NIL Collective

[Ashockalypse]

Sorry, but from all of your posts, you aren't a true Shocker fan or at least you only have been one a short amount of time.

He’s not. Your first instinct is correct. He’s a longtime troll.

[Dan]

They may be not-for-profit entities but that doesn't mean they are qualified charitable organizations. I am quite sure they are not. The contribution to these collectives would not be deductible as a charitable contribution. You would only be able to deduct your contribution to the extent you could establish it was an ordinary and necessary expense of your business. Also, this does not make the payment to the players nontaxable. I believe the payments to the players would be taxable and subject to federal and state income taxes and self-employment taxes (social security & medicare) regardless of whether those funding the payments receive any tax deduction.

And I am certain we will see a lot of kids having major tax problems down the road. How many of these guys have the financial savvy to employ lawyers and accountants to ensure they are in compliance wit the law?

[1972Shocker]

And I am certain we will see a lot of kids having major tax problems down the road. How many of these guys have the financial savvy to employ lawyers and accountants to ensure they are in compliance wit the law?

Some no doubt will. Plus they will be attracting entourages willing to "help" them with their new found wealth.

[ShockBand]

So can someone explain to me what possible value can Nigel Pack bring to business that is worth $800,000 over two years.

BTW, since we no longer have amateurs at the collegiate level I hope the IRS is making sure the value of the tuition, room and board and other perks are reported to the IRS and the players on a W-2 form or a 1099 from. I presume it is up to the NIL collective to report the NIL payments to the players as income on either a 1099 or a W-2 form.

Some lessons in taxes are about to be learned.

[Atxshoxfan]

Lol thats funny. But I love (and played) soccer and I’m far away from what you defined above. Granted we do have some weird fairies that play the sport. I can’t lie on that.

I've known some pretty tough dudes who played soccer, but like you said, plenty of others. And one can only imagine what comes over from Europe to play.

[Rocky Mountain Shock]

So can someone explain to me what possible value can Nigel Pack bring to business that is worth $800,000 over two years.

BTW, since we no longer have amateurs at the collegiate level I hope the IRS is making sure the value of the tuition, room and board and other perks are reported to the IRS and the players on a W-2 form or a 1099 from. I presume it is up to the NIL collective to report the NIL payments to the players as income on either a 1099 or a W-2 form.

The portion of a scholarship attributable to tuition would not be taxable, but room and board would be.

As for NIL payments, there’s no way those are not non-employee compensation reportable on a 1099. I know the IRS has its hands full right now, but these NILs are big bucks and I’m sure they’re going to be all over these like a fat kid on a cupcake.

[1972Shocker]

The portion of a scholarship attributable to tuition would not be taxable.

Most likely that is the case. However, keep in mind that to be nontaxable the scholarship money does not represent compensation for teaching or other work. I think with an athletic "scholarship" you could make the case that you are providing something of value in exchange for services to be provided by the recipient.

Now most of the college football and basketball players could counter that that tuition has no real value to them.

[Rocky Mountain Shock]

Most likely that is the case. However, keep in mind that to be nontaxable the scholarship money does not represent compensation for teaching or other work. I think with an athletic "scholarship" you could make the case that you are providing something of value in exchange for services to be provided by the recipient.

Now most of the college football and basketball players could counter that that tuition has no real value to them.

Tuition is still a “qualified expense”, even for athletic scholarships. I’m not saying you don’t have a strong argument, or that this will always be the case. That’s just how it is now…until the IRS challenges this in the NIL era.

[Ted Lasso's Neighbor]

And I am certain we will see a lot of kids having major tax problems down the road. How many of these guys have the financial savvy to employ lawyers and accountants to ensure they are in compliance wit the law?

Fortunately WSU has a program called ALTITUDE in place if necessary :) - https://goshockers.com/news/2021/8/3...s-for-nil.aspx

"Wichita State University and the Athletic Department fully endorse and support student-athletes' ability to profit off their Name, Image and Likeness," said WSU Director of Athletics Darron Boatright. "We're here to support young men and women in life and we are partnering with Opendorse to assist and educate them on branding and marketing. This allows them to take advantage of a brand they've worked so hard their entire lives to build."

Available to all Wichita State student-athletes, ALTITUDE is a comprehensive student-athlete development program designed to prepare Shocker student-athletes to positively influence their brands and platforms in the Name, Image, and Likeness world.

The name ALTITUDE is a tribute to the city of Wichita's aero background and represents heights Wichita State student-athletes can take their brands.

Opendorse Ready is the elite NIL education solution in college athletics. The program provides student-athletes with industry-proven assessment, education, and performance tools to understand, build, and protect their personal brands as we enter a new era. Having facilitated endorsement opportunities with thousands of professional athletes since 2012, Opendorse has built Ready on a foundation of tangible insights and data from a decade of athlete marketing experience.

With Ready, Wichita State will provide student-athletes with custom brand value assessments, live consultation sessions with industry leaders, and on-demand access to the NIL Masterclass, an education series featuring experts on brand building, monetization, and financial literacy from leading brands including Instagram, Twitter, the Players' Tribune, and Overtime.

[Rocky Mountain Shock]

What about this idea?

WSU forms an NIL collective in the form of an S corp. Each “student” athlete is given a negotiated interest in the S corp. This interest is taxable income in the year it’s granted (the tax can be paid by the s corp on behalf of the “student” athtlete). Though future s corp income is taxable, distributions are not (they’re a return of capital). The s corp could pay each “student” athlete a salary, which is not subject to SE tax like an LLC would be. And not to go full Bernie Madoff here, but future distributions and income could be guaranteed by commitments from donors. Donors provide income to the S corp in the form of “advertising”, which would be a deductible business expense for a company (individual donations to college athletics organizations are not currently tax deductible anyway, so no change). The “student” athlete could sell their interest back to the S corp upon graduation, or decide to keep it and provide themselves passive income indefinitely.

WSU could gain a recruiting advantage by offering a partially tax free NIL structure, and an NIL that could perpetuate after graduation.

People smarter than me: you may now begin to poke holes in my devious scheme.

[WichitaHawk]

I've known some pretty tough dudes who played soccer, but like you said, plenty of others. And one can only imagine what comes over from Europe to play.

Mostly European players are pretty cool dudes. I was coached for a while by a player who played for Everton and scored the winning goal in the 95 FA cup final vs Manchester United, he was the coolest English man I’ve known. Most Euro players love to drink beer and shoot the $hit so they were cool in my book.

[WichitaHawk]

Fortunately WSU has a program called ALTITUDE in place if necessary :) - https://goshockers.com/news/2021/8/3...s-for-nil.aspx

So we can create this program but not a program to actually bring in the NIL money. Bit backwards if you ask me.

[Stickboy46]

What about this idea?

WSU forms an NIL collective in the form of an S corp. Each “student” athlete is given a negotiated interest in the S corp. This interest is taxable income in the year it’s granted (the tax can be paid by the s corp on behalf of the “student” athtlete). Though future s corp income is taxable, distributions are not (they’re a return of capital). The s corp could pay each “student” athlete a salary, which is not subject to SE tax like an LLC would be. And not to go full Bernie Madoff here, but future distributions and income could be guaranteed by commitments from donors. Donors provide income to the S corp in the form of “advertising”, which would be a deductible business expense for a company (individual donations to college athletics organizations are not currently tax deductible anyway, so no change). The “student” athlete could sell their interest back to the S corp upon graduation, or decide to keep it and provide themselves passive income indefinitely.

WSU could gain a recruiting advantage by offering a partially tax free NIL structure, and an NIL that could perpetuate after graduation.

People smarter than me: you may now begin to poke holes in my devious scheme.

Yea... But how many cars are they going to get?

[TrackSuitAndTie]

So can someone explain to me what possible value can Nigel Pack bring to business that is worth $800,000 over two years.

BTW, since we no longer have amateurs at the collegiate level I hope the IRS is making sure the value of the tuition, room and board and other perks are reported to the IRS and the players on a W-2 form or a 1099 from. I presume it is up to the NIL collective to report the NIL payments to the players as income on either a 1099 or a W-2 form.

This is where NIL is absolutely off the rails. They aren't paying Pack for his image and likeness, they are paying him to play at the U. That is supposed to be against the rules, but the NCAA is inept so nothing is done about it.

[Rocky Mountain Shock]

Yea... But how many cars are they going to get?

Your point is valid. I’m not thinking like an 18 year old.