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NIL - "Let's be honest, we are all money laundering."

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Can’t stop the tampering… it’s too easy. And schools can absolve themselves from actual tampering.

Player at “school A” grew up with, is related to or went to HS with a player at “school B”. Everyone knows it… not a secret. The player at school B plays a position of need for school A.

The coaches at school A mention in their player’s earshot “Man… sure wish we had a guy like player at school B. He’d be great here”

Or a player tells his coaches “I got a homeboy at __________ University and he hates it there. If he hops in the portal would we take him?” Coach replies… “I can’t comment on a kid at another school but we’re definitely looking for someone just like him…wink wink. If… and that’s hypothetically speaking, if your homeboy hops in the portal we’d definitely be interested.”

In my mind I imagine that’s how it goes 😂
 
JHallCanes said:
I mean **** the NCAA but they were right to be hesitant about all of this stuff

It was Pandoras box but same time it’s not like they were hesitant about it because they were trying to uphold some integrity

So **** it let it burn
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It has been an administrative disaster at every step. They delayed for far too long. Should have worked something out when Ed O'Bannon filed suit.
 
Interesting quote that actually provides realistic NIL earnings.

“The average compensation for a Power 5 football player from a collective ranges widely, usually around $10,000 to $50,000 annually, but “about five players per roster are making more than $100,000 on average,” he says.”

Not sure the athletic director who said the quote about money laundering really knows what it means or maybe he does and that’s even more concerning.

Money laundering is concealing the origin of proceeds from illicit activity such as drug trafficking, embezzlement, etc.
 
BostonCanes47 said:
Interesting quote that actually provides realistic NIL earnings.

“The average compensation for a Power 5 football player from a collective ranges widely, usually around $10,000 to $50,000 annually, but “about five players per roster are making more than $100,000 on average,” he says.”

Not sure the athletic director who said the quote about money laundering really knows what it means or maybe he does and that’s even more concerning.

Money laundering is concealing the origin of proceeds from illicit activity such as drug trafficking, embezzlement, etc.
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Sure. It doesn't meet the statutory definition of money laundering.

But what the AD said refers to the spirit of money laundering. Donations being used to (essentially) pay players for pay, that's what the AD is talking about.

Even if everyone "knows" what the money is for, it's still an elaborate semantics game. And we've already seen one situation where a booster who VOLUNTARILY pledged a large sum....later reneged when he found out how it was being used (Hugh Hathnocock blocking the $14M payment to Jaden Rashada).
 
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TheOriginalCane said:
It has been an administrative disaster at every step. They delayed for far too long. Should have worked something out when Ed O'Bannon filed suit.
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Yeah man it all happened so **** fast

It’s why I’ve been a little hesitant to really give any feedback when it comes to our NIL situation and the portal

Not nearly enough consistent data yet it’s dogs and cats living together right now
 
TheOriginalCane said:
Sure. It doesn't meet the statutory definition of money laundering.

But what the AD said refers to the spirit of money laundering. Donations being used to (essentially) pay players for pay, that's what the AD is talking about.

Even if everyone "knows" what the money is for, it's still an elaborate semantics game. And we've already seen one situation where a booster who VOLUNTARILY pledged a large sum....later reneged when he found out how it was being used (Hugh Hathnocock blocking the $14M payment to Jaden Rashada).
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Yeah it’s semantics at the end of the day. Seems more like misappropriating funds.

Are these collective 501(c)s? When I was working in public and doing 990s I remember it being strict on what contributions/donations could be used for. It was many years ago so it could have just been the non profits I dealt with.

I just wonder if the IRS could and would go after these collectives if they’re posing as non profits. I’m a bit rusty on them and the rules.
 
TheOriginalCane said:
Can't get much more blunt...

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This is what may do the current system in:

There are other problems, too.

Arthur Bryant, a lawyer specializing in Title IX violations, believes schools are violating the federal statute that prohibits gender-based discrimination. Male athletes are receiving more NIL cash than female athletes, he contends.

“Most colleges and universities in America are violating Title IX right now. What’s happening with NIL is just adding to that, sometimes massively,” he says. “It is impossible to know in some circumstances exactly how much the school is involved, but from public appearances, the schools are regularly involved and in some cases, they have to be involved.”

The political optics of that - especially when the players become employees - will be bad.

Furthermore, as I've said before I believe that politically it will rapidly become untenable for many schools to be paying people large amounts of money to play sports while actual students see their tuition going up year after year. And if we ever get to the point where college becomes free, you get to the scenario where college players - as employees - are now federal government employees. In other words, nationalization of college football!
 
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Maybe I am the old man telling the kids to get off my lawn, but has/is going to destroy college football. I am just waiting for the bottom to fall out.

If you want kids earn money, there was a better way than this.

Make a Trust in the players name. The player is paid a percentage of jersey sales, bowl game, etc. All deposited in the trust.

The player is paid a stipend from that trust. Once the players leave the university, it's cash out to the player

At least if a booster wants pay a player, he can buy a thousand of the player heresy or donate to his trust. There is a paper trail.

NCAA, hire an army of IRS agent. Draw a line in the sand. If they smell a hint of "bags", if there are brown lunch bags on campus. We are on your heels. We are coming after the player and booster.
 
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GojiraCane said:
This is what may do the current system in:

There are other problems, too.

Arthur Bryant, a lawyer specializing in Title IX violations, believes schools are violating the federal statute that prohibits gender-based discrimination. Male athletes are receiving more NIL cash than female athletes, he contends.

“Most colleges and universities in America are violating Title IX right now. What’s happening with NIL is just adding to that, sometimes massively,” he says. “It is impossible to know in some circumstances exactly how much the school is involved, but from public appearances, the schools are regularly involved and in some cases, they have to be involved.”

The political optics of that - especially when the players become employees - will be bad.

Furthermore, as I've said before I believe that politically it will rapidly become untenable for many schools to be paying people large amounts of money to play sports while actual students see their tuition going up year after year. And if we ever get to the point where college becomes free, you get to the scenario where college players - as employees - are now federal government employees. In other words, nationalization of college football!
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That last paragraph is key. Tuition goes up every year, student loans are getting bigger, but hey, we are making your football-playing classmates millionaires!

It's going to be hard to keep driving down this same pathway for much longer.

AND FOR THE RECORD, I have no problems with the athletes being compensated, I'm just referring to the pay gap and the optics of it all.
 
Dees Brown said:
Maybe I am the old man telling the kids to get off my lawn, but has/is going to destroy college football. I am just waiting for the bottom to fall out.

If you want kids earn money, there was a better way than this.

Make a Trust in the players name. The player is paid a percentage of jersey sales, bowl game, etc. All deposited in the trust.

The player is paid a stipend from that trust. Once the players leave the university, it's cash out to the player

At least if a booster wants pay a player, he can buy a thousand of the player heresy or donate to his trust. There is a paper trail.

NCAA, hire an army of IRS agent. Draw a line in the sand. If they smell a hint "bags", if the they brown lunch bags on campus. We are on your heels. We are coming after the player and booster.
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I agree with your last statement, but disagree with how a player should be paid.
This NIL system exists because coaches and schools made millions and refused to share with the laborers behind a facade of amateurism, which in the US meant we (schools and coaches) can make all the money we want off your labor, but you can’t.
I know you aren’t blaming the players but if there is blame to be doled out it’s pretty obvious where the blame lies.

Going back to our disagreement, I do not believe anyone can dictate how another person should be paid. So whereas your paternalistic approach is probably in everyone’s best interest, it ignores that people should be paid for their labor and no one other than the person performing the labor should decide the form of payment. So in effect, let the players be as greedy as they want to be right now because the pendulum has swung very far in the other direction as it always does.

Going back to our agreement, i hope the IRS does look at this entire system very closely and makes sure it can trace from where the collectives receive their money, and collects taxes from the players. No one should be exempt from normal taxation rules because this is college sports and not a pizza restaurant.
 
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