Heard an interesting proposal - NIL luxury tax
- Thread starter Newell
- Start date
I do hope they are paying social security and income tax on the NIL money. Also, as employees of the university, they should be kicking in to IPERS as well.
I'm guessing the contracts are written so that athletes aren't IPERS eligible. (I would hope so anyway)
Why shouldn't they have to kick in like everyone else getting a paycheck from ISU?
Yeah, that would hammer the budget another couple million if they were in IPERS.
Mainly because the tax payers will end up funding it in the end. Isn't it a matching program? I'm unfamiliar with how IPERS actually works. I know the tax payers have helped it out at least once when it had some issues. At least that's the way I remember it.
My idea is that if a player goes from school A to school B and school B pays the player $1m, they also must pay school 20%. So it costs school B $1.2M and school A gets something to help their budget.
Mainly this would help the budget of school Q, but it also makes it cheaper to retain your own players.
Well, sure, anything that you've paid into can be gutted and raided by those in power...like Social Security, annuities, even your bank account (don't be fooled by the federal insurance, that can go away in a heartbeat).
What's more, if you're worried about the university having to pay in...remember that the athletes earning the big bucks do it on the back of the university that pays for the facilities, the equipment, the training, the health care, travel, room and board, - hell, even laundry service for uniforms. Seems to me that the mega earners should be kicking in on what's required of everyone else like any other private contractor. Anyone else who is "self-employed" has to do the same.
In fact, maybe it's time to talk about merit pay based on actual performance and not anticipated results. Every other public employee is subjected to that old canard on a regular basis, too.
Just food for thought.
They wouldn't be employees long enough to fully vest...oh wait I guess there are some who are actually playing 7 years.
I'm not in the weeds on these. Doesn't a luxury tax in the Pros work because the organization owns the NIL rights for the players? I can't compute how that would work in the collegiate leagues where players can opt out of the schools payment to get their own NIL deals. Maybe thats not the rule anymore...
I agree but Mississippi is apparently passing a law exempting athletes from paying tax on NIL. If other states follow that would put ISU at a disadvantage.
That's true. I suspect the Big 10 and SEC would work "behind the scenes" to stop it. I think the athletes are not the only ones getting paid. SEC got 14 schools in the big dance last year. Texas and OU were 6-12 in the conference and got in. This year the SEC isn't good but projections are they will get 11 in the tournament. They had 40% of the schools in the football playoff. 5 of 12 schools. The only non-conference game the SEC won was vs Tulane.
The big money owns college sports now including the committees.
Someone can connect me if I'm wrong here, but I don't see how a luxury tax or IPERS could be connected to NIL.
There are two buckets of money that college athletes can be paid from: revenue sharing and NIL.
Regarding revenue sharing, the NCAA is allowing each university to distribute around $22 million/year of their own money to their athletes at their own discretion. At ISU, for example, Jamie Pollard has decided to designate $13 million of that to the football program and $5 million to the men's basketball program, to be divided among their individual players at the coach's discretion.
NIL comes from private entities (e.g., Fareway, Wilson Toyota, etc.), and is not connected to the University. There is no limit on how much NIL money an athlete can earn.
Because the NIL money does not come from the University, I don't see how it could be subject to IPERS or some type of luxury tax.
There are two buckets of money that college athletes can be paid from: revenue sharing and NIL.
Regarding revenue sharing, the NCAA is allowing each university to distribute around $22 million/year of their own money to their athletes at their own discretion. At ISU, for example, Jamie Pollard has decided to designate $13 million of that to the football program and $5 million to the men's basketball program, to be divided among their individual players at the coach's discretion.
NIL comes from private entities (e.g., Fareway, Wilson Toyota, etc.), and is not connected to the University. There is no limit on how much NIL money an athlete can earn.
Because the NIL money does not come from the University, I don't see how it could be subject to IPERS or some type of luxury tax.
Without a CBA and players union, this is dead on arrival. Zero chance that can happen without both of those things in place. The NCAA would be hit with anti-trust lawsuits so fast their head would spin.
Perhaps the way to solve that is what Cincinnati did. They are going to get a million of Texas Tech's oil money.
