So…NIL is getting out of hand, you say? Someone has to come in and find a way to cap NIL deals, to limit tampering, to ensure that things don’t run wild in an unfettered free agent marketplace?
Have no fear, the government is here.
From On3.
While this could possibly tamp down the lunacy we’ve seen in the early days of NIL, it could be one fateful step further in an athletic program, specifically a revenue generating one like college football, to find some way to break away from a University and the NCAA as well as academic standards if it means having to split revenue further away from the money-making monster it’s becoming.
While I don’t personally see that happening, this does suggest that making college athletes richer than pro athletes could be coming to an end sooner than later. And if it in any way impacts ESPNs ability to capitalize off the sport, the end of amateur athletics in the football world is about to go the way of the Dodo.
Time and chance is a hell of a thing. Enjoy the riches while you can, gentleman, because it could be gone sooner than you anticipated. At least while the team is associated with the NCAA.
Some of our legal Refugees help me out here, but this being a Department of Education memo, how would Chevron apply to something like this…also, is this an avenue where football programs would seek to make athletes employees of the university to circumvent Title IX applications?
My supposition is that they will continue to “risk” it. Is there someone getting a lawyer for a willing “discriminated” athlete? Yes.
I can’t figure out how that claim would work exactly. Football revenue has been a boon to all non-revenue sports in all sorts of ways.
The current “Not Chevron” law would apply to the extent that DOE’s view of the law isn’t given any deference.
Employment contracts would unnecessarily, in my view, open up an entirely new can of worms.
Didn’t I read that there is some settlement coming down in the Spring that is purportedly going to resolve a lot of this? Something about new scholarship caps, no walk on program, yadda yadda…
The House settlement
I do not foresee the college football programs splitting off from their universities to avoid Tital IX.
Think about it; being a part of a university affords the football programs 501(c)(3) status. The enterprise calling itself the Texas Longhorns would shudder to think what it would owe IRS yearly.
Universities have erected stadia and training facilities the football teams use. Those sit on university lands. What would the Georgia Board of Regents charge The Georgia Tech Yellow Jackets, Inc. for use of the Edge Center and BDS at MRF?
Power 4 football programs have a great deal financially compared to being private enterprises.
If my contribution to that 501c3 is made with non-deductible after-tax money (while every other payment to that athletic department is deductible by someone), that payment shouldn’t be tax-free to the recipient.
It’s time for Congress to end tax-exempt status for athletic departments at the Power 4 plus Notre Dame.
At a minimum, it’s time to end tax deductibility for any contribution intended only for intercollegiate athletic usage at those universities (the Magill loophole).
Collectives also should not have 501c3 status.
Do not disagree but my point is that a football team calling itself “The Georgia Bulldogs” would likely owe taxes on that ticket money and media rights money.
Also, the Georgia Constitution prohibits the State from giving a gratuity to a private enterprise so the Board of Regents would have to charge that private entity for use of Sanford, Butts-Mehre and the practice fields.
They would owe taxes on the net profit per the IRS code and regulations not on the gross receipts.
I’m guessing a state constitutional amendment specifically related to real estate and facilities used for intercollegiate athletics would pass quickly if Congress moved to revoke the 501c3 status of large athletic departments.
I would be ok with the athletic association maintaining its 501c3 status if Congress closed the Magill Society loophole on deductibility and disallowed deductibility of contributions to NIL collectives.
Wouldn’t this classification of financial assistance make a revenue sharing payment from the school tax free? I wonder what the IRS would think of that.
It’s getting to a point where I’m ok with the employer/employee relationship under a CBA that saves college sports from itself.
If we are at the point of being ok with the employer/employee relationship under a CBA, what defines College Sports?
A CBA would give clarity to the rules. The problem isn’t college athletes being paid. It’s the garbage all around it.
While a CBA could give clarity to the rules around eligibility, athletic calendars, etc. with an employer, I am not sure all the garbage around NIL would cease. In the NFL game, there is some NIL but not the same college collectives to offset salary paid by an NFL team as an enticement. The college game is completely different in that it has large groups of individuals who are ok forking out NIL money as an enticement. I am not sure a CBA would fix that kind thing.
A collective bargaining agreement would not prevent All-American QB junkyardawg41 from accepting an endorsement deal from the hometown Mercedes dealer but it could prevent said QB from changing schools as a result of that deal. Isn’t it the changing of schools that bothers everyone?
I agree it could if all school player/employees belonged to the same CBA and worked for the same organization.
That’s always been the case.
The main thing I hope for under a CBA (and I’m not in favor other than as a last resort) is control of the transfer portal and possibly longer term arrangements to remove what we have now.
I have no desire to see a work stoppage as a result. Just my thoughts.
I don’t want the schools to get what they want under an antitrust exemption to protect the cartel and I don’t want the chaos we have now.
I don’t want the schools to get what they want under an antitrust exemption to protect the cartel and I don’t want the chaos we have now.
I think 95% of true college fans (including myself) would support this position. I just have no idea how we corral the cats back into the barn.
So they are gonna split NIL money out equally, but only a few athletes actually have NIL value? How does that work. Has anyone seen the equestrian team captain on a billboard yet?
It’s the rev sharing between university and athlete. Nothing to do with endorsements or collectives.
Jersey sales from the UGA bookstore don’t figure in?
I don’t think so because it’s the name on the jersey.
The way I understand it is that if the NIL money goes to the university the federal law that went into effect in 1972 prohibited its gender discrimination in its distribution to students.
If the distillers of Hunker Vodka choose to deal directly with Gunner Stockton that isn’t state action.
That free fall landing…it’s coming soon and gonna hurt.
I wonder how far the sport can go in privatizing NIL money? I don’t see the Chevron issue invalidating the Title IX ruling. It applies to university expenditures. But booster collectives (or in Texas individual$$)? What can they do?
The repeal of the Chevron rule does not “invalidate” anything. That Supreme Court case addresses presumptions when analyzing regulations.
For better or worse, there is fixing to be a new sheriff in town. If there is a way to protect the big money interests, I suspect they will find it.
This shit makes my head hurt. I just wanna watch some college football.
The Twitter verse is lit up with reports about Bobo stepping down. Just as many are disputing it.
Bama Ole Miss and Texas trying to fuck with Kirby…you come after da King…