NIL Thread (Name, Image, Likeness Rule)

#202      
Into the weeds a bit, but one key advantage is that you can lower self employment taxes with an S-corp if you don't take all the money as salary. Maybe it is just a preference, but I also like organization of the completely separate entity, and I have heard that the IRS audits more returns with Schedule C income. I wouldn't discount the liability protection either; especially in todays crazy litigious world.
If they will be making more than 305k, (5x the SEP limit of 61k in 2022), then an s-corp can help lower their taxes by 1.5%(?) on the amount over 305k. They will incur additional costs for accounting and running payroll (500-1000 more/yr), plus the initial incorporation costs of 1-2k. That makes the financial break even somewhere in the 650k-950k/yr range, after paying the incorporation costs once.

I'm not arguing that everyone should do a sole-proprietorship. I went with a corporate structure when I ran a business for the liability protection. I'm arguing that going the s-corp route has a non-trivial overhead in effort (and accountant fees), that should be considered first. I found the extra hassles of the payroll and schedule K to be a lot of work, even once I outsourced them, and I've always done my own taxes with ease.
 
#204      
Into the weeds a bit, but one key advantage is that you can lower self employment taxes with an S-corp if you don't take all the money as salary. Maybe it is just a preference, but I also like organization of the completely separate entity, and I have heard that the IRS audits more returns with Schedule C income. I wouldn't discount the liability protection either; especially in todays crazy litigious world.
Like the guy who spit on the fan? Not sure what liability you could protect from. Most things are going to be personal liability anyway. Maybe you buy your car with LLC and stop paying your car payments if you lose your NIL? Maybe the people your entourage beat up can only sue the LLC? Maybe you could stiff the company paying you NIL and not be liable personally, but would expect most people would want athlete on the contract personally. Doubt there is a lot of liability benefit but could be wrong.
 
#213      
I think it is inevitable College Football and Men's College Basketball will break away into semi-pro leagues (especially with competition from G League Ignite and Overtime Elite) and out of the overall NCAA structure.
 
#214      

illini80

Forgottonia
Werner had a pretty in depth conversation with Kam Cox regarding the whole evolution of NIL up to now. Worth a listen if your interested.

One thing that stuck out to me was his comment about how we may be ahead of the game a bit today vs some other schools, but that could all change tomorrow. Itā€™s a bit like a horse race, (My analogy not his) in that even if we lead at the moment, everyone is jockeying for position and the race just started.
 
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#215      
Werner had a pretty in depth conversation with Kam Cox regarding the whole evolution of NIL up to now. Worth a listen if your interested.

One thing that stuck out to me was his comment about how we may be ahead of the game a bit today vs some other schools, but that could all change tomorrow. Itā€™s a bit like a horse race, (My analogy not his) in that even if we lead at the moment, everyone is jockeying for position and the race just started.
That analogy sounds spot on, but I think would also have applied pretty well to the pre-NIL landscape too. It's just a very competitive business. The tools available changed but I think that level of competition has always been there.
 
#216      

derrick6

Illini Dawg
Seattle
That analogy sounds spot on, but I think would also have applied pretty well to the pre-NIL landscape too. It's just a very competitive business. The tools available changed but I think that level of competition has always been there.
The tools were there but came with a large risk to the institution. Now that has all been normalized with legalese that we seem ahead on leveraging.
 
#218      
I saw Jeremy talking about Zak Perrin from France and he said one of the hold-ups is that he would be ineligeable for NIL due to the fact that he would be here on a student Visa. That kinda closes the door to foreign players a bit.

But if that's the case what about Kofi?? Was he here long enough to qualify some other way?
 
#219      
I saw Jeremy talking about Zak Perrin from France and he said one of the hold-ups is that he would be ineligeable for NIL due to the fact that he would be here on a student Visa. That kinda closes the door to foreign players a bit.

But if that's the case what about Kofi?? Was he here long enough to qualify some other way?
Kofi had dual citizenship if I'm not mistaken.
 
#220      

JFGsCoffeeMug

BU:1 Trash cans:0
Chicago
I saw Jeremy talking about Zak Perrin from France and he said one of the hold-ups is that he would be ineligeable for NIL due to the fact that he would be here on a student Visa. That kinda closes the door to foreign players a bit.

But if that's the case what about Kofi?? Was he here long enough to qualify some other way?
I heard somewhere that Kofi has dual citizenship.
 
#221      
I saw Jeremy talking about Zak Perrin from France and he said one of the hold-ups is that he would be ineligeable for NIL due to the fact that he would be here on a student Visa. That kinda closes the door to foreign players a bit.

But if that's the case what about Kofi?? Was he here long enough to qualify some other way?
Not so sure it would "close the door" as no other program would be able to offer NIL either. It would just evaporate any NIL advantage we have. Some foreign players still came over to play in the NCAA pre-NIL, so I imagine some still will post-NIL. I'm sure there will also be plenty who choose to play pro ball in Euro leagues and get the attention of NBA scouts that way, instead of going the NCAA route, just like there always have been.
 
#222      
Not so sure it would "close the door" as no other program would be able to offer NIL either. It would just evaporate any NIL advantage we have. Some foreign players still came over to play in the NCAA pre-NIL, so I imagine some still will post-NIL. I'm sure there will also be plenty who choose to play pro ball in Euro leagues and get the attention of NBA scouts that way, instead of going the NCAA route, just like there always have been.
There are many ways to pay players in Europe or elsewhere, so they would be less tempted to come here to play for free while the players around them are making money. There's still the offer of a good education but this is an area that should be looked into to improve the lot of foreign-born players who want to play here.

Shouldn't they be put on the same footing as U.S. born players? Case in point Perrin. Looks like a good candidate for back up big man.

And how about our "Canadian pipeline"?
 
#223      
And how about our "Canadian pipeline"?
canada GIF
 
#224      
There are many ways to pay players in Europe or elsewhere, so they would be less tempted to come here to play for free while the players around them are making money. There's still the offer of a good education but this is an area that should be looked into to improve the lot of foreign-born players who want to play here.

Shouldn't they be put on the same footing as U.S. born players? Case in point Perrin. Looks like a good candidate for back up big man.

And how about our "Canadian pipeline"?
Not sure what can be done legally. Players come here on student visas. They aren't allowed to work. There may be a loophole that allows them to have student employment on campus.
 
#225      
Not sure what can be done legally. Players come here on student visas. They aren't allowed to work. There may be a loophole that allows them to have student employment on campus.
There is something called an O-1 visa for individuals with an extraordinary ability in the sciences, education, business, or athletics. Maybe these Division 1 athletes can go that route? I have no idea how hard it is to get those. I am sure that is how the NBA foreign athletes get to work, but I guess it is a question of the definition of extraordinary.