Horns Payroll

[Topper]

Reported in Austin media that a group of UT alums will set uo an entity that will pay 16 scholarship linemen $50k each annually for the use of their names and likenesses etc. By the way, they will funnel the money through a nonprofit so I assume that they plan on writing this off on their taxes. Do any of you tax experts think this is questionable?*

[redpony]

IMO this is an area where we can totally outshine tcwho, if the big boys want to.
Anybody for SMU-Dallas/Metroplex- center of NIL fball stars?

[SoCal_Pony]

Tick-Tock Tick-Tock, the state of Texas may become the epicenter of NIL Wars as you know A&M will not take this sitting down.

My best guess as to the big winners in all this - USC & UT

Other potential winners - Oregon (Nike), UC-Berkeley & Stanford (wealthy alumni in economic hub), UCLA, BYU, ND, A&M, Michigan, Northwestern, Georgia, Miami & SMU. Rice in BB.

Potential Losers - virtually every B12 school, rust-belt schools…and I’ll throw out a controversial pick, the University of Alabama.

[Charleston Pony]

Tick-Tock Tick-Tock, the state of Texas may become the epicenter of NIL Wars as you know A&M will not take this sitting down.

My best guess as to the big winners in all this - USC & UT

Other potential winners - Oregon (Nike), UC-Berkeley & Stanford (wealthy alumni in economic hub), UCLA, BYU, ND, A&M, Michigan, Northwestern, Georgia, Miami & SMU. Rice in BB.

Potential Losers - virtually every B12 school, rust-belt schools…and I’ll throw out a controversial pick, the University of Alabama.

A$M already cashing in and currently has the # 2 recruiting class (according to 247Sports) with recent flips. As Ron Meyer said when asked whether SMU was the highest paying program back in the day...not even close (referring to the Aggie$)

[EastStang]

In tax terms there is a word called "private inurement" in the non-profit sector. Such a fund might be acceptable as a non-profit, but not as a tax deductible non-profit since funds raised inure to private benefit. Now if they called the payments "fellowships", or "internships" that changes the dynamic. Its hyper-technical stuff. Fact is most charities are not audited.

[Topper]

In tax terms there is a word called "private inurement" in the non-profit sector. Such a fund might be acceptable as a non-profit, but not as a tax deductible non-profit since funds raised inure to private benefit. Now if they called the payments "fellowships", or "internships" that changes the dynamic. Its hyper-technical stuff. Fact is most charities are not audited.

I understand that receipt of college scholarships and educational assistance are not usually taxable events, and the money is often distributed by tax free charitable institutions. But I can't see that the buying NIL could possibly be considered anything other than taxable income to the seller. But then I don't study the intricacies of the tax code or regulations. It didn't make sense that the UT folks would go to the trouble to set up a not-for-profit unless it gave them some sort of protection from exposure and/or a way to write off the money they pay to the players as a charitable contribution.

[ponyboy]

Is there literally anything that could legally stop a teamΓÇÖs boosters from paying a five star player $20M to come play for their school?

[EastStang]

Somehow, I think the school has to be involved to some degree. And I don't know if there is a cap. If not, we should do great in this brave new world. Buy all the 5 stars we can get, and beat the stuffings out of everyone. We have the most experience in this area.

[Arkpony]

With all the transfers going on, a player could reap millions from one school then get paid millions to transfer to another school.

[DanFreibergerForHeisman]

With all the transfers going on, a player could reap millions from one school then get paid millions to transfer to another school.

That's a great idea and not a bad idea of where we could focus our efforts.

A combination of some big money and the Dallas uniforms could get a lot of players to come home to SMU.

[JasonB]

With all the transfers going on, a player could reap millions from one school then get paid millions to transfer to another school.

That is exactly what is happening with Ewers.

[Arkpony]

I would think the original school had paid for the players full participation at their school and didnΓÇÖt get it.

[Charleston Pony]

Shades of the Trans A$M 2.0

[smubrooks]

ThereΓÇÖs a lot of talk about how much money SMU boosters have and how we can out spend 90% of schools, but to be honest I havenΓÇÖt seen it. I know we spent big in the 80ΓÇÖs, but in the last few decades we havenΓÇÖt bought our way to the P5, havenΓÇÖt bought a conference champ, havenΓÇÖt bought consistent 10win seasons, havenΓÇÖt bought our way into a ΓÇ£New Years 6ΓÇ¥ bowl, and havenΓÇÖt bought a mind blowing recruiting class (although this has been much better lately). So I read about all this money and will to spend big, but IΓÇÖm not seeing it on the field.

[Charleston Pony]

ThereΓÇÖs a lot of talk about how much money SMU boosters have and how we can out spend 90% of schools, but to be honest I havenΓÇÖt seen it. I know we spent big in the 80ΓÇÖs, but in the last few decades we havenΓÇÖt bought our way to the P5, havenΓÇÖt bought a conference champ, havenΓÇÖt bought consistent 10win seasons, havenΓÇÖt bought our way into a ΓÇ£New Years 6ΓÇ¥ bowl, and havenΓÇÖt bought a mind blowing recruiting class (although this has been much better lately). So I read about all this money and will to spend big, but IΓÇÖm not seeing it on the field.

Remember that SMU ran off it's biggest boosters and shamed them in the aftermath of the death penalty