💰 Name-Image-Likeness (NIL) Discussion

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Business owners get full tax credit for NIL payouts ?

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Sure, why wouldn’t they? It’s just a regular business expense. Marketing or advertising or whatever. It’s a deduction to the company and income to the recipient, so theoretically the IRS still gets tax revenue from one of the parties. It passes the matching principle.

Donations to charities, on the other hand, fail the matching principle. It’s a deduction to the donor but not income to the tax exempt recipient. The IRS loses tax revenue. That’s why there’s a lot more limitations on deductibility of charitable contributions.

Individuals, of course, can’t deduct NIL payments, so for the majority of us W2 wage earners, donating to VAF still gives a better tax answer.

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Thanks, that’s interesting

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44

A thing happened:

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There is an Athletic article about how Oscar Tshiebwe, who is Congolese, has figured out a path (along with his immigration lawyer, UK compliance folks, etc.) to earn NIL money.

The article doesn’t really get into the how or why (nor would I would be able to understand it, if they did), but it seems noteworthy. We currently have (and have had) a number of International guys, and it would be nice for them to have similar NIL opportunities as their U.S. citizen hoop peers.

I guess what I’m hinting at here is … ALERT @Merch … IT’S TIME TO START PRINTING THE STATTMAN MERCH!! (Okay, I’m kidding with that, but seriously … seems important)

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That’s incredible how he got 6 figure offers, great for him.

I don’t understand how they are circumventing the visa stuff…but makes sense kentucky would figure it out

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48

With all of these NIL companies, I’d be interested to see who has profited the most from NIL. Student-athletes or marketing executives / agencies / board members.

The cynic in me says it’s probably not the student-athletes.

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100% execs and marketing people.

If anything I’d guess the smaller/local deals are where athletes have seen the most actual impact (dollars in their account) vs these big corporate deals.

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Funny how that works @Hoohoohoo and @BDragon

seems crazy saturated quickly.

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51

This article says that the top 10% of NIL earners made 93% of the money and that the average athlete made $400 while the median was $35. You can see the skew.

  • 46% of all NIL compensation came from social media promotions
  • 29% from licensing NIL rights
  • 10% from signing autographs
  • 6% from making appearances
  • 6% from creating content
  • 1% from hosting camps
  • 1% from selling products to consumer

Edit: This was August, so I’m sure it’s evolved some, but I would guess it’s still the small few that really profit.

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Interesting breakdown. I agree, I’d be shocked if the numbers have changed much since Aug. Also not too surprising where/how the money is being dolled out.

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From the Cavs Future website.

NIL Is Not…

  • Agreements provided without quid pro quo (payments for work not performed)
  • Pay-for-play (compensation contingent on athletics participation or performance)
  • Recruiting inducement (compensation contingent on enrollment or continued enrollment at an institution)

:rofl:

Well maybe not at UVA anyway

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Now thats some good (bull) shit

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Honestly if that’s on the site it actually makes me sad. Sad that either someone believes that is true and only looks through the world with rose color glasses. Or they know the truth but refuse to admit it. Rather they just omit the statement all together.

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I think that’s part of the official schtick, isn’t it? But it’s toothless until the NCAA actually enforces it. And short of someone taking out an ad in the NY Times announcing their intention to give a recruiting inducement, how are they ever going to have the evidence?

I’m a bit odd on this subject. I’m in the 1% of college fandom who’s in favor athletes getting paid, but kind of against NIL. I guess it’s better than nothing, but the schools should just pay.

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So we did a decent level of work to put something together for UVA basketball. The plan was to have a collective… Sign the athlete and give them 100% of proceeds through LRA.
However, Hook Sports Media has an exclusive with the majority of players and they take 20%. Now VAF Highly Recommends Cavaliers future…So we are back to square one. We were on the cusp of having a decent chunk of change that would’ve gone directly to players…but oh well. We’ll continue to grind.

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Now that’s frustrating because from what I read in your words @Merch is the players are getting screwed while the powers that be work things out. Meanwhile an org that means well and intends well can’t get into the game. Funny how no matter the situation the story stays the same.

I’m in that 1% with you @haney I don’t like NIL because it creates tons of murky waters and it essentially is turning a blind eye to a problem rather than addressing it. We all know the NCAA won’t and can’t go after anything like that. I do believe the players should be paid and compensated so I tolerate and even encourage NIL as it’s the best we have right now.

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The dark murky waters of the NIL landscape will change significantly in the next 5-8 years. Like a young and amorphous internet from mid to late 90’s, the current rules and regulations will have to change because of massive and egregious infraction. Universities, agents, middle-men, and a bouillabaisse of miscreants and ne’er-do-wells will offer up a full buffet of NCAA violations, suspensions, public shaming, and then ultimately, "best practices’.

Unfortunately, the lack of enforcement coupled with the fervent support of collegiate athletics, will allow for the most ethically malleable universities/boosters to gain traction. I have no doubt that UVA will do things the “right way”, and the right way will change over time. But here are my questions:

  1. If I want to sponsor a player, and am committed to donation $10K to that player in exchange for permissible services/appearances/etc, and I go through the UVA “sanctioned” route/methods, how much of that $10K goes to the athlete?

  2. What are permissible services? Is it a monthly facetime call with my team at work an infraction? Personally signed merchandise? What is allowed and what isn’t? Can I pay the athlete $10K to keep alligators out of Scott stadium (shout out Brian Bosworth at Oklahoma) Is that ok?

  3. Who is responsible for compliance with NIL? What I am reading is that it is the individual schools, which is like putting the putting the coyotes in charge of the chicken coop… We would do a good job at that - but will others? I have my doubts.

My fear is that everyone will try to make money off of the services provided, and that will take money away from the athletes, which is the entire purpose of the NIL. I also think that the NIL will change the geographies of the conferences over time. Maybe a stretch but it wouldn’t surprise me.

The whole point is to put money in the hands of our NCAA student athletes in exchange for reasonable services. It was not created to initiate an extra revenue stream for colleges/universities. Why not create an athlete owned/supervised platform whose only goal is to get 100% of the pledged monies into the hands of the student athletes. No middle men. No BS. For the players. By the (ex) players. #NILRA

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I hashtag StandWithHav

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