New NIL Collective for MBB and WBB

[ZiggysFryBoy]

Collectives are set up differently. From what I understand about this one, donations into the fund are used to pay SA for appearances at specific community organizational events.

Other collectives are set up as superfan clubs. For example if we all paid 20/mo for MUscoop fees (1000 X 20)=20K a month, this collective could pay Justin Lewis 10K a month to post here, and pay willie warrior 10K a month to argue with him.

Christ, Clarissa would be paid $500 million per month, just based on # of posts.

[MU82]

Collectives are set up differently. From what I understand about this one, donations into the fund are used to pay SA for appearances at specific community organizational events.

Other collectives are set up as superfan clubs. For example if we all paid 20/mo for MUscoop fees (1000 X 20)=20K a month, this collective could pay Justin Lewis 10K a month to post here, and pay willie warrior 10K a month to argue with him.

The first paragraph gave me good information.

The second gave me my best laugh today. You da dog!

[The Sultan]

Christ, Clarissa would be paid $500 million per month, just based on # of posts.

Topper keeps telling me "the check's in the mail..."

[panda]

panda

Good call on the TV networks. That said, I think have a conference pool is not an idea that I would be in favor of supporting.

I initially scoffed as well - but there is an opportunity from the conference standpoint to use it's best performers as promotional vehicles. But yes, focus on teams first.

[PaintTouches]

Got to talk with Travis to break down the collective a bit more. MU is only the 3rd non-football school to organize one and one of only a few to be a chartered 501(c)(3) so far.

http://painttouches.com/2022/05/04/marquette-to-benefit-from-one-of-the-first-non-football-collectives/

[mu_hilltopper]

Topper keeps telling me "the check's in the mail..."

It's hard work collecting enough Arby's coupons.

[TAMU, Knower of Ball]

Local News Story: https://www.youtube.com/watch?v=BwFcuLX2Y88

[muwarrior69]

Got to talk with Travis to break down the collective a bit more. MU is only the 3rd non-football school to organize one and one of only a few to be a chartered 501(c)(3) so far.

http://painttouches.com/2022/05/04/marquette-to-benefit-from-one-of-the-first-non-football-collectives/

hmm... so now the players are considered charity cases.

[jfp61]

hmm... so now the players are considered charity cases.

All of the donations to the fund will be to the charities associated with it. Players will be brand ambassadors for the charities in it. Cristo Rey, Boys and Girls, a literacy program, and a few others..

[TAMU, Knower of Ball]

hmm... so now the players are considered charity cases.

No, but they are being paid to give back to local charities.

[Hards Alumni]

hmm... so now the players are considered charity cases.

You'd have known the plan if you'd have read the article.

[The Sultan]

hmm... so now the players are considered charity cases.

No...not at all.  501(c)(3) organizations make compensation payments to employees and non-employees all of the time.  They aren't "charity cases."  They are compensated for conducting the exempt work of the organization.

The real question is if these collectives will be judged to have an exempt purpose.

[muwarrior69]

All of the donations to the fund will be to the charities associated with it. Players will be brand ambassadors for the charities in it. Cristo Rey, Boys and Girls, a literacy program, and a few others..

So the NIL pays the player to be a fund raiser (brand ambassador) for that charity or will the charity actually  get some money from the NIL collective or both?

[TAMU, Knower of Ball]

So the NIL pays the player to be a fund raiser (brand ambassador) for that charity or will the charity actually  get some money from the NIL collective or both?

The NIL pays the player to be a brand ambassador who in turn raises money for or provides a service to the charity.

[MU82]

The Athletic has a good overview on NIL collectives and the NCAA losing its mind about them:

https://theathletic.com/3300616/2022/05/09/as-ncaa-prepares-to-crack-down-on-booster-involvement-in-nil-lawyers-and-sports-agents-say-bring-it/?source=pulsenewsletter&campaign=4217097

Bottom line: The NCAA is talking about getting tough and "drawing a line in the sand," but they face relentless lawsuits if they do, and legal experts think the NCAA will lose those lawsuits based on legal precedence that goes all the way up to the Supreme Court.

[Uncle Rico]

The Athletic has a good overview on NIL collectives and the NCAA losing its mind about them:

https://theathletic.com/3300616/2022/05/09/as-ncaa-prepares-to-crack-down-on-booster-involvement-in-nil-lawyers-and-sports-agents-say-bring-it/?source=pulsenewsletter&campaign=4217097

Bottom line: The NCAA is talking about getting tough and "drawing a line in the sand," but they face relentless lawsuits if they do, and legal experts think the NCAA will lose those lawsuits based on legal precedence that goes all the way up to the Supreme Court.

The failure of the NCAA is complete.  The failure of university presidents is complete.

[The Sultan]

I wouldn't be too sure the NCAA doesn't win lawsuits involving booster-sponsored NIL programs. The Supreme Court's majority opinion in Alston did not address NIL or pay-for-play at all, though Kavanaugh's concurrence most certainly did.  I can most certainly see the Court affirming the NCAA's rules over pay for play.  I can also see the IRS denying exempt status for the 501(c)(3) collectives.

That being said, it is a fool's errand to allow NIL but then keep boosters out of the NIL business.  That will never work.  It will just drive things underground once again.  Just to be clear where I stand, NIL is basically pay-for-play, and that should all be within the rules.

[MU82]

I wouldn't be too sure the NCAA doesn't win lawsuits involving booster-sponsored NIL programs. The Supreme Court's majority opinion in Alston did not address NIL or pay-for-play at all, though Kavanaugh's concurrence most certainly did.  I can most certainly see the Court affirming the NCAA's rules over pay for play.  I can also see the IRS denying exempt status for the 501(c)(3) collectives.

That being said, it is a fool's errand to allow NIL but then keep boosters out of the NIL business.  That will never work.  It will just drive things underground once again.  Just to be clear where I stand, NIL is basically pay-for-play, and that should all be within the rules.

We might get to see soon enough if you're right about the NCAA winning lawsuits. I have no idea what will happen, but I do know it's usually tough to put the genie back in the bottle.

[lawdog77]

We might get to see soon enough if you're right about the NCAA winning lawsuits. I have no idea what will happen, but I do know it's usually tough to put the genie back in the bottle.

A business model where you allow pay for play, along with free transfers is not a sustainable model for athletics. I think if schools were allowed to sign SA's to multiyear contracts that would solve it.

[The Sultan]

A business model where you allow pay for play, along with free transfers is not a sustainable model for athletics. I think if schools were allowed to sign SA's to multiyear contracts that would solve it.

Well, *one* free transfer.  But I do think your idea makes sense.  Multi-year contracts between the school, athlete and NIL entity makes perfect sense to me.  You could include items like buy outs and performance escalators as well.

[Scoop Snoop]

A business model where you allow pay for play, along with free transfers is not a sustainable model for athletics. I think if schools were allowed to sign SA's to multiyear contracts that would solve it.

Interesting take, but would this be any different from coaches on multi-year contracts whose contracts are bought out by other schools? And currently, a signed recruit who changes his mind and decides to go to another school is allowed to do so as the school he is seeking a release from does not want to have a reputation of enforcing letters of intent.

Maybe I'm being the Devil's advocate here, but I would like to hear your thoughts.

Edit: Posted before I read Clarrisa's post.

[Lennys Tap]

A business model where you allow pay for play, along with free transfers is not a sustainable model for athletics. I think if schools were allowed to sign SA's to multiyear contracts that would solve it.

dog,

This has been my point all along. No professional team sport's league would allow the top players to enter as free agents let alone become free agents again after one season.

[TAMU, Knower of Ball]

A business model where you allow pay for play, along with free transfers is not a sustainable model for athletics. I think if schools were allowed to sign SA's to multiyear contracts that would solve it.

One free transfer, possibly two if they graduate. Honest question, why would it not be sustainable?

[THRILLHO]

dog,

This has been my point all along. No professional team sport's league would allow the top players to enter as free agents ...

You don't think there are any in the world like this?

[MU62]

This new NIL non profit for MBB and Wbb states that it is a 501(c)(3).  That means they have gone to the IRS and received an approval.  That usually takes time.  Why are they saying to consult with your tax adviser.  If it truly is a 501(c)(3) the donation is deductible.  There are a lot of hurdles. I don't understand what is going on here.

https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations