NIL - Texas style

[FlaPack]

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.

Services rendered include marketing, not just appearances but including posts on social media promoting the brand. They are being compensated. That’s the point.

As to scholarships they are only taxable ..
If your scholarship exceeded your "qualified education expenses" for tuition, fees, books, or required equipment and supplies, it is taxable. Note the word exceeds “qualified education expense” so translation, the amount / value of the GIA would have to exceed what the general student population pays. Taxable scholarship amounts include scholarship money used to pay. Rent or board, Utilities. Translation…living off campus. FWIW stipends are taxable as a 1099 expense

As to residency requirements it’s a state by state mandate. Florida is …To be eligible for in-state tuition, the student or parent must have been a Florida resident, as defined by state law for tuition purposes, for at least 12 consecutive months prior to the first day of the term. Texas is a bit different. Residency for admission and tuition purposes at a public college or university in Texas is different from residency for voting or taxing purposes. To qualify as a Texas resident, an individual must 1) reside in Texas for one year prior to enrollment and 2) establish a domicile in Texas prior to enrollment.

As to educational deductions, doubtful a walk on could take the credit. His parents probably claim the kid as a dependent and since they pay for his bills would claim that on form 8863 (a friend of mine does this), you can’t double dip.

The NCAA nosed around on the BYU thing and it passed their smell test. That alone clearly showed no inducement.

And in full transparency..waivers are available which also vary by state

 

[TW]

Services rendered include marketing, not just appearances but including posts on social media promoting the brand. They are being compensated. That’s the point.

As to scholarships they are only taxable ..
If your scholarship exceeded your "qualified education expenses" for tuition, fees, books, or required equipment and supplies, it is taxable. Note the word exceeds “qualified education expense” so translation, the amount / value of the GIA would have to exceed what the general student population pays. Taxable scholarship amounts include scholarship money used to pay. Rent or board, Utilities. Translation…living off campus. FWIW stipends are taxable as a 1099 expense

As to residency requirements it’s a state by state mandate. Florida is …To be eligible for in-state tuition, the student or parent must have been a Florida resident, as defined by state law for tuition purposes, for at least 12 consecutive months prior to the first day of the term. Texas is a bit different. Residency for admission and tuition purposes at a public college or university in Texas is different from residency for voting or taxing purposes. To qualify as a Texas resident, an individual must 1) reside in Texas for one year prior to enrollment and 2) establish a domicile in Texas prior to enrollment.

As to educational deductions, doubtful a walk on could take the credit. His parents probably claim the kid as a dependent and since they pay for his bills would claim that on form 8863 (a friend of mine does this), you can’t double dip.

The NCAA nosed around on the BYU thing and it passed their smell test. That alone clearly showed no inducement.

And in full transparency..waivers are available which also vary by state

Nothing that you said disagrees with, nor changes, what I said.

As for Mom & Pop paying the freight for that first year until the kid gains residency? Why? If there's a scholarship foundation who will give him the money for it, and he can gain a few bucks extra because of the amount of it, that would be down right stupid. If that's a point you're making, it's a terrible one.

If you're stating that someone out of state can't get a scholarship from a foundation, that's even more absurd. It happens all the time, and even at DIII level. I knew of kids who got thousands of dollars in scholarship money because they played sports, and ended up going through college without parental help and had very little out of pocket debt to student loans.

 

[FlaPack]

Nothing that you said disagrees with, nor changes, what I said.

As for Mom & Pop paying the freight for that first year until the kid gains residency? Why? If there's a scholarship foundation who will give him the money for it, and he can gain a few bucks extra because of the amount of it, that would be down right stupid. If that's a point you're making, it's a terrible one.

If you're stating that someone out of state can't get a scholarship from a foundation, that's even more absurd. It happens all the time, and even at DIII level. I knew of kids who got thousands of dollars in scholarship money because they played sports, and ended up going through college without parental help and had very little out of pocket debt to student loans.

You lost me on “Those appearances are nothing more than to show appreciation and gratitude for the money they're getting” it’s a bit more than that but believe what you want.

 

[TW]

You lost me on “Those appearances are nothing more than to show appreciation and gratitude for the money they're getting” it’s a bit more than that but believe what you want.

It's reference to what they'll be required to do is a helluva lot less than a job would entail. Just appearances at a few events, advertising shoots, and meet and greets, to allow the donors to benefit from their expenditures. Nothing that even resembles working any extended hours.

 

[FlaPack]

It's reference to what they'll be required to do is a helluva lot less than a job would entail. Just appearances at a few events, advertising shoots, and meet and greets, to allow the donors to benefit from their expenditures. Nothing that even resembles working any extended hours.

Spots shoots can last for hours. I’ve been on my share. Many extended hours.

 

[TW]

Spots shoots can last for hours. I’ve been on my share. Many extended hours.

I understand that. I've been on shoots myself. Mostly shoots doing TV episodes, and promos. I think you understood what I meant.

 

[FlaPack]

I understand that. I've been on shoots myself. Mostly shoots doing TV episodes, and promos. I think you understood what I meant.

Bottom line in the BYU deal they are independent contractors essentially for Built Brand. How many hours they “work” is somewhat irrelevant. My educated guess is there are provisions to limit how much time to not interfere with games , conditioning and academics.

Like any marketing deal / partnership / sponsorship KPI’s will have to be reached to continue the spend. Especially in today earnings environment. It’s going to take 6-18 months to figure out if it’s sustainable. As to collectives they are at some point going to have to balance revenue with securing NIL deals. Yes I’m not naive to know some rouge deals will happen but buyer beware. I have already heard of some deals requiring kids to waive representation, some that require kids to release all IP…..to be blunt that’s malpractice. And then the balance between funding a collective and funding facilities, which in have mentioned is an uncomfortable discussion already happening now and more will happen in the very near future

If a kid is smart, he will hire an agent/ attorney to navigate this mess. I’m afraid there are more kids getting bad advice like Isaiah Wong. That’s the part of NIL I don’t like

 

[TW]

A lesson on how NIL will be applied. Texas RB Bijan Robinson has a deal with the Lamborghini dealership in Austin. Although a lot of people aren't aware of how it will work is that Robinson will be a part time employee of the company, using his NIL, and he'll be considered a salesperson. As such, he will drive demo cars so he can show them to prospective purchasers. Therefore, the car he drives will be a "work vehicle." He won't even have to license it himself, or pay the insurance. All that he's gonna do is drive it, and show it off.

I knew this one was in the making over a month ago. It was all a question of getting the tax implications straightened out, and figuring out how they could use this as a write off. There are so many ways that the NIL situation is going to be skinned back, and exposed. This is just one of them.

Give the kid a Lambo!

If you're questioning how they can turn this into what it is? It's the same as any advertising for car dealers, realtors, etc. They use the NIL of their employees in their ads, so people identify with them.

 

[GBP4EVER]

A lesson on how NIL will be applied. Texas RB Bijan Robinson has a deal with the Lamborghini dealership in Austin. Although a lot of people aren't aware of how it will work is that Robinson will be a part time employee of the company, using his NIL, and he'll be considered a salesperson. As such, he will drive demo cars so he can show them to prospective purchasers. Therefore, the car he drives will be a "work vehicle." He won't even have to license it himself, or pay the insurance. All that he's gonna do is drive it, and show it off.

I knew this one was in the making over a month ago. It was all a question of getting the tax implications straightened out, and figuring out how they could use this as a write off. There are so many ways that the NIL situation is going to be skinned back, and exposed. This is just one of them.

Give the kid a Lambo!

If you're questioning how they can turn this into what it is? It's the same as any advertising for car dealers, realtors, etc. They use the NIL of their employees in their ads, so people identify with them.

Yep and also will see kids wearing clothes and shoes that will cost hundreds of dollars soon as they get deals from companies to be seen wearing their stuff.

Will say again used to have a handful of kids going to school to get paid while most went there to get a education. Now most of the kids going to college to play sports are expecting to go to get paid and a education is secondary if not forgot about.

 

[FlaPack]

A lesson on how NIL will be applied. Texas RB Bijan Robinson has a deal with the Lamborghini dealership in Austin. Although a lot of people aren't aware of how it will work is that Robinson will be a part time employee of the company, using his NIL, and he'll be considered a salesperson. As such, he will drive demo cars so he can show them to prospective purchasers. Therefore, the car he drives will be a "work vehicle." He won't even have to license it himself, or pay the insurance. All that he's gonna do is drive it, and show it off.

I knew this one was in the making over a month ago. It was all a question of getting the tax implications straightened out, and figuring out how they could use this as a write off. There are so many ways that the NIL situation is going to be skinned back, and exposed. This is just one of them.

Give the kid a Lambo!

If you're questioning how they can turn this into what it is? It's the same as any advertising for car dealers, realtors, etc. They use the NIL of their employees in their ads, so people identify with them.

Actually he will be liable for insurance on the vehicle. We gave vehicles to Hawks players in exchange for promotional use. It’s just not a simple sign and drive out of the dealership. The tile will stay in the name of the dealership. Liability is a different animal.

At least he’s given the car above board and not some sleazy booster handing him the keys