some schools severely and let others off the hook.

The sport is heading to a place many fans don't like. We will see if changes can be made to save the game.
 
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I'm not convinced NIL is such a good thing in the current iteration. What I see is a select few players making possible 7 figure payouts. (Money given to them before even playing a down in some cases). This inequity surely will create locker room dysfunction.

I also see that college sports spending is out of control and the "inmates (boosters and star players) are running the asylum". All while the NCAA punishes some schools severely and let others off the hook.

The sport is heading to a place many fans don't like. We will see if changes can be made to save the game.
One dude in the locker room will have an Escalade and everyone else will be envious. Should be interesting watch
 
Once again the colleges and NCAA come out as winners on the whole NIL. They still keep all of the TV, merchandise and ticket revenues while the boosters subsidize the cost of their labor (players). How long the booster choose to fuel the system is the real question. They either have to see a return in the form of a National Championship, or some kind of return to their businesses by using these kids as spokespersons and brand ambassadors.
 
I’m also not sure about this, but I think donating to the school for facilities is tax deductible. Giving money to a kid I doubt is.
Not an accountant, but it’s probably something like this:

1) Set up LLC
2) invest in LLC
3) LLC only has losses
4) apply losses from LLC to your taxable income
5) taxable income is reduced
 
I’m also not sure about this, but I think donating to the school for facilities is tax deductible. Giving money to a kid I doubt is.
The difference is that the new facilities will benefit all of the sports teams. Men and women. NIL is mostly athlete specific. The Miami deal which is being investigated is a " Group" situation.
 

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