NIL - Texas style

GBP4EVER said:
Yep all kids now are now paid pros from the kid at the bottom to the kid at the top. You don't give even the lowest kid on the totum pole something they will enter transfer portal and go to school that will.
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Ok got it
 
As to the BYU deal, I would live love to see the look on the kids faces when they are taxed on the monetary value of the scholarship.

According to the story,
Walk-on players will provide additional "social media and experience promotions" for Built, according to a statement.

So they will are receiving the money to cover the scholarship in exchange for promotion and social media. Translation: in exchange for goods and services. So Mr Walk will get a 1099 for about $20,000 per year. Note that the statement was specific to Walk On’s and not other players currently on scholarship.
 
Federal taxes allow for deductions for education. That includes damned near every expense related to it, as long as you can justify the cost is part of the education. Then you can add on the personal deduction each person has, and your statement about taxes doesn't mean squat. I did a run out on $50k a year in "scholarship money," and if it's applied properly, there wouldn't be one damned nickel of taxes for a kid here in Texas, either Federal, or State. It's all in how the money is given, and how good the accountant is, who takes care of the paper work for you. Rest assured, these kids aren't going to do the paper work themselves, are they?

Now, if a kid is getting $500k a year, and the total cost of his education is $50k, he's going to play some taxes. No doubt about it. They'll make sure it's all on the up and up. Rest assured, the money coming to them will be channeled through accountants who take care of business before they even see a nickel. These donors aren't stupid enough to cross the line into organized crime. Anyhow, I'd hope most of them aren't that stupid.
 
TW said:
Federal taxes allow for deductions for education. That includes damned near every expense related to it, as long as you can justify the cost is part of the education. Then you can add on the personal deduction each person has, and your statement about taxes doesn't mean squat. I did a run out on $50k a year in "scholarship money," and if it's applied properly, there wouldn't be one damned nickel of taxes for a kid here in Texas, either Federal, or State. It's all in how the money is given, and how good the accountant is, who takes care of the paper work for you. Rest assured, these kids aren't going to do the paper work themselves, are they?

Now, if a kid is getting $500k a year, and the total cost of his education is $50k, he's going to play some taxes. No doubt about it. They'll make sure it's all on the up and up. Rest assured, the money coming to them will be channeled through accountants who take care of business before they even see a nickel. These donors aren't stupid enough to cross the line into organized crime. Anyhow, I'd hope most of them aren't that stupid.
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Deductions only become applicable it exceeds the standard deduction. This kid probably has net income less than $50k even with the cost of a scholarship. And the money is technically not for education, it’s services rendered. They are 1099 employees. So yeah my comment means something other than squat but thanks for letting me know.

And this was not some rouge company funneling the money, they are not some booster or doner. For them it’s a marketing line item expense
 
There is nothing to stop a 5 star recurit from being told hey this is John Smith he owns 10 car dealerships. He wants to give you a $1 million dollar NIL deal to be a spokesman for his dealership. All you have to do in reality is show up for a couple meet and greats and that's it nothing else to get this money now you want to commit to us?
 
FlaPack said:
Deductions only become applicable it exceeds the standard deduction. This kid probably has net income less than $50k even with the cost of a scholarship. And the money is technically not for education, it’s services rendered. They are 1099 employees. So yeah my comment means something other than squat but thanks for letting me know.

And this was not some rouge company funneling the money, they are not some booster or doner. For them it’s a marketing line item expense
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Of course they'll pay taxes. There are limitations as to what is and isn't deductible. Even now, students on athletic and academic scholarships pay taxes on the amount received above the limits prescribed under Federal Tax laws.

As an example, if you are getting a funded $20k scholarship for whatever reason, you can take the standard educational deductions but need to pay for the money left over that even pays for your rent, if it's applicable. There's no free lunch.

These NIL deals are going to end up being identified as scholarships no less than one from 3M Corporation would be, for a bright student. The difference is, academic ability versus athletic ability.

For a walk-on, to an athletic program, this is a huge deal, and you're trying to make it sound like it's peanuts. Nothing could be further from the truth, and it's going to tip the balance of power to teams who can afford to have a couple of dozen kids hanging around, learning the game, and maybe ending up like another Jim Leonhard.

People should have seen this all coming a long time ago. When coaches can get paid millions of dollars on the side by private enterprise, and they're hired and fired based on how much the boosters are willing to pony up to get it done, why would anyone be surprised?
 
TW said:
Of course they'll pay taxes. There are limitations as to what is and isn't deductible. Even now, students on athletic and academic scholarships pay taxes on the amount received above the limits prescribed under Federal Tax laws.

As an example, if you are getting a funded $20k scholarship for whatever reason, you can take the standard educational deductions but need to pay for the money left over that even pays for your rent, if it's applicable. There's no free lunch.

These NIL deals are going to end up being identified as scholarships no less than one from 3M Corporation would be, for a bright student. The difference is, academic ability versus athletic ability.

For a walk-on, to an athletic program, this is a huge deal, and you're trying to make it sound like it's peanuts. Nothing could be further from the truth, and it's going to tip the balance of power to teams who can afford to have a couple of dozen kids hanging around, learning the game, and maybe ending up like another Jim Leonhard.

People should have seen this all coming a long time ago. When coaches can get paid millions of dollars on the side by private enterprise, and they're hired and fired based on how much the boosters are willing to pony up to get it done, why would anyone be surprised?
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I respectfully disagree. IBM does not provide an academic scholarship in return for services rendered. Built Brands clearly has. This is not about academic or athletic ability. It’s using a player for promotional purposes which is clearly outlined There is a clear distinction there.
 
FlaPack said:
I respectfully disagree. IBM does not provide an academic scholarship in return for services rendered. Built Brands clearly has. This is not about academic or athletic ability. It’s using a player for promotional purposes which is clearly outlined There is a clear distinction there.
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You're not seeing it. If a person gets a $20k scholarship to apply it to their schooling, it's up to them to apply it where they want, and if there's money left over, do with it as they want. Only a portion of that money is deductible, and that's what's directly for specifics related to education. Anything above that figure is actually taxable. It would fall into the category of income, and applicable to taxes accordingly. Here's the Turbo Tax info regarding it. Taxable Money

Private companies can write off scholarship money. To do it, they basically create a Scholarship Foundation, and fund it. The foundation would determine who gets the scholarships, and reasoning. Once again, the rules of scholarship taxation apply.

Let's assume you want to use an end run around the issue of deductible donor money to the foundation. The foundation simply states they are going to issue scholarships at a specific school for young athletes who are looking to potentially become professional athletes, and or go into coaching. You don't like that rule? Then you should also object to someone who tells another foundation that they want scholarship assistance to become a doctor. It's essentially the same thing. An occupational level that is achieved from education, and also practicing the profession at various levels, and preparing to be able to coach, from experience.

No matter where the scholarship comes from, there are tax implications. Rest assured, the funneling of money will be done above board. They will not kill the goose that lays the golden eggs.

Now, for the athlete getting huge amounts of extra cash through NIL, they can expect to pay taxes on it just like any other stiff working for a buck, and why shouldn't they? If you give $50k to the kid with a scholarship for sports, he's going to pay a healthy share. If you take a non-scholarship kid, and give him $50k, he's going to be able to pay for school, have a few bucks left, and not be saddled with as near as high a tax figure. It all works out fairly.

Next, the issue of "out of state tuition." It's waived for so many students. It will be waived for those kids they want on their teams. Count on it. It's already being done, isn't it? As for the walk-on, he only needs the waiver for one year, because he can become a citizen of the state where the school is, and in year two be automatically granted state residency, as long as he or she does something as simple as getting a drivers license.

Services rendered. Those appearances are nothing more than to show appreciation and gratitude for the money they're getting.
 
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