I brought this up numerous times. To me since we are going the Professional model it’s up to the University to supply the NIL money…..
NIL: Something people are not discussing…
- Thread starter ChiHawk21
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#1 . Our company told the collective of a local B1G program to take a flying leap. We’re not going to attach our brand to an 18-22 year old. In no way would it be additive
#2 no obligation to give my hard earned cash to some kid, just to maybe, potentially, perhaps make Saturdays more happy for some.
#3 absolutely, insane. It’s why we (and others) have rewritten estate plans. What was once a significant lifetime gift now equates to money spilled by athletic departments every day
This is certainly an interesting take. While I’m not actually going to flesh it out. I understand your premise… Here is where I live on the situation…..
I have been a hard-core sports fan for all of my life certainly since I was 8, 9, 10, whatever… But over the years I have dialed that back demonstratively. I have six kids. I’ve had some fairly intense jobs and the game really has changed….. or at least economics have.
In those jobs I’ve been blessed enough to be able to go to Monday night, Thursday night, Sunday night, NFL football games in Chicago and Green Bay amongst various events at the United’s Center for pro & college basketball, etc. etc…..
If I take my wife and two of my kids to a bears game and I got free tickets, I’m still gonna spend 250+ dollars… It’s insane!
Coupled with the vitriol from fans, players and talking heads alike and the flakes, you consistently see on the field and in social media… IM in the camp that it could ultimately affect, especially considering I feel like I’ve wasted a lot of time being a sports fan anyway…
ESPN change sports forever and no, I’m not in love with the directions it’s going, nor am I boomer, nor do I care enough to bitch about it I’m just gonna slowly phase myself out….
It’s an effing game and when I have to watch Aaron Rodgers, my son is Green Bay fan, make $50 million a year and act like an adolescent child on the field. It’s a major turn off!!!
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I am a graduate, fan, and letter winner of the University of Iowa. Any money I give will go to the institution that can use those funds for the long term good of the university rather than be given to a very small handful of athletes that will be associated with the university for most likely no more than 3 years.
I guess I just look at the long term play vs. short term.
I guess I just look at the long term play vs. short term.
I brought it up the other day. The ones benefiting the most (university and coaches) should be footing the bill, not fans.
Not sure but I know it's not high enough.
I read an article on the NIL and women's basketball and she wasn't even mentioned.
They ranked the top 10.
But like I mentioned earlier, I don't look at what on3 is saying. Means nothing to me.
If they had a legit auction for players, she would be near the top.
You could honestly make the case if your university gave you the resources to perfect you craft AND you not only accessed those resources for free, you then got paid, too…
YOU should be giving money back to your university for NIL, although hell maybe they do, I don’t know!
It’s isn’t going to be me. I’m going to spend the rest of my life, supporting my friends and family, giving to people in need and doing the best I can to be a sunny influence in peoples lives, opening doors, saying kind things to people, etc. etc…
And as you’re poised at your keyboard, ready to say,… “Well, that’s not what you do in here”…. keep in mind who I’m talking to, a bunch of obscure unknown people constantly pissed off on a Message board. You’re not likely to get my best!
Admittedly that isn’t very servant like in my Faith! But my best bet is to stay away. But if I’m here I’m going to have something to say about pissy “anonymous attitudes!
YOU should be giving money back to your university for NIL, although hell maybe they do, I don’t know!
It’s isn’t going to be me. I’m going to spend the rest of my life, supporting my friends and family, giving to people in need and doing the best I can to be a sunny influence in peoples lives, opening doors, saying kind things to people, etc. etc…
And as you’re poised at your keyboard, ready to say,… “Well, that’s not what you do in here”…. keep in mind who I’m talking to, a bunch of obscure unknown people constantly pissed off on a Message board. You’re not likely to get my best!
Admittedly that isn’t very servant like in my Faith! But my best bet is to stay away. But if I’m here I’m going to have something to say about pissy “anonymous attitudes!
The money isn't just getting pocketed by the athletic departments.
Programs that have zealous fan-following and also invariably programs that enjoy success ... success as measured by the W-L column.
Thus, a hunk of funds go to acquiring and/or retaining coaching staffs that have demonstrated the ability to keep fan-zeal at a high level.
Furthermore, athletic departments are obligated to "spread the wealth" ... thus, the money sports are still responsible for footing the bill for themselves AND all of the non-revenue sports.
If you haven't noticed, there is this thing know as inflation ... so just because the TV deals are big ... overhead costs ON just about every are going up too.
The fans (and particularly big boosters) have always been the ones who have footed the bill for the facilities arms-race. Prior to NIL-related stuff ... programs were doing everything they could to find whatever extra "legal" perks they could supply their athletes in big-revenue sports.
Now that we're in the age of NIL ... I wonder how this impacts the facilities arms-race ... particularly now that a lot of those monies are now getting diverted more directly to the players.
Are we going to be observing a new period when the facility arms-race slows ... and we're caught instead in a protracted NIL arms-race?
Yes, you are absolutely right - except for the part that no one is talking about it.
1. NIL stands for Name, Image, Likeness - these were things an athlete is allowed to "earn". Unfortunately, the change never included any sort of fair value requirement for it. Do you think some Oregon businesses can value the Name Image and Likeness of Proctor for $2 million? NO, they just want him to play football.
2. How much of this money going to collectives is being diverted from charities? Maybe instead of donating to a children's hospital the money is going to buy a quarterback?
There is apparently so much money in America that people can spend 7 figures on football players - because football players are fun to watch. What? At least when a gillionaire spend millions on a yacht, jobs are created to build it. This NIL money is pure entertainment. It's kind of like dropping $1 million at the craps table and betting on red. I mean, the people spending this money don't even know if the player is going to be worth it!
None of my money will be contributed to "college football" players.
The question I have - are the University Presidents going to just ignore this? Are they going to try to continue to promote the idea of "student athletes"?
It's off the rails.
Good add.
I think this is a real issue. If you are paid $500,000 to play football, and on top of that you get tuition, room , board- that might become taxable too.
Also, how long with athletic depts remain tax exempt?
And, how much longer will players be required to take classes?
This was a terrific post!! Kudos!! I’m not mad, and I’m not going to the highest hill to bitch about it, but….
A few years back, let’s go further….25 years ago, I read 3 sports pages daily, USA, Des Rag & Ottumwa Courier. And watched baseball, all football NFL/College and tons of basketball. 15 years ago, I played in multiple college fantasy, football, leagues, and NFL and I taped all the High School state championships from Michigan to Illinois to Missouri. Anything else relevant I could find ….
10 years ago, I still typically watched 10+ football games a weekend in totality surfing through 25 games… From noon until midnight.
It’s too much…. It’s an effing game. I begin to realize what a waste of my life it was… I watch Iowa play and that’s mostly it. I don’t even always watch the Iowa men’s basketball team play (didn’t last night) and rarely watch the NBA. More truthfully I don’t. I watch some NFL because somehow we accidentally ended up with the NFL package for free and I don’t watch any baseball except for sometimes in the playoffs and not much this year at all…The World Series participants sucked for me!
And I’m slowly cutting back more and I have zero interest in going to the stadium… Now to be fair as I’ve said, I’ve been blessed with the ability to go to copious amounts of free football and basketball games in the last 10 years, but my first thought is always no, my wife makes me go!! Probably just to get rid of me lol 😂
I care less and less every year and this new environment isn’t increasing My passion. It is decreasing it and I can’t be an anomaly.
There have to be lots and lots of people like me.!!
why should schools and coaches teach kids about nil finances when the kids can now have agents and business people to help them.
No, this WILL and SHOULD BE kept off the table.
A lot of American innovation is built off of grad-schools treating graduate students like apprentices ... and giving them tuition, TA-ships, RA-ships, insurance, etc ... all non-taxable.
If current laws were to target the benefits to athletes ... it would be equally applicable to graduate students.
Were graduate students hit - research in higher ed in America would come to a screeching halt. A big reason for this ... graduate students wouldn't then be able to afford to go to graduate school. This then would have a further cascading effect ... because all 4-year schools that are R1 universities skim a TON of money from faculty grants. If faculty don't have workers (i.e. grad-students) ... then they cannot get the same sort of grant monies. If they cannot get the same grant monies ... then universities become EVEN MORE cash-strapped.
A result of this would be a bit of an implosion in higher-ed.
I know that a number of folks there are anti-intellectual. I know others who seem to believe that universities are bloated cows. However, just in Lincoln, Nebraska alone (where I live) ... the majority of the tech firms I've been interacting with have been explicitly mining innovation from journal-articles put out by academia. They're looking for new technologies/ideas that can give them competitive edges on their competition. My point being ... some of the same folks who wish to undermine education would be spiting themselves in the economic big picture. However, as I've stated in another thread ... a lot of people dumb too.
No, I think grad students and are "regular" students are safe.
And, NIL will be taxable because the payments are not part of getting a degree. Just as some payments made to grad students for research are taxable, if the work is not required to gain a degree.
But at what point does a football player going to class become superfluous?
I found this article to do a better job of making my point than I can,
College athlete deals risk tax-free scholarships
The college football bowl season is over.
www.abqjournal.com
"First, players may now be paid for their name, image or likeness. Many states have passed laws to regulate NIL payments beyond what the NCAA might do.
Only a fraction of collegiate athletes will receive payments for NIL. Nevertheless, some of those payments will be substantial. They will be taxable.
Taxable means income tax and self-employment tax. It also means state income tax. State taxes may take some time to figure out when players live in state A, attend school in state B, and compete in states C, D and so on.
College NIL athletes will need lawyers, accountants and financial advisers. Expect some heartbreaking stories of advisers taking advantage of athletes.
The bigger collegiate sports becomes, the farther we stray from 1977 IRS guidance on the taxability of athletic scholarships.
Section 117 of the tax law excludes the value of scholarships from taxable income. This is limited to amounts received for tuition, books and fees for attendance.
A scholarship must be awarded for the primary purpose of furtherance of education and training. No services can be required.
In Revenue Ruling 77-263 IRS considered how Section 117 applies to athletic scholarships. IRS said they are not taxable. The logic was a bit shaky then and is now a full-blown Veg-O-Matic."
Just like everything in football, changes are coming.
I am pretty sure I read a year or 2 ago that Iowa had someone come in and talk to players about taxes and investments. I don't know if it was about NIL or just anyone that might be getting drafted and go pro.
My comment wasn't concerning NIL. Just as you indicated - NIL is a separate beast altogether. My comment concerned more about any movement to make tuition, academic support, etc (and similar college-related benefits) taxable.
False.
Most people don't itemize on federal anymore.
Really only saving at your marginal state rate. Would be less than 10% for most people.
Yeah I guess I wasn't clear with my post.
I don't think there is ANY threat to "non-athlete" students having their scholarships taxed.
But, I do think there is a chance football and basketball players scholarships may become taxable.
As I alluded ... taxing scholarships like that could inadvertently open up an unanticipated can of worms.
I think the can of worms that could be opened is Athletic Depts losing their tax exempt status. Donations would no longer be deductible. Athletic Depts would pay tax on their "taxable income". It could be a serious problem for "college" sports.
Nah, you just put the money in the pockets of the correct individuals in Congress and all will be good.
