NIL era brings cautious optimism to college-town businesses

Budman said:
Would definitely be interesting what kinds of things are a $0 cash value
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Just a guess but appearing on a podcast would be difficult to quantify. Same with making an appearance at a camp or giving a speech. Could be done under the umbrella as a “donation”.
 
Packinatl said:
It’s also a tax question. This from a friend who works for Legends who handles U of Miami rights.
“ goods, clothing and shoes, and the income listed on a 1099 will ultimately need to be picked up as income.”

What comes into play is anything less than $600 does not need to get reported on a 1099. Also an example they get a car to drive that’s also by law “income” based on vehicle value
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I would expect they would get 1099s on everything they get. Even a pizza a month, at $20 each, would have to be reported. The car you are referring to would also have a relative value, which would have to be reported as income.

The 1099 battle is an interesting one. Both of my sons hire sub-contractors on a regular basis, and walking that fine line between sub-contract and employee is one that has to be tread carefully. I'm not certain how it would work out with the NIL stuff, but when both of my sons pay out over $500,000 a year on 1099s, everything they do is scrutinized by tax attorneys to insure it's handled properly at all levels.

Anyhow, I hope these kids get enough out of this to make it worth while.

EDIT NOTE: There's a threshold where you don't have to report this income. Something like $600?
 
TW said:
I would expect they would get 1099s on everything they get. Even a pizza a month, at $20 each, would have to be reported. The car you are referring to would also have a relative value, which would have to be reported as income.

The 1099 battle is an interesting one. Both of my sons hire sub-contractors on a regular basis, and walking that fine line between sub-contract and employee is one that has to be tread carefully. I'm not certain how it would work out with the NIL stuff, but when both of my sons pay out over $500,000 a year on 1099s, everything they do is scrutinized by tax attorneys to insure it's handled properly at all levels.

Anyhow, I hope these kids get enough out of this to make it worth while.

EDIT NOTE: There's a threshold where you don't have to report this income. Something like $600?
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Yes it’s $600. As to a vehicle it’s MSRP as value. One thing that’s interesting in this, is that if a player, let’s say in Florida has an endorsement deal which covers multiple states. That player wound be liable for state tax in say Georgia but not Florida which has no state income tax.
 
This is really important >>. Ohio State announces that its athletes soon will be able to profit off of school trademarks and logos if they voluntarily opt in to a licensing agreement with The Brandr Group. OSU will not create deals or rep athletes but can approve or disapprove of use of its trademarks/logos. North Carolina also uses the same company

This will allow fans to purchase Ohio State jerseys bearing players' names, as well as other licensed merch in the future.

The NCAA has opposed group licensing so any uniform NCAA NIL would be extremely difficult to enforce and implement
 
Packinatl said:
It’s also a tax question. This from a friend who works for Legends who handles U of Miami rights.
“ goods, clothing and shoes, and the income listed on a 1099 will ultimately need to be picked up as income.”

What comes into play is anything less than $600 does not need to get reported on a 1099. Also an example they get a car to drive that’s also by law “income” based on vehicle value
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I was gonna say, the IRS will have their say on what is deemed income and reportable
 
And then there is this
LSU QB Myles Brennan, who has signed five name, image and likeness deals, broke his arm, could be done for season. One of his deals was with Ford.

It’s one thing to bet on a pro athlete to endorse your brand, thats a proven commodity. College kid so many risks. Buyer beware
 
Packinatl said:
Yes it’s $600. As to a vehicle it’s MSRP as value. One thing that’s interesting in this, is that if a player, let’s say in Florida has an endorsement deal which covers multiple states. That player wound be liable for state tax in say Georgia but not Florida which has no state income tax.
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Working contract, I was always tweaking things like state tax into each of my contracts. It's amazing how much of a difference there is in what you need working in a place like San Francisco, compared to San Antonio, TX, with no state tax.

I actually had those two occur, in succession. I went from a contract in SA at 100%, and in San Francisco, it was 145%. It was actually that much of a difference when it came to housing, food, and state income tax.
 
TW said:
Working contract, I was always tweaking things like state tax into each of my contracts. It's amazing how much of a difference there is in what you need working in a place like San Francisco, compared to San Antonio, TX, with no state tax.

I actually had those two occur, in succession. I went from a contract in SA at 100%, and in San Francisco, it was 145%. It was actually that much of a difference when it came to housing, food, and state income tax.
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I have always kept my billable the same unless I had to factor in travel, just easier to run it thru the LLC
 
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