I agree, but the recruiting game has changed. We have a choice--change with the times or die, and move on.
NIL’s
- Thread starter Demo
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Judging by the number of Players entering the Portal and some who have made moving from College to College a occupation , isn’t it ridiculous to call them Student Athletes anymore .
The last thing many of these youngster are interested is getting a College Degree . I said many , not all .
They are more properly defined as being Employees in the current era . They are getting paid to play BB . Much like the Faculty are paid to teach . Or , Coaches Coach .
They are free agents with no restriction on their year to year movement from College to College .
The Model that has been created is broken . Largely by the NCAA making College Sports a Professional Sport .
While I was in DC to see the Georgetown game, I stopped by to see my friend Kenny Blakeney who is the head coach at Howad University. His teams have won their conference tournament championship the past two years. After the first one, their top three players transferred. Here is where it gets interesting, his point guard, Elijah Hawkins, puts his name in the portal and eventually commits to Minnesota. He got a small NIL deal, but he wasn't getting anything at Howard.
This past season he was second in the nation in assists. A young man who played for me and is now an Asst coach in the A10, stopped by my house yesterday. While we were talking, Hawkins name came up and he told that the young man was back in the portal asking for 700K and will definitely get at least 500K.
Here is where it gets interesting. Coming out of DeMatha HS, Hawkins was a lightly recruited 5'10 150 lb PG. whose only scholarship was Howard. Now, after working on and improving his game, he is poised to make at least half a million dollars this upcoming season.
As much as I personally dislike the portal, I have nothing but respect for what this young man has accomplished.
This past season he was second in the nation in assists. A young man who played for me and is now an Asst coach in the A10, stopped by my house yesterday. While we were talking, Hawkins name came up and he told that the young man was back in the portal asking for 700K and will definitely get at least 500K.
Here is where it gets interesting. Coming out of DeMatha HS, Hawkins was a lightly recruited 5'10 150 lb PG. whose only scholarship was Howard. Now, after working on and improving his game, he is poised to make at least half a million dollars this upcoming season.
As much as I personally dislike the portal, I have nothing but respect for what this young man has accomplished.
Bingo!
SJUDave
Well-known member
Wanted to share with you guys the newest episode of the podcast that's about the current state of NIL, especially at St. John's. How Rick Pitino and staff have embraced it specifically with the Storm Marketing team. Storm Marketing has been the first NIL collective on the scene and has been instrumental in helping SJU be in the top half of the conference since day 1. Justin Kramer and Vin Ochani came on the podcast to discuss that and break the news of a brand new venture and arm of Storm Marketing they are launching to give people are new avenue to support NIL.
I hope you guys check it out.
I hope you guys check it out.
What I would propose is to divide the percentage of the NIL pool based on the percentage of revenue that particular sport generates.
Of course this would put the BE at an advantageous position since there isn’t football usurping all of the NIL money.
But then again, I don’t care because the power conferences are doing everything possible to destroy the BE anyway.
Anthony Mattia
Well-known member
So smart. Charitable donations equal tax write offs which means the wealthy can actually get a benefit to paying players
Redenbacher
Well-known member
Just a matter of time before the IRS cracks down on these "charitable" NILs. Good article on the topic here:
IRS Says Donations Made to Nonprofit NIL Collectives Are Not Tax Exempt
The office of the IRS Chief Counsel released a memo Friday saying donations made to nonprofit NIL collectives “are not tax exempt”.
www.si.com
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redmen4life
Well-known member
i don't understand this at all.
the NIL money comes from brands and paid directly to athletes.
so why would something like a foreign trip, that is paid for by the school, be compromised?
it's two different funding sources, right?
redmen4life
Well-known member
i'm just a layman, i really don't have a strong grasp on the economics of all this, but it seems to me that for this to be a long-term success, there has to be some profit sharing with those that are contributing the most. so in my mind you have to make someone like Repole an 'owner' of Storm Marketing, so he can reap some reward if he's not going to be able to get a tax break.....Just a matter of time before the IRS cracks down on these "charitable" NILs. Good article on the topic here:
IRS Says Donations Made to Nonprofit NIL Collectives Are Not Tax Exempt
The office of the IRS Chief Counsel released a memo Friday saying donations made to nonprofit NIL collectives “are not tax exempt”.
Goodman's tweet also makes no sense because foreign trips are helpful in paying the foreign players.
Redenbacher
Well-known member
Many large donors are making NIL donations via their companies, they are not donating as individuals. The donation is taken as a tax deduction (marketing expense) by the company, not the individual. I don't know what Repole is doing, but he is actively involved in a sports-related company (with Tom Brady, among others) so it's not far-fetched to imagine at least a good chunk of his donations are going through a corporation, not him personally.
Individuals do not get a tax deduction for donating to NIL- unless the NIL is set up as 501(c)(3) non-profit status. That is what Storm Marketing is now attempting to do. It's a way to entice boosters to contribute more, since they'll get a charitable tax deduction. The IRS has been warning that they are likely going to be cracking down on these entities. The true purpose of these 501(c)(3) NIL collectives is to enrich the players, not the charities. Many articles have been written on it, including the one from SI above.
redmen4life
Well-known member
i agree with you that in the case of repole and other large contributors, it's a marketing expense.
i guess what i was getting at, is that repole is a seriel entrepreneur. and it's only a matter of time before he sells his latest project, No Bull (like he's done with all his other brands). at that point he no longer controls marketing investment. so that stream of money will dry out for Storm Marketing (and us). so the question becomes how do you keep him vested?
Redenbacher
Well-known member
It's a good question. I am assuming the formation of the Storm Marketing 501(c)(3) charitable organization is an effort to reel in boosters who can't contribute via a company.
By the way, I am 100% certain that the Storm Marketing people are fully aware that the IRS is looking into ending these "charitable" NIL collectives. I am also assuming that the Storm Marketing people believe that when the IRS ultimately cracks down, it will not be done retroactively, so donors won't be penalized for taking deductions on past donations. In the meantime, they can try to raise whatever NIL funds they can through the "NIL charity."
Another good article here:
IRS Letter an ‘Indictment’ of NIL Collectives’ Exempt Status
A recently disclosed tax-exempt determination letter casts further doubt on whether most collectives should qualify as federal charities.
www.sportico.com
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I'm not going to steal Storm Marketing's thunder since I don't think there has been an official announcement. I'm very involved with Vin and advocated this from the get go to help raise funds from individuals.
Vin and his partners have come up with a very innovative process that will satisfy the IRS and be well within guidelines. They are very smart attorneys and great fans, and studied IRS rules for charitable entities including audits. I'm really excited about their plans and it will be a way for fans to support NIL, have their money do real charitable things, and qualify for tax deductible status.
In addition to Rick's partners, he is advised by some large donors who have had tremendous Wall Street and corporate success.
This might be premature but if successful this will be a model that all NIL collectives will seek to follow.
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I'm going to guess Repole can use his stables and any other corporate entities he controls to contribute to NIL including his charitable foundation. Repole was on the vanguard of looping in athletes at Vitamin Water and Body Armor. I don't think this will be a problem.going forward.
I agree 100% with you when its a baseball, soccer, lacrosse, softball, volleyball, track and field or tennis athlete. For revenue producing sports it costs little to put a butt in a classroom seat, or even to house and feed an athlete. Thete are support services available to all athletes that cost money. But every single non revenue producing sport costs the university a ton of money. Men's basketball on the other hand makes a ton of money on tickets and tv among other things.
Name our Men's basketball roster. OK good. Now name 12 of the nearly 400 other athletes. They aren't known exceptbto fans and parents who follow their games.
$1 million per year or more for a college athlete is crazy. Hell, anything about $200k to me is nuts.
AJ Storr shooting for $1 million and will prob get it.
I'm dead against crazy money but i have no trouble with revenue producing athletes getting paid. I justvwish the school was paying them.