Athletic departments losing tax exempt status isn't the game changer many think it is. Most AD's are losing money or operating on a small profit. If an AD that is making big money wanted to avoid taxes they'd just do what normal everyday businesses do (take extra depreciation, give bonuses to executives (coaches) and other legal means to reduce taxes).
PODCAST: Perspective on this morning's news, where things might be heading
- Thread starter ChrisMWilliams
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Athletic departments losing tax exempt status isn't the game changer many think it is. Most AD's are losing money or operating on a small profit. If an AD that is making big money wanted to avoid taxes they'd just do what normal everyday businesses do (take extra depreciation, give bonuses to executives (coaches) and other legal means to reduce taxes).
Jacktronic
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So I was thinking about how this could derail at this point (not sure if I really want it to though). What would happen if the Big10 proposed a change to the 12 team playoff format that only 3 teams were allowed per conference? That would certainly gain traction with all but the SEC. If that rule could be passed, does that change their tune on the desire to add OU and Texas?
This has become some kind of weird reality show. Texa$ and OU want to go live in what they believe is a high end neighborhood. They want to be seen with their "peers" who drive big cars, live in big houses and take fancy vacation all the time. They want to get away from the blue collar rabble like ISU and KSU. It doesn't seem to have much to do with how you actually do on the field in the fall on Saturdays, It's more about whether people like Paul Finebaum on stupid endless chat shows say nice things about you and see you as part of "the club". If this had anything to do with on field performance, Texa$ would be sweating this out with the rest of us.
I just think a lot of donation money would dry up. TV money is just a fraction of what the AD pulls in. Donations are a lot of that. I'm actually not too concerned about writing off my $1000 Cyclone club donation, but if I were donating a couple of million, I'd definitely want that to go into something I'm not paying tax on.
Also, I don't know many ins and outs of very rich people, so I could be totally off. It's why I always say, "It would be interesting to see." As opposed to "It will never work." As I've said, it's not even the ADs having to pay taxes on the money they bring in, it's what happens to all that donation money when it is no longer tax deductible for the big donors.
According to btaa.org, in the most recent reporting year the Big Ten Alliance universities generated over $11.2 billion in research expenditures. This is why AAU membership is important: Collaboration by similar universities.
That's fact.
We just need to hear that it is still a B10 prerequisite in the arms race era.
To back up the heartland college sports report posted in this thread. Buckeye scoop had a report on their youtube cast last night that the B1G was also approached by Okla and Tex 6 months ago but turned them down since OU was not an AAU school. Keeping the unified AAU rep for the $10B in research Dollars is more important than the $700M in football money.
Their report was leaning toward B1G looking to poach half the Pac 12 to go to 20.
Just FYI....
Their report was leaning toward B1G looking to poach half the Pac 12 to go to 20.
Just FYI....
I don’t know why anyone would disagree with this. Big 10 >>>>>>SEC to a university
I think this all ends up with a 64-team league that was prophecied 10 years ago. That said, is ISU in that 64?
I'd love to join the premium board, especially now with everything that is going on, but I cant really justify spending $144 a year on CF as a college student
It was a reporter who confirmed it “per source” or something. So more substantial than message board chatter but obviously not 100% concrete, although AAU membership has been one of the most popular things brought up about all this.
I was being tongue in cheek about my progressive tax rate in an earlier post. The point you make about big donors losing tax deductions would be huge. At some point, these 'not for profits' attached to state universities will be questioned. The tail is wagging the dog. In reality Texas and OU football are already acting as the Texas Longhorns Football Club Inc. and the OU Sooners Football Club Inc. not the University of Texas and University of Oklahoma.
I, for one, think it’s hilarious that ISU and KU may end up in the B1G while Texas and Oklahoma asked first and got turned away.
Big Donations are mainly done by businesses or people who have successful businesses who would then just expense them as advertising expenses as part of the business..
Do you really need daily updates? I look at it as whatever happens happens, I ain't going to change things so the latest gossip that'll change in the next couple hours isn't worth paying for.
