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NIL
Apr 26, 2023 11:29:31 GMT -5
Post by stevehorn on Apr 26, 2023 11:29:31 GMT -5
At least at the P5 level, I believe this is quite accurate. The vast majority of the NIL money is moving through the collectives. Also companies like Opendorse may likely be relatively non-players soon, if not already, as typical reports indicate that the athletes are receiving relatively little from these deals. Collectives definitely are a big deal for basketball and football. But do these groups really care that much about volleyball programs to funnel money towards volleyball players (outside of a couple of obvious programs)? I can only talk specifics about Texas. Within the last few months, the Texas collectives have consolidated into the Texas One Fund collective where there is the ability for a donor to designate their contribution to a specific sport. I know volleyball does have an aggressive goal.
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NIL
Apr 26, 2023 14:01:38 GMT -5
via mobile
Post by slxpress on Apr 26, 2023 14:01:38 GMT -5
Even if the student athletes reported every single one of their NIL activities to the schools Opendorse wouldn't have access to that without a slew of FOIA requests, and even then information can be redacted if the school determines it would identify specific players. Not to mention private schools have no obligation to abide by FOIA requests. In addition I know the Louisiana state legislature has forbidden schools from divulging NIL information by law even if presented with FOIA requests. Other states may have done so as well. The point is, take anything regarding the overall amounts involved with NIL with a grain of salt, because it's truly a guess. Now, my speculation is that these numbers are derived from Opendorse's own system, so if that's the case, the numbers are true insofar as their system is concerned. But that has its own obvious issues if used to extrapolate anything beyond the very specific source of their information. And there's no way there getting anything comprehensive. You and I are in agreement on that. I think we are on the same page, just approaching it from different angles. I think [some] transparency about how much NIL activity exists is good for a lot of reasons (at least in terms of aggregate amounts by school, conference or sport)--and certainly in terms of NCAA compliance and mitigating pay for play. There's little incentive for anyone else--conferences, schools, athletes or companies like Opendorse [sic?]--to disclose accurate or actual numbers in the current environment. I would go so far as to say it’s pivotal. It’s impossible to have an effective market mechanism without market transparency. The people who love an opaque pricing mechanism are middle men. In many markets it’s both their job security and their source of maximum profits. It would be much better for the schools, the athletes, and the people paying for NIL to have a lot more transparency. Of course that’s the number one thing the new NCAA president is advocating for. Not sure if he’ll be able to get it done but he’s on the right track, IMO.
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Post by tablealgebra on Apr 26, 2023 14:43:06 GMT -5
All I can say is I'm in a position where those people would be highly unlikely to lie to me about stuff like that. 1. Not all collectives are nonprofits. 2. The difference between checks from collectives and duffel bags of cash behind a 7-11 is the former gets reported to the IRS and the latter doesn't. Ahh, the Al Capone school of business model You spelled SEC Football wrong.
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NIL
Jun 2, 2023 22:11:20 GMT -5
Post by volleyguy on Jun 2, 2023 22:11:20 GMT -5
A couple of NIL-related articles that popped up in my news feed: Urban Meyer goes after NIL collectives in college football: 'It's a fancy word for cheating' Meyer is the latest in a list of prominent names to criticize college football's current structure www.cbssports.com/college-football/news/urban-meyer-goes-after-nil-collectives-in-college-football-its-a-fancy-word-for-cheating/Michigan State NIL deal ending after Mat Ishbia’s purchase of Phoenix Suns Ishbia, a former Michigan State walk-on basketball player under Tom Izzo, has given nearly $50 million to the school since his company went public in early 2020 in addition to the NIL deal. Announced in 2021, shortly after the NCAA’s new name, image and likeness rules went into effect, the UWM deal was one of the first team-wide NIL deals in college sports and was seen as a recruiting tool for Michigan State teams. The program paid members of the Michigan State football men’s basketball and volleyball teams up to $700 each month in exchange for social media posts highlighting United Wholesale Mortgage. After launching with football and men’s basketball players, it was expanded last fall to include volleyball players. www.mlive.com/spartans/2023/06/michigan-state-nil-deal-ending-after-mat-ishbias-purchase-of-phoenix-suns.html
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NIL
Jun 10, 2023 18:53:09 GMT -5
Post by volleyguy on Jun 10, 2023 18:53:09 GMT -5
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NIL
Jun 10, 2023 19:19:37 GMT -5
via mobile
Post by slxpress on Jun 10, 2023 19:19:37 GMT -5
In the meantime the governor for the state of Texas just signed a bill that apparently legalizes the ability of fundraising arms of state universities to offer donor points used for premium seat selection and parking in return for NIL donations.
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NIL
Jun 11, 2023 2:47:37 GMT -5
Post by ay2013 on Jun 11, 2023 2:47:37 GMT -5
Can we just do away with all tax deductions? The amount of resources and man power it takes to do nothing other than help people avoid paying taxes is absurd.
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Post by slxpress on Jun 11, 2023 4:51:44 GMT -5
Can we just do away with all tax deductions? The amount of resources and man power it takes to do nothing other than help people avoid paying taxes is absurd. Well, it gets too far away from the purpose of this board, but the political reality is no. One of the most powerful tools for politicians is the ability to create, preserve, and take away deductions from different voting classes and corporations. They're not going to be able to stop accessing a major tool of their power and influence. It's not just a United States thing. It's every representative government. Or even autocratic governments. As crazy as it sounds, it's better than it once was. Also, tax avoidance is only about 1% of GDP, which is good. The alternative to tax deductions is subsidies, which does the same thing, but is politically more difficult for emotional reasons, rather than logical ones. The crazy thing are industries like tobacco which enjoy considerable subsidies and then also face higher taxes. Some of the same thing happens with oil and gas, too. Also, tax breaks are easier to get by with foreign competitors than industry subsidies are, in general. Everyone likes to cry foul on unfair competitive advantages when subsidies are introduced. They do as well for deductions, but not as vociferously.
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NIL
Jun 12, 2023 12:44:03 GMT -5
Post by volleyguy on Jun 12, 2023 12:44:03 GMT -5
Nebraska Cornhuskers: New NIL ruling could be disastrous The Nebraska Cornhuskers are positioning themselves to be big players in the NIL market in the coming years, but a new ruling might stop that plan cold. One of the big issues with NIL, in general, is that there just isn’t much known about what the system is going to look like in coming years. Certainly, there are some bills that are winding their way through congress that could make everything clearer in a few months or years, but it’s still mostly the Wild West. That doesn’t mean that any rule at all about NIL is a good one. Certainly a recent ruling by the IRS could be quite bad for Nebraska football and the Nebraska Cornhuskers athletic department. That ruling states that donations to NIL collectives are not tax-exempt. According to Sports Illustrated, the Internal Revenue Service has decided that donating money to these collectives, even if they’re billed as “non-profit,” does not actually honor the intent of what 501(c)(3) companies are supposed to be about. It’s hard to exactly how far-reaching this new rule will be, but it doesn’t seem like a surface-level annoyance. More than 200 NIL collectives exist among the 131 FBS schools. The Nebraska Cornhuskers have one of the more well-known ones in the 1890 Initiative. It is officially listed as a 501(c)(3) organization. huskercorner.com/2023/06/12/nebraska-cornhuskers-new-nil/
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NIL
Jun 12, 2023 13:01:11 GMT -5
Post by n00b on Jun 12, 2023 13:01:11 GMT -5
Nebraska Cornhuskers: New NIL ruling could be disastrous The Nebraska Cornhuskers are positioning themselves to be big players in the NIL market in the coming years, but a new ruling might stop that plan cold. One of the big issues with NIL, in general, is that there just isn’t much known about what the system is going to look like in coming years. Certainly, there are some bills that are winding their way through congress that could make everything clearer in a few months or years, but it’s still mostly the Wild West. That doesn’t mean that any rule at all about NIL is a good one. Certainly a recent ruling by the IRS could be quite bad for Nebraska football and the Nebraska Cornhuskers athletic department. That ruling states that donations to NIL collectives are not tax-exempt. According to Sports Illustrated, the Internal Revenue Service has decided that donating money to these collectives, even if they’re billed as “non-profit,” does not actually honor the intent of what 501(c)(3) companies are supposed to be about. It’s hard to exactly how far-reaching this new rule will be, but it doesn’t seem like a surface-level annoyance. More than 200 NIL collectives exist among the 131 FBS schools. The Nebraska Cornhuskers have one of the more well-known ones in the 1890 Initiative. It is officially listed as a 501(c)(3) organization. huskercorner.com/2023/06/12/nebraska-cornhuskers-new-nil/That seems fair. Hard to argue to point that these collectives don't honor the intent of 501(c)(3) organizations. Their intent is to pay athletes to win games.
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NIL
Jun 12, 2023 13:06:24 GMT -5
Post by mervinswerved on Jun 12, 2023 13:06:24 GMT -5
I wonder how the IRS (and higher ed accrediting bodies) will respond if/when universities try to roll up NIL activities into their own foundations.
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NIL
Jun 12, 2023 13:13:36 GMT -5
Post by volleyguy on Jun 12, 2023 13:13:36 GMT -5
I wonder how the IRS (and higher ed accrediting bodies) will respond if/when universities try to roll up NIL activities into their own foundations. I have been thinking about this approach. It's much easier to attach this type of activity to an existing non-profit entity because there is already an established non-profit (or public interest, actually) purpose. A lot depends on the specific organization in place (some University Foundations may not be specifically or separately designated as non-profits). The marketplace approach, where the NIL opportunities are listed or curated, is probably a safe approach, and combined with or alongside some educational components, some amalgamation along those lines might be able to pass muster. I don't think there is much to be concerned about with regard to the accrediting bodies with regard to this component.
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NIL
Jun 12, 2023 13:22:01 GMT -5
Post by ay2013 on Jun 12, 2023 13:22:01 GMT -5
Can we just do away with all tax deductions? The amount of resources and man power it takes to do nothing other than help people avoid paying taxes is absurd. Well, it gets too far away from the purpose of this board, but the political reality is no. One of the most powerful tools for politicians is the ability to create, preserve, and take away deductions from different voting classes and corporations. They're not going to be able to stop accessing a major tool of their power and influence. It's not just a United States thing. It's every representative government. Or even autocratic governments. As crazy as it sounds, it's better than it once was. Also, tax avoidance is only about 1% of GDP, which is good. The alternative to tax deductions is subsidies, which does the same thing, but is politically more difficult for emotional reasons, rather than logical ones. The crazy thing are industries like tobacco which enjoy considerable subsidies and then also face higher taxes. Some of the same thing happens with oil and gas, too. Also, tax breaks are easier to get by with foreign competitors than industry subsidies are, in general. Everyone likes to cry foul on unfair competitive advantages when subsidies are introduced. They do as well for deductions, but not as vociferously. you are right, not the right forum, however 1% of GDP is over 200 billion dollars...doesn't sound like an insignificant sum to me.
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NIL
Jun 12, 2023 13:23:24 GMT -5
via mobile
Post by mervinswerved on Jun 12, 2023 13:23:24 GMT -5
I wonder how the IRS (and higher ed accrediting bodies) will respond if/when universities try to roll up NIL activities into their own foundations. I have been thinking about this approach. It's much easier to attach this type of activity to an existing non-profit entity because there is already an established non-profit (or public interest, actually) purpose. A lot depends on the specific organization in place (some University Foundations may not be specifically or separately designated as non-profits). The marketplace approach, where the NIL opportunities are listed or curated, is probably a safe approach, and combined with or alongside some educational components, some amalgamation along those lines might be able to pass muster. I don't think there is much to be concerned about with regard to the accrediting bodies with regard to this component. The marketplace stuff is all well and good but that's not where the real money is moving. I'm skeptical the government and associated agencies are going to be cool with millions of dollars washed through university foundations before getting doled out to athletes for endorsement activities.
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NIL
Jun 12, 2023 13:32:34 GMT -5
Post by volleyguy on Jun 12, 2023 13:32:34 GMT -5
I have been thinking about this approach. It's much easier to attach this type of activity to an existing non-profit entity because there is already an established non-profit (or public interest, actually) purpose. A lot depends on the specific organization in place (some University Foundations may not be specifically or separately designated as non-profits). The marketplace approach, where the NIL opportunities are listed or curated, is probably a safe approach, and combined with or alongside some educational components, some amalgamation along those lines might be able to pass muster. I don't think there is much to be concerned about with regard to the accrediting bodies with regard to this component. The marketplace stuff is all well and good but that's not where the real money is moving. I'm skeptical the government and associated agencies are going to be cool with millions of dollars washed through university foundations before getting doled out to athletes for endorsement activities. Accrediting agencies are focused on the quantity and quality of activity flowing through the Foundations to the University, not on the particular legalities of NIL or even athletics--they generally leave that type of analysis or evaluation to other entities. The problem is that the collectives, just like the marketplaces, were designed for the express purpose of getting NIL money to athletes. Unlike the marketplaces, the collectives also intended to direct the allocation of those opportunities as well AND get a tax deduction for it. The overt premise of the collectives is/was flawed from the start.
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