Started By
Message
Mizzou NIL
Posted on 12/4/23 at 2:34 pm
Posted on 12/4/23 at 2:34 pm
I'm a booster through my company. Every quarter we make for example, $1,000,000 gross profit. Well gotta pay taxes. Now the goal is to get taxable income down to $750,000. It lowers taxes from 55% to 52% which is $30k savings.
I take all government deductions and credits, leases etc, let's say we are now at $760k. That's when we write a 10k donation to MU or the NIL because they are non-profit organizations. So that $10k donation saves me 30k in taxes.
So I give $10k to the NIL collective. I then choose which opportunities I want my money going towards. I.e. athlete at Childrens Hospital, Cancer Walk or some opportunity.
Athletes sign up for these opportunities and are compensated as I directed. Some boosters just throw into a pool and let the collective work out the details.
So the bigger the NIL the more opportunities available. Athletes have to participate in the opportunities to get paid. They cannot be paid to just show up and play sports. Pay for play is not allowed.
The NIL can promise an athlete whatever they want, but there is no guarantee the opportunities will actually exist for them. This happened at Florida with a 4 star QB recruit that the NIL said he would make 2 million, and their whole NIL wasn't that big at the time.
Mizzou has a great collective it just doesn't have a big multi-million dollar donor. But we have alot of really good opportunities, and we follow through. Unlike big program NILs who promise millions to get headlines and don't actually deliver, so you see their blue chip players in the portal constantly trying to chase big money opportunities. For example the 5 star DT at A&M who just hit the portal.
Sorry this is so long but hope it explains this nasty NIL thing.
I take all government deductions and credits, leases etc, let's say we are now at $760k. That's when we write a 10k donation to MU or the NIL because they are non-profit organizations. So that $10k donation saves me 30k in taxes.
So I give $10k to the NIL collective. I then choose which opportunities I want my money going towards. I.e. athlete at Childrens Hospital, Cancer Walk or some opportunity.
Athletes sign up for these opportunities and are compensated as I directed. Some boosters just throw into a pool and let the collective work out the details.
So the bigger the NIL the more opportunities available. Athletes have to participate in the opportunities to get paid. They cannot be paid to just show up and play sports. Pay for play is not allowed.
The NIL can promise an athlete whatever they want, but there is no guarantee the opportunities will actually exist for them. This happened at Florida with a 4 star QB recruit that the NIL said he would make 2 million, and their whole NIL wasn't that big at the time.
Mizzou has a great collective it just doesn't have a big multi-million dollar donor. But we have alot of really good opportunities, and we follow through. Unlike big program NILs who promise millions to get headlines and don't actually deliver, so you see their blue chip players in the portal constantly trying to chase big money opportunities. For example the 5 star DT at A&M who just hit the portal.
Sorry this is so long but hope it explains this nasty NIL thing.
This post was edited on 12/4/23 at 9:15 pm
4
Posted on 12/4/23 at 4:14 pm to surgicalvenom
quote:
It lowers taxes from 55% to 52% which is $30k savings.
Is that really savings, though?
Posted on 12/4/23 at 4:23 pm to notsince98
Yeah, because without adjustments to income, the company is stuck in a higher tax bracket. That's why government incentives are so huge. For example we get subsidized through tax credits for American Made solar panels instead of importing cheaper Chinese panels.
Instead of giving a rebate on each American panel, we get a tax credit to lower taxable income. To max out the benefit it's great when you can break into a cheaper tax bracket. And by law a business can use a small percentage of income for charitable contributions as a tax credit.
Instead of giving a rebate on each American panel, we get a tax credit to lower taxable income. To max out the benefit it's great when you can break into a cheaper tax bracket. And by law a business can use a small percentage of income for charitable contributions as a tax credit.
This post was edited on 12/4/23 at 4:29 pm
Posted on 12/4/23 at 7:04 pm to surgicalvenom
Does your company give you the leeway as to where to put the charitable donation? I’m assuming Mizzou is educating and pitching this to prospective participants in the collective right?
Posted on 12/4/23 at 8:16 pm to MIZ58
I'm a small donor. But let's pretend I was donating $1,000,000 to buy us a QB, and I owned 20 new car dealerships.
Drink would do a home visit, I would contact the collective and offer a sponsorship deal specifically for this QB. I would put together terms i.e. kid has to visit all my dealerships for 4 hrs take pics and sign autographs.
Paid 350k through Junior year total of 1 million. The collective calls his NIL agent, tells him there is a million dollar deal in place if he signs with Mizzou.
For small people like me, I can direct to whatever sport or athlete, but I let the collective put together deals. For example I would like to build up wrestling opportunities to get the team over the hump. But to be effective we need about 5-7 people at my level to get about 3 top guys out of PA or Ohio.
Drink would do a home visit, I would contact the collective and offer a sponsorship deal specifically for this QB. I would put together terms i.e. kid has to visit all my dealerships for 4 hrs take pics and sign autographs.
Paid 350k through Junior year total of 1 million. The collective calls his NIL agent, tells him there is a million dollar deal in place if he signs with Mizzou.
For small people like me, I can direct to whatever sport or athlete, but I let the collective put together deals. For example I would like to build up wrestling opportunities to get the team over the hump. But to be effective we need about 5-7 people at my level to get about 3 top guys out of PA or Ohio.
This post was edited on 12/4/23 at 8:19 pm
Posted on 12/4/23 at 8:39 pm to surgicalvenom
Good thread.
Appreciate you taking the time to share. Found it interesting.
Appreciate you taking the time to share. Found it interesting.
Posted on 12/4/23 at 10:58 pm to everytrueson
No problem. Just wanted everyone to have a good picture of NIL. Seems like everytime a recruit chooses another school fans scream NIL. Even coaches are crying. It's not nearly as nefarious as people make it. And every player isn't a millionaire.
Is there some underhanded stuff, sure. But the big thing is it gives boosters alot of legal control. A&M boosters invested in the #1 recruiting class. Jimbo shite the bed and those boosters pulled back their NIL money. Contracts don't get renewed, kids leave. South Carolina had a Freshman WR get a deal, he got hurt, missed the season, deal did not get renewed, he hit the portal.
Mizzous approach let's kids earn money without kids playing for just the money. I think that's the proper approach.
Is there some underhanded stuff, sure. But the big thing is it gives boosters alot of legal control. A&M boosters invested in the #1 recruiting class. Jimbo shite the bed and those boosters pulled back their NIL money. Contracts don't get renewed, kids leave. South Carolina had a Freshman WR get a deal, he got hurt, missed the season, deal did not get renewed, he hit the portal.
Mizzous approach let's kids earn money without kids playing for just the money. I think that's the proper approach.
Posted on 12/4/23 at 11:35 pm to surgicalvenom
Appreciate the support for the Mizzou program. But, you realize the tax brackets are "marginal". Let's say the 52% to 55% bracket change occurs at $750k and your taxable profit is $1M. Then you only pay the 3% increase on the amount above the 52% level or $250k in this case, not the full $1M. Since the increased tax rate is 3% on $250k the "extra" tax is $7.5k not $30k.
So, in your example of $760k with a $10k NIL deduction, you reduce your taxes by $5.5k (since it's all in the 55% bracket), not $30k since the amount below $750k remains in the same bracket(s). You paid $10k to get that deduction, so it cost you $4.5k to give Mizzou a $10k NIL. Awesome donation and much more economical to make it but it is still costing you money to make the donation.
So, in your example of $760k with a $10k NIL deduction, you reduce your taxes by $5.5k (since it's all in the 55% bracket), not $30k since the amount below $750k remains in the same bracket(s). You paid $10k to get that deduction, so it cost you $4.5k to give Mizzou a $10k NIL. Awesome donation and much more economical to make it but it is still costing you money to make the donation.
Posted on 12/5/23 at 6:33 am to truman_in_nc
Yes I realize that, but I was using simple numbers to explain NIL not to teach accounting.
I'm not here to brag about my donations or my business that would be inappropriate. The point is there is a real process most of us go through. There is this perception we just write checks to buy kids off the portal. When the truth is we're a bunch of small businesses using a pain-free method to build the Mizzou collective.
I'm not here to brag about my donations or my business that would be inappropriate. The point is there is a real process most of us go through. There is this perception we just write checks to buy kids off the portal. When the truth is we're a bunch of small businesses using a pain-free method to build the Mizzou collective.
This post was edited on 12/5/23 at 7:31 am
Posted on 12/5/23 at 9:42 am to truman_in_nc
quote:
Appreciate the support for the Mizzou program. But, you realize the tax brackets are "marginal". Let's say the 52% to 55% bracket change occurs at $750k and your taxable profit is $1M. Then you only pay the 3% increase on the amount above the 52% level or $250k in this case, not the full $1M. Since the increased tax rate is 3% on $250k the "extra" tax is $7.5k not $30k.
So, in your example of $760k with a $10k NIL deduction, you reduce your taxes by $5.5k (since it's all in the 55% bracket), not $30k since the amount below $750k remains in the same bracket(s). You paid $10k to get that deduction, so it cost you $4.5k to give Mizzou a $10k NIL. Awesome donation and much more economical to make it but it is still costing you money to make the donation
This is what I was hinting at. Spending more to get below a marginal tax bracket still costs you more money. Sure you pay less taxes but in the end you still have less money in the bank account.
Posted on 12/5/23 at 9:57 am to notsince98
You're absolutely correct, but I was using easy to follow math because the actual numbers, methods, exemptions aren't the point. The point is there is a process for regular small business owners to participate. We aren't a bunch of fat cats in some smoky backroom writing checks to buy a football team. But that seems to be the way fans are starting to see NIL.
Yes there are a few "Oil Guys" out there who beat their chest and throw money around. But most of us are regular guys who donate these weird small amounts because it's based on taxes. And it changes every quarter and some quarters there are no donations because the numbers don't work out.
Yes there are a few "Oil Guys" out there who beat their chest and throw money around. But most of us are regular guys who donate these weird small amounts because it's based on taxes. And it changes every quarter and some quarters there are no donations because the numbers don't work out.
Posted on 12/5/23 at 10:04 am to surgicalvenom
I didn't think you were were bragging. Thanks for donating the way you do. I wish I had that ability. We need all of you that we can get.
Posted on 12/5/23 at 10:26 am to MIZZtshirtfan
Check this out...if you knew how little NIL actually spends on football it would blow your mind.
Luther Burdens deal is by far the biggest, and that was 100% funded and designed by Schnucks. Didn't draw from the collective at all.
So name another player that the collective would have "bought" to come to Mizzou. There isn't one. Cook, Schrader, KAD, Rakestraw all earn NIL based on their hard work. IMOs Pizza does alot, and Cook just picked up another and Schrader got a decent one too. But it's because they are popular players.
I laugh when people write how much NIL is paying every player. You know who makes money? Hot volleyball and swimmer girls in bikinis with 500k members on Instagram. Because they pose with a Yeti thermos between their boobs and guys click on the ad.
Edit* Forgot the Thiccer Kicker Burger. LOL
Luther Burdens deal is by far the biggest, and that was 100% funded and designed by Schnucks. Didn't draw from the collective at all.
So name another player that the collective would have "bought" to come to Mizzou. There isn't one. Cook, Schrader, KAD, Rakestraw all earn NIL based on their hard work. IMOs Pizza does alot, and Cook just picked up another and Schrader got a decent one too. But it's because they are popular players.
I laugh when people write how much NIL is paying every player. You know who makes money? Hot volleyball and swimmer girls in bikinis with 500k members on Instagram. Because they pose with a Yeti thermos between their boobs and guys click on the ad.
Edit* Forgot the Thiccer Kicker Burger. LOL
This post was edited on 12/5/23 at 12:11 pm
Posted on 12/5/23 at 12:38 pm to surgicalvenom
Yeah, I'm not sure why there isn't a college Cheerleader/dance team calendar industry already set up.
I suspect this is why the usual Title IX mouthpieces are keeping quiet. If we knew how much bank some of these girls are pulling in . . .
I suspect this is why the usual Title IX mouthpieces are keeping quiet. If we knew how much bank some of these girls are pulling in . . .
This post was edited on 12/5/23 at 12:41 pm
Posted on 12/5/23 at 2:51 pm to Drydock
Posted on 12/6/23 at 11:15 am to surgicalvenom
A couple of things to add:
As others have pointed out the tax savings example you provide is unrealistic. You won't reap a greater tax benefit than your contribution. Also, not sure how you’d be in a 55% or 52% bracket even combining federal and state tax rates. However, you stated earlier that you were more focused on the workings of the collective than the tax aspects so let's move on from there.
Some may have heard that the IRS has increased its scrutiny of these collectives. That is true and it advised in an Office of Chief Counsel memorandum last May that in many cases the NILs will not be furthering an exempt purpose under 501(c)(3). Their reasoning is beyond the scope of this post (and yes they do address the involvement of charitable organizations the way the Every True Tiger collective is organized).
Now, should donors worry about this? Not currently because the Every True Tiger collective has (per their website) received a determination letter granting them 501(c)(3) status. As such contributions should be deductible by donors unless and until the IRS notifies the public that contributions to the organization are no longer deductible.
Should that ever come to pass however, donors could simply make future contributions to the University Tiger Scholarship Fund’s Tiger Branding Fund which is organized with the same objective in mind.
So in summary, as you point out, all fans have the opportunity to support MU’s NIL effort and receive a tax deduction in the process thus subsidizing their contribution. So please do!
As others have pointed out the tax savings example you provide is unrealistic. You won't reap a greater tax benefit than your contribution. Also, not sure how you’d be in a 55% or 52% bracket even combining federal and state tax rates. However, you stated earlier that you were more focused on the workings of the collective than the tax aspects so let's move on from there.
Some may have heard that the IRS has increased its scrutiny of these collectives. That is true and it advised in an Office of Chief Counsel memorandum last May that in many cases the NILs will not be furthering an exempt purpose under 501(c)(3). Their reasoning is beyond the scope of this post (and yes they do address the involvement of charitable organizations the way the Every True Tiger collective is organized).
Now, should donors worry about this? Not currently because the Every True Tiger collective has (per their website) received a determination letter granting them 501(c)(3) status. As such contributions should be deductible by donors unless and until the IRS notifies the public that contributions to the organization are no longer deductible.
Should that ever come to pass however, donors could simply make future contributions to the University Tiger Scholarship Fund’s Tiger Branding Fund which is organized with the same objective in mind.
So in summary, as you point out, all fans have the opportunity to support MU’s NIL effort and receive a tax deduction in the process thus subsidizing their contribution. So please do!
This post was edited on 12/6/23 at 11:51 am
Posted on 12/6/23 at 11:26 am to surgicalvenom
Seems like this will work out very well for female athletes because of title 9 if it goes through. Bad for low revenue sports, i’m guessing.
Posted on 12/6/23 at 11:43 am to pauliebleaker
quote:
Seems like this will work out very well for female athletes because of title 9 if it goes through. Bad for low revenue sports, i’m guessing.
A lot of modeling money to be had for pretty female athletes with even half a brain for marketing themselves smartly.
Posted on 12/7/23 at 8:55 pm to surgicalvenom
yeah, I didn't take it that you were bragging at all. More power to you if you can and are willing to make donations to the program. As a fan, it's great when there is support for the program. I was just trying to be clear on the "cost" of making those donations as there may be people that misinterpret the math and do something that they don't understand. End of the day, you still take home less but it costs you much less to make the donation than at first glance.
Page 1 of 1
Popular
Back to top
Follow SECRant for SEC Football News