The I.R.S. helps to reduce the impact of NIL

[Patrirish]

The I.R.S. has ruled that NIL collectives are NOT tax exempt entities.

‘This will help dampen their impact.

Now the NCAA just has to amend the Transfer Portal and eliminate the chaos they caused

 

[scubastevefl]

Hahaha, tax exempt my ass.

 

[Drinking The Green Koolaid]

I suspect the IRS ruling won't be the end of it. A collective somewhere will legally challenge the IRS's position in court, and then a court will have a final say on the issue.

That said, the IRS position seems sound. The IRS determined that NIL collectives, unlike traditional nonprofit organizations, do not serve a charitable purpose or provide a public benefit. Therefore, they do not qualify for tax-exempt status under the Internal Revenue Code.

Collectives may now be subject to reporting and compliance requirements that come with being taxable entities. That could deter the influence they wield with NIL money. Maybe the usual offenders will just go back to brown papers sacks filled with cash, and it will be business as usual again.

 

[tkirish]

You want to be paid ? Then pay taxes like everyone else. It’s that simple

 

[topdecktiger]

Now they need to do the same thing to athletic departments.

 

[Patrirish]

You want to be paid ? Then pay taxes like everyone else. It’s that simple

It’s the contributions that won’t be deductible by the donors.

Gifts are not taxable to the recipients

But that raises another question, will the IRS attempt to declare the gifts as income ?

 

[tbonesays]

I suspect the IRS ruling won't be the end of it. A collective somewhere will legally challenge the IRS's position in court, and then a court will have a final say on the issue.

That said, the IRS position seems sound. The IRS determined that NIL collectives, unlike traditional nonprofit organizations, do not serve a charitable purpose or provide a public benefit. Therefore, they do not qualify for tax-exempt status under the Internal Revenue Code.

Collectives may now be subject to reporting and compliance requirements that come with being taxable entities. That could deter the influence they wield with NIL money. Maybe the usual offenders will just go back to brown papers sacks filled with cash, and it will be business as usual again.

Now can they move onto the universities?

 

[TDIrish27]

No chance any of these guys get a chunk of their NIL " off the books " huh ?

 

[sjb75]

I suspect the IRS ruling won't be the end of it. A collective somewhere will legally challenge the IRS's position in court, and then a court will have a final say on the issue.

That said, the IRS position seems sound. The IRS determined that NIL collectives, unlike traditional nonprofit organizations, do not serve a charitable purpose or provide a public benefit. Therefore, they do not qualify for tax-exempt status under the Internal Revenue Code.

Collectives may now be subject to reporting and compliance requirements that come with being taxable entities. That could deter the influence they wield with NIL money. Maybe the usual offenders will just go back to brown papers sacks filled with cash, and it will be business as usual again.

Tennessee prefers McDonald's bags for cash to their players.

 

[burmafrd1943]

It’s the contributions that won’t be deductible by the donors.

Gifts are not taxable to the recipients

But that raises another question, will the IRS attempt to declare the gifts as income ?

I cannot see how it could be identified as anything other than earned income. They are being paid with the expectation that they will perform certain work.

 

[chaseball]

The I.R.S. has ruled that NIL collectives are NOT tax exempt entities.

‘This will help dampen their impact.

Now the NCAA just has to amend the Transfer Portal and eliminate the chaos they caused

the type of posts you read only on an ND fan forum lol

While we're at it, why don't we require a mandatory 5 year college stint before a player can become eligible for the NFL draft? And once we're done with that, we should push for the 1% of athletes that make it to the NFL to forfeit half of their salary to the college that helped produce them!

and then we wonder why ND can't recruit elite football players anymore .. lol

 

[sjb75]

Never wrestle with a POS Troll.

 

[Patrirish]

No chance any of these guys get a chunk of their NIL " off the books " huh ?

Very doubtful !
If discovered the player, team and sponsor would pay a steep penalty

 

[Patrirish]

I cannot see how it could be identified as anything other than earned income. They are being paid with the expectation that they will perform certain work.

I think you‘re confusing the player with the sponsor.

Money that the player receives would be “earned” income.

 

[Patrirish]

the type of posts you read only on an ND fan forum lol

While we're at it, why don't we require a mandatory 5 year college stint before a player can become eligible for the NFL draft? And once we're done with that, we should push for the 1% of athletes that make it to the NFL to forfeit half of their salary to the college that helped produce them!

and then we wonder why ND can't recruit elite football players anymore .. lol

I apologize if this thread and my posts are beyond your comprehension level and I’m also sorry if they’re causing you to be confused !

I have dinner on Tuesday nights with an eclectic group of 20 guys, graduates of USC, Boston College, Villanova, Georgetown, Ohio State, etc., etc.

All are universally opposed to NIL and especially when combined with the current transfer rules, hence the issue isn’t confined to ND.

As to elite football players attending ND, maybe a review of the NFL rosters will help correct your misconception !

 

[burmafrd1943]

I think you‘re confusing the player with the sponsor.

Money that the player receives would be “earned” income.

BUT the sponsor who is providing this money is also subject to the IRS regulations as an employer, right?

 

[burmafrd1943]

the type of posts you read only on an ND fan forum lol

While we're at it, why don't we require a mandatory 5 year college stint before a player can become eligible for the NFL draft? And once we're done with that, we should push for the 1% of athletes that make it to the NFL to forfeit half of their salary to the college that helped produce them!

and then we wonder why ND can't recruit elite football players anymore .. lol

your stupidity is truly awesome

 

[chaseball]

All are universally opposed to NIL and especially when combined with the current transfer rules, hence the issue isn’t confined to ND.

I don't get this line of thinking at all though.

ND makes hundreds of millions of dollars a year off their football program alone. They just hired a NBC exec to negotiate hundreds of millions of dollars in licensing/tv/apparel deals. The football program is a billion dollar enterprise now.

At what point do you become ok with the kind of progress in the sport that gives the players more power and a much deserved piece of that pie?

I don't think people understand how petty/greedy/hypocritical it looks to football players and their families when ND brass is beating this drum of regressing the policies in the sport back to where college officials have all the money and power and the players have none despite the players being the ones who are producing the labor that is generating the wealth.

 

[Patrirish]

BUT the sponsor who is providing this money is also subject to the IRS regulations as an employer, right?

The IRS ruled that NIL entities are not tax exempt entities, ergo payments to NIL entities are not a deductible expense to companies or individuals.

However, companies and individuals can still make payments to NIL entities, they just can’t get a tax deduction for those payments.

 

[Patrirish]

I don't get this line of thinking at all though.

ND makes hundreds of millions of dollars a year off their football program alone. They just hired a NBC exec to negotiate 9 figure apparel/tv/licensing deals. The football program is a billion dollar enterprise now.

At what point do you become ok with the kind of progress in the sport that gives the players more power and a much deserved piece of that pie?

You don’t know what you’re talking about !
ND does NOT make hundreds of millions of dollars off of their football program !

The football program is NOT a Billion dollar enterprise! !

Why don’t you make an attempt to get the facts before posting outrageously exaggerated numbers and claims !

 

[chaseball]

You don’t know what you’re talking about !
ND does NOT make hundreds of millions of dollars off of their football program !

The football program is NOT a Billion dollar enterprise! !

Why don’t you make an attempt to get the facts before posting outrageously exaggerated numbers and claims !

ND football is a top 5 revenue generator out of all football programs (consistently). It's usually Texas, Bama, Notre Dame among the top 3.

Last numbers i saw were $100-$150m/year in revenue from football. The fair market value for a business with healthy margins (where you actually have to pay your workforce) is 10 times annual revenue. That would make ND football a billion dollar entity in the hypothetical scenario that it were a business for sale.

Obviously these figures are heavily rounded/napkin math/etc. but why are you straw manning my point ?

ND makes a TON of money off the backs of their football players. They are beyond filthy. They are swimming in an endless pile of cash from football. At what point does it become ok to start sharing some of this money and power with the human beings who are responsible for generating all of this wealth?

It's silly as all hell to see a bunch of out of touch wealthy white dudes with million dollar salaries (from college football) trying to take away the very little power the players have been awarded over the last several years. And then you sit in these recruits' living rooms trying to make a case to mom and dad that you are all about their son's future. The hypocrisy is overwhelming.

 

[Patrirish]

ND football is a top 5 revenue generator out of all football programs (consistently). It's usually Texas, Bama, Notre Dame among the top 3.

Last numbers i saw were $100-$150m/year in revenue from football. The fair market value for a business with healthy margins (where you actually have to pay your workforce) is 10 times annual revenue. That would make ND football a billion dollar entity in the hypothetical scenario that it were a business for sale.

Obviously these figures are heavily rounded/napkin math/etc. but why are you straw manning my point ?

ND makes a TON of money off the backs of their football players. They are beyond filthy. They are swimming in an endless pile of cash from football. At what point does it become ok to start sharing some of this money and power with the human beings who are responsible for generating all of this wealth?

It's silly as all hell to see a bunch of out of touch wealthy white dudes with million dollar salaries (from college football) trying to take away the very little power the players have been awarded over the last several years. And then you sit in these recruits' living rooms trying to make a case to mom and dad that you are all about their son's future. The hypocrisy is overwhelming.

I’d like to see a breakdown of the revenue you’re claiming.

But there’s another critically important factor.

Did you ever hear of something called “expenses” ?

Your point is meaningless absent factoring in expenses that offset revenue.

Now tell us where does the revenue you claim go ?

Directly In the bank or does it fund other programs in and out of the Athletic Department ?

At the end of the fiscal year how much of the revenue is left ?