Quinn Ewers in the portal

[Rackmaster]

Just read that Texas is offering him a HUGE NIL deal if he comes!

 

[elfiii]

Not so fast.

https://awmcap.com/blog/nil-taxes

Along with the opportunities to make money there is going to be complexity and universities should be giving the playbooks for finances and taxes to their players, too.”

No, they shouldn't. If the kids are smart enough to pull down a cool million they better be smart enough to know they need the advice of an actual CPA or tax attorney. If they aren't that smart the school of hard knocks will provide the needed education and the IRS will make sure they remember the education.

 

[gobbleinwoods]

No, they shouldn't. If the kids are smart enough to pull down a cool million they better be smart enough to know they need the advice of an actual CPA or tax attorney. If they aren't that smart the school of hard knocks will provide the needed education and the IRS will make sure they remember the education.

Remember the education--yes.
Understand it how and why it happened--no.

 

[benellisbe]

He is going to the Longhorns. I also heard he was looking at 1st round draft pick NIL money if he went to Texas...

 

[TinKnocker]

Word is Texas is Ewars' preferred landing spot. This may be good news for teams trying to lure Manning away from Texas.

 

[GTMODawg]

No...I mean tax on the scholarship. The scholarship is what made them able to get NIL money, so it should be taxable too. College athletes wanted this, now they should learn what NIL does for them. I'm talking all scholarships, not just football players getting NIL money...swim team, baseball team, etc...

They just put on their big boy pants.

I wouldn't be surprised if the IRS doesn't start viewing the scholarship value income IF the program itself is paying the player and the player is therefore an employee. I have paid income tax on benefits like housing and company vehicles which had some value...if the IRS didn't do it ALL employers and employees would claim they were making very little income but living large on company paid grocery shopping trips, dentist appointments etc. It'd be a heckuva deal.

That being said the federal and state income tax on the value of a scholarship at a major university wouldn't be much in the overall scheme of things....say a $50K annual value taxed at the tope rate of 37%, giving the player additional income over about $530K a year, would be $18,500. While that is a pile of money if your income is $540K at 19 years of age and you already owe somewhere in the neighborhood of $133K to the IRS for an effective tax rate of about 25% and adding the $50 to that income would make it an effective tax rate of about 26%. The payroll taxes would also be a shock to most folks. Texas, Tennessee, Washington and Florida would enjoy a boost in recruiting with no state income tax.

It would make more sense to simply pay a player what they are worth with the understanding that what they earned was all the wages they received. Given that they must be enrolled and making progress toward a degree when they transfer or quit or otherwise fail to fulfill their original obligation they would have already paid for whatever education they had received. Just pay them, charge them to attend school like any other employee and treat them as employees. There'd have to be some sort of salary cap and a cap on the number of such employees (scholarship limitations) but it would be far cleaner than the current system or even claiming the scholarship value is income.

 

[GTMODawg]

Word is Texas is Ewars' preferred landing spot. This may be good news for teams trying to lure Manning away from Texas.

This seems to be conventional wisdom...he played high school ball in Austen I think.

Dude did not play his senior season to make money in the NIL world. Smart for him, incredibly stupid on whoever paid a Junior in high school to not play his senior year. These kinds of decisions will not last long as companies will be loathe to part with wads of cash to a kid who isn't what he is cracked up to be. Dr. Pepper did it with Clemson's QB and after the middle of September those commercials were never seen again LOL. It is the wild, wild west right now but it will level off.

 

[GTMODawg]

So supposedly Bo Nix signed a sizeable NIL deal in August and the company that he signed with found out right fast that if you're going to play the game you gotta at least include the instate rivals equivalent....apparently Alabama fans made it abundantly clear that they were unlikely to do business with the company who signed an Auburn player LOL. College football fans are not NFL fans...if you make 300K UGA fans happy by having their QB sell your chicken fingers you will have 300K Gator, Auburn, UT, South Carolina and a host of other fan bases suddenly realize they don't even like chicken fingers. It don't work that way in the NFL for the most part because everyone is a fan based on laundry alone....but CFB fans are fans because we are ate up with our program being the only program worthy of consideration....the passion for NFL teams and players is based solely on performance this week, and probably alcohol, while that passion in CFB is based on where the kid is from, his potential and the idea that Florida is somehow better than Florida State simply because the name on the helmet.

 

[mizzippi jb]

Four score and seven years ago^^^...... ?

 

[TinKnocker]

Dude did not play his senior season to make money in the NIL world. Smart for him, incredibly stupid on whoever paid a Junior in high school to not play his senior year.

Apparently there was verbiage in the NIL that he had to start a game for OSU. So, they were fairly smart about it.