NCAA investigations cont.

[Viper]

Looks like the NCAA is finally getting around to doing something about Coach Strong A-- Offer.

https://www.espn.com/mens-college-basketball/story/_/id/29745009/ncaa-lsu-coach-wade-part-impermissible-payments-potential-recruits-others?linkId=98149375

How long do these 'investigations' take? Where the BE is concerned, isn't Creighton under the microscope?

[Galway Eagle]

How long do these 'investigations' take? Where the BE is concerned, isn't Creighton under the microscope?

So was Depaul from what I recall but they only offered and fired the coach who did it.

[jesmu84]

Lol. What a joke.

[Dawson Rental]

So was Depaul from what I recall but they only offered and fired the coach who did it.

My recollection is that an assistant (associate head?) coach arranged for someone to move in with a player to make sure that the player did work or studied for an exam that the player had to pass to become eligible.  And the player had little impact on the DePaul program before leaving.

[Dawson Rental]

I actually don't think people are treating that number as profit.  They are saying that since athletics are responsible for so much revenue, the players should have compensation than just a scholarship.

I realize there isn't profit, but if you look around at the facilities, coaches salaries, administration, etc., you can see why.  Everyone gets to partake in the party except the players at some of these places.  They have to go to class, stay out of trouble, play games during a pandemic....and get a scholarship for it.

It's actually quite possible that athletic departments won't be affected at all.  With some players getting paid under the table 100k or more just to commit, maybe all that will happen is that the booster pay to prospective student-athletes simply goes legit.  Instead of all the skullduggery, schools will develop pools of well heeled boosters who will fund up front legitimate payments to recruits.  My objection to the current system as always been more the NCAA prohibiting outside payments to players because they don't like how that would affect recruiting.

[dgies9156]

That's good info.

That will be be good for the university as a whole,  the tax burden on the basketball team will hurt the non-revenue sports. 40% will go to taxes.

The real tax issue is why college athletic scholarships are not taxed.

Basketball scholarships are barter transactions, pure and simple. In IRS Topic Number 420, it says, "Bartering is the exchange of goods or services. Usually there's no exchange of cash."

Topic 420 goes on to say: "You must include in gross income in the year of receipt the fair market value of goods or services received from bartering."

You interpret this literally and there's no way a college athletic scholarship is not taxable income. The only left to do is determine the fair market value of a Marquette scholarship and the players to file quarterly withholding!

[The Sultan]

The real tax issue is why college athletic scholarships are not taxed.

Basketball scholarships are barter transactions, pure and simple. In IRS Topic Number 420, it says, "Bartering is the exchange of goods or services. Usually there's no exchange of cash."

Topic 420 goes on to say: "You must include in gross income in the year of receipt the fair market value of goods or services received from bartering."

You interpret this literally and there's no way a college athletic scholarship is not taxable income. The only left to do is determine the fair market value of a Marquette scholarship and the players to file quarterly withholding!

Portions of athletic scholarships are taxable - room and board for instance.

[WhiteTrash]

The real tax issue is why college athletic scholarships are not taxed.

Basketball scholarships are barter transactions, pure and simple. In IRS Topic Number 420, it says, "Bartering is the exchange of goods or services. Usually there's no exchange of cash."

Topic 420 goes on to say: "You must include in gross income in the year of receipt the fair market value of goods or services received from bartering."

You interpret this literally and there's no way a college athletic scholarship is not taxable income. The only left to do is determine the fair market value of a Marquette scholarship and the players to file quarterly withholding!

This is an interesting take. I think, barring some little known IRS rule, you may have a good point. Not my area of expertise but we maybe opening a whole new can of worms.

[dgies9156]

This is an interesting take. I think, barring some little known IRS rule, you may have a good point. Not my area of expertise but we maybe opening a whole new can of worms.

Can you see the University of Alabama if suddenly about 80 football players have to pay taxes on their scholarship? I think Alabama would secede from the union all over again!

Ditto for Louisiana, Georgia, Mississippi, Texas and Tennessee.

Actually, I'm sure there is some little-known tax exemption for it. Probably plugged in by a Congressman from Tuscaloosa and a Senator from the "Great" State of Alabama.

[WhiteTrash]

Can you see the University of Alabama if suddenly about 80 football players have to pay taxes on their scholarship? I think Alabama would secede from the union all over again!

Ditto for Louisiana, Georgia, Mississippi, Texas and Tennessee.

Actually, I'm sure there is some little-known tax exemption for it. Probably plugged in by a Congressman from Tuscaloosa and a Senator from the "Great" State of Alabama.

Funny and true. Ohio might join also.

[Pakuni]

The real tax issue is why college athletic scholarships are not taxed.

Basketball scholarships are barter transactions, pure and simple. In IRS Topic Number 420, it says, "Bartering is the exchange of goods or services. Usually there's no exchange of cash."

Topic 420 goes on to say: "You must include in gross income in the year of receipt the fair market value of goods or services received from bartering."

You interpret this literally and there's no way a college athletic scholarship is not taxable income. The only left to do is determine the fair market value of a Marquette scholarship and the players to file quarterly withholding!

Why would an athletic scholarship be any more taxable than an academic or need-based scholarship?
Regardless, tax law is pretty clear. As Fluffy notes, scholarship money used for room and board is taxable. Scholarship money used for tuition, books and other academic costs is not.

[dgies9156]

Why would an athletic scholarship be any more taxable than an academic or need-based scholarship?
Regardless, tax law is pretty clear. As Fluffy notes, scholarship money used for room and board is taxable. Scholarship money used for tuition, books and other academic costs is not.

I'm sure there is a private letter ruling somewhere supporting you.

But the argument I make is that an athletic scholarship is different than, say a needs scholarship or an academic scholarship. Here, the university is expecting performance -- basketball playing -- in return for compensation. The same would hold for a band scholarship or a theater scholarship.

If the student stops playing basketball, the university can and usually does terminate the contract (scholarship) at the end of the semester. The raw definition of barter fits here. 

[WhiteTrash]

I'm sure there is a private letter ruling somewhere supporting you.

But the argument I make is that an athletic scholarship is different than, say a needs scholarship or an academic scholarship. Here, the university is expecting performance -- basketball playing -- in return for compensation. The same would hold for a band scholarship or a theater scholarship.

If the student stops playing basketball, the university can and usually does terminate the contract (scholarship) at the end of the semester. The raw definition of barter fits here.

This an interesting topic. As a father with a daughter on a significant academic scholarship I never thought about it. Shame on me. I can't even lend my own companies money interest free per the IRS. I'm not complaining but it is a unique situation.

[Pakuni]

I'm sure there is a private letter ruling somewhere supporting you.

But the argument I make is that an athletic scholarship is different than, say a needs scholarship or an academic scholarship. Here, the university is expecting performance -- basketball playing -- in return for compensation. The same would hold for a band scholarship or a theater scholarship.

If the student stops playing basketball, the university can and usually does terminate the contract (scholarship) at the end of the semester. The raw definition of barter fits here.

Here's the IRS on scholarships.

https://www.irs.gov/taxtopics/tc421

Academic and need-based scholarships typically include performance requirements as well, such as maintaining a GPA above a certain level, taking a minimum course-load, working on campus, etc.

[WhiteTrash]

Here's the IRS on scholarships.

https://www.irs.gov/taxtopics/tc421

Academic and need-based scholarships typically include performance requirements as well, such as maintaining a GPA above a certain level, taking a minimum course-load, working on campus, etc.

Great info. Thank you. My daughter has a minimum GPA to continue receiving money. So far so good. Whew!

[Dawson Rental]

Here's the IRS on scholarships.

https://www.irs.gov/taxtopics/tc421

Academic and need-based scholarships typically include performance requirements as well, such as maintaining a GPA above a certain level, taking a minimum course-load, working on campus, etc.

Thank God, no need for me to stay awake nights worrying about that 1/4 scholarship I got from the Marquette Tribune for selling ads even though I clearly provided services.

[Pakuni]

Notice of allegations reportedly arriving at Arizona today.

[Uncle Rico]

Notice of allegations reportedly arriving at Arizona today.

Is it summer already?

[wadesworld]

Notice of allegations reportedly arriving at Arizona today.

Can we have it CC'd to DaRon Holmes?

[TAMU, Knower of Ball]

Can we have it CC'd to DaRon Holmes?

I'm sure Wojo already forwarded this article to him:

https://www.si.com/college/2020/10/22/arizona-basketball-corruption-ncaa-notice-of-allegations

[Pakuni]

@BrucePascoe: Arizona acknowledges it has received a Notice of Allegations from the NCAA but says it won't release it "in order to protect the integrity of the ongoing enforcement process."

Someone file a FOIA request.

[MarquetteMike1977]

@BrucePascoe: Arizona acknowledges it has received a Notice of Allegations from the NCAA but says it won't release it "in order to protect the integrity of the ongoing enforcement process."

Someone file a FOIA request.

Thank You. Jeff Borzello ESPN Staff Writer has an article on the Website today at 3:11CT "Arizona receives NCAA's notice of allegations on men''s basketball team"

[The Sultan]

Well at least UMass tennis is taken down for a $252 impermissible payment.

https://www.bostonglobe.com/2020/10/23/sports/ncaa-again-shows-its-pettiness-by-punishing-umass-tennis-team-252-violation/

[Billy Hoyle]

Arizona charged with nine violations, five Level One.

[Hards Alumni]

Arizona charged with nine violations, five Level One.

The consequences that Northern Arizona will suffer will be unimaginable in modern sports history