Bitching About NIL

[Dr. Blackheart]

It is an issue now, but may not surface for quite some time. Then, we’ll start hearing about student athletes who are shocked to “learn” they owe back taxes and penalties, and the blame game will be played. It’s gonna be a mess

And their parents who are getting $100,000 travel packages.

Still struggling how conferences are getting the IRS "amateur" non-profit exemption?

Don't get me wrong, I am all for NIL but this is a tax morass I agree.

[The Lens]

There is a finite amount of money that flows into athletic departments.

The question is how is it spent. The reality is it all has to be spent every single year.

Recently it was an arms race of facilities; hyperbaric chambers, NFL level weight rooms, top chef kitchens, $700,000 strength and conditioning coaches, etc.

Now SOME of that money is going to flow into NIL. Kids are going to make $200,000 but the woodway treadmill they run on will be 2 years old.  The S&C coach may not have gotten a 25% raise last year. Etc. Etc.

All we're doing is moving money around.  So do you want to replace the elipical machines every year or do you want Kam Jones to earn six figures?

[wadesworld]

…sure. My point, albeit maybe not made in the best way, is simply that wadesworld seems to often play the race card and stereotypes. So, was trying to make a point that playing race card/stereotyping is garbage.

I do?

[Lennys Tap]

There is a finite amount of money that flows into athletic departments.

The question is how is it spent. The reality is it all has to be spent every single year.

Recently it was an arms race of facilities; hyperbaric chambers, NFL level weight rooms, top chef kitchens, $700,000 strength and conditioning coaches, etc.

Now SOME of that money is going to flow into NIL. Kids are going to make $200,000 but the woodway treadmill they run on will be 2 years old.  The S&C coach may not have gotten a 25% raise last year. Etc. Etc.

All we're doing is moving money around.  So do you want to replace the elipical machines every year or do you want Kam Jones to earn six figures?

Lens

I agree up to a point - no doubt some of the old flow will simply be redirected. But in addition there be a major increase in the flow. Some people actually have compunctions about doing things that are illegal. Paying players was one of those things. With that barrier gone it’s an entirely new computation.

[The Lens]

Lens

I agree up to a point - no doubt some of the old flow will simply be redirected. But in addition there be a major increase in the flow. Some people actually have compunctions about doing things that are illegal. Paying players was one of those things. With that barrier gone it’s an entirely new computation.

So you think there were potential boosters out there sitting on their cash and only now releasing it bc of NIL?

[wadesworld]

So you think there were potential boosters out there sitting on their cash and only now releasing it bc of NIL?

Those boosters were already paying players.

[Jay Bee]

There is a finite amount of money that flows into athletic departments.

The question is how is it spent. The reality is it all has to be spent every single year.

Recently it was an arms race of facilities; hyperbaric chambers, NFL level weight rooms, top chef kitchens, $700,000 strength and conditioning coaches, etc.

Now SOME of that money is going to flow into NIL. Kids are going to make $200,000 but the woodway treadmill they run on will be 2 years old.  The S&C coach may not have gotten a 25% raise last year. Etc. Etc.

All we're doing is moving money around.  So do you want to replace the elipical machines every year or do you want Kam Jones to earn six figures?

I realize not everyone is playing by the rules, but I’m positive there is ‘new money’ coming in that was not in the past. 100% positive. This is not simply a redistribution of finite funds.

[mug644]

I realize not everyone is playing by the rules, but I’m positive there is ‘new money’ coming in that was not in the past. 100% positive. This is not simply a redistribution of finite funds.

I agree. Even the MU-related Be the Difference NIL is asking for donations. That money is not going through the athletic department, and if I choose to donate to that, in order to support players, it is something I've never done in the past. It would be new money coming in. Like JayBee, I'm sure that some folks have contributed to BTD that never helped pay players under the table.

Those boosters were already paying players.

So, no, not all those boomers were already paying players.

[The Lens]

"I'm going to answer your question with a question. How does a player from a poor family fly home when his mother or father dies? Well, the kid's got to get home."
—-  Al McGuire, when asked if he was aware of any alumnus giving a player favors after he arrived

[StillAWarrior]

There is a finite amount of money that flows into athletic departments.

The question is how is it spent. The reality is it all has to be spent every single year.

Recently it was an arms race of facilities; hyperbaric chambers, NFL level weight rooms, top chef kitchens, $700,000 strength and conditioning coaches, etc.

Now SOME of that money is going to flow into NIL. Kids are going to make $200,000 but the woodway treadmill they run on will be 2 years old.  The S&C coach may not have gotten a 25% raise last year. Etc. Etc.

All we're doing is moving money around.  So do you want to replace the elipical machines every year or do you want Kam Jones to earn six figures?

I think it'll be interesting to see how it all settles in. Right now, I agree that a lot of money is being redirected into players' bank accounts that previously would have been spent on facilities, equipment, etc. In the coming years, I suspect a new "floor" will develop that will be the going rate for players. But eventually, I think the facilities arms race will resume. Programs will continue to search for ways to differentiate themselves in addition to NIL payments. Getting paid won't stop the athletes from wanting the very best of everything.  Note: this isn't a criticism of the athletes.

[The Hippie Satan of Hyperbole]

So you think there were potential boosters out there sitting on their cash and only now releasing it bc of NIL?

Yes I do. I think JayBee and Lennys are right about this.  I think making the case for giving student athletes money versus building or remodeling yet another athletic facility is a different enough case that it will draw in different donors.

[lawdog77]

Yes I do. I think JayBee and Lennys are right about this.  I think making the case for giving student athletes money versus building or remodeling yet another athletic facility is a different enough case that it will draw in different donors.

Agree, and dont forget about the fund to steer SAs away from Madison.

[TAMU, Knower of Ball]

I agree. Even the MU-related Be the Difference NIL is asking for donations. That money is not going through the athletic department, and if I choose to donate to that, in order to support players, it is something I've never done in the past. It would be new money coming in. Like JayBee, I'm sure that some folks have contributed to BTD that never helped pay players under the table.

So, no, not all those boomers were already paying players.

Have you donated to the Blue and Gold fund before? I don't think Lens was arguing that everyone who is legally paying new players now used to illegaly pay players under the table. I think he's pointing out that donors are unlikely to donate to NIL without reducing their donations to the athletic department. So it's not new money coming in, it's old money getting redirected.

That being said, while I think there is truth to that, I think there is also a lot of new money coming in due to NIL.

[mug644]

Have you donated to the Blue and Gold fund before? I don't think Lens was arguing that everyone who is legally paying new players now used to illegaly pay players under the table. I think he's pointing out that donors are unlikely to donate to NIL without reducing their donations to the athletic department. So it's not new money coming in, it's old money getting redirected.

That being said, while I think there is truth to that, I think there is also a lot of new money coming in due to NIL.

Fair point, TAMU. I gave undue focus on the statement "There is a finite amount of money that flows into athletic departments." With BTD/Nil funds not passing through the departments, and more non-shady boosters contributing, that equates with new money in my thinking, but your point that folks that had been giving to B&G may now offer support via BTD makes valid sense.

[Lennys Tap]

So you think there were potential boosters out there sitting on their cash and only now releasing it bc of NIL?

Absolutely.

[Lennys Tap]

Those boosters were already paying players.

Believe it or not, there are boosters who a) don’t want to break the rules, b) don’t want to risk their school getting in trouble and c) both an and b.

Those are no longer potential problems. Ergo, new boosters/donors.

[panda]

Absolutely.

1000% true. It’s no longer a slimy game. It’s a donation. Plus you have any Joe Schmo who wants to give $100 bucks as well. That’s adds up at some places.

[Hards Alumni]

must suck being that young black college student athlete when you can’t make baskets or score touchdowns for the team anymore, hey? I mean, rich whitie gonna kick ya to the curb and to a life of pimpin’, jackin’ and dealin’. Damn white man and his privilege. Right?

Mmmmm casual racism.  Pretty gross, man.

[lawdog77]

1000% true. It’s no longer a slimy game. It’s a donation. Plus you have any Joe Schmo who wants to give $100 bucks as well. That’s adds up at some places.

I wouldn't go as far as to say its not a slimy game. There are still some schools/booster breaking the "rules" like  pay for play, or underreporting what they are giving the SA. But now the casual fan who may not have donated to the school may be donating to the collectives feeling that they have a hand in landing some players.

[Jay Bee]

But now the casual fan who may not have donated to the school may be donating to the collectives feeling that they have a hand in landing some players.

That would be silly of them!  NIL can’t be used as an inducement to attend a school

[Hards Alumni]

That would be silly of them!  NIL can’t be used as an inducement to attend a school

Can't be used by the school as an inducement, if we're being technical.   

[lawdog77]

That would be silly of them!  NIL can’t be used as an inducement to attend a school

Every NIL is an "inducement" if it is part of the decision making process of the SA.

[Dr. Blackheart]

I think the revenue upside with NIL is for local businesses to leverage as a marketing expense.  The non-profit coop donation side, I feel, is still up for IRS debate and is not a settled matter.

https://www.taxpayeradvocate.irs.gov/get-help/general/nil/nil-collectives/#:~:text=If%20a%20non%2Dprofit%20NIL,not%20substantially%20related%20to%20the

[panda]

I wouldn't go as far as to say its not a slimy game. There are still some schools/booster breaking the "rules" like  pay for play, or underreporting what they are giving the SA. But now the casual fan who may not have donated to the school may be donating to the collectives feeling that they have a hand in landing some players.

As stated above, those types of ppl already existed. However now that’s a it’s legal, you have those types and the new over the table type.

[MUbiz]

As stated above, those types of ppl already existed. However now that’s a it’s legal, you have those types and the new over the table type.

Cheating is as old as time, no matter what the "rules" are. There are boosters/donors that are crossing the proverbial line today and there will be boosters/donors that will cross the line everyday.  Matt Norlander reported that some transfers were asking as much as $5000 to show up for a campus visit during the transfer period, whether they commit to the school or not.