Since the quarterback, Jaden Rashada, that was going to go to Florida decommitted because the booster group that was going to give him 13 million to play for the Seminoles canceled their NIL contract with Rashada for the money, there has been a growing number of schools that want the NCAA to police NIL activity. NIL money is prohibited from being used to help recruit athletes, only to provide compensation for their name, image or likeness once they’ve enrolled. The thread below details where the NCAA and its’ member schools are at right now in that regard.
Click the tweet to see the thread which explains how the schools have somehow decided to let “guilty until proven innocent” be the NCAA policy in investigating reported NIL violations.
And here’s a link to the story on Jaden Rashada, the Florida recruit who backed out of his commitment when the NIL deal fell through. He has now committed to Arizona State.
Post by sunshinestag on Feb 9, 2023 17:07:20 GMT -5
I'm still shaking my head at this story about Rashada's NIL deal with the Gator collective.https://deadspin.com/jaden-rashada-college-football-nil-deal-florida-miami-1850083009
How you police it is one thing, but how can schools compete is another? Even Jim Boeheim called it like it is this past Saturday night before the ACC powers slapped him down.
The NIL scam and portal bastardization has changed the college basketball landscape forever. No one is putting that genie back in the bottle.
Here’s what the head of the NCAA considers the three essential elements to the legislation he’d like to see regarding NIL.
Does anyone think Congress will pass any legislation regarding NIL that the President will sign? If so, will the Supreme Court uphold the legislation as constitutional with its requirement that all NIL deals be made public?
And apparently the AD at Arkansas is using the argument in the tweet below in the hope that it’ll persuade Congress.
What a mess!! This is what happens when college athletics becomes an end within itself, when money rules instead of athletics being part of the overall college experience. Why isn’t it enough to get you education paid for, compete on a high level, live on a beautiful campus and be exposed to new learning and others from diverse communities. Why isn’t enough to be able to pull on your Jersey and compete for yourself, your classmates and your school?
What a mess!! This is what happens when college athletics becomes an end within itself, when money rules instead of athletics being part of the overall college experience. Why isn’t it enough to get you education paid for, compete on a high level, live on a beautiful campus and be exposed to new learning and others from diverse communities. Why isn’t enough to be able to pull on your Jersey and compete for yourself, your classmates and your school?
. I absolutely agree with you, however for decades, the schools have raked in millions upon millions of dollars selling replica player gear, tickets at high prices, etc. because players performance and hard work, not the school’s effort, made fans want to buy their jersey, etc…. Star players revolted. I really wish we could turn back the clock and get rid of all of that, but people and institutions are always trying to find a way to make another buck. How unfortunate it truly is.
Fairfield University Athletics, in partnership with INFLCR (pronounced "influencer") www.inflcr.com/, is excited to announce the launch of the Fairfield Stags Exchange, which will allow student-athletes to pursue Name, Image, & Likeness (NIL) business opportunities.
Companies can register for the Fairfield Stags Exchange via FairfieldStags.com/Exchange. dash.inflcr.com/exchange/fairfield-university. Examples of possible business deals include public appearances, autograph signings, social media promotion and endorsement, private lessons, and athletic camps.
“We are excited to announce the Fairfield Stags Exchange as the first of a multi-layered approach to support our student-athletes’ NIL opportunities and efforts,” said Vice President for Athletics Paul Schlickmann. “It is our hope and belief that local businesses will see first-hand the creative intelligence, relentless work ethic, and entrepreneurial spirit that are consistent traits of our student-athletes and will prove mutually beneficial for their shared goals and objectives. This venture aligns with our University pursuit of modern excellence and our departmental mission to provide a holistic educational experience for our student-athletes.”....
From the WSJ on June 14, 2023- This may limit the amount of money available as contributions to NIL groups will not be considered a "charitable deduction":
“The Internal Revenue Service began blocking an increasingly popular method for funneling wealthy boosters’ money to college athletes, declaring that so-called “name, image and likeness” collectives generally can’t be structured as charities. The tax agency’s decision, announced in a 12-page legal memo, will disrupt some collectives’ plans for paying top-tier athletes for their name, image and likeness (NIL). Since the NCAA changed its rules in July 2021 to let college athletes sign endorsement deals, scores of collectives sprung up alongside universities, some claiming charitable status so they can solicit tax-deductible donations from rich supporters to pay athletes. In college sport’s never-ending recruiting wars, having the support of a deep-pocketed collective is seen as an advantage and a centralized way to coordinate what boosters can do individually. Two years into the NIL era, nearly every Division I school has at least one such affiliated organization. The IRS even granted tax exemptions under Section 501(c)(3) to some collectives, including Clemson’s Tiger Impact and Purdue’s Boilermaker Alliance. The associated tax deduction for donors is a powerful incentive, giving these collectives the same status as the American Heart Association and Habitat for Humanity. A top-tax-bracket donor can give $100,000 to a charity and save $37,000 in federal taxes. ]But in the memo, dated May 23 and released Friday, the IRS wrote that the collectives often provide too much private benefit to individuals. The memo said that advancing education is a permissible charitable purpose but that student-athletes aren’t a recognized charitable class. [/b] “It just does not fit into the panoply that we call charitable organizations. It just doesn’t,” said Phil Hackney, a law professor at the University of Pittsburgh who was an IRS attorney. The memo is a sign that the IRS will deny many collectives’ applications for charitable status and will begin revoking some prior rulings through audits. It creates significant uncertainty for athletic departments and the collectives that have sprung up since 2021, when the NCAA changed the rules in the wake of a flurry of states changing their laws to allow for athlete endorsements and the Supreme Court decision in NCAA v. Alston. In that case, justices ruled unanimously against the NCAA, finding that the association had engaged in anticompetitive behavior by capping education-related benefits available to college athletes and warning that any steps the NCAA took to limit athlete compensation could run afoul of antitrust law.”
Thank you. What’s likely to happen is the available NLI money will be cut back severely and revoked in many cases. Another selling point for mid majors like us.
The link to this article is posted on another thread but I think it shows how the recent IRS ruling probably isn’t going to change the disparity in NIL opportunities between power conferences and mid-majors.
Monetary contributions to NIL collectives might not be tax deductible, but can’t businesses simply list any expenses involved in providing a NIL opportunity to a student athlete as a marketing expense for the business?
The graph on the lower left of the tweet below gives a snapshot of the current disparity in NIL opportunities among three tiers of D1 men’s college basketball.
Monetary contributions to NIL collectives might not be tax deductible, but can’t businesses simply list any expenses involved in providing a NIL opportunity to a student athlete as a marketing expense for the business?
As long as the athletes NIL is used to market a business and product, I’d probably allow my clients to deduct. Facts and circumstances matter - if paying for that endorsement gets the payor comp’d tickets or something of value, I’d have to look much closer.
One of the problems the NCAA has to deal with in creating NIL policy are state laws that forbid universities from releasing NIL documents on public records requests. Texas became the 6th state to pass such a law.
One of the problems the NCAA has to deal with in creating NIL policy are state laws that forbid universities from releasing NIL documents on public records requests. Texas became the 6th state to pass such a law.
This is sadly comical to me. Just shows you how easy it is to buy a politician.
