Question on NIL Money and Tuition/College Expenses

Of course he did, because it was a convenient way to cut under-performing players. Funny how a few of those guys suddenly became healthy enough to play for another team. Saban cuts scholarship players all the time. Of course most are aware that just because they can't play at Alabama doesn't mean they aren't good enough to play somewhere else and transfer. The portal makes it a lot easier for Saban to send them packing than it used to.

The NIL only deal that you got that was better than the other guys NIL + Scholarship deal, of course!

 

This in fact is the main idea, only we have to hope that those in charge don't do it just for money or popularity.

 

Perfect analogy

 

I hadn't thought of that, yes

 

The NCAA plans to finally enforce NIL rules, possibly endangering Florida over Rashada mess | GatorCountry.com

 

Thanks for the link.
The NIL rules that the NCAA and several state governments have set up are actually a mine field for both the schools and the student athletes to wade through.

I agree that this Rashada Miami and UF mess could come back to haunt UF.
To me it appears that no matter how clean the athletic departments play in the NIL arena, the actions of a rouge Booster and NIL agency can bring a lot of misery to an athletic department.

Per the above linked article, the only hope for the athletic departments is how the NCAA defines and illegal NIL activity between all the figures and how much cash the NCAA has in their legal department.

 

As a CPA who prepares taxes I find the tax part fascinating. I admit to not knowing the inner working on how these deals are structured buy Uncle Same will be lurking.
Presumably the NIL recipients would be getting 1099-NEC's so not only will they be paying income taxes, they will be paying both sides of the SE tax as well. Now they will have to deal with Estimated Payments, plus their scholarships them selves may become taxable (at least partially). Let's just say that most 18 year olds are not very good at money management and there could be some surprises come April 15th. Any income based scholarships (i.e. Pell Grants) will no longer be available as their income is now too high.

However, owing taxes does have a positive to it. It means you earned a good amount of cash. Whether they already spent it all is the question.