NIL - Texas style

The Oklahoma plan at $40-50k is probably going to be the story of the future. It will move upward, from there. Expect that figure to end up in the neighborhood of $75k per year around 2025 or 2026. It's inevitable, with the money that schools like Oklahoma and Texas will see their booster groups shell out in NIL.

The difference between now, and the 60s is the amount of money, and whether it's done above board. I've seen it work.
 
TW said:
The Oklahoma plan at $40-50k is probably going to be the story of the future. It will move upward, from there. Expect that figure to end up in the neighborhood of $75k per year around 2025 or 2026. It's inevitable, with the money that schools like Oklahoma and Texas will see their booster groups shell out in NIL.

The difference between now, and the 60s is the amount of money, and whether it's done above board. I've seen it work.
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At $50k per year that’s $4m per season. In perspective to that’s what Gator Guard raised in 1 day. And that’s just 1 of 2 well funded collectives in Gainesville.

The other gorilla in the room is will the IRS allow collectives to be run as 501c. Currently Oklahoma , Ohio State & Indiana can not sure on others. There is mixed opinions on this since the donations are not for facilities. Some collectives are “for profit “ so translation, they have to sell enough tshirts to allow investors to get their money back.

Example Tennessee….
That deal could pay the player up to $8 million over a four-year period and includes several guaranteed payments at various dates within the deal. Should the collective book enough deals for the player to cover the amount of the guarantee, then the contract converts to a relatively standard split (90 percent for the player, 10 percent for the collective) for the remainder of the deal. If the collective doesn’t book enough deals, then it eats the loss. That player is believed to be Long Beach, Calif., quarterback Nico Iamaleava, who is committed to Tennessee. If he is indeed that player and Spyre Sports Group, the Knoxville-based collective operating as a marketing agency, wants to recoup its investment, then Iamaleava either will have sell at boat load of T-shirt’s or better win the SEC to justify it

My point it’s not as simple as let’s pay Willy Football $50k per year to play for Clemson. In many cases “doners” may have to choose between funding collectives or funding facilities. In some cases guys like Hugh Hathcock at Florida can probably do both but he’s the exception not the rule
 
So far you've been wrong on almost all of it, so excuse me if I don't buy into what you're saying. The issue of it being a 501c is what it is. I understand the ramifications of it because I was a board member for seven years, and President of a club down here in South Texas, where we were bringing in huge bucks as a 501c, and dispersing it. I was the compliance officer on it for 5 years. I've considered that in what I say.

Despite them not being able to directly recoup their money, there are ways they can get it back, through endorsements, and public appearances. They can even put a price tag on those appearances, and use them part of their business promotions, and write it off on their taxes.

There are so many ways that this cat can be skinned, so don't get hung up on the tidbits. They're going to do what they want, and it will be legal.

When you have tax lawyers, and accountants, who can find ways to make sure you don't pay a nickel in taxes on tens of millions of dollars income, why do you think they're helpless with this? They'll turn this into anything they want.
 
TW said:
So far you've been wrong on almost all of it, so excuse me if I don't buy into what you're saying. The issue of it being a 501c is what it is. I understand the ramifications of it because I was a board member for seven years, and President of a club down here in South Texas, where we were bringing in huge bucks as a 501c, and dispersing it. I was the compliance officer on it for 5 years. I've considered that in what I say.

Despite them not being able to directly recoup their money, there are ways they can get it back, through endorsements, and public appearances. They can even put a price tag on those appearances, and use them part of their business promotions, and write it off on their taxes.

There are so many ways that this cat can be skinned, so don't get hung up on the tidbits. They're going to do what they want, and it will be legal.

When you have tax lawyers, and accountants, who can find ways to make sure you don't pay a nickel in taxes on tens of millions of dollars income, why do you think they're helpless with this? They'll turn this into anything they want.
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Ok got it. And no I have not been wrong on almost all of it but feel free to feel that way. I did not see the collectives being such a big part of this but nobody did. Collectives happen after state laws were drafted, the NCAA “guidelines” were adopted and many states revised and amended legislation because it was too restrictive. Where I was correct was Forturne 5 company’s have been slow to get involved for obvious reasons. Sure some have with situations like the The Cavinder Twins. But feel free to read the article in The Athletic that addresses the 591c issue and the state of NIL, it’s an excellent read
 
At some point I could see every scholarship player be making upper 5 figures a year at top power 5s
 
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GBP4EVER said:
At some point I could see every scholarship player be making upper 5 figures a year at top power 5s
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I can’t. Every collective at every P5 school will have to raise $4m+ each year just for football. Very steep ask
 
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