SO WHAT ENDS NIL

What should we expect from hundreds of lawyers and politicians?

 

Why would it die? At the end of the day 200 dollars in your pocket is better than zero dollars.

 

Because the actual income won’t justify the costs and the risks, plus the things that happen with the assumption of wealth. Poor families are going to lose the ability to get assistance.

and there will be horror stories about guys going to jail. People losing their homes. Investments gone bad. Loans against assumptions.

And then boosters will stop giving because they’ll get into trouble, too. You think these guys running collectives are experienced enough to know all the implications of endorsements deals? Or are they just handing out cash?

 

This is like saying "get the money out of elections and get back to voting for real candidates." Easier said than done, when someone wants to have an advantage. But like voting, it is up to us to stop spending money. If we stop listening to the advertising and the "David's of all types" win instead, the money WILL go away.

So, are we going to stop spending money towards major college sports en mass? Like I said, easier said than done.

 

Well in the state of Florida the athlete is required to be represented by a registered agent or lawyer, so I would think they would do due diligence to protect their own interests as well as their clients.

As for horror stories, we hear about deals gone bad with professionals so it wont be any different.

Why would poor families lose any ability for assistance? If the player is an adult(over 18) any income he brings in will not affect his family situation on paper.

 

Yep. A team like Montana State is going to go down hard for tax evasion once the IRS gets sick enough of what goes down in Tuscaloosa or College Station.

 

Yep. That was basically my point.

System is here to stay, though will stabilize into a more predictable market over the next few years.

 

Recruiting booster: Joe, we're going to pay you $300,000 in NIL money if you transfer for your last year.

Joe: Awesome!

Agent: I put together this deal for you, Joe, so, like we agreed, I'm gonna need 10 percent.

Joe: Sure.

IRS agent in frumpy overcoat: Hey Joe. We'd like our self employment taxes, please. That'll be 66K. Thanks.

Joe, shakes his head, starts to walk away

Another IRS agent, also in frumpy overcoat: Wait, wait wait. Since you're single, filing separately, your tax rate is 35 percent of income. So we're gonna need another 95K.

Joe: So I'm leaving the system I know, the coaches I trust and losing the goodwill of the fans -- and the networking possibilities of that -- for a third of what I thought I'd be getting?

IRS guy, sort of cheery now because he has his money: Only if you're going to state like Florida with no income tax. If you go to a state with an income tax, they'll be a little more taken. But don't worry about that too much. And the cost of moving all your stuff, which won't be too much, I reckon. And maybe picking up some tabs along the way. Anyway, Go Shockers!

In think that once everything plays out with this stuff, it's going to be a lot less appealing to kids to transfer. Maybe not, but reality is going to be different than they imagine.

 

I don't disagree but the right to make that choice themselves shouldn't be taken away.

 

Not suggesting it should, just that once the mechanics and reality of it settle in the whole process will be a lot less appealing for the vast majority of players. And payers.

If it's a direct payment to a player from a business, they'll have to show real use or it will be flagged not as a business expense and therefore not deductible as a business expense. And if the only place collectives are giving is to athletes for their own benefit, they aren't going to be able to keep tax exempt status for long. So then all that money becomes an out-of-pocket, 1:1 expense for donors, and I don't know how long that lasts, either.

 

Wait a minute...they aren't employees right? That 1099 they get will require them to pay Self employment tax. Also are the colleges and universities gonna hit them with a 1099 for the value of using their trademarks and symbols? I would think they would be required to or in violation of IRS rules otherwise. Maybe each of these player will set themselves up as a single member LLC recognized as an S-Corp for tax purposes!

 

I do agree reality will set in for those shelling out the money when the ROI(NC) is not realized.

Thats why none of this freaks me out.

 

I think that was part of the self-employment tax. But I'm not an accountant, i just pay one and I've been a freelancer so I know that tax stings.

 

Self Employment tax is Social Security. FICA + Med FICA is 7.65% time 2, but an employer pays half. If you are self-employed you pay the whole enchilada although there is at least a deduction for the part of it.

 

Left over money!! A lot of the NFL guys supposedly with college educations can't manage that.

 

Form an LLC, pay themselves a weekly amount, buy their car thru the corporation, pay their car insurance thru the corp., have the corporation pay for the insurance against possible loss of income due to injury, invest some of their weekly pay in an IRA, have the corporation contribute the maximum it's allowed. They could do just like the very rich do and don't own anything, so they don't pay taxes on anything but the amount they get paid weekly. I'm not an accountant, but I think that's the gist of how an LLC would save them substantial amounts of money. If there are accountants out there reading this and I'm incorrect in my assumptions, please clarify or correct.

 

The Bamas, Georgias, Ohio States of the world will always have wealthy donors forking over cash without an ROI. It buys them access and a membership to the “good ol boy” club.