re: What is the process that recruits/players are paid?

quote:

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What law am I breaking by giving a kid $10k of my money as an LSU booster?

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You're not. The potential broken law is that the kid has to pay income tax on that $10k. And if he pays income tax and the money is coming from an impermissible source (a booster, in this case), the NCAA can see that and penalize the player. There is no law against you giving $10k to a random LSU student.

So the athlete has two options:
Either he doesn't break the law and pays taxes but gets caught by the NCAA

Or he breaks the law by not paying taxes, but may get away with it. Problem is the IRS isn't quite as toothless as the NCAA. They are still understaffed and overworked, but they have subpoena power and will want to know how you afford the apartment you live in and the car you bought.