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Manny's Compensation was $9.5 million in the year ending 5/31/2020 (had to come back for this one)

Rellyrell said:
Ty for the breakdown & clarification.

My ? would be, how many of those donations have been specified towards athletics vs the assumption of ‘I’m donating towards The University w/ the intent of helping the program?’

For instance, one of my former colleagues & boys is an alum & booster of UT. He gives in general, but as he stated, UT is big on athletics & education so he has no doubt that some of his general donations are being used towards both, and when called upon specifically for an athletic or academic need, it’s earmark specifically for those purposes. (I just texted him to inquire). I asked did he earmark his monthly contributions, and he said there’s no need b/c UTs admin have always been balanced w/ education & athletics, and for them, athletics is just as big of a need as education b/c of the huge endorsement deals & revenue it generates.
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UT (Tennessee or Texas)?

I would answer, you make the decision to go on the site and target it to go somewhere or hope and pray it goes to where you want it to based on what you know about the school. example: your buddy knows its gonna hit the right places, but he doesn't actually know that. he just assumes unless hes been told specifically that his 500k donation went to build a practice hockey rink. for UM, I don't trust any of it to hit athletics, so id go on the web page and donate 100k to athletics, 100k to CAS, 100k to the general fund to be sure its at least going to the right departments (and now where they spend the money within those areas no one would know). (I am not donating these amounts LOL otherwise id know more about what's really happening).

if hes a Tennessee booster, man he def isn't getting his moneys worth and really same with Texas. those two schools really are interesting int hat they suck as much as us for as long and they don't have administration money issues or investment issues within the school
 
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Rellyrell said:
Ty for the breakdown & clarification.

My ? would be, how many of those donations have been specified towards athletics vs the assumption of ‘I’m donating towards The University w/ the intent of helping the program?’

For instance; one of my former colleagues & boys is an alum & booster of UT. He gives in general, but as he stated, UT is big on athletics & education so he has no doubt that some of his general donations are being used towards both, and when called upon specifically for an athletic or academic need, it’s earmark specifically for those purposes. (I just texted him to inquire). I asked did he earmark his monthly contributions, and he said there’s no need b/c UTs admin have always been balanced w/ education & athletics, and for them, athletics is just as big of a need as education b/c of the huge endorsement deals & revenue it generates.
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Historically, it went into a general fund for the university to use as it pleases, unless you cut a big check. I think the internet and online giving has made it easier for charities in general, including universities, to let you choose a specific fund or endowment to contribute to.

I recently gave to Tulane. Nothing big, but when going through the online forms you could choose general fund, scholarships, athletics, hurricane recovery, etc. I would assume Miami is the same. But if it goes to athletics, you can't necessarily say what sport or purpose. It just goes to the AD as a whole unless there is a specific campaign like for the IPF. Of course, if you give enough they will set up the Rellyrell Endowment Fund and you can restrict where the money is used.
 
wspcane said:
Historically, it went into a general fund for the university to use as it pleases, unless you cut a big check. I think the internet and online giving has made it easier for charities in general, including universities, to let you choose a specific fund or endowment to contribute to.

I recently gave to Tulane. Nothing big, but when going through the online forms you could choose general fund, scholarships, athletics, hurricane recovery, etc. I would assume Miami is the same. But if it goes to athletics, you can't necessarily say what sport or purpose. It just goes to the AD as a whole unless there is a specific campaign like for the IPF. Of course, if you give enough they will set up the Rellyrell Endowment Fund and you can restrict where the money is used.
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yes, you can target where you want the donation to go (that only ensures your money goes to that spot, but doesn't mean they'll use it for a specific purpose within that spot that you envision - say you want the chem students to get new materials for chem lab, so you donate to CAS, but that doesn't mean CAS will spend that money for new materials unless you just write a big *** check large enough to restrict it to a very specific use).
 
hoops156 said:
yes, you can target where you want the donation to go (that only ensures your money goes to that spot, but doesn't mean they'll use it for a specific purpose within that spot that you envision - say you want the chem students to get new materials for chem lab, so you donate to CAS, but that doesn't mean CAS will spend that money for new materials unless you just write a big *** check large enough to restrict it to a very specific use).
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Yep, mentioned that within the athletics example. If you give to the AD, they can spend it on Blake’s favorite team, women’s volleyball, and you can’t dictate otherwise (unless there are a few 0s at the end of your check).
 
Rellyrell said:
Ty for the breakdown & clarification.

My ? would be, how many of those donations have been specified towards athletics vs the assumption of ‘I’m donating towards The University w/ the intent of helping the program?’

For instance; one of my former colleagues & boys is an alum & booster of UT. He gives in general, but as he stated, UT is big on athletics & education so he has no doubt that some of his general donations are being used towards both, and when called upon specifically for an athletic or academic need, it’s earmark specifically for those purposes. (I just texted him to inquire). I asked did he earmark his monthly contributions, and he said there’s no need b/c UTs admin have always been balanced w/ education & athletics, and for them, athletics is just as big of a need as education b/c of the huge endorsement deals & revenue it generates.
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Maybe if you wanted to earmark a donation a specific item your donation would have to be rather large. Dwayne Johnson wrote a large enough check for lockeroom renovations with his name on the door. Edge, a donation for the "Edgerrin James" meeting room (or something like that).

Or am I missing the point?
 
TemplarCane said:
Maybe if you wanted to earmark a donation a specific item your donation would have to be rather large. Dwayne Johnson wrote a large enough check for lockeroom renovations with his name on the door. Edge, a donation for the "Edgerrin James" meeting room (or something like that).

Or am I missing the point?
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correct. a specific item within the area you donated to.
 
Rellyrell said:
So in other words, u have to specify completely how ur donations are to be used. Otherwise, if not specified, then it can be used in anyway the University sees fit, correct?
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Yes.

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TemplarCane said:
Maybe if you wanted to earmark a donation a specific item your donation would have to be rather large. Dwayne Johnson wrote a large enough check for lockeroom renovations with his name on the door. Edge, a donation for the "Edgerrin James" meeting room (or something like that).

Or am I missing the point?
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Could be small dollar amounts too, such as a "brick campaign". People who contributed money to the Law School building fund (during renovations) got their names on bricks, and the money didn't get siphoned out to some other cause.
 
hoops156 said:
UT (Tennessee or Texas)?

I would answer, you make the decision to go on the site and target it to go somewhere or hope and pray it goes to where you want it to based on what you know about the school. example: your buddy knows its gonna hit the right places, but he doesn't actually know that. he just assumes unless hes been told specifically that his 500k donation went to build a practice hockey rink. for UM, I don't trust any of it to hit athletics, so id go on the web page and donate 100k to athletics, 100k to CAS, 100k to the general fund to be sure its at least going to the right departments (and now where they spend the money within those areas no one would know). (I am not donating these amounts LOL otherwise id know more about what's really happening).

if hes a Tennessee booster, man he def isn't getting his moneys worth and really same with Texas. those two schools really are interesting int hat they suck as much as us for as long and they don't have administration money issues or investment issues within the school
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We use UTK for Tennessee. Lol. He’s UT-Austin. Trust me, he’s thoroughly disappointed on the Athletic side, for sure. But UT is ranked in the 30’s academically & his son just got accepted, so he’s cool there. But bro, u thought we complained?? Holy Chit, lol. I peeped his little group chat & gawlee. We are small time complainers compared to those guys. Lol.
 
Rellyrell said:
We use UTK for Tennessee. Lol. He’s UT-Austin. Trust me, he’s thoroughly disappointed on the Athletic side, for sure. But UT is ranked in the 30’s academically & his son just got accepted, so he’s cool there. But bro, u thought we complained?? Holy Chit, lol. I peeped his little group chat & gawlee. We are small time complainers compared to those guys. Lol.
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So, even the COMPLAINING is bigger in Texas?
 
TheOriginalCane said:
What excise tax?
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The IRS instituted an excise tax on executive compensation for 501c3 entities. At a super high level, the organization will take the five highest compensated people making over $1m from non medical care. You deduct $1m from each one and then a 21% tax is assessed on the balance. So for Miami, they would pay it for Diaz, Frenk, Larranaga, and two others. There are some adjustments but generally the W-2 is the base amount. For Diaz that would be the roughly $9.5m less $1m multiplied by 21%.
 
wspcane said:
The IRS instituted an excise tax on executive compensation for 501c3 entities. At a super high level, the organization will take the five highest compensated people making over $1m from non medical care. You deduct $1m from each one and then a 21% tax is assessed on the balance. So for Miami, they would pay it for Diaz, Frenk, Larranaga, and two others. There are some adjustments but generally the W-2 is the base amount. For Diaz that would be the roughly $9.5m less $1m multiplied by 21%.
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Oh, ****. Learn something new every day. As we have previously discussed, I haven't done as much 501(c)(3) work lately, and I don't even think NASCAR Foundation paid any execs over $1M in salary (several were France family members, so they didn't need the salary).

I understand the rationale on 501(c)(3) entities, but the IRS needs to apply that rule to corporations too...
 
TheOriginalCane said:
Oh, ****. Learn something new every day. As we have previously discussed, I haven't done as much 501(c)(3) work lately, and I don't even think NASCAR Foundation paid any execs over $1M in salary (several were France family members, so they didn't need the salary).

I understand the rationale on 501(c)(3) entities, but the IRS needs to apply that rule to corporations too...
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It’s relatively new. I think 2018 was the first year. Grassley pushed it through because he was annoyed seeing coaches as the highest paid employees of every state. But here is the best part of that and how Miami gets ****ed. The way it was written excludes most state employees, so as far as 501c3 universities go, it wound up really only applying to private universities.
 
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TheOriginalCane said:
OK, revised numbers.

Earlier, I said $6.667 million based on an assumed 40% blended fed-state tax rate. But I thought about it, and Manny would be paid his payroll in Florida, which has no state income tax. What Manny does with the money is up to him.

So at 37% fed tax rate, Manny would have been paid $6.35 million so that he could pay the $4 million buyout to Temple.

Thus, Beta Blake paid $6.35 million to get Manny back from Temple after 2 weeks. That's a steep price to pay, when coupled with "no national search" and "picked a new coach in a matter of hours".
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Not sure that's true. The payment would have been for/under the Temple contract, which was a Phily job. Phily is one of the highest tax jurisdictions in the country. Maybe Manny's advice was he never worked there, but I'd guess the contract itself (and the Temple withholding paperwork) located the position in Phily.

In any case, my math would only make the cost higher and decision worse for UM.
 
wspcane said:
I do these forms for a living. The starting and ending point for this section is Manny's W-2., and they 100% paid the tax gross up. It is disclosed in Schedule J. If Manny's contract with Temple said that he is responsible for the buyout, then you are extinguishing a liability of Manny's and that is compensation to him regardless of whether the money goes through him or straight from Miami to Temple, which is 99% why they grossed up his pay.

Someone also mentioned base vs bonus pay. Manny's base pay is a hair over $270k.
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I will take your word for it if this is your bailiwick. It's a dumb way for the contracting parties to organize their behavior, but I'm not sure more should be expected of football coaches and non-profit institutions that spend other people's money. It should certainly be feasible to write the contract differently. But if 'buying' institutions are willing to pay a tax gross up, I guess no one involved in the contract even cares. Temple got its money. Manny got his. The U paid some grossed up vomitous amount to hire away a Temple coach who never coached a game.
 
Ethnicsands said:
I will take your word for it if this is your bailiwick. It's a dumb way for the contracting parties to organize their behavior, but I'm not sure more should be expected of football coaches and non-profit institutions that spend other people's money. It should certainly be feasible to write the contract differently. But if 'buying' institutions are willing to pay a tax gross up, I guess no one involved in the contract even cares. Temple got its money. Manny got his. The U paid some grossed up vomitous amount to hire away a Temple coach who never coached a game.
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Wait, couldn’t the university negotiate with Temple and have Temple and Manny agree to void the contract, and UM pay $4M directly to Temple Under separate arrangement?
 
Ethnicsands said:
I will take your word for it if this is your bailiwick. It's a dumb way for the contracting parties to organize their behavior, but I'm not sure more should be expected of football coaches and non-profit institutions that spend other people's money. It should certainly be feasible to write the contract differently. But if 'buying' institutions are willing to pay a tax gross up, I guess no one involved in the contract even cares. Temple got its money. Manny got his. The U paid some grossed up vomitous amount to hire away a Temple coach who never coached a game.
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I have no idea what was in the contract with Temple. I just can’t imagine what else would get Manny’s salary that high.
 
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