Clemson NIL collective paid $2.4 million in 2022, IRS filing reveals An interesting article to me..This includes a few other schools, besides Clemson.
I believe it is. This and the portal ruining the sport I once loved. Instead of recruiting for players, it’s come down to bidding. Not only that but if a player doesn’t like where they are, they can simply transfer, possibly get a better payday, and leave the fans loyal to their Alma mater angry at the system. Not to mention leave their team mates and opt out of bowl games. My wallet is closed.
The bidding started long before now and no one minded. The yearly transfer crap is the only new facet.
100% true. When it wasn't out in the open and it was mcdonalds bags of cash, no one said a word because you could always pretend it wasn't YOUR team doing it or, that rival is cheating so that explains their winning (whether true or not).
The money spent is way more than what they will report to the IRS in NIL...there will be creative accounting hiding the actual amount. I'm sure some NIL is coming out of recruiting expenses and other budgetary expenditures as there are too many programs willing to cheat any system in place to win.
I think the NIL is great… The portal needs limitations. I think right now, though, conflating the portal and NL as the same thing that is ruining college football is confusing and reductive. Less than one percent of these players are going to become professionals. They have a few years to capitalize on their stardom and their abilities… let them make some money. I do think that NIL needs a cap and that would solve a lot of problems. There needs to be some regulations and oversight. And the portal windows need to be moved and shortened, because it’s not sustainable. But I think seeing TCU in the playoffs last year, Michigan, and Washington, in the National championship this year - both teams were senior laden and not riddled with five stars… I think there was 6 stars between the two teams, whereas Alabama had 15 alone… I think we are seeing the advantages to NIL and the portal when it comes to parity and I think that’s great. And it’s only going to get better with a 12 team playoff. I think we are going to look back on this as a really uncomfortable, awkward, growing pain that will give birth to the next era of College Football, which will be pretty amazing. Anyone that lament the death of this sport doesn’t have vision. I heard the exact same thing back in the early 90s in reference to free agency, I’ve heard the same thing referenced with free agency, and the NBA… And free agency has been massive bones for both the NFL and the NBA
The problem is that you cannot cap NIL as it is not the schools directly doing it. i am glad that you see benefits.
Do the math. A lot of smaller deals with a few big ones. So the majority of those getting NIL is under 20,000.
2.4 Seems light. I thought payroll for current players would be about 6 million a year and about 2 million in additional inducements per recruiting class. The rumor that I heard (and I have absolutely no inside information. I likely heard this rumor on this site or on a youtube channel) that Etiene's NIL at Florida was north of $500,000 and he got more at Georgia.
IRS is starting to challenge the tax-exempt status of some of these collectives. An interesting development to watch ...
How do you "cap" and "regulate" personal services contracts? Like seriously, tell me how that works as the value is in the eye of the check writer. You don't get any of this without some kind of union and CBA. In other words, that's not happening. Also, Michigan is a one-off and TCU was lucky to play in the Big 12.
Probably, but the collectives themselves aren't MAKING money (unless it's interest while it's in the bank). It is donated money that has already been taxed just waiting to be transferred to a player. Once that player gets it though it's income for him and he should pay tax.
Agree with all the posts saying the portal is the problem. NIL needs to be regulated more so than it is now, but money has been used for a long time to get players on campus. The problem is they can now just transfer Willy-nilly. So instead of committing to a school for 3-4 years with NIL (or bag), these kids are now just chasing NIL money from school to school every years thanks to the stupid portal rules.
https://www.si.com/college/2023/06/10/irs-name-image-likeness-collectives-not-tax-exempt "Nonprofit collectives are likely to stop offering tax-deductible donations, but one college athletic director believes the IRS could do more. It could conceivably tax the previous donations made and potentially even charge the donors and the collective with penalties." ... "Offering tax deductions is a way to encourage more giving from boosters, who for years have donated their money to nonprofit foundations affiliated with their athletic department. Foundation donations are traditionally tax deductible."
You people keep saying this, but there is literally no legal framework to "regulate" NIL. It's worth is completely up to the person writing the check. You'd have to unionize the players, which would be next to impossible. Portal is the issue and even that can only be patched up. Any restrictions (like sitting out a year) will lose in court. Best you could do is push the declaration date to after the NCG. But there would still be rumors, guys sitting out (feeding the rumors), etc.
Why would they do this? It could only hurt fundraising. Get ahead of it before the IRS clamps down? I can certainly see the logic in separating money donated for the paying of football players from actual charities.
College football developed as around an amateur model. I get that players were paid, but the model was not that of a fully monetized professional sport. College football was and is very different than minor league baseball (or hockey). In a fully monetized professional environment, the players have to be able to move around because it is a free market.
