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NIL and Federal Regulations

Empirical Cane said:
Surprised by Pac 12, not surprised at all by SEC.

SEC fears, terrified probably, of long term NIL consequences. They just don't have the local/regional demos for it.
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I’m not surprised by the PAC 12 but I am with the SEC. I mean they are still winning with this. I was speaking with an affiliate of an SEC school discussing the NIL and when I mentioned the positives surrounding athletes at Miami, they laughed saying that is chump change compared to what their program and other SEC programs are doing.
 
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lauderdaleballer said:
I’m not surprised by the PAC 12 but I am with the SEC. I mean they are still winning with this. I was speaking with an affiliate of an SEC school discussing the NIL and when I mentioned the positives surrounding athletes at Miami, they laughed saying that is chump change compared to what their program and other SEC programs are doing.
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Interesting....

time will tell wont it...
 
lauderdaleballer said:
True. I hope whatever plans they have fail.
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It’s only b/c we’re getting some shine. To see Ruiz in the top 3 of this so-called NIL collective is outstanding, & it’s ruffling some feathers. To me, I think the portal is more of a problem than NIL. I think the two, combined, is a monstrosity. If any of the two needed to be curtailed more, imo, it would be the portal. This hop scotch nature where true freshmen r upset b/c they have to wait their turn is for the birds.

However, I can almost guarantee this is what the NCAA wanted, though; just str8 up anarchy as a giant F-U to those looking to neuter its power.
 
Rellyrell said:
It’s only b/c we’re getting some shine. To see Ruiz in the top 3 of this so-called NIL collective is outstanding, & it’s ruffling some feathers. To me, I think the portal is more of a problem than NIL. I think the two, combined, is a monstrosity. If any of the two needed to be curtailed more, imo, it would be the portal. This hop scotch nature where true freshmen r upset b/c they have to wait their turn is for the birds.

However, I can almost guarantee this is what the NCAA wanted, though; just str8 up anarchy as a giant F-U to those looking to neuter its power.
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I agree with you. Especially with the portal. They need to modify that. Seeing kids on their 5th school is crazy. Maybe they need to penalize the coaches. If a kid underachieves at 3 fbs schools what makes you think you can "fix them?”
 
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wspcane said:
@TheOriginalCane @SpikeUM Weird. I think someone on this board has been saying this for months now.
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We’ve all been saying it. These aren’t donations to schools when they are then directed to athletes who can use the money for any purpose they choose.
Maybe this is what the SEC meant by money laundering, that people were using NIL for “educational donations”.
Either way, the ruling makes sense.
 
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wspcane said:
@TheOriginalCane @SpikeUM Weird. I think someone on this board has been saying this for months now.
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A number of us have discussed that the tax ramifications of NIL have not been thoroughly discussed/vetted, but the biggest concern is mostly that players dont pay the taxes due on their NIL $.

Re the collectives, that is a big deal, it will make more difficult to build up large "endowments".
 
SpikeUM said:
A number of us have discussed that the tax ramifications of NIL have not been thoroughly discussed/vetted, but the biggest concern is mostly that players dont pay the taxes due on their NIL $.

Re the collectives, that is a big deal, it will make more difficult to build up large "endowments".
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I can only hope that universities are connecting the players and families to accountants who are immediately deducting 33% from the NIL earnings before the money hits the player’s bank account. Anything else and we will have lots and lots of young people owing the IRS money, and with penalties and interest when the IRS contacts them 3 years later about unpaid taxes.
 
AtlAtty said:
We’ve all been saying it. These aren’t donations to schools when they are then directed to athletes who can use the money for any purpose they choose.
Maybe this is what the SEC meant by money laundering, that people were using NIL for “educational donations”.
Either way, the ruling makes sense.
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SpikeUM said:
A number of us have discussed that the tax ramifications of NIL have not been thoroughly discussed/vetted, but the biggest concern is mostly that players dont pay the taxes due on their NIL $.

Re the collectives, that is a big deal, it will make more difficult to build up large "endowments".
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Agreed, and being facetious, but this is the opening stanza. The NCAA’s exemption is next on the current trajectory.
 
If this eventually forces college football players to be actual employees, the model could break. Not financially, but politically. Activists will take a simple spreadsheet of the top paid employees of the state and find that rather than it being a small collection of coaches and school presidents, it will be a giant, burgeoning list of college football players (with a few basketball players sprinkled in). And then activists at schools will point out, "Hey, I went to (x) University for my degree. Not to finance a professional football program. Why isn't (x) university's focus in education, rather than professional sports? Why are we building palaces on campus for employees when our tuition has gone up (y) percent?"
 
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AtlAtty said:
I can only hope that universities are connecting the players and families to accountants who are immediately deducting 33% from the NIL earnings before the money hits the player’s bank account. Anything else and we will have lots and lots of young people owing the IRS money, and with penalties and interest when the IRS contacts them 3 years later about unpaid taxes.
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This
 
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Saban and SEC presidents are lobbying Washington for NIL legislation. St Saban has been talking about it like he's changing the world. Tuberville is calling for it now. We'll see if it goes anywhere though.

The IRS hid quietly in the corner for the last 60 years while boosters, coaches, players, recruits, families and handlers all committed tax evasion, by handing out and accepting unreported cash (and other) benefits.

The NIL era has brought things out into the open. The (often times illegal) advantage all these SEC schools built up over decades just doesn't exist anymore and they can't stand it. Boo hoo.
 
AtlAtty said:
I can only hope that universities are connecting the players and families to accountants who are immediately deducting 33% from the NIL earnings before the money hits the player’s bank account. Anything else and we will have lots and lots of young people owing the IRS money, and with penalties and interest when the IRS contacts them 3 years later about unpaid taxes.
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I am NOT an NIL/Collective expert, but my sense is that NIL payments are made gross on a 1099 basis, to avoid record keeping, withholding, employer taxes and benefits, etc.
 
SpikeUM said:
I am NOT an NIL/Collective expert, but my sense is that NIL payments are made gross on a 1099 basis, to avoid record keeping, withholding, employer taxes and benefits, etc.
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You are probably correct but I have 1099 contractors that I use and I tell them up front that I am still deducting taxes because if they disappear onto the wind the IRS can come after my Business for the unpaid taxes. It can still be structured that way to avoid a big tax bill at the end of the year for the sake of the contractor and business.
 
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