NIL and the IRS

[andrew]

It might have helped if the AA's actually had functioned under the general budget of the universities and had to pay coaches in accordance with university personnel policy. There would have been recourse for keeping coaches' salaries at a reasonable level.

I've long thought something similar but the more I think about it the more I'm convinced it isn't possible.

Let's say the AA does function under the general budget of the universities. Is there really a policy that stops Alabama from saying, "The AA is bringing us in $200 million yearly in revenue, and hiring Nick Saban will increase that by $50 million. Hiring him for $10 million/year will actually help the university budget!"

There would probably be some more guardrails and it might have taken longer, but ultimately we would have ended in a similar place because these super high coach and administrator salaries really do make fiscal sense. People love college football and popularity means money.

The notion of a super popular sport that eschews money and stays true to its amateur roots is simply incompatible with capitalism -- and human nature, really. With millions of people packing stadiums every Saturday and tens of millions more watching at home, everyone involved is going to want a piece of what their work is generating and the only way to stop it would be some sort of law that goes directly against what our current economic system is set up to encourage.

 

[donsue]

There was never anything illegal about paying players. It was a rule put in decades ago by men who are long dead.

The game has changed. Bill Curry was making around $40k something as HC of GT when he was first hired. The game is monetized now. If you want the old days, you're gonna have to follow D3 or something

This is absolutely correct. The bag man has just been replaced by a different outlet

 

[stinger78]

I've long thought something similar but the more I think about it the more I'm convinced it isn't possible.

Let's say the AA does function under the general budget of the universities. Is there really a policy that stops Alabama from saying, "The AA is bringing us in $200 million yearly in revenue, and hiring Nick Saban will increase that by $50 million. Hiring him for $10 million/year will actually help the university budget!"

There would probably be some more guardrails and it might have taken longer, but ultimately we would have ended in a similar place because these super high coach and administrator salaries really do make fiscal sense. People love college football and popularity means money.

The notion of a super popular sport that eschews money and stays true to its amateur roots is simply incompatible with capitalism -- and human nature, really. With millions of people packing stadiums every Saturday and tens of millions more watching at home, everyone involved is going to want a piece of what their work is generating and the only way to stop it would be some sort of law that goes directly against what our current economic system is set up to encourage.

There are more guardrails available, I believe, when a salary structure is subject to the BOR.

 

[RoanokeJacket]

If you want the old days, you're gonna have to follow D3 or something

more likely just do something else, like when one-and-dones screwed up bsketball

If the team wins then watch, if not, do something else. It is just entertainment, all the school spirit bullshit has always been bullshit. If Denzel is in a crappy movie I don't pay money to "support" him. He is getting paid, just a job to him.

 

[Flywheel]

I can just about guarantee you they will get 1099s. That’s the way the world works. Then they might get a double whammy from self proclaimed tax experts

Or 87,000 new IRS agents

 

[andrew]

There are more guardrails available, I believe, when a salary structure is subject to the BOR.

I would guess the BoR's guardrails would have fallen when Alabama changed theirs to let them hire Nick Saban and U[sic]GA was stuck with whatever they could get for $1 million/year. Or when Vandy hired U[sic]GA's coach away because they're a private school and can do whatever they want.

On the bright side, we wouldn't have been able to hire the clown at $3 million/year because even in hypothetical scenarios the BoR screws us with the rules and bends them for the Dwags.

 

[theStingT]

College is supposed to prepare young people for real life. Paying taxes is a real life experience that we all deal with, so they should also.

Haa haa do you think people like ESPN and their
'Just means more' cohorts care about preparing a kid for real life?

 

[GBurdell]

When do you think the IRS will start the crackdown? Way too many millions of dollars going out to kids that have no clue about paying taxes.

Texas A&M shuts down controversial 12th Man+ NIL Fund after IRS threatens foundation's nonprofit status - CBSSports.com

The decision to shut down the NIL fund came after the IRS released a memo on June 9, which told NIL collectives their function doesn't fit within the confines of tax-exempt status. The 12th Man+ Fund attempted to reward donors with athletic department points and tax benefits in exchange for donations to provide NIL compensation to athletes.