More Nil Madness

[Pitt79]

Booster NIL funds are essentially sports marketing companies. Your contribution to the collective, is supposed to yield you a profit. But the collectives are designed to lose money.

So if you know more about how this stuff works, what do the athletes have to do? Besides collect the checks? Is it spelled out? Does anyone check to see that they actually do it?

 

[NCanton Panther]

So what do these guys get out of this? Just bragging rights? I'd rather fund a bunch of nobody students who can't play sports, so they don't have giant student loans to pay off... and I'm the bad guy

I’m with you 100% although I have to say, the timing of your ‘student loans to payoff’ comment is priceless.

 

[Pitt79]

I’m with you 100% although I have to say, the timing of your ‘student loans to payoff’ comment is priceless.

I really mean it, while I've been a fan of college sports my whole life, I'm at the point of being sick of people who have full ride scholarships with now millions of dollars being added to that- when some of them will be NFL and NBA millionaires anyways and no conversation at all about significantly lowering tuition for the average schmuck students. Having sports teams at college happened by accident, it wasn't supposed to become the priority.

 

[Sean Miller Fan]

So if you know more about how this stuff works, what do the athletes have to do? Besides collect the checks? Is it spelled out? Does anyone check to see that they actually do it?

It works like this:

A bunch of us pool our money together and form a Pitt Booster NIL collective.

We "sign" players and pay them X amount. Lets say 100K/year for their NIL rights.

We go out and tell ABC Dentist, XYZ Restaurant, etc we are offering them the following athlete to be a spokesman for their business. Since college athletes arent worth anywhere near what we are paying them, our NIL collective will take a big loss but that's the point. We gave the kid 100K and only recouped 20K from different appearances and commercials and what have you.

 

[Pitt79]

It works like this:

A bunch of us pool our money together and form a Pitt Booster NIL collective.

We "sign" players and pay them X amount. Lets say 100K/year for their NIL rights.

We go out and tell ABC Dentist, XYZ Restaurant, etc we are offering them the following athlete to be a spokesman for their business. Since college athletes arent worth anywhere near what we are paying them, our NIL collective will take a big loss but that's the point. We gave the kid 100K and only recouped 20K from different appearances and commercials and what have you.

But the athletes actually have to do SOMETHING? Maybe commercials, photo shoots, appearances?

 

[Sean Miller Fan]

But the athletes actually have to do SOMETHING? Maybe commercials, photo shoots, appearances?

Yes, they have to do something. They cant just be handed cash.

Its basically just an illegitimate sports marketing company. I am sure Kenny Pickett will sign with some agency who will pay him far less than what Jordan Addison is getting to do some appearances at businesses, go on some billboards, etc. The sports marketing company signs him for lets say $1 million then sells his NIL to local businesses for $1.5 million for example. For Addison, lets say the booster collective signs him for $2 million. They may be able to sell his NIL to local LA businesses for 50K-100K. A huge loss but that's the point. Just disguising pay for play

 

[The Ole Six-Fiver]

But the athletes actually have to do SOMETHING? Maybe commercials, photo shoots, appearances?

“Co-Ed Breast Inspector”

 

[APanther]

Donations to the schools are tax deductible and if your ego needs feeding they’ll name something after you if you give them enough moola . While I can’t imagine how NIL can be sold to the IRS as anything other than a gift because there’s no way some college hoops or Fb player is worth hundreds of thousands of dollars to their business interests . Will be interesting to see how this all works out . ( I’m sure to some tax considerations won’t be an issue )

Payments to the payee from a collective are taxable to the payee.

 

[Fsgolfdr]

Payments to the payee from a collective are taxable to the payee.

Yes , but I’m talking about taking loses from a business, in this case the partners in the NIL group . Making their loses non deductible. Whereas donations to the school are deductible.

Hope USC’s new receiver enjoys the 13% Ca state income tax !