Tax Reform - College sports implications

#2
You are the professional, , so can answer better than most of us, but aren't most coaches "salaries" much smaller than their total compensations? In other words, the actual salary paid to Saban ( to use the article's example) by Alabama is "only" $1m. The balance iirc is compensation by outside sources like speaks ng engagments, tv/radio etc. so the oath gets a big comp, but the university pays a relatively small portion of that amount.

The IRS doesn't care as far as the coaches total comp, but does that affect this idea put forth in this article?
 
#3
You are the professional, , so can answer better than most of us, but aren't most coaches "salaries" much smaller than their total compensations? In other words, the actual salary paid to Saban ( to use the article's example) by Alabama is "only" $1m. The balance iirc is compensation by outside sources like speaks ng engagments, tv/radio etc. so the oath gets a big comp, but the university pays a relatively small portion of that amount.

The IRS doesn't care as far as the coaches total comp, but does that affect this idea put forth in this article?
I thought the same thing, regarding the comp from the school being a "small" portion of the overall. I am sure, if it were an issue, that we could simply redo our deal with Nike, and have them comp the coach directly for wearing their shoes. Financially, $0 net change.
 
#4
Ordained Dudeist Priest
Johns Creek, GA
I thought the same thing, regarding the comp from the school being a "small" portion of the overall. I am sure, if it were an issue, that we could simply redo our deal with Nike, and have them comp the coach directly for wearing their shoes. Financially, $0 net change.
The way I read the verbiage in the bill, this is specific to compensation from the non-profit. I can't recall seeing a coaching contract that had specifics on $X for wearing Nike/Adidas/whatever, but I've certainly not seen them all.

The impetus behind this piece of the tax bill was intended to cut down on what some view as extravagant salaries for executives of non-profits, as well as the contradiction of a university athletic department being deemed non-profit, but also part of a multi-billion dollar industry that generates revenue for television, athletic wear, etc.

This will take a while to shake out, and there are a lot of different ways schools can go, from divesting the athletic departments into a private, for-profit entity (which has ramifications for Title IX and other things) to sucking up the tax penalty and having to eliminate funding for non-revenue sports,
 
#5
Western Suburbs
With the recent tax law changes, the following is now the law:

After December 31, 2017, donations given to the I FUND for access to season tickets at State Farm Center and Memorial Stadium are no longer tax deductible.

After December 31, 2017, donations given to the I FUND for access to season parking passes at State Farm Center and Memorial Stadium are no longer tax deductible.

This information came from the following: http://jointheifund.com/