Badgers Football 2025-2026

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
Such is the case of Manning in Texas. His NIL cut from the school's war chest is big but dwarfed by the national brand advertising he's doing because of his national exposure.
Yes, that is how it is "sold". However, the reality of it is this. Alumni, deep pocket fans, businesses, etc. are ponying up large sums of money to their team, to better that team. So yes, you want a QB like Manning? "Come on donors, he's going to need $6.8M to play for the Longhorns, dig deep into that oil money of yours."

I guess what I am saying is that I truly doubt that if you look at a lot of these players, they are actually "earning" their NIL money in direct proportion to the use of their name, image, likeness is paying back to some donors.

Why not just call it like it is? College athletics is no longer "amateur athletics". Colleges are now open to self, private and public funding to pay their athletes to play for them. They are officially a business with professional sports. Recruiting H.S. kids is no longer the top priority. That has been replaced by recruiting other teams top players and offering them enough money to hit the transfer portal.
 
Last edited:
OP
OP
Voyageur

Voyageur

Cheesehead
Joined
Nov 10, 2021
Messages
4,331
Reaction score
4,030
Let's not forget that most of the players are getting free tuition, as well as food and board. Out of State tuition at UW Madison is currently $42.5K, add in food, board and other side benefits and well, I think athletes are being compensated.

Using the guise of "NIL" money to lure players into the TP or just to enroll in a University, doesn't fool me one bit. NIL money is no longer compensation for Name, Image and Likeness. It is just a ruse used to flood a program with money to buy as many players as it can afford.
Your last sentence covers it. It's like I said way back when it began. I was told by a friend a U Texas that they had donors that were ready to hand out $50k for every lineman they brought in under scholarship. It wasn't one or two good ones; it was to stock the shelves 3 deep by position if possible. I heard rumors that there was around $1 mill for just that position alone. Then I found out that there were also walk-ons who were getting that kind of money because they wanted to make sure the shelves were stocked after the present season's players graduated and moved on.

It's impossible to follow the NIL money in Texas. So much of it comes from private sources. The link I'm providing is for University of Texas Rio Grande Valley. Went D-1 in football this past season and ended up being a decent team. The NIL money shown for them at this point is just the tip of the iceberg because of how much money is coming in from people with way too much money to burn, mostly from oil and cattle.

Rumor has it they're looking to reach top 20 NIL spending within the next 4 years so they can be a national power like the Longhorns. They have a smaller stadium but there is talk about a nice domed stadium down the road which could include all indoor sports events and include a lot of opportunities for businesses. Since Edinburg, Texas is one of the fastest growing cities in the US, and it's a wealthy city with inexpensive living by national standards, it's a natural draw for increased business representation. It's constantly growing.

You're going to be surprised how this little upstart college has decided they want to ring the bell.

 

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
Your last sentence covers it. It's like I said way back when it began. I was told by a friend a U Texas that they had donors that were ready to hand out $50k for every lineman they brought in under scholarship. It wasn't one or two good ones; it was to stock the shelves 3 deep by position if possible. I heard rumors that there was around $1 mill for just that position alone. Then I found out that there were also walk-ons who were getting that kind of money because they wanted to make sure the shelves were stocked after the present season's players graduated and moved on.

It's impossible to follow the NIL money in Texas. So much of it comes from private sources. The link I'm providing is for University of Texas Rio Grande Valley. Went D-1 in football this past season and ended up being a decent team. The NIL money shown for them at this point is just the tip of the iceberg because of how much money is coming in from people with way too much money to burn, mostly from oil and cattle.

Rumor has it they're looking to reach top 20 NIL spending within the next 4 years so they can be a national power like the Longhorns. They have a smaller stadium but there is talk about a nice domed stadium down the road which could include all indoor sports events and include a lot of opportunities for businesses. Since Edinburg, Texas is one of the fastest growing cities in the US, and it's a wealthy city with inexpensive living by national standards, it's a natural draw for increased business representation. It's constantly growing.

You're going to be surprised how this little upstart college has decided they want to ring the bell.


I would love to know how the IRS is dealing with NIL payments from businesses. NIL payments aren't considered a donation. However, companies can write off Name, Image, and Likeness (NIL) payments as ordinary and necessary business expenses (often categorized as marketing or advertising costs). Does the amount paid have to equal the value received? Meaning, can a business just throw a million dollars to a University and say to the IRS, "Yup, got that in my advertising budget, therefore I deducted it as an expense."

Don't worry, I understand how business deductions work, I am not Kramer. :D

You must be logged in to see this image or video!
 
OP
OP
Voyageur

Voyageur

Cheesehead
Joined
Nov 10, 2021
Messages
4,331
Reaction score
4,030
I would love to know how the IRS is dealing with NIL payments from businesses. NIL payments aren't considered a donation. However, companies can write off Name, Image, and Likeness (NIL) payments as ordinary and necessary business expenses (often categorized as marketing or advertising costs). Does the amount paid have to equal the value received? Meaning, can a business just throw a million dollars to a University and say to the IRS, "Yup, got that in my advertising budget, therefore I deducted it as an expense."

Don't worry, I understand how business deductions work, I am not Kramer. :D

You must be logged in to see this image or video!
Good question. This might answer your question.

Generally, donors who give money to Name, Image, and Likeness (NIL) collectives cannot deduct the payments on their taxes as charitable contributions. The IRS ruled that because NIL payments primarily benefit specific private student-athletes rather than the general public, the contributions are not considered charitable. [1, 2, 3, 4]
There are two primary distinctions in how these contributions are treated:
    • Direct Collective Donations: Money given directly to a standard NIL collective to secure athlete endorsements or support is not tax-deductible. [1]
    • Business Deductions: If you own a business and pay an athlete directly for a valid marketing or endorsement contract, that payment can usually be deducted as a regular and necessary business expense. [1, 2]
Because tax regulations are complex, you can review the official guidance on IRS Name, Image, and Likeness Income for more details, or consult with a financial advisor to understand your specific giving strategy. [1, 2]
 

milani

Cheesehead
Joined
Jun 11, 2012
Messages
8,566
Reaction score
4,196
I would love to know how the IRS is dealing with NIL payments from businesses. NIL payments aren't considered a donation. However, companies can write off Name, Image, and Likeness (NIL) payments as ordinary and necessary business expenses (often categorized as marketing or advertising costs). Does the amount paid have to equal the value received? Meaning, can a business just throw a million dollars to a University and say to the IRS, "Yup, got that in my advertising budget, therefore I deducted it as an expense."

Don't worry, I understand how business deductions work, I am not Kramer. :D

You must be logged in to see this image or video!
Charitable contributions to a non-profit organization.
 

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
If you own a business and pay an athlete directly for a valid marketing or endorsement contract, that payment can usually be deducted as a regular and necessary business expense.

I bolded the key words and what I think would be open to debate with the IRS. While I think celebrities are overpaid as well, I can see State Farm being able to justify to the IRS that the $36M they paid Aaron Rodgers to endorse their product, was a justified business expense. However, if an oil tycoon throws $1M into the NIL Hat for the Longhorns to retain Arch Manning, good luck justifying that expense with the IRS.
 

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
Charitable contributions to a non-profit organization.
Don't get me started on the "non-profit" organization that Universities and Churches enjoy. Just the amount of property taxes that these businesses avoid is off the hook.

That issue (for me) is even worse when it comes to the athletic facilities, that are producing billions in income year for Universities, and enjoy that tax free status as well. Universities generally do not pay property taxes on athletic facilities used for educational and student purposes, as these properties fall under their standard educational tax exemption.
 
OP
OP
Voyageur

Voyageur

Cheesehead
Joined
Nov 10, 2021
Messages
4,331
Reaction score
4,030
I bolded the key words and what I think would be open to debate with the IRS. While I think celebrities are overpaid as well, I can see State Farm being able to justify to the IRS that the $36M they paid Aaron Rodgers to endorse their product, was a justified business expense. However, if an oil tycoon throws $1M into the NIL Hat for the Longhorns to retain Arch Manning, good luck justifying that expense with the IRS.
They hire the athletes to work for them. It's no different than athletes getting opportunities to be headliners at memorabilia sales, where they get show up money and additional cash for signing their name and allowing pictures to be taken with them. The difference is, the athlete will sign an agreement to make so many appearances a year, and the job he'd do is spelled out.

It works just as well with oil millionaires who are looking to get others to invest in their projects, or to get their foot in the door on someone else's projects. Essentially the athlete is considered a salesman and gets paid accordingly as a sales rep.

There are always ways to beat the system, and nobody does it better than the people in oil. I know, firsthand, how they work. They like to spend their money, not pay it out in taxes, and they are extremely creative in how they handle it.
 

milani

Cheesehead
Joined
Jun 11, 2012
Messages
8,566
Reaction score
4,196
Don't get me started on the "non-profit" organization that Universities and Churches enjoy. Just the amount of property taxes that these businesses avoid is off the hook.

That issue (for me) is even worse when it comes to the athletic facilities, that are producing billions in income year for Universities, and enjoy that tax free status as well. Universities generally do not pay property taxes on athletic facilities used for educational and student purposes, as these properties fall under their standard educational tax exemption.
That is why any good sized organization hires the best corporate and tax attorneys that understand the law so they will act accordingly. Tax laws are not meant to be confiscation. Avoiding taxes is what everyone tries to do and should do. Failure to pay legally required taxes is something else. If people want tax laws changed they have had every opportunity to do it.
 

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
That is why any good sized organization hires the best corporate and tax attorneys that understand the law so they will act accordingly. Tax laws are not meant to be confiscation. Avoiding taxes is what everyone tries to do and should do. Failure to pay legally required taxes is something else. If people want tax laws changed they have had every opportunity to do it.

Agee.

They should set up a fund of like $1.776 billion, for NCAA programs to draw more NIL money from. ;)
 
Last edited:

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
There are always ways to beat the system, and nobody does it better than the people in oil. I know, firsthand, how they work. They like to spend their money, not pay it out in taxes, and they are extremely creative in how they handle it.

You nailed it with those 3 words. Given that NIL payments are relatively "new", I would like to know if the IRS is actively auditing the payments AND the receiving of. Let's not forget, all the money received by athletes is considered revenue and must be reported as such.
 
OP
OP
Voyageur

Voyageur

Cheesehead
Joined
Nov 10, 2021
Messages
4,331
Reaction score
4,030
You nailed it with those 3 words. Given that NIL payments are relatively "new", I would like to know if the IRS is actively auditing the payments AND the receiving of. Let's not forget, all the money received by athletes is considered revenue and must be reported as such.
From what I gather, some schools supply accountants to handle the taxes for the athletes to ensure they don't screw it up. They're even keeping an eye open to ensure no unscrupulous agents are getting involved, stealing the money and leaving the athletes with nothing but a tax debt and no way to pay it off.

Based on some of my encounters with people down here, there are athletes that need to be instructed on how to use toilet paper repeatedly because they have the attention span of a goldfish.
 

Pokerbrat2000

Opinions are like A-holes, we all have one.
Joined
Oct 30, 2012
Messages
37,359
Reaction score
11,696
Location
Madison, WI
From what I gather, some schools supply accountants to handle the taxes for the athletes to ensure they don't screw it up. They're even keeping an eye open to ensure no unscrupulous agents are getting involved, stealing the money and leaving the athletes with nothing but a tax debt and no way to pay it off.

Based on some of my encounters with people down here, there are athletes that need to be instructed on how to use toilet paper repeatedly because they have the attention span of a goldfish.

Nice to see these athletes can be paid big adult money, but are still being handled like children.
 
OP
OP
Voyageur

Voyageur

Cheesehead
Joined
Nov 10, 2021
Messages
4,331
Reaction score
4,030
Nice to see these athletes can be paid big adult money, but are still being handled like children.
You hit the nail on the head. A 17- or 18-year-old who suddenly gets huge checks every month usually doesn't have the worldly experience where he can handle the situation, and having the right people doing it for you is important. An inexperienced agent or one who'd steal from you could destroy everything you have going for the future

There's also the fact that the majority of these young athletes have little experience in dealing with money in the real world, before they got these deals.
 

Members online

No members online now.

Latest posts

Top