🏈 IRS Cracking Down on Collective Contributions

[It Takes Eleven]

Wealthy college-sports boosters set up charities to pay athletes. The IRS says that’s out of bounds.

IRS Nixes Tax Edge for College-Sports Booster Groups Paying Athletes

 

[SnakeDoc]

Wealthy college-sports boosters set up charities to pay athletes. The IRS says that’s out of bounds.

IRS Nixes Tax Edge for College-Sports Booster Groups Paying Athletes

It will be interesting to see how much, if any, it affects these NILs.

 

[OldPlayer]

It will be interesting to see how much, if any, it affects these NILs.

Wealthy boosters have lawyers and accountants. They’ll find ways to get around any restrictions.

 

[SnakeDoc]

Wealthy boosters have lawyers and accountants. They’ll find ways to get around any restrictions.

True, but they may not be able to find the tax breaks that go with donations to, um . . . "charity."

 

[It Takes Eleven]

Wealthy boosters have lawyers and accountants. They’ll find ways to get around any restrictions.

It's not a restriction on the payments, it's a disallowance as a charitable contribution.

In my view, this was inevitable. The NIL was supposedly cast as the value of a player's earnings potential. Payments were to come from businesses valuing their advertising/appearances. Collectives were established as sham shells, not for the purposes of a going concern utilizing player NIL value for the furtherance of core operations, but rather as entities serving to attract players to a school through monetary enticements. Neither end of this spectrum qualifies as a charitable organization.

Payments will continue, but without the tax deduction. Smaller boosters might dial back amounts knowing they won't get a deduction, but the yeller fellers of the world won't be swayed. Interesting they used the aTm photo in the article.