OT: - NIL Deals more than $600 must be approved | The Boneyard

OT: NIL Deals more than $600 must be approved

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Payments $600 and over contractors need to be reported to the IRS. So the NCAA is saying for the purposes of NIL, players will be deemed contractors who have an agreement with the NCAA. Since players will be "working" under the NCAA umbrella, the NCAA is responsible for accounting and reporting payments. It actually can be viewed as a streamlining so the players dont have to deal with accountants and making sure the contracts are legit etc. Right now Im sure nothing is being done by the books and the players could be in for a rude awakening with the taxman. Doesnt seem so outlandish what the NCAA is asking.
 
Drame said:
Payments $600 and over contractors need to be reported to the IRS. So the NCAA is saying for the purposes of NIL, players will be deemed contractors who have an agreement with the NCAA. Since players will be "working" under the NCAA umbrella, the NCAA is responsible for accounting and reporting payments. It actually can be viewed as a streamlining so the players dont have to deal with accountants and making sure the contracts are legit etc. Right now Im sure nothing is being done by the books and the players could be in for a rude awakening with the taxman. Doesnt seem so outlandish what the NCAA is asking.
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WHy is the NCAA involved though? The contracts are between the payer and the students. Also seems to be an attempt to skirt taxes.
 
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Drame said:
Payments $600 and over contractors need to be reported to the IRS. So the NCAA is saying for the purposes of NIL, players will be deemed contractors who have an agreement with the NCAA. Since players will be "working" under the NCAA umbrella, the NCAA is responsible for accounting and reporting payments. It actually can be viewed as a streamlining so the players dont have to deal with accountants and making sure the contracts are legit etc. Right now Im sure nothing is being done by the books and the players could be in for a rude awakening with the taxman. Doesnt seem so outlandish what the NCAA is asking.
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Thanks for this response. I’m really hoping the NCAA can get this kind of thing sorted out eventually. Good to hear a perspective about how this may actually be able to work.
 
This is beyond BONKERS!!! NCAA settlement details payouts, revenue sharing

$33m revenue shared with athletes? And some schools are already losing $30-40m a year? And Kessler gets to audit every college's books to make sure they are complying with the payouts in revenue?

Insane.

This annual loss in revenues doesn't even take into account the debt service on facilities.

Some schools are now in the business of losing $90m a year. How is this sustainable?
 
navery12 said:
The chances of this being enforced are as good as the chance UConn offers me the new 15th scholarship that can be offered
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Your NIL demands too high? Your helicopter father too intrusive?
 
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pj said:
Your NIL demands too high? Your helicopter father too intrusive?
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They met my $12M NIL demands and offered my father an associate head coach position, but unfortunately balked at making my dog the official mascot for half the home games
 
HuskyWarrior611 said:
That’s a lot of instagram posts to get to 6 figures lol
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Post one story every day for one year, 218k. Imagine how funny it would be if a kid posted the same ad every day, for a year, with slight altercations?
 
Huskyforlife said:
Post one story every day for one year, 218k. Imagine how funny it would be if a kid posted the same ad every day, for a year, with slight altercations?
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Mistakez ken bee phunny.
If you're older than dirt, this is Norm Crosbyesque at its best.
 
upstater said:
WHy is the NCAA involved though? The contracts are between the payer and the students. Also seems to be an attempt to skirt taxes.
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Im not sure tot
NowInStorrs said:
What if they give you $500 NIL deals every week?
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Well for contractors its $600 total for the year needs to be reported, whether its one $600 paymane tor multiple smaller limits.
 
upstater said:
WHy is the NCAA involved though? The contracts are between the payer and the students. Also seems to be an attempt to skirt taxes.
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Not totally sure. On the face of it the NCAA do seem to be a third party. But I think about some of my photography jobs, sometimes I get paid directly from the client but when a producer or agent get involved they would be responsible for reporting payments etc. The NCAA, because of an interest in maintaining integrity etc may view themselves as a third party agency in this NIL situation. This structure would be way easier to deal with than any kind of collective bargaining where the athletes would be considered employees. Between the various sports, conferences, divisions and schools, collective bargaining would be a near impossible. Football on their own could probably do it.
 
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Drame said:
Not totally sure. On the face of it the NCAA do seem to be a third party. But I think about some of my photography jobs, sometimes I get paid directly from the client but when a producer or agent get involved they would be responsible for reporting payments etc. The NCAA, because of an interest in maintaining integrity etc may view themselves as a third party agency in this NIL situation. This structure would be way easier to deal with than any kind of collective bargaining where the athletes would be considered employees. Between the various sports, conferences, divisions and schools, collective bargaining would be a near impossible. Football on their own could probably do it.
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wut?
 
upstater said:
This is beyond BONKERS!!! NCAA settlement details payouts, revenue sharing

$33m revenue shared with athletes? And some schools are already losing $30-40m a year? And Kessler gets to audit every college's books to make sure they are complying with the payouts in revenue?

Insane.

This annual loss in revenues doesn't even take into account the debt service on facilities.

Some schools are now in the business of losing $90m a year. How is this sustainable?
Expand ...

This is the broad math as I see it. Plus, it doesn't reflect the bidding wars that will go on for top talent. Can you imagine what is going to happen when programs like Texas, Michigan and LSU start competing for top recruits. I don't think the NCAA has a prayer in trying to regulate and enforce anything concerning NIL. It is and will continue to be a free for all.

Total mess.....
 
Any time the NCAA says they need to have oversight on compliance for any issue, their first motivation is self preservation. The more oversight, the more employees, the bigger the industry of compliance becomes. Make more rules and enforce them, regulate more issues and oversee them.
 
upstater said:
This is beyond BONKERS!!! NCAA settlement details payouts, revenue sharing

$33m revenue shared with athletes? And some schools are already losing $30-40m a year? And Kessler gets to audit every college's books to make sure they are complying with the payouts in revenue?

Insane.

This annual loss in revenues doesn't even take into account the debt service on facilities.

Some schools are now in the business of losing $90m a year. How is this sustainable?
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Is sustainability the goal? Isn't the whole thing a shell game? Isn't there some sort of accounting wizardry that values the benefit to the school of competing at the highest levels? One example always used is the increase in # of applications to Storrs when UConn wins an NCAA Basketball Championship. See, big benefit!!

How many times has someone on the BY debunked the financial sustainability of FB by incorporating the cost of Rentschler field(or any stadium)? So you are probably correct in answering your own question, "it's not sustainable", but it is desirable to many constituencies.
 
ec33 said:
Any in particular you are thinking of?
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It’s not only UConn. There are a lot of schools in this boat. For years schlubs like Bilas talked about players not getting their value according to the market. He never discussed expenditures though and here we are talking about players sharing revenues, not profits.
 
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AllHusky said:
Is sustainability the goal? Isn't the whole thing a shell game? Isn't there some sort of accounting wizardry that values the benefit to the school of competing at the highest levels? One example always used is the increase in # of applications to Storrs when UConn wins an NCAA Basketball Championship. See, big benefit!!

How many times has someone on the BY debunked the financial sustainability of FB by incorporating the cost of Rentschler field(or any stadium)? So you are probably correct in answering your own question, "it's not sustainable", but it is desirable to many constituencies.
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Every school in America has skyrocketing applications. $90m is an incredible amount of money for a university. They slash and burn entire departments for $10m deficits
 
upstater said:
Every school in America has skyrocketing applications. $90m is an incredible amount of money for a university. They slash and burn entire departments for $10m deficits
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This is patently false. State flagships (for the most part) and Ivy League institutions have skyrocketing applications. Most of the rest are seeing declines. Less kids are in high school. It's simply math.
 
shizzle787 said:
This is patently false. State flagships (for the most part) and Ivy League institutions have skyrocketing applications. Most of the rest are seeing declines. Less kids are in high school. It's simply math.
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Have you checked this? Because I have.

You're thinking of declining enrollment.

Enrollment is totally different than applications. Applications are skyrocketing everywhere because kids are applying to 25+ schools with things like Scoir and Coalition.

I can send you a dozen articles on this.

There are schools now with 6% admission rates that used to be 30% admission way back in the ancient times of 2018.
 
If its all public info, this would seem to be a good thing to create a sustainable system.

Right now everything seems to be opaque so there’s likely lots of bluffing and mis-information about what offers a player has received, and how much a collective is actually paying “player x”. As a result, some collective’s may be bluffed into overpaying for a player (which will eventually drive up the price for everyone else) and some players may be bluffed into accepting less than their true value.
 
upstater said:
This is beyond BONKERS!!! NCAA settlement details payouts, revenue sharing

$33m revenue shared with athletes? And some schools are already losing $30-40m a year? And Kessler gets to audit every college's books to make sure they are complying with the payouts in revenue?

Insane.

This annual loss in revenues doesn't even take into account the debt service on facilities.

Some schools are now in the business of losing $90m a year. How is this sustainable?
Expand ...
Well, for state schools it will be by raising taxes.
 
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