Troy Aikman does a weekly segment on local (DFW radio) and toward the end of the segment the topic went from Belichek to the transfer portal/NIL. He said he doesn’t fault the kids at all for taking advantage of the system but interestingly he said he gave some money to UCLA to get a HS QB and he won’t do it again. I dont follow recruiting and didn’t bother to look up who he was talking about but he said the kid didn’t play as a freshman and then left, and his money was basically wasted.
This is what makes me wonder about the long-term feasibility of donations to NIL. How sustainable is it to expect donors to keep funding NIL when stuff like this is constantly happening? I cant speak for others but if it was me, I wouldn't just be throwing away money with no strings attached. How many people are really out there who have enough money and who will be willing to continuously blindly give money to NIL/kids who can take their money and portal after one year? Maybe it's more than I think, but rich people don't typically get or stay rich with that kind of decision making
the new rules will allow for multi-year contacts with buyouts which will somewhat maybe solve this issue
This has been my thought as well. I can’t imagine how much I’d have to be worth before I felt comfortable funding NIL at a significant level. I think it would be easier to get my mind around giving money to a proven kid to stay rather than transfer, but either way it’s just bad business.
Buyouts are going to be commonplace and will be the free market system’s way of curbing the Transfer Portal, at least to some degree. I know for ND going forward they’re expecting to put a minimum buyout in place that sums to at least every NIL dollar previously paid to that player that would need to be reimbursed if they decide to leave prior to graduating. I’m sure it will be negotiable up or down like all things though.
For UVA it seems like now that NIL needs can be pitched as a budget line similar to the previous recruiting budgets, there is a lot more interest. It's also a lot easier to see how far behind they are/were.
not often do you see ppl giving money away in exchange for no equity nor expectation of an ROI. I mean maybe there is an indirect benefit of your degree institution's brand reputation. but you dont see local car dealerships or whatnot giving endorsement money to induce NHL/NFL/NBA/MLB players into their geographic market. And CFB is bigger - or will be - than all but 1 of those leagues. I get why the culture was there. But that was when the money was small potatoes. Its now exploded and I suspect that culture has hit its limit, if not fizzling out. Schools have so many untapped revenue streams and inefficiencies.
Aside from rich people who have too much money wanting their school to win, NIL is (or used to be) a tax break since it was giving to nonprofit.
This article seems to state that it could be tax deductible but later IRS guidance seems to question that. https://www.hrblock.com/tax-center/income/nil-collective-contributions-taxes/amp/
The IRS treatment of NIL collectives has been prevalent https://tax.thomsonreuters.com/news/nil-collectives-blocked-by-irs-from-claiming-tax-exempt-status/
I agree they shouldn’t be but that’s not how they have previously been operating. https://www.alston.com/en/insights/publications/2023/10/the-irss-latest-play-on-nil-collectives
I don't know the details but the Tech one claims to be West Texas Matador Club, Inc., is a Texas nonprofit corporation doing business as The Matador Club. It is recognized by the Internal Revenue Service as an organization exempt from federal income tax under Section 501(c)3 of the Internal Revenue Code of 1986, as amended.
I do know that they require the kids to do community service as part of their deal. Maybe that's the workaround idk
I've been saying this from the beginning, but it has seemed to only pick up in recent years rather than slow down because none of this stuff makes sense. I think the hard part is there is always going to be those few teams trying to jump start a program with a new coach or people who are just tired of losing, which is going to lead to everyone else having to try and keep up to stop from their best guys leaving. And enough people care about the top programs that they're always going to end up chipping in on some level to stop that from happening.
The rich figuring out a way to do something shady and not pay taxes for it is really the least surprising part of any part of NIL.
Oh, except that they've also figured out a way to get the common person to give money to it with zero return
I don’t think we have a lot of evidence that wealthy boosters will run out of money to try to make their football team good so they can rub it in the face of their country club buddy who cheers for their rival. It’s irrational but it doesn’t seem to really have an end in sight.
Ah, this is Nebraska's issue. No in-state football rivals so all their country club buddies root for the same team.
Individual wealthy boosters are certain a major piece of the puzzle but for a lot of programs, companies in the area that can put the college team logo on their marketing stuff bc of NIL donations pays for itself probably multiple times over. The bag man is never going away either though.
It’s probably been discussed, but there’s a new NIL platform that touts people get their money back if the player transfers. That’s an interesting wrinkle. I have no idea how that would work.
You guys are welcome for all the damned Buckeye player branded hot honey BBQ Grippos I've eaten the last two years. They aren't OG BBQ Grippos, but they're a nice change of pace.
Flipped from UGA right at signing day. Forgot all about him. Nick Williams got him and Smoke Bouie in that class. dump was so smug.
Since it says he has 2 years of eligibility left, I am very confident he will be adding a 5th school next year.
Story on the wiscy/Lucas situation. So their plan is to take him to court, not let him transfer, and not let him play for them? Bold strategy cotton https://badgerofhonor.com/new-xavie...-luke-fickell-every-right-to-stand-his-ground
we had the worst OL in ever and asked him to seek other options so I wouldn't be too excited about this
I get that they might have a leg to stand on if he signed a rev share agreement, but the article specifically mentions NIL in the last paragraph. If NIL, it can’t be used to tie a player to a particular school, right?