There are now 0 Restrictions in regards to NIL

[Hawk-A-Doodle-Doo]

How many of these deals are contingent? That's the big question. If it's all guaranteed money before they've even registered for Freshman Orientation, then we're doomed.

But we may be able to salvage college athletics if these deals are structured so that you get paid IF you start X number of games, put up X stats, play X number of snaps, win X number of games, etc. And if you don't...

Just think of how many recruiting misses there are every year with every team. If/when these big-money guys coming out of HS turn out to be massively expensive busts, those corporate dollars will dry up fast. Remember, this is the reason the NFL restructured rookie deals. Owners got tired of having some worthless rookie first-rounder on their roster making more than hall-of-famers like Brady, Manning, Big Ben, Rodgers, Brees and others who won Super Bowls and MVPs and set all-time records.

Eventually the market will self-correct. We can only hope college football still resembles its current form by the time that finally happens.

 

[AuroraHawk]

Donations to the collective are tax deductible.

I'd talk to your tax professional before jumping to broad-based conclusions.

 

[AuroraHawk]

NCAA is far from perfect but they simply did not have the authority to implement changes you suggest without the approval of their bosses, college presidents.
They make a convenient scapegoat for fans who do not understand the structure of college sports.

This brave new world sucks for old school fans like me.
Wish there was some happy medium cap where athletes get a reasonable compensation as apprentices training for being professionals after college.

Somebody gets it.

 

[Dauminator]

Same, although I usually try to stick it out with the football games longer - unless they're playing @ OSU, Michigan, etc; IE, a sure loss. Hawks can't ever be truly be written off when the D & STs can sometimes pull rabbits out of their hats. And its 12 (13/14) games for football vs 30+ with bball.

Iowa will land the occasional 'potential superstar' or two, either in recruiting or the transfer portal, but they won't be able to continually restock high-level talent like the elites of their respective sports will.


Maybe its a 'getting older' thing, but sports fandom is not the huuuge part of my life anymore like it used to be. The "pay for play" NIL landscape & a transfer portal with a virtually unlimited usage for any and all is certainly not helping this new viewpoint of the importance of following collegiate sports in my free time like it used to be, IMO.

Aging is a little bit, but sports are getting worse wholesale. All of them. It's all stupid.

And just think the real impact that could be made with the millions spent on a high school prospect.

 

[myteamcanbeatupyourteam]

I'd talk to your tax professional before jumping to broad-based conclusions.

The Swarm Collective, Inc. is a designated 501c3 private foundation.

 

[Birky]

I'd talk to your tax professional before jumping to broad-based conclusions.

I don’t donate, so don’t worry about me.

I take it it’s only a tax deduction in certain situations? If so, and I believe you, it’s not being conveyed well publicly.

When is it, and is it not? I don’t want to be the guy spreading misinformation.

 

[LetsGoHawks83]

So does the NCAA have any power left?

Might as well just let the athletes, boosters, and the government run the show. That'll work out GREAT.

 

[Packer54]

Just wait until the court rules in favor of the players being able to transfer as many times as they want without losing time......that will surely come up. Turning into a real Sheet Show for sure.

 

[Madman_1]

I think an important unknown factor is, when major college football goes professional, how much of the fanbase is retained?

I love watching Hawkeye football and basketball. I don't think I will be nearly as interested in watching professional teams.

 

[Frosty7130]

Ofc NIL may end up completely destroying CFB, but I still think athletes should be able to be paid.

The status quo was good for lots of people, but not necessarily the players. Think of all the great players at the collegiate level who can't make it to the pros. They still help generate plenty of revenue, and for those players, this is their one chance to earn life-changing money.

Now what needs to happen is some growth into a more robust structure. There's a reason the NFL and NBA both have salary caps and that neither has unending unrestricted free agency. That produces competition problems and makes it nearly impossible to build a roster with confidence and security.

Something like the following would be way better than the status quo:

1. Athletes are paid by the schools directly, not third parties
2. Salary caps
3. ONE transfer ever per player that results in zero waiting time. All additional transfers require the player to sit one year.
4. A chunk of each year's salary should only be released after the player competes in that year's annual bowl game.


Now I think our current chaos is a necessary transition phase. We were never going to go straight from the players can't be paid a cent to a robust, organized, and fair system.

The status quo was a fantastic deal for 95% of players. Free tuition, room and board, access to some of the best nutrition, facilities, and medical care in the world, and all of the other intangible benefits that come from being a student-athlete.

 

[amahawk]

Just wait until the court rules in favor of the players being able to transfer as many times as they want without losing time......that will surely come up. Turning into a real Sheet Show for sure.

Or not having to attend or pass classes.

 

[iowaathletes]

Jay Bilas take on it...

 

[Hawk_4shur]

Just another point. I would imagine when deep pockets donate to the schools, there are ways for them to get tax breaks for these donations. Are they able to get the same kind of tax incentives when they donate to specific individual players or say a collective like the swarm? Doesn't seem like that would be a justifiable deduction, but not sure.

Retired CPA here - and I don't know the answer. I do know that these payments to not qualify as charitable deductions, unless they are structured to help the community like one of Iowa's collective is.

It seems to me that if you pay $50,000 to a specific athlete to appear in commercials, make appearances at your business, sign autographs, put his picture on posters - that's a "legitimate" business deduction.

But if a business contributes to a collective and gets no ROI I don't see how that can be considered a business expense.

Name, image & likeness my a$$.

 

[Hawk_4shur]

Donations to the collective are tax deductible.

There you go. I'm a swarm member and wasn't even sure about that. Still its seems pretty crazy that you can donate money for some athlete to play on your team, and Then deduct it from your taxes. I'm surprised the FED is down with that. Have to wonder if that gets changed at some point.

Iowa has two collectives. One is tax deductible. Players get paid from the collective to do charitable work in the community.

The other one is not deductible for an individual.

 

[pistachio1999]

Jay Bilas take on it...

View embedded media

We will get there. We will also have a union of sorts at some point. Maybe even a salary cap deal.

 

[hawkjt]

We will get there. We will also have a union of sorts at some point. Maybe even a salary cap deal.

Bilas has advocated for player payment forever.
He never mentions the fans.
Basically he makes a great living and wants the same for athletes and does not give a fig about the customers who pay for it all.
I find him exceedingly arrogant.

He also clearly does not give a fig about non-revenue sports surviving as there is no way to pay players 6 figures and pay for scholarships for the other 300 athletes also.

I support Hawkeye athletics for the name on the front of the uni.
That is the true brand value in the sports programs at iowa to me.
Hey Jay, kill the golden goose at your own peril. May have actually use that "worthless" education to make a living someday.

 

[unclesammy]

Waiting for UNLV to get those casinos to dump money in. Come to Vegas baby!

Tark died too early!

 

[pistachio1999]

Tark died too early!

He'd be sucking on that wet towel.

 

[Kinnick.At.Night]

NIL is a perfect example of something that began with good intentions but was pushed too quickly and unwisely into play. Now look what we've got. A complete mess. On the bright side though, at least benefitting student athletes aren't being forced to be indentured servants anymore. The torture they put up with for so long!

 

[Franisdaman]

So does the NCAA have any power left? Might as well just let the athletes, boosters, and the government run the show. That'll work out GREAT.

Some are saying the answer is "no."

And as you can see below, "there are no rules" anymore when it comes to pay for play.

 

[pistachio1999]

So does the NCAA have any power left?

Might as well just let the athletes, boosters, and the government run the show. That'll work out GREAT.

Yes, yes they do! They kept Noah Shannon from playing over a small bet on Iowa women's basketball!

 

[Franisdaman]

Imagine if the value of the scholarship becomes fully taxable because the athletes are now considered employees.

 

[Ronman]

If it all becomes performance based. will Kirk's walk-ons have to give back the $50 bucks they were given?

 

[Franisdaman]

What did it cost to bring Cade to Iowa City?

 

[hawkdave007]

Retired CPA here - and I don't know the answer. I do know that these payments to not qualify as charitable deductions, unless they are structured to help the community like one of Iowa's collective is.

It seems to me that if you pay $50,000 to a specific athlete to appear in commercials, make appearances at your business, sign autographs, put his picture on posters - that's a "legitimate" business deduction.

But if a business contributes to a collective and gets no ROI I don't see how that can be considered a business expense.

Name, image & likeness my a$$.

I wonder if they can make a contribution and then internally accrue "credits" or some other system. Then when it comes time to actually buy the endorsement work, they can cash in on those credits.

The closest analogy I can think of is that of fast food franchisees from different cities who create an advertising collective to buy TV ads in a shared TV market. This is a fairly common practice (so I'm told). It's not a perfect analogy, but the closest one I can think of.

 

[iowaathletes]

And to think paying players was nothing new, before the NCAA was formed

...The origin of college athletics in the United States dates back to the early
19th century, when students initiated unorganized competitions with other
schools. In 1852, the first intercollegiate competition was between Harvard
and Yale’s competitive rowing teams. Over the next couple decades demand
for athletics increased as other sports developed, leading to the formation
of organizations typically “run by the students themselves. Demand for
college athletics grew exponentially and by the close of the 19th century,
intercollegiate athletic competition had become “sacredly connected with the
glory of Alma Mater herself.” Throughout the early years of college athletics, the top players were often paid and some players were not even students. While many school administrators viewed the collegiate model “as a profitable means of placing their institution in the limelight, with resultant increases in admissions and economic support,” a growing number of universities recognized a need for “a national organization to regulate athletics. In lockstep with the heightened demands for a centralized governing body, there were also increasing health concerns in intercollegiate athletics, particularly in American football. The health risks led many to consider abolishing the sport altogether. This outcome was avoided, however, thanks to the formation of a Rules Committee spearheaded by President Theodore Roosevelt and a collection of football advocates. As a result, the Intercollegiate Athletic Association (“IAA”) was formed in 1906 to create “competition and eligibility rules for gridiron football and other intercollegiate sports. In 1910, the IAA was renamed the NCAA.

Source: Iowa Law Review - "Maximizing NIL Rights for College Athletes"

 

[chuck285]

Just wait until the court rules in favor of the players being able to transfer as many times as they want without losing time......that will surely come up. Turning into a real Sheet Show for sure.

Will they be able to transfer during the season or at the end of the season so they play in a championship series?

 

[chuck285]

Jay Bilas take on it...

View embedded media

Since there seems to be no rules because of lawyers who can make millions suing for anything? Will teams like Alabama, Ohio State and Nebraska be able to have 150 kids on their rosters? The NCAA has no power to stop this!!! Seems like colleges will go back to learning institutions and let the big top 12 teams have their own system!! This will make a few players a ton of money but will cost millions of jobs. Colleges won't need 100's of workers who have jobs at football, basketball or all sporting events.... BS

 

[Packer54]

Will they be able to transfer during the season or at the end of the season so they play in a championship series?

Don’t see why not. The program does not have to worry about the number of scholarships if they have the NIL money.

 

[Max_Rebo]

Another question: With this new ruling, will coaches now be free to contribute to NIL programs?

As I recall, this was not allowed previously.

 

[doughuddl2]

Jay Bilas take on it...

View embedded media

Why even go to class? Or will that be in the contract with the school to attend?

Who's watching the enforcement of this.

Do the NIL collectives now become employees of the school to add NIL dollars to the schools bank account.

TV revenue now becomes even more important to schools in gathering players.

How do you stop the current system? Are all schools going to be forced to make them employees to be able to play.

 

[mustang_hawk]

I warned people NIL was going to be a bad thing because one it started it would open up. College sports as we know it are finished. They just need to become a minor league.

It’s not even NIL it’s straight payments.

Just wait until the court rules in favor of the players being able to transfer as many times as they want without losing time......that will surely come up. Turning into a real Sheet Show for sure.

How long before a court ruling that says college athletes can be limited to 4 years of eligibility? If they’re forced out after playing 4 years the schools are limiting their ability to earn money. Once a player becomes a starter they will be there until they no longer produce.

 

[KFsdisciple]

How long before a court ruling that says college athletes can be limited to 4 years of eligibility? If they’re forced out after playing 4 years the schools are limiting their ability to earn money. Once a player becomes a starter they will be there until they no longer produce.

A lot of people go to college for 7 years...

 

[Birky]

NIL is about to be a case study in how Libertarianism plays out in real life.

(Lights match, walks out of thread)

 

[AuroraHawk]

I support Hawkeye athletics for the name on the front of the uni.
That is the true brand value in the sports programs at iowa to me.
Hey Jay, kill the golden goose at your own peril. May have actually use that "worthless" education to make a living someday.

I've written it before and I'll write it again.

Take last year's Iowa football first stringers, give them new uniforms and call them the Iowa Marauders. Take last year's ISU football first stringers, give them new uniforms and call them the Ames Arrows.

Two games on a Fall Saturday and assume that Des Moines has a field with seating capacity similar to Kinnick or Trice.
The Marauders play the Arrows in Des Moines.
The Hawkeyes and the Cyclones play in Ames or Iowa City.

You tell me which of the two venues (Des Moines or Iowa City/Ames) will be jam packed with rabid fans. Which cities will be filled with fans tailgating before the game?

Then tell me whether it is about the name on the front or the back of the jerseys.

That's not to say that I'm not "wowed" by individual Hawkeyes like Cooper DeJean, Jack Campbell, Sam LaPorta, Luka Garza, etc. I truly enjoy watching them play. That written, I've never taken time out of my schedule to watch Luka Garza play for the Iowa Wolves. I don't search for Lions games to watch Jack Campbell or Sam LaPorta. Etc. etc.

 

[Birky]

I've written it before and I'll write it again.

Take last year's Iowa football first stringers, give them new uniforms and call them the Iowa Marauders. Take last year's ISU football first stringers, give them new uniforms and call them the Ames Arrows.

Two games on a Fall Saturday and assume that Des Moines has a field with seating capacity similar to Kinnick or Trice.
The Marauders play the Arrows in Des Moines.
The Hawkeyes and the Cyclones play in Ames or Iowa City.

You tell me which of the two venues (Des Moines or Iowa City/Ames) will be jam packed with rabid fans. Which cities will be filled with fans tailgating before the game?

Then tell me whether it is about the name on the front or the back of the jerseys.

That's not to say that I'm not "wowed" by individual Hawkeyes like Cooper DeJean, Jack Campbell, Sam LaPorta, Luka Garza, etc. I truly enjoy watching them play. That written, I've never taken time out of my schedule to watch Luka Garza play for the Iowa Wolves. I don't search for Lions games to watch Jack Campbell or Sam LaPorta. Etc. etc.

Yep.

 

[iowaathletes]

Food for thought NCAA Finances: Athletic department – Revenue and Expenses by School - B10 2022-23

Rank​	School​	Total Revenue​	Total Expenses​	Total Allocated​	Percent Allocated​	​
1​	Ohio State​	$251,615,345​	$225,733,418​	$0*​	0.00%​	​
4​	Michigan​	$210,652,287​	$193,559,375​	$153,059*​	0.07%​	​
9​	Penn State​	$181,227,448​	$170,542,050​	0​	0.00%​	​
12​	Michigan State​	$172,799,513​	$156,449,795​	$1,358,948*​	0.79%​	​
13​	Indiana​	$166,761,471​	$132,392,596​	2708975​	1.62%​	​
21​	Iowa​	$151,483,092​	$151,144,861​	650000​	0.43%​	​
22​	Wisconsin​	$150,100,977​	$147,807,183​	$3,028,185*​	2.02%​	​
24​	Illinois​	$145,735,330​	$129,119,247​	$10,145,405*​	6.96%​	​
26​	Nebraska​	$143,423,944​	$131,181,951​	$0*​	0.00%​	​
29​	Minnesota​	$135,198,272​	$130,285,463​	7986732​	5.91%​	​
37​	Purdue​	$115,139,432​	$93,025,810​	0​	0.00%​	​
42​	Rutgers​	$109,601,529​	$138,439,077​	24034296​	21.93%​	​
43​	Maryland​	$107,526,374​	$114,385,462​	15252530​	14.18%​	​
​	​	​	​	​	​	​
​	Iowa​	​	​	​	​	​
Year​	Total Revenue​	Ticket Sales​	Contributions​	Rights / Licensing​	Student Fees​	Other​
2022​	$151,483,092​	$26,416,829​	$32,595,258​	$76,821,019​	$650,000​	$14,999,986​
2021​	$74,789,832​	$189,991​	$14,546,695​	$54,998,308​	$650,000​	$4,404,838​
2020​	$145,636,544​	$25,701,858​	$39,134,254​	$68,651,800​	$650,000​	$11,498,632​
2019​	$151,976,026​	$27,178,942​	$38,626,655​	$71,006,102​	$650,000​	$14,514,327​
2018​	$137,093,027​	$25,277,431​	$30,136,490​	$66,751,043​	$650,000​	$14,278,063​
2017​	$130,681,467​	$28,253,233​	$31,999,038​	$52,916,024​	$650,000​	$16,863,172​
​	​	​	​	​	​	​
Year​	Iowa Total Expenses​	Coaching / Staff​	Scholarships​	Facilities / Overhead​	Other​	​
2022​	$151,144,861​	$53,285,439​	$12,741,085​	$33,779,433​	$51,338,904​	​
2021​	$116,755,350​	$44,379,472​	$13,341,165​	$33,319,481​	$25,715,232​	​
2020​	$149,161,886​	$49,300,669​	$12,814,077​	$42,423,426​	$44,623,714​	​
2019​	$146,282,275​	$47,471,417​	$13,682,144​	$41,314,294​	$43,814,420​	​
2018​	$130,117,820​	$44,238,127​	$13,157,641​	$31,872,654​	$40,849,398​	​
2017​	$128,869,211​	$41,898,192​	$12,623,711​	$29,898,732​	$44,448,576​	​
​	​	​	​	​	​	​

Income Notes – from 2017 to 2019 the Athletic dept transferred 2Million to the school.

Note on Total Allocated: The sum of student fees, direct and indirect institutional support and state money allocated to the athletics department, minus certain funds the department transferred back to the school. The transfer amount cannot exceed the sum of student fees and direct institutional support that the department receives from the school. (Under NCAA reporting rules, any additional money transferred to the school cannot be considered part of the department’s annual operating revenues or expenses.)

 

[mustang_hawk]

A lot of people go to college for 7 years...

But they don’t play a sport for 7 years, unless they’re Jess Settles. How long before some court says athletes can play college sports for as long as they want?

 

[doughuddl2]

Just wait until the court rules in favor of the players being able to transfer as many times as they want without losing time......that will surely come up. Turning into a real Sheet Show for sure.

Not if you sign an employment contract with your employer.

 

[Dauminator]

Will they be able to transfer during the season or at the end of the season so they play in a championship series?

Imagine the playoff teams sweep through the non-qualifyers and cherry pick stars to fill gaps. Bwah.

Since there seems to be no rules because of lawyers who can make millions suing for anything? Will teams like Alabama, Ohio State and Nebraska be able to have 150 kids on their rosters? The NCAA has no power to stop this!!! Seems like colleges will go back to learning institutions and let the big top 12 teams have their own system!! This will make a few players a ton of money but will cost millions of jobs. Colleges won't need 100's of workers who have jobs at football, basketball or all sporting events.... BS

If the end result of this is that a small cadre of the elite football colleges form a feeder NFL league and the rest go back to being collegiate amateurs..... where do I sign up?

How long before a court ruling that says college athletes can be limited to 4 years of eligibility? If they’re forced out after playing 4 years the schools are limiting their ability to earn money. Once a player becomes a starter they will be there until they no longer produce.

In theory, the impetus to leave is leveling up to the NFL. But imagine fringe NFL players signing up for a "liberal studies" class and doing a AAA-like stint at college to stay in shape and try to work back into the league? Or someone plays a few years in the NFL and would normally have retired, but suits back up for the ol' U and the big NIL money?