NIL and Federal Regulations

[UMFarArcher]

My understanding is that Ruiz is in contact with people who represent athletes prior to them signing to get an idea of what the athlete wants and what he's willing to provide. Since he doesn't talk directly to the player or specifically offer anything, this is currently allowed. This seems like the most obvious way to regulate if you're "concerned" about boosters recruiting. They'll make a rule that there can't be any contact, so the booster won't be able to sell a package to a kid until the kid signs. Now, in theory, the coaches will be the only recruiters, and the kids will have to guess what NIL deals they can get based on current players at that school.

That's ridiculous.

Everyone gets information on a potential top manager or top representative, or top media personality that they can before making any arrangements or beginning any negotiations.

Just good business practices.

 

[kryptonite]

I would just point out that the photographic and social media evidence that John Ruiz provides would give anyone a reason to question this statement. The NCAA would probably cite the chronological proximity of these meetings and the ultimate school announcement as being highly suggestive of a connection.

Again, this is not my personal argument, I'm just saying that THIS is why I'd like to see John stop posting pics and other verbal confirmations on his social media, especially prior to a "committed" announcement.

Here's what you do. You call the Impractical Jokers and you set up one of those rooms with an adjoining room that has one-way-viewable glass. You hire a non-UM-grad to be your VP of Advertising & Marketing. You register a toll-free number like 1-800-U-GET-NIL so that any potential spokesmen can contact LifeWallet directly. Then John can observe the interviews between his VP and prospective spokesmen and then press a button for a silent buzzer that guides his VP on who to sign and for how much.

Plausible. Deniability.

Obviously I'm being intentionally humorous in some ways, but it would be a very good idea to just set up a monolithic NIL machine that just spits out a couple hundred well-compensated athlete-spokespersons each year. The SEC wouldn't know what hit them or how to fight back.

That's not a bad idea.

I think the two things that make what Ruiz is doing ok under the current rules are 1. waiting for the kid to reach out to you. Obviously, he somehow knows you might be interested, but if the contact comes from his side, I think you can avoid the appearance of having recruited him. 2. No deal is written up or signed until after the kid signs with a team. Nothing is promised, everything is just theoretical. You have to carry through with whatever you talked about so future kids will trust you, but as long as you can deny having promised anything, I think you're fine.

 

[hotshot]

Relly, you mentioned taxes in an earlier post. I hope these kids are aware enough to understand a chunk of their new income is gonna have to go to the feds. Hate to see any of them get behind to the IRS.

 

[kryptonite]

That's ridiculous.

Everyone gets information on a potential top manager or top representative, or top media personality that they can before making any arrangements or beginning any negotiations.

Just good business practices.

Being ridiculous doesn't make it a thing the NCAA won't do.

 

[UMFarArcher]

Being ridiculous doesn't make it a thing the NCAA won't do.

You got THAT right!

 

[CaneSince4Ever]

I’ve mulled this situation for a while; you are absolutely right about the audacity of the SEC clutching their, proverbial, pearls.

There’s an elephant in the room, that a lot of folks have either dismissed or diminished, and that’s the scholarship aspect. A scholarship is defined as “a grant or payment made to support a student's education, awarded on the basis of academic or other achievement. A scholarship is financial support awarded to a student, based on academic achievement or other criteria that may include financial need, for the purpose of schooling.”

A free ride is a free ride. With this collective, if not regulated, I’m wondering if schools will start non-guaranteeing 4 yr scholarships to athletes, or possibly putting in clauses where kids will have to pay their own way. I saw that suggested on another sports board, & I’m just not sure what parameters are around that, either, or if it’s remotely a possibility.

The other problem w/ NIL in its current form is that it’s coupled w/ this transfer portal, which also doesn’t have any regulations. In essence, kids can hop in & out looking for NIL deals. That, too, is neither good for the sport, fans, or the Universities who r shelling out millions/yr in full rides.

It’ll be some interesting discussions, I just find it hilarious, ironic, & low key irritating the SEC would be the one’s leading this charge. They should be thee absolute last ones to say chit. This is the quintessential example of the pot & the kettle. Maybe some G5 programs, The PAC-12, possibly even some HBCU’s this could affect, but The B1G & SEC shouldn’t ever say chit. Lol.

A scholarship is NOT free, kids exchange their talents for those scholarships. And most to all of that scholarship money goes right back to the school anyway, so the school gets most to all of that money back.

And if schools drop 4 year scholarships and coaches can cut a kid at the drop of a hat, for any reason, then that scholarship can be considered income, and the relationship between the athlete and the school is that of employer & employee. And then you have a whole new set of problems with workmen's comp and everything that comes with it.

It's all word games Bro.

 

[Rellyrell]

A scholarship is NOT free, kids exchange their talents for those scholarships. And most to all of that scholarship money goes right back to the school anyway, so the school gets most to all of that money back.

And if schools drop 4 year scholarships and coaches can cut a kid at the drop of a hat, for any reason, then that scholarship can be considered income, and the relationship between the athlete and the school is that of employer & employee. And then you have a whole new set of problems with workmen's comp and everything that comes with it.

It's all word games Bro.

I agree, but I slightly disagree w/ ur first premise.

How many scholarship athletes don’t pan out on the field, but are able to secure a career in another fields b/c of that offer?

I’ve had friends who never received an academic scholarship, saddled w/ Student Loans who openly complained about the different sets of criteria for athletes v. students. My counter for that was that were these athletes r making the schools billions; do u know what the rebuttal was? That students who bust their *** in the classroom were just as valuable, if not more b/c they allow Universities to obtain nonprofit status, and gov’t subsidies to fund research, development, etc.

It is all a word game.

 

[TheOriginalCane]

That's not a bad idea.

I think the two things that make what Ruiz is doing ok under the current rules are 1. waiting for the kid to reach out to you. Obviously, he somehow knows you might be interested, but if the contact comes from his side, I think you can avoid the appearance of having recruited him. 2. No deal is written up or signed until after the kid signs with a team. Nothing is promised, everything is just theoretical. You have to carry through with whatever you talked about so future kids will trust you, but as long as you can deny having promised anything, I think you're fine.

Great points. It would be suicide to offer an NIL deal and then retract it after the kid signs with the school. Kids can just transfer again later, and your school would forever be on the ****e list.

 

[Rellyrell]

Relly, you mentioned taxes in an earlier post. I hope these kids are aware enough to understand a chunk of their new income is gonna have to go to the feds. Hate to see any of them get behind to the IRS.

My father & I were talking about this. I told him, I would love to see student athletes have special courses w/ someone versed in this arena. I used to the love watching this show called “The Lottery Changed My Life.” You would see some success stories, and a whole slew of tragedy. The ones who were successful received financial advisement from top notch CPAs. Those who didn’t, did not take in to account Uncle Sam & his thirst for ur new found wealth.

That’s my concern as well; are these young men/women being properly advised? How many pro athletes have we seen go broke b/c of not having the right team around them, plus the wrong crowd?

One of my boys, Bruce Walker (RIP) was a Compton football legend. HS All American, played ball at UCLA, made it to the league. Once there, got f’d up advice, along w/ leeches from his past. My boy gave me a horror story after his first couple of millions. Broke his leg & never recovered, NFL career done. Between taxes, a shady wife & in laws, along w/ “friends” who looked at him as an ATM machine, he blew through that $$ quick. He used his degree from UCLA to bounce back a little, but died on the opposite side of wealth.

 

[panthercane]

Of course the Pac12 would shoot itself in the foot instead of capitalizing on the opportunity to become relevant via USC and Oregon money. They would rather continue to be the laughingstock in SEC country.

Let the SEC know the real money is on the coasts.

 

[TheOriginalCane]

Relly, you mentioned taxes in an earlier post. I hope these kids are aware enough to understand a chunk of their new income is gonna have to go to the feds. Hate to see any of them get behind to the IRS.

For the record, LifeWallet puts the kids on payroll and takes all the taxes out.

I've spoken to a few people in SoFla and suggested that if they were going to pay a kid, say, $12K and don't mind grossing that up, then they should pay the kid $12K, make the 1099 out for $15K, and send $3K to the IRS.

Makes everyone happy. Good business partners will try to look out for these kids and help to make sure that the IRS isn't busting down anyone's door...

 

[pacusmc]

Smart people are always 2-3 steps ahead.
Even if they do tell Ruiz to stop “recruiting” or tweeting about players on Twitter, his name is now linked to this program and the way he’s making everyone act like they don’t Know what their doing is pure gold.

Now every recruit from 23-25 class knows who Ruiz is and what he’s doing for the players and school. They can try to make people believe he isn’t real, but now everyone already knows that Baba Yaga exists.

 

[Rellyrell]

Speaking of NIL

Bijan from UT just inked a Lambo NIL deal w/ a dealership in Austin, TX

 

[caneULM]

My father & I were talking about this. I told him, I would love to see student athletes have special courses w/ someone versed in this arena. I used to the love watching this show called “The Lottery Changed My Life.” You would see some success stories, and a whole slew of tragedy. The ones who were successful received financial advisement from top notch CPAs. Those who didn’t, did not take in to account Uncle Sam & his thirst for ur new found wealth.

That’s my concern as well; are these young men/women being properly advised? How many pro athletes have we seen go broke b/c of not having the right team around them, plus the wrong crowd?

One of my boys, Bruce Walker (RIP) was a Compton football legend. HS All American, played ball at UCLA, made it to the league. Once there, got f’d up advice, along w/ leeches from his past. My boy gave me a horror story after his first couple of millions. Broke his leg & never recovered, NFL career done. Between taxes, a shady wife & in laws, along w/ “friends” who looked at him as an ATM machine, he blew through that $$ quick. He used his degree from UCLA to bounce back a little, but died on the opposite side of wealth.

They really need to have(if they dont already) a course on this for pro and college(now with the NIL) athletes. These guys are only one career-ending injury away from being in the same boat as your late friend. Its all about who needs to be in your circle(good financial advisors, supportive family) and who needs to take a walk(hoodrat females, childhood loser friends, greedy family members).

 

[pacusmc]

Bijan from UT just inked a Lambo NIL deal w/ a dealership in Austin, TX

But they worried about Sosa right?
SEC are such hypocrites.

 

[TheEye]

SEC can have no limits on how many schools it absorbs, but it just HAS to limit how much money athletes get? Got it.

 

[South Side Chi Cane]

Remember when people thought NIL deals were just going to “open the flood gates for bag schools”? I told everyone then and I’m telling you now, those gates have been opened for decades. NIL opened the floodgates for everyone else who wasn’t allowed to drop bags. A lot of the prominent bag droppers can’t keep up. So now they’re begging the government to change the rules back. The SEC is leading the pack because outside the Texas schools and probably Arkansas, they don’t have the ammunition to keep pace financially. Alabama doesn’t have this secret war chest that they’ve been holding back on for all these years.

And yes, players attending schools in bigger metro areas will have more NIL opportunities than ones attending schools in middle of nowhere college towns.

God please let NIL stand and herald the end of the inbred schools.

 

[CaneSince4Ever]

My father & I were talking about this. I told him, I would love to see student athletes have special courses w/ someone versed in this arena. I used to the love watching this show called “The Lottery Changed My Life.” You would see some success stories, and a whole slew of tragedy. The ones who were successful received financial advisement from top notch CPAs. Those who didn’t, did not take in to account Uncle Sam & his thirst for ur new found wealth.

That’s my concern as well; are these young men/women being properly advised? How many pro athletes have we seen go broke b/c of not having the right team around them, plus the wrong crowd?

One of my boys, Bruce Walker (RIP) was a Compton football legend. HS All American, played ball at UCLA, made it to the league. Once there, got f’d up advice, along w/ leeches from his past. My boy gave me a horror story after his first couple of millions. Broke his leg & never recovered, NFL career done. Between taxes, a shady wife & in laws, along w/ “friends” who looked at him as an ATM machine, he blew through that $$ quick. He used his degree from UCLA to bounce back a little, but died on the opposite side of wealth.

Sorry to hear about your Homie Bro. But you're 100% right, most people aren't prepared to handle a large windfall, especially the lottery.

 

[Fluffhead]

I think there’s a consensus among many pundits, & fans that parameters need to be set, more less guidelines. I love NIL for the players, along w/ players’ freedom of options. However, even in professional sports there’s guidelines to FA & player movement.

With that being said:
1. The NCAA caused all of this. Schools trying to justify why a player wasn’t making $$ off memorabilia, or allowed to be a feature in a commercial is the cause of this. This all could’ve been easily remedied

2. As I’ve stated before, the NIL would further divide the haves & the have nots b/c it would allow certain school’s bagmen to be flagrant w/ it

3. I find it hilarious & hypocritical that anyone from the SEC would be involved in this. Lol. I can see the PAC-12 as many schools out West r not about that bag life, they r about education & opportunities afterwards, so this hurts them further. But the SEC?? That’s just pure hate b/c that good ole boys network is being infringed upon

At the end of the day, I don’t agree w/ NIL being used as a pay-for-play mechanism. I believe NIL should be earned; it’s no different than a pro athlete earning potential increasing after the work he/she put in at that level or before they’re drafted. I also have no problem w/ an athlete using social media in a way to create a platform for themselves & earning.

But, NIL’s pay-for-play “could” ruin collegiate sports by making players complacent. There’s not a lot of adults that can handle a large sum of $$, let alone a kid who’s not fully developed mentally or emotionally. Do I think they should earn off their N.I.L? Yes; but, the nature of NIL v. what it’s being used for r totally opposite & needs an adjustment, imo.

I am going to be honest, and I am going to take an L on this too, but I think the SEC didn’t see it working out this way. I think when this was being contemplated they said great, any risk of a new commissioner or something like the ADIDAS basketball scandal happening to them went out the window. And if it weren’t for USC and Miami both getting serious this off-season and hiring Lincoln and Mario it very well may have worked out that way.

But back to my first point, I thought it would be way more in the way of social media campaigns given the number of followers these SEC players have. I thought it would be multiple five figure deals from car dealerships and family businesses per player. I just didn’t see a Ruiz and the couple of others coming to play to this extent and I think it is pretty clear this is one of the few miscalculations in Greg Sankey’s run as commissioner.

 

[Rellyrell]

Sorry to hear about your Homie Bro. But you're 100% right, most people aren't prepared to handle a large windfall, especially the lottery.

Appreciate u, my friend.

But yeah man; a lot of folks can’t handle big $$, that’s why even though he’s not my GOAT, I respect LBJ & how he moved. He was smart to cut off certain folks, surround himself w/ others, & keep himself as an entity.

With NIL, I hope these youngsters see this as an opportunity & not an accomplishment. One keeps u hungry & grinding, the other keeps u complacent & satisfied.