Name, Image, Likeness

March Madness, Duke, and NIL

Interesting article in the Washington Post about the rush to cash in on March madness fame through NIL. To my surprise, the article has quite a bit about Duke and Rachel Baker. Gift link: https://wapo.st/4a6vTi5
 
MChambers said:
Interesting article in the Washington Post about the rush to cash in on March madness fame through NIL. To my surprise, the article has quite a bit about Duke and Rachel Baker. Gift link: https://wapo.st/4a6vTi5
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Great article (and thanks for the "gift"). I've said it before, and I'll say it again: Jon having the foresight to add Rachel Baker to the program was a stroke of brilliance. Her position was unheard of when Jon hired her, but now almost every big name program is following suit. Anytime you're ahead of the trend that's a great sign.
 
Investing in College Athletes' Future earnings

DBR posters, I apologize if the linked Washington Post article has been presented in this thread. Whether it has been or not, this shows one more way of monetizing college athletes' value.

https://wapo.st/43QJsjm
 
hustleplays said:
DBR posters, I apologize if the linked Washington Post article has been presented in this thread. Whether it has been or not, this shows one more way of monetizing college athletes' value.

https://wapo.st/43QJsjm
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That's the kind of thing I would be most concerned about in the current wild, wild West of NIL: Loan-like transactions based on future earnings. In this case (so far), the pay-back happens only if the player actually makes the top league in their sport. I'm curious if it stays that way.

Meanwhile, buried way down in the article, is this little tidbit:

Washington Post said:
While attempting to reinforce the legality of one revenue stream, BLA diversified into others. Schwimer led a short-lived subscription service, called Jambos Picks, offering betting advice on college and pro sports. He also contracted with at least two top university men’s basketball programs — Duke and Alabama — to offer data analytics services through a company called Sports Analytics Advantage, or SAA.

Schwimer shared with The Post a video of Duke men’s basketball coach Jon Scheyer singing praises of “this guy Schwim … I’ve learned a lot from him.”
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The article further explains that BLA has not signed any Duke players.
 
Phredd3 said:
That's the kind of thing I would be most concerned about in the current wild, wild West of NIL: Loan-like transactions based on future earnings. In this case (so far), the pay-back happens only if the player actually makes the top league in their sport. I'm curious if it stays that way.

Meanwhile, buried way down in the article, is this little tidbit:



The article further explains that BLA has not signed any Duke players.
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Sounds like payday lending. Which is just gross. Payday lending based on the innocence of 18 year old kids.
 
If you sign a recruit under the promise of paying him buckets of money, you better make good. If not, he's gonna sue you.

Former University of Florida football recruit Jaden Rashada is suing coach Billy Napier, along with a big-time Gator booster and others, claiming they defrauded him out of millions of dollars by backing out of a promised $13.85 million agreement after the quarterback had turned down offers tied to other programs.
...
Rashada is the first known college athlete to sue his coach or a booster due to a dispute of a name, image and likeness (NIL) deal.
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https://www.espn.com/college-football/story/_/id/40189896/jaden-rashada-florida-recruit-lawsuit-nil
 
I posted this elsewhere, but probably makes more sense here:

How does income get reported and from whom? Are "collectives" tax entities that issue 1099s? Where does the money actually come from? Are individual sponsors taking tax deductions for endorsement deals and reporting the income paid?

Will we be hearing in years to come that players are getting in big trouble with the IRS for unreported income?

This just seems like the wild west!
 
BandAlum83 said:
I posted this elsewhere, but probably makes more sense here:

How does income get reported and from whom? Are "collectives" tax entities that issue 1099s? Where does the money actually come from? Are individual sponsors taking tax deductions for endorsement deals and reporting the income paid?

Will we be hearing in years to come that players are getting in big trouble with the IRS for unreported income?

This just seems like the wild west!
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Yes to all....(Not a tax expert)

I assume many are not following law and are risking a rude awakening from the IRS at some point. But the players should at least have their agents ensure they're filing the right stuff.
 
Bluedog said:
Yes to all...(Not a tax expert)

I assume many are not following law and are risking a rude awakening from the IRS at some point. But the players should at least have their agents ensure they're filing the right stuff.
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So yes, the collectives are organized as tax entities? Fascinating. Are they organized as LLCs, or what?
 
Bluedog said:
Yes to all...(Not a tax expert)

I assume many are not following law and are risking a rude awakening from the IRS at some point. But the players should at least have their agents ensure they're filing the right stuff.
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Most of the players getting significant money are using agents who are fully aware of the tax consequences of this stuff. The fact that foreign players who are non US-citizens cannot make money while in the US on student visas is another tax aspect of all this.
 
Bluedog said:
Yes to all...(Not a tax expert)

I assume many are not following law and are risking a rude awakening from the IRS at some point. But the players should at least have their agents ensure they're filing the right stuff.
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Shouldn't Duke hoops GM Rachel Baker have a role in advising players on such issues?
 
BandAlum83 said:
Are individual sponsors taking tax deductions for endorsement deals and reporting the income paid?
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It depends but yes it has happened. If the collective has 501(c)(3) status it’s can be tax deductible for the donor. Some organizations (Texas A&M ‘s 12 Man+ Fund for example) had to restructure to change that because they got in trouble with the IRS. The IRS passed a memo in the fall saying the collectives are not tax exempt but has yet to revoke tax-exempt status. I guess they think organizations will do it themselves because that’s realistic.

On top of that some states allow a tax deduction for contributions.
 
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https://apple.news/Ak5Ua19EtSGiEI1arNyXPnw


Jaden Rashada NIL deal, explained
Rashada decommitted from Miami and joined Florida when he received a four-year, $13.85 million NIL offer crafted by the Gator Collective, Florida's NIL initiative. Rashada was promised a $1 million upfront payment when he signed the deal, but he claims he never received it.
The deal was terminated when "the financial backing did not materialize," according to ESPN. Rashada quickly asked to be released from his letter of intent and instead signed with Arizona State in a turn of events that made national headlines because NIL money was a central factor in his decision.
"As the first scholar-athlete to take a stand against such egregious behavior by adults who should know better, Jaden seeks to hold Defendants accountable for their actions and to expose the unchecked abuse of power that they shamelessly wielded," the lawsuit states.

The lawsuit also seeks damages for a $9.5 million NIL offer from Miami that Rashada passed on to accept Florida's offer. It isn't known what kind of deal Rashada received to join Arizona State.
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