- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
0
Posted on 4/19/24 at 4:03 pm to Scoob
quote:
do we, really?
If you find a transfer you like and he wants to come here, why can't an NIL collective just pick up his tuition and room and board? He still gets a free ride, and nobody goes over the scholarship limit. It's the same money, just a different term for it.
In addition to being against the rules, it would be screwing the player over from a tax perspective. 100% of tuition is not tax-deductible and only qualifies for a limited tax credit annually for 4 years, which would be far exceeded by income taxes due on the NIL compensation.
The cost of attendance to the player involved in your scenario:
Tuition
Use of training facilities and staff.
Room
Meals
Laundry Service
Medical Insurance
etc
etc etc
etc etc etc
would require a rather hefty NIL deal (which is earned income subject to income taxation, both state and federal) to cover said expenses and taxes; all the while, his teammates will have NIL spending money and this poor schlub would not. Don't think many, if any, would jump on that deal, assuming of course that same was to be permitted under NCAA By-Law.
Let's see: NIL deal with no scholarship where I pay taxes on 100% of income and then pay for all associated costs to attend and play or scholarship + NIL (free education, food, housing, books, fees, etc plusspending money). Now that's a hard decision to make.
Just love how the "work-arounds" always fail to take into account the complete picture.
Posted on 4/19/24 at 4:38 pm to Curtis Lowe
quote:Just for reference, you do realize every BYU walk on gets this package, right?
n addition to being against the rules, it would be screwing the player over from a tax perspective. 100% of tuition is not tax-deductible and only qualifies for a limited tax credit annually for 4 years, which would be far exceeded by income taxes due on the NIL compensation.
The cost of attendance to the player involved in your scenario:
Tuition
Use of training facilities and staff.
Room
Meals
Laundry Service
Medical Insurance
etc
etc etc
etc etc etc
would require a rather hefty NIL deal (which is earned income subject to income taxation, both state and federal) to cover said expenses and taxes; all the while, his teammates will have NIL spending money and this poor schlub would not. Don't think many, if any, would jump on that deal, assuming of course that same was to be permitted under NCAA By-Law.
Let's see: NIL deal with no scholarship where I pay taxes on 100% of income and then pay for all associated costs to attend and play or scholarship + NIL (free education, food, housing, books, fees, etc plusspending money). Now that's a hard decision to make.
Just love how the "work-arounds" always fail to take into account the complete picture.
LINK from 2021
LINK 2023
And just to clarify it bit-
a free ride to a university (athletic scholarship) is about $30k a semester.
It's likely a coveted QB or other 5 star prospect will get well over 6 figures.
What's 30k when you're getting $500,000, or more? As for tax stuff, pretty sure if you're going to fork out that money, you can also hook a kid up with where to go for his taxes.
This post was edited on 4/19/24 at 4:45 pm
Posted on 4/19/24 at 5:11 pm to Scoob
Ole Miss’ kicker last year was ‘full ride’ NIL…they equated the two…scholarship and ‘full ride’ NIL to us…so that’s when my son decided to commit elsewhere.
Posted on 4/19/24 at 5:15 pm to Underteaux
quote:
People complaining about the transfers so far clearly don’t want to compete for a championship
They're just reacting to what they initially think is bad news for the program. They haven't actually sat back & looked at the big picture on why this is necessary to build the best team possible.
Stuff like this is going to start becoming the norm since the roster is finally full plus some...unlike the previous 2 off-seasons.
This post was edited on 4/19/24 at 6:44 pm
Posted on 4/19/24 at 5:24 pm to Scoob
quote:
And just to clarify it bit-
a free ride to a university (athletic scholarship) is about $30k a semester.
Much closer to $55k to $60k a semester. The medical insurance alone, no co-pays, full payment plan (no out of pocket expenses) that the scholarship athletes enjoy, is a cost prohibitive item to most students. That would come out of the walk-ons pocket. Ouch.
Posted on 4/19/24 at 7:13 pm to Curtis Lowe
quote:And again, if you're offering the guy 10x that to come to your school, they can roll that into the package.quote:
And just to clarify it bit-
a free ride to a university (athletic scholarship) is about $30k a semester.
Much closer to $55k to $60k a semester. The medical insurance alone, no co-pays, full payment plan (no out of pocket expenses) that the scholarship athletes enjoy, is a cost prohibitive item to most students. That would come out of the walk-ons pocket. Ouch.
It's not like you're gonna say "come to LSU and we'll give you half a mil in spending cash, a new car of your choice, and a good condo in an upscale complex", and if he wants the best health insurance you say "nope, too rich for my blood".
Posted on 4/19/24 at 7:48 pm to Scoob
quote:
Just for reference, you do realize every BYU walk on gets this package, right?
That’s great but those kids aren’t being convinced to go to BYU with that. They are doing as a good deed.
quote:
And just to clarify it bit- a free ride to a university (athletic scholarship) is about $30k a semester.
Well that’s not true at all lol.
quote:
It's likely a coveted QB or other 5 star prospect will get well over 6 figures. What's 30k when you're getting $500,000, or more? As for tax stuff, pretty sure if you're going to fork out that money, you can also hook a kid up with where to go for his taxes.
The problem isn’t finding a CPA for the kid, it’s that half of that money is going towards taxes. So your $30k scholarship is actually going to cost $60k.
Posted on 4/19/24 at 7:51 pm to Scoob
quote:
And again, if you're offering the guy 10x that to come to your school, they can roll that into the package. It's not like you're gonna say "come to LSU and we'll give you half a mil in spending cash, a new car of your choice, and a good condo in an upscale complex", and if he wants the best health insurance you say "nope, too rich for my blood".
Because it still a massive waste of money. Why spend an extra hundred thousand dollars when you can just process a kid that is never going to play and use his scholarship?
Posted on 4/19/24 at 8:16 pm to Scoob
quote:
And again, if you're offering the guy 10x that to come to your school, they can roll that into the package.
It's not like you're gonna say "come to LSU and we'll give you half a mil in spending cash, a new car of your choice, and a good condo in an upscale complex", and if he wants the best health insurance you say "nope, too rich for my blood".
Obviously you do not understand common sense or taxes or elite athletes. All items you mentioned in your NIL package are taxable income to the player who you are also asking to foot the bill for his education and related costs. He would not have half a million in spending cash because he would be paying taxes on:
$500,000 of NIL Income
$65,000 on a Dodge Challenger
$30,000 on Condo rent
$50,0000 for Insurance
$651,000 Total Taxable Income
$230,088 in Federal Income and Self-Employment Taxes
roughly $30,000 in Louisiana Taxes
500,000 - 260,088 (taxes) = 239,912 - 60,000 (school costs) = $179,912
spending cash.
School B offers
$500,000 NIL package and scholarship (which covers educational, insurance, living and meal costs among others)
$171,839 in Federal and Self-Employment Taxes
$22,500 roughly in State Taxes
500,000 - 194,339 = $305,661 in spending cash
No top tier athlete is going to accept option A (your hypothetical) over option B. Lower tier prospects/specialists would get full NIL offers (like Ole Miss offered Gaston's son) and no school in its right mind is offering your convoluted hypothetical to same.
Therefore, your "idea" screws the athlete from purely a tax standpoint.
***Note numbers were run on LaCerte Tax Software for Federal and estimated at 4.5% on Louisiana income taxes.
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News