The NCAA will allow athletes to profit from their name, image, and likeness

I think anytime a kid gets an NIL deal, the school should have to provide some financial literacy education.  I read a cool article about Marshawn Lynch and how he's helping rookies and early draftees get their financial house in order by explaining what some simple payroll and tax issues like FICA and how to invest in a 401K.  Beast Mode is working with Pros and they still cant figure it out.  I can't imagine how badly this can go for a 18 year old kid with little financial education.  At bare minimum, the schools should at least explain how a contract works and then provide the resources to set up IRA's for these kids.

I'm all in favor of these kids profiting of their NIL but I'm afraid that there's going to be some horror stories in a few years about kids who got $50k from a car dealership and didn't know they had to pay any kind of tax on it.  Hell, my sister runs a home based business and didn't know she had to hold back social security from her earnings.  It's going to happen and I just hope the schools can prevent some of it with some basic financial literacy courses.

 
BigRedBuster said:
I get the whole idea of people thinking the players deserve some of the pie.  I really do.

However, one reason I loved college sports more than pro is because I really have no desire to read about or constantly hear about contract disputes, player contracts, player's incomes, trades, deals......bla bla bla....

I deal with similar stuff all day long.  I really don't care about hearing about it in my entertainment.  

With NIL and the portal, it seems like that is now part of college. 
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Yep. That is one more bite of the s#!t sandwich that it has become.

 
JJ Husker said:
Yep. That is one more bite of the s#!t sandwich that it has become.
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Bigred_inSD said:
NCAA wants their cut.  Clowns.
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NIL is going to destroy college sports as we know it. We are going to have so many breakout leagues from this, where championships will eventually be a defined by the 8 league team you are in and that's it. No national playoff, no national tournament...teams that have $in their alumi pipeline will do their thing with their financial peers and so on and so forth. It's just going to suck.

 
UniversalMartin said:
NIL is going to destroy college sports as we know it. We are going to have so many breakout leagues from this, where championships will eventually be a defined by the 8 league team you are in and that's it. No national playoff, no national tournament...teams that have $in their alumi pipeline will do their thing with their financial peers and so on and so forth. It's just going to suck.
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Couldn’t disagree with this take more as it relates to NIL. 
 

The financial windfall that has come with TV money to these institutions is unbelievable. The money these coaches and administrators are getting paid is completely out of control. 
 

These kids should be able to make some money in that model. 

 
VizionNE said:
Couldn’t disagree with this take more as it relates to NIL. 
 

The financial windfall that has come with TV money to these institutions is unbelievable. The money these coaches and administrators are getting paid is completely out of control. 
 

These kids should be able to make some money in that model. 
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Then have players get compensation from that structure...TV revenue is split evenly amongst athletes relative to the sport and its revenue via TV. Playing time = bigger share of the pooled revenue or something like that. You are an All American, you get a little more, etc etc.

Allowing external agreements with businesses, etc allows for other universities to capitalize more than others simply due to alumni base and community values towards their university. 

 
Its Tax Season.  And that means Uncle Sam is coming after that sweet NIL money and gifts.

Last week, I chatted with Athliance CEO Peter Schoenthal about a few different NIL related topics for Collegiate Sports Connect. Early in that conversation, Schoenthal mentioned something I've suspected, but haven't confirmed. He believes a lot of college athletes aren't disclosing NIL deals to their compliance departments.

"I'm at the NCAA Convention, and I'm talking a bunch of SAAC (Student Athlete Advisory Council) athletes, and I ask them if they're disclosing deals. And they're like..., 'No.' And when I ask why not, the answer blew my mind. They said that if we disclose the deals, we'll have to pay taxes on them. If we don't disclose, we don't have to pay taxes on them. And that broke my heart."

Let me be clear, Extra Points is not here to provide detailed financial advice, and if you have a specific tax question, you should consult your accountant. But let me be clear about something. You still have to pay taxes on your income, whether you let your compliance team know about it or not!!!

This is not the way the law actually works. This is the Bob Loblaw approach.

Tracking down the right paperwork from each vendor, figuring out what needs to be sent to your accountant, how to claim non-cash-related payment...all of that can be messy, whether you're a 20-year-old softball player or a 34-year-old self-employed reporter. Even if athletic departments offer financial literacy training and try to proactively educate their athletes about their newfound responsibilities, there's no guarantee the athletes will listen or respond in time.

Individual schools are unlikely to take punitive actions against their own athletes for breaking NIL team policies. The NCAA may not be able to do it either. But the IRS absolutely can. They will not hesitate to slap some major fines on an athlete who didn't realize that the NIL deal that gave him a new truck also gave him a new taxable asset.

"I do think April 15 is going to be a scary day for a lot of student-athletes, and a lot of people are going to be put on some payment plans going forward," Schoenthal told me.
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https://www.extrapointsmb.com/ncaa-nil-irs-taxes-collective/

Article also touches on the NIL collectives claiming to be "charities" which they probably are not.

 
VizionNE said:
Couldn’t disagree with this take more as it relates to NIL. 
 

The financial windfall that has come with TV money to these institutions is unbelievable. The money these coaches and administrators are getting paid is completely out of control. 
 

These kids should be able to make some money in that model. 
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I believe the NIL bucks don’t come from or pass thru the schools at all.  These are private deals between business / booster and the individual athletes.  The schools cannot pay their players as such per NCAA rules. Although the NCAA may be short lived as the wide open competition of big time athletics, the NCAA is likely feeling big time pressures from the NIL ‘have nots’ vs the NIL fat cats.  There must be a big fissure forming which seems likely to ultimately divide and break up the NCAA as a group.  The schools can’t conspire or collude to restrict athletes’ financial opportunities thru NIL, etc.   The big TV $$ is currently school money, and can’t fund pay for players themselves. The schools who decide to pay players will face NCAA sanction IF that org attempts to maintain any semblance of equity and level playing rules across all the membership.  
 

This is why the top 64 schools need to withdraw from the NCAA and organize leagues and competition independently.  The unfortunate thing is teams not in the new league are OUT of the club permanently.  I think any schools outside the P5 better try to get in. The P5 need to purge unwanted and choose the teams quick.  
 

The other option is to take athletics out of the colleges altogether. Disconnect completely and privatize into ‘semipro’ or minor leagues.  Private ownership seems the likely path fwd.  this cuts out many smaller schools’ programs but sadly that is the end result when $$$ is the decider of winners and losers.  
 

The smaller schools may remain purely amateur and end all athlete assistance, perhaps. 

 
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