NIL is changing at UConn

[UConnJim]

Attached is a memo from Dave Benedict. Bleeding Blue for Good is being disbanded today with the UConn Foundation taking over the NIL mission in anticipation of revenue sharing in the future. A new day is here.

Letter from Dave Benedict

 

[huskymedic]

 

[hardcorehusky]

This is so confusing. In any event, look how UConn handled this versus UMass last month!

 

[huskymedic]

 

[huskymedic]

 

[jostar1]

What is the money going to be used for?

 

[huskymedic]

What is the money going to be used for?

Introducing Storrs Central Contributions – Fuel the future of UConn Athletics Directly

Your Contribution, Your Impact…Introducing Storrs Central Contributions

storrscentral.com

 

[jostar1]

Introducing Storrs Central Contributions – Fuel the future of UConn Athletics Directly

Your Contribution, Your Impact…Introducing Storrs Central Contributions

storrscentral.com

So is the money that they collect going to be given to the UConn Foundation for NIL?

 

[huskymedic]

So is the money that they collect going to be given to the UConn Foundation for NIL?

@BBFGExecDir??

 

[Patman]

So is the money that they collect going to be given to the UConn Foundation for NIL?

well, this would be one way for the programs to take control of the funding again. i know there was some expression of worry that donations would go to the players and not to the program to run things.

 

[jostar1]

well, this would be one way for the programs to take control of the funding again. i know there was some expression of worry that donations would go to the players and not to the program to run things.

Well, if they are not going to donate it to the UConn Foundation for NIL, I go back to my original question: What is the money going to be used for? You are stating that it would be used for the program to run things. What would be some examples of that?

 

[KarabanStan]

Well, if they are not going to donate it to the UConn Foundation for NIL, I go back to my original question: What is the money going to be used for? You are stating that it would be used for the program to run things. What would be some examples of that?

There's a dedicated NIL thread on SC btw

 

[huskymedic]

There's a dedicated NIL thread on SC btw

NIL/BBFG Q&A Thread

 

[huskymedic]

Connecticut/UConn is positioning itself for the reality of the future:

 

[upstater]

If the new proposed rules go through taxing both donations to colleges and also taxing athletic scholarships as income, they will have to rethink all of this.

At that point, you're better off opening a new religion, something like, The Church of Flying Spaghetti NIL, in order to fork over the money to your athletes.

It won't go through the school anymore because the federal gov't will not treat universities with endowments above $400m as non-profits. They will talk all donations at just below the rate of capital gains tax (14%).

As for the other change, I have no idea how students will pay taxes on an annual $100k pay out for, say, Duke or Vanderbilt or Boston College football players. UConn's players will be on the hook for $50k!

This is beyond also they income they'll receive from NIL.

Crazy world.

 

[Patman]

If the new proposed rules go through taxing both donations to colleges and also taxing athletic scholarships as income, they will have to rethink all of this.

At that point, you're better off opening a new religion, something like, The Church of Flying Spaghetti NIL, in order to fork over the money to your athletes.

It won't go through the school anymore because the federal gov't will not treat universities with endowments above $400m as non-profits. They will talk all donations at just below the rate of capital gains tax (14%).

As for the other change, I have no idea how students will pay taxes on an annual $100k pay out for, say, Duke or Vanderbilt or Boston College football players. UConn's players will be on the hook for $50k!

This is beyond also they income they'll receive from NIL.

Crazy world.

players getting NIL are taxable income. Scholarships can be argued differently. When I got a 5K grant from UConn that was taxable money

 

[Patman]

I'm sorry, if the professors salaries get publish so should player salaries

 

[upstater]

players getting NIL are taxable income. Scholarships can be argued differently. When I got a 5K grant from UConn that was taxable money

Who knows what the next couple of years are going to bring? Right now everything is up in the air. They are kicking around some interesting ideas.

Like taxing all scholarships.

 

[Patman]

Who knows what the next couple of years are going to bring? Right now everything is up in the air. They are kicking around some interesting ideas.

Like taxing all scholarships.

well that's up to the Connecticut legislature, isn't it

 

[upstater]

well that's up to the Connecticut legislature, isn't it

No, it's up to the federal gov't who is considering that as part of the next tax package

 

[NE Football]

Why shut down the NIL fund when nothing is settled? What’s the rush? Even with revenue sharing, I have not read anything that the players will not get NIL money in addition. College sports seem to be a long way off from having an agreed to governing structure.

 

[UConnJim]

Why shut down the NIL fund when nothing is settled? What’s the rush? Even with revenue sharing, I have not read anything that the players will not get NIL money in addition. College sports seem to be a long way off from having an agreed to governing structure.

Because UConn is taking NIL in house just like many other colleges like Notre Dame which shut down it's collective on 12/31. What is now clear is that donations to collectives are not tax deductible and NIL donations going forward will not be tax deductible.

There are still many opportunities for NIL for athletes from many different avenues, but tax deductible NIL collectives outside of the official control of a university are over.

 

[Patman]

Because UConn is taking NIL in house just like many other colleges like Notre Dame which shut down it's collective on 12/31. What is now clear is that donations to collectives are not tax deductible and NIL donations going forward will not be tax deductible.

There are still many opportunities for NIL for athletes from many different avenues, but tax deductible NIL collectives outside of the official control of a university are over.

Again though. If the environment is unsettled why do it now and not wait it out and see what happens. It doesn't even have to be tax deductible. For instance monies given by the collective don't have to obey title ix. Those that are given by the school will

 

[JohnFSilver]

I'm sorry, if the professors salaries get publish so should player salaries

I don’t really get the salary hiding part of it. It’s state money, and should be subject to disclosure.

 

[JohnFSilver]

Because UConn is taking NIL in house just like many other colleges like Notre Dame which shut down it's collective on 12/31. What is now clear is that donations to collectives are not tax deductible and NIL donations going forward will not be tax deductible.

There are still many opportunities for NIL for athletes from many different avenues, but tax deductible NIL collectives outside of the official control of a university are over.

How about when the first athlete gets in trouble for tax evasion? I am betting it will happen at SMU.