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re: NIL restrictions

Posted on 1/3/24 at 7:49 am to
Posted by GentleJackJones
Member since Mar 2019
4192 posts
Posted on 1/3/24 at 7:49 am to
What’s the tax implications on NIL? Is it treated at regular income?
This post was edited on 1/3/24 at 7:51 am
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423521 posts
Posted on 1/3/24 at 8:11 am to
Should be.
Posted by GentleJackJones
Member since Mar 2019
4192 posts
Posted on 1/3/24 at 8:18 am to
They aren’t W-2 employees, so I’d imagine they’d pay quarterly, estimated taxes? I assumed this is where many could run into some trouble, but I imagine the schools have tax professionals guiding the players through the process.
Posted by BOSCEAUX
Where the Down Boys go.
Member since Mar 2008
47766 posts
Posted on 1/3/24 at 8:19 am to
quote:

They 100% cannot. The NFL can't regulate player endorsement deals, either.


I agree but like someone said earlier what exactly are the vast majority of these kids endorsing? This money is coming from boosters of the school and has nothing to do with NIL. Isn’t that supposed to be still against the rules?
Posted by Gountiss
Boone, NC
Member since Aug 2012
526 posts
Posted on 1/3/24 at 8:22 am to
quote:

The grad transfer rule should be eliminated, too.


I don’t really understand the push back on this. If you’re a football player at Stanford that redshirted and want to play your redshirt senior year, but can’t get into Grad school at Stanford, are you just supposed to kick rocks?
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423521 posts
Posted on 1/3/24 at 8:26 am to
quote:

This money is coming from boosters of the school and has nothing to do with NIL. Isn’t that supposed to be still against the rules?

There actually are some rules on NIL and the collectives were created relatively quickly to fall in line with the regs.

The boosters create a company (the collective) and fund that company. The company is a separate entity from the university, boosters, and players. It's going to get really difficult for the NCAA to regulate these companies for things like viability (or whatever standards you want to use). Also, often the companies are created as charitable (even though I think the IRS has said the donations aren't tax deductible). If you have a charity who wants to sponsor players due to the players' NIL, how does the NCAA regulate that?

This isn't that easy to do.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423521 posts
Posted on 1/3/24 at 8:27 am to
quote:

I don’t really understand the push back on this. If you’re a football player at Stanford that redshirted and want to play your redshirt senior year, but can’t get into Grad school at Stanford, are you just supposed to kick rocks?

You can transfer to 1AA if it's that big of a deal for you.
Posted by ragincajun03
Member since Nov 2007
21416 posts
Posted on 1/3/24 at 8:36 am to
quote:

Go back to the old transfer rules where you have to sit out a year unless you are a grad transfer or you go down a level would help a lot. The free agency aspect of the portal pisses me off more than blatantly paying a kid.



quote:

If the athletes come back and say you are restricting my ability to earn then say ok you are now free to go pro straight out of high school


Agree with both of these.
Posted by wildtigercat93
Member since Jul 2011
112370 posts
Posted on 1/3/24 at 8:36 am to
Funny watching everyone solve for an NIL problem when the actual issue is the portal

Any NIL rule put in place will be broken the moment it’s announced just like it was before NIL existed. The chaos is from it being the only major sport that has no reliable structure for player retention anymore

Find a balance in the portal that works for both sides and there is no NIL issue, because it isn’t a free for all on every player every offseason. But that likely takes collective bargaining at some level so people don’t like that
Posted by 31TIGERS
Mike’s habitat
Member since Dec 2004
7219 posts
Posted on 1/3/24 at 8:42 am to
Also add in that a portion or all of your “free athletic scholarship” is to be paid with your nil money depending on how much you’re making. Your nil earnings must be reported and filed properly and in a timely manner in order to be eligible.
You’re getting paid now, boys, so welcome to the working world and start pulling your own weight.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423521 posts
Posted on 1/3/24 at 8:45 am to
Yeah NIL is just replacing the old under the table payments with over the table payments. I assume the budgets are roughly the same. The TRANSFER rules are the ones causing chaos. I don't even think the portal is the issue and I think it's a good idea to organize transfers. The one time free transfer and then NCAA handing out waivers for 2nd/3rd transfers is why there is chaos.

Eliminate all free transfers (including the grad transfer rule) and the chaos dies down a great deal. NIL will work itself out over time.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423521 posts
Posted on 1/3/24 at 8:47 am to
quote:

Also add in that a portion or all of your “free athletic scholarship” is to be paid with your nil money

THAT would be illegal.

quote:

Your nil earnings must be reported and filed properly and in a timely manner in order to be eligible.

You mean with taxes or the NCAA?

quote:

You’re getting paid now, boys, so welcome to the working world and start pulling your own weight.

And there is the punitive nature of the ignorant reponse.

I don't know why y'all take this so personal, like they're taking money from you personally.
Posted by WestCoastAg
Member since Oct 2012
145256 posts
Posted on 1/3/24 at 8:49 am to
quote:

am for Teacher & student roles being maintained here, meaning one is a professional (the coach) who is being paid to teach the student (the player
dont see how that changws anything I said
Posted by InkStainedWretch
Member since Dec 2018
1827 posts
Posted on 1/3/24 at 9:01 am to
You responded to the OP better than I could.
Posted by InkStainedWretch
Member since Dec 2018
1827 posts
Posted on 1/3/24 at 9:02 am to
I assume that by using "we" you are at least subliminally coming right out and saying that fans should have a voice and a say-so in this stuff?
Posted by GusAU
Member since Mar 2014
3666 posts
Posted on 1/3/24 at 9:38 am to
quote:

Sure, but they are collectively bargained with a union representing the players. You want to open that can of worms in college, too?
Of course that is not a desired outcome, but do you really think college sports can survive under the current system we have today?

There may not be another choice.

Sometimes you have to pick the lesser of two evils.
Posted by wildtigercat93
Member since Jul 2011
112370 posts
Posted on 1/3/24 at 9:52 am to
quote:

I don't even think the portal is the issue and I think it's a good idea to organize transfers. The one time free transfer and then NCAA handing out waivers for 2nd/3rd transfers is why there is chaos.


Yeah that’s what I mean, I don’t think there should be no portal, they just should come up with a balanced set of criteria for both sides that allows the players a reasonable amount of agency in their careers without completely disrupting the sports structure year to year with the constant movement

1 time transfer, with an additional transfer through graduating. Released from that obligation if their coach is fired/replaced.

Another option that would never happen would be to allow more free transfers if you go from the power 2 conferences to the G5 conferences. Could help balance the talent across the lower levels in the new era of CFB which is actively trying to eliminate them from the equation. Going from Ohio state to Michigan costs you a season of eligibility, but if that 5 star safety wants to go to Marshall, go for it. Again just spitballing an idea that’ll never happen

The NCAA is just in a ponzi holding pattern now trying to avoid and delay legal battles they know they won’t win. That’s been Emmerts game plan the last couple decades, “the plane is going down, might as well cash out as much as possible while you can”
Posted by InkStainedWretch
Member since Dec 2018
1827 posts
Posted on 1/3/24 at 10:02 am to
College fans and college football fans in particular have thought for generations that they actually had a personal ownership stake in this stuff. They’re being dragged kicking and screaming into the reality that they don’t and in fact never really have.
Posted by LaLadyinTx
Cypress, TX
Member since Nov 2018
6080 posts
Posted on 1/3/24 at 10:39 am to
quote:

NCAA needs to revisit it's mission statement and get back to it quickly...

The NCAA has been spanked by a Federal Court every time they try and restrict NIL. Not sure what you really think they can do at this point


This. The NCAA's chance at doing anything ended after the court decision. If the NCAA had done things about stipends or payments 10 years ago, it probably wouldn't have gotten where we are now. Football will not look like the past ever again.
Posted by LaLadyinTx
Cypress, TX
Member since Nov 2018
6080 posts
Posted on 1/3/24 at 10:56 am to
quote:

Then why are professional sports leagues able to have restricted free agency and salary caps?

Wouldn’t those things be considered potential restraint of trade?


Because those things are agreed to by the players unions and set out in their collective bargaining agreements.

In reading this thread I would swear that no one has paid any attention to how this stuff really works.

The idea that it's all about an education went out the window long ago when schools began receiving giant TV deals for football.
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