What if he is getting $15000 from 20 different sources? Perfectly legal and tax free.
When will the IRS focus on NIL payments?
- Thread starter cloneonledge
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What if he is getting $15000 from 20 different sources? Perfectly legal and tax free.
I'm admittedly ignorant about the legalities and tax realities.
The court cases cleared them to be paid for NIL. These huge lump sump payments for hundreds of thousands are very obviously contracts to play rather than NIL deals and I think you could easily prove it by comparing their endorsement value once they get a separate pro contract to play the same sport. It wouldn't make sense to look at just one player, but if you looked at hundreds or thousands of players over many years you could get great data that shows what % of the NIL payment is actually NIL.
I'm sure they are getting taxed for the NIL deal. Again I'm not an accountant. Maybe an endorsement deal gets taxed exactly like a player's NBA salary does, maybe not. Just does not seem sustainable when the payment is not for what it says it is for.
You think no college athlete is getting a deal for hundreds of thousands? The point isn't knowing Tyrese Hunter's exact contract deal, it's that these deals are common for this amount and it's not really for NIL, it's to play for a specific team.
You legit can’t say it isn’t for NIL because you don’t even know how much he is getting, the language of the deal, or even who the deal is with. You legit have zero actual facts of his deal yet are happy to make a ton of assumptions on nothing but conjecture.
I haven't made any comments about "gifts". Maybe you're arguing with wrong person.
All I'm saying is I thought the court cases were about allowing NIL and I think it would be CRAZY easy to prove that these payments are not for endorsement deals with a few years of data.
Were the court cases not about NIL? Were the court cases allowing college teams to sign players to play by funneling their contracts through boosters? Maybe everything I read was wrong.
The IRS would know all of this. You invented this thing that I know it all. I said it could be determined, and I do think only a moron thinks these deals are actually to sell cars in Kentucky. They are deals to play basketball.
The IRS could look at 100s or 1000s of players like Hunter. See he claimed a $600k endorsement deal, then see he starts playing basketball at a higher level and compare his endorsement deals or lack of.
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But even if you could prove that Hunter's endorsement value is lesser of he's on an NBA team vs. the Texas basketball team, so what? What laws does that break? None. It's perfectly legal. The NCAA rules allow for players to receive these contracts from NIL collectives as written. No rules are being broken.
I'm not understanding where the "gotcha" is here. This is how it works now.
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It wasn't a court case. There were state laws that were going to go into effect that specifically allowed athletes to receive NIL profit. And the NCAA read the room, realized they would lose if they tried to fight these laws, and gave up.
The deals obviously aren't for NIL, that's the only part I'm confident of. Why do we even call it NIL?
If you just called it payments or contracts I'd see no issue. Why does there have to be a central dishonesty to call it NIL or sometimes a token effort to have a player do some advertising?
Sure the IRS could but you don’t actually know how much he is getting so you have no way to say it isn’t fair for his endorsement deal. Just looking on his Instagram page he has ads for poweraid, basketball camps, clothing brand, etc. Since you again have zero idea how much he is getting and for what your argument has zero ground to stand on.
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Why would they do that, though? It's not their job to determine if someone is being paid appropriately for their name image and likeness. They just care about if they pay taxes on it correctly
So you can just pay a player a million bucks and not pretend it's for NIL, there doesn't have to be endorsement involved?
Why do we still call it NIL?
It's possible to have a general idea without having an exact number. You're smart, you know this.
You really think these players are not getting paid mostly to play for a specific school? You think all or the vast majority of the payments are because that's what they're worth to local businesses and marketing products?
I think this board has a horrific understanding of just how much NIL dollars are out there and this is a perfect example of that. You don’t know how much money he got or the terms of his various NIL deals. If you don’t know that you don’t know that the payments aren’t market value because you don’t know how much he is getting.
So if I'm a wealthy booster I can just give a player a million dollars and not tie it to some NIL deal. Just publicly say I paid him to sign with ISU?
That's what i don't understand, why is there some need to call it NIL? The vast majority of it has nothing to do with NIL. Like I'm asking literally how did that happen and if it's so important we call it NIL how is there no legal risk that it's obviously not NIL.
Some people are pretty dialed in and they have good reasons they can't share confidential info.
Don't you think an IRS agent could look at endorsement deals of 100s or 1000s of players before and after college and determine a ballpark % of what is actually endorsement value and what is pay to play? I'm not even saying pay to play is bad, I'm just saying NIL is mostly pay to play and there could potentially be ways to get an idea of that %.
The fact that you admit you are ignorant of the legal and tax implications (as am I) just shows you are really just arguing because of sour grapes. Why else would you care about it this much.
I think it won't be sustainable because boosters won't be willing to shell out the big bucks year after year and not get championships.
I’m sure you’re right but without that info it’s kinda silly to speculate.
However to your point because so much of this info isn’t available to the public it is very easy for people to jump to pay for play ideas and in many cases I’m sure you could be right. But honestly without numbers and contract details we don’t know for sure.
I'm not sour about anything. I just see these deals being called NIL and I think it's really obvious they aren't mostly for NIL/endorsements, they are informal private contracts to play basketball for a school.
I'm actually really excited to learn because as I said I am not a lawyer or accountant and I don't know every detail about how NIL was approved. Mr Janny seems to know more about that than me and hope I learn something from him.
The only need to call it NIL is because the NCAA says so. Not the IRS or the courts. If the NCAA decided pay for play was okay, they could do so. If I wanted to donate $1 million dollars to the We will Collective and then asked for Taming Lipsey to come speak at my son's tball team, they could pay him a million dollar appearance fee, they probably could.
