"Compensating" players

[Eternal Return]

I just watched "The Laundromat"--not a great movie, but pretty interesting to learn more about the Panama Papers. About halfway through the movie I was thinking, "You know, setting up an untraceable offshore 'wealth management' company for a recruit would be a clever way for a booster to persuade a player to go to his alma mater." I'm thinking that probably happens.

 

[EvilMonkeyInTheCloset]

I just watched "The Laundromat"--not a great movie, but pretty interesting to learn more about the Panama Papers. About halfway through the movie I was thinking, "You know, setting up an untraceable offshore 'wealth management' company for a recruit would be a clever way for a booster to persuade a player to go to his alma mater." I'm thinking that probably happens.

How do you think Bama and Ohio State can afford all their recruits?

 

[Kinnick.At.Night]

So, a recruit has money invested in an offshore account. That’s great. Unfortunately, the recruit or/or his family accessing that money from the States isn’t untraceable. There’s a paper and/or digital trail needed to complete any transactions.

 

[HaydenHawk8]

There are only handful of players that will get the BIG $$. Otherwise most of the players will be getting similar compensation that they are getting now.

plus now all that money is subject to taxes and scholarships go bye bye. So they are responsible for room and board and meals and what not. I think some players will benefit from this change, but quite a few guys will not. Obviously the Fields, Tua, and others will benefit from this as some schools will pony up large amounts.

 

[ichawk24]

plus now all that money is subject to taxes and scholarships go bye bye. So they are responsible for room and board and meals and what not.

If you do some "pay for play" scenario, this might be true.

But this is false when it comes to California's new law. All it does is allow athletes to be compensated for their likeness. Scholarships will still exist.

 

[HaydenHawk8]

If you do some "pay for play" scenario, this might be true.

But this is false when it comes to California's new law. All it does is allow athletes to be compensated for their likeness. Scholarships will still exist.

Yeah I don’t see the NCAA or even individual schools going for that. They would be getting paid and getting free school?? Yikes! I know the SEC already does this, but I think people would be in an uproar over that.

 

[Eternal Return]

So, a recruit has money invested in an offshore account. That’s great. Unfortunately, the recruit or/or his family accessing that money from the States isn’t untraceable. There’s a paper and/or digital trail needed to complete any transactions.

Not money. Residential real estate. It's untraceable because there's no way to connect the shell companies to specific individuals. That's what accounting and law firms from the islands do. If the Gorman Real Estate Company from the Seychelles is owned by the Great Impact Wealth Management Company from the British Virgin Islands which is owned by ... on and on ... managed by an accounting firm in the Bahamas which is represented by a law firm in Panama ... there's no way to know that the beneficiary of a condo in New Orleans owned by The Torrent Group is the cousin of Player X at LSU. The paper trail leads nowhere because no one outside of those companies and firms can gain access to that information because their privacy of ownership is legally protected by laws in the U.S. and numerous other countries.

Try to sue the Gorman Real Estate Company and the lawsuit will go nowhere because the Gorman Real Estate Company will be have been bought out by another created shell company (owned by a dizzying group of other shell companies) which "disbanded" the Gorman Real Estate Company and, thus, the "new" company has no legal liability. Then you can try to sue that company and go down the rabbit hole ending up nowhere because the laws that allow these companies to exist are designed to escape legal liability in countries like the U.S.