re: Bipartisan legislation introduced that would remove tax write-offs for NIL collectives

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Bipartisan legislation introduced that would remove tax write-offs for NIL collectives

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for collectives, this actually makes some sense. It is not an operating expense for a business.

By comparison, if Big Biff‘s Beef Ribs restaurant wants to pay Le’Kwa’Dayreean Jackson $50,000 to advertise for his barbecue joint, how is that any different than paying Sam Jackson to do the same thing?

Yea, that sort of thing is going to be HEAVILY scrutinized.

How are athletes paid? For what services are they paid? Are they paid the same as John Doe from down the street that works for the organization in accounting or donor outreach or cleaning bathrooms? Are they paid for services that are generally only done by volunteers? In summary, are athletes that are being paid (a) actually doing work that is paid to non-athletes or (b) being paid for volunteer work that is paid to non-athletes. If there is surplus payment being made to athletes above and beyond normal value of that service provided, that amount is absolutely going to be segregated out as taxable.

Just because you throw on "purpose driven" doesn't mean a whole lot. Just because you are doing good work doesn't mean everything you get paid is non-taxable. You have to be working inside the norms and values of every non-athlete involved in your organization/sector. Anything more than that is preferential and clearly in excess due to the individual being an athlete.

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It's not, and given the SCOTUS ruling, I'm not sure you can legislate this one away.

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Agree - it's pretty black and white.

SummerOfGeorge:

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But hey, I'm sure your collection of random 5'11 white guys wearing #58 or #39 will sweep through the NL this season!

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Hey, sorry to hijack (just a brief detour actually)
Just wanted to remind you that me and my collection of random 5'11" white guys are commin'!

Maybe we'll see ya.
We're pulling for a classic Cards - Yanks series.

Found the actual legislation on senate.gov, cited as the Athlete Opportunity and Taxpayer Integrity Act.

Good luck!

..and if you find yourself in STL this fall, I'm buying!

Please refer to my signature for necessary information.

“The word bipartisan usually means some larger-than-usual deception is being carried out.” - George Carlin

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destroy commercial speech.

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What the frick is this?

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The NFL and MLB eventually gave up their tax-exempt status, mostly out of embarrassment.

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from my understanding, they just got sick of dealing with the politicians in perpetuity over their status, and, in actuality, most of the revenue generated by the NFL goes back into the owners' pockets, and the franchises are taxable entities (i.e. most of the revenue generated by the NFL is taxed).

Back when the NFL voluntarily gave up it's exempt status in 2015, the league office itself was only generating ~$9 million, which was lower than the $10 million threshold to maintain that status. Now, I'm sure there was plenty of creative accounting that went on to stay below that $10 million number, but I can see how spending millions spent every year in atty fees defending their status and CPA fees maintaining the cumbersome reporting wasn't even worth the tax write off. To me, it seems like it was a financial decision for the NFL, not "out of embarrassment."

MLB gave up their status in 2007 for similar reported reasons. They didn't feel like the hassle of it all made sense financially to fool with any longer.

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The PGA Tour is obviously set up to make a profit. It has a chief commercial officer, a chief marketing officer, and a business model that aggressively discourages competition, a classic strategy for profitability.

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The PGA is pretty unique. I think they'll end up losing their status if they don't give it up voluntarily with the current pressure and microscope they're under at the moment, but they do give a significant amount of their revenue to charity, and then you have the biggest portion of their net revenues being paid out in prize money and operating expenses. The prize money is obviously taxed to the players receiving the money. What gets muddy to me is their "reserve" fund that has hundreds of millions of dollars. I honestly don't know how they can just stash away and build their reserves and still have a tax shield.

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In short, it sure is great when Congress decides that your business model entity gets to cheat on their federal taxes, while others, like NIL, just don't quite make the grade.

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Congress put pressure on both the MLB and NFL (the NBA was never an exempt entity) and are now doing so with the PGA and NIL. Sure, maybe Congress in years' past were letting these leagues cheat the system, but what we're seeing happening now is the MLB/NFL are longer tax exempt and Congress is putting pressure on both the PGA and NIL collectives. So it appears, right now, Congress wants everyone on the same playing field and don't want any of these entities to receive tax shields.