Realignment Megathread (All The Moves)
- Thread starter ISUcyclones11
- Start date
How do you know that the IRS isn't monitoring the other university revenue streams for compliance?
The IRS is certainly monitoring non-profit hospitals. In June 2024, the IRS announced they were auditing 35 non-profit hospitals because of low community benefit reporting on their 990's. The 35 hospitals weren't named.
Of course any entity can show they don't make profit. The question is whether the means they use to arrive at that result are legitimate, and whether the entity is legitimately providing benefit to the community on the journey to making no profit.
I see no issue with the IRS and those in Congress responsible for taxation reviewing the appropriateness of non-profit status for the college sports business. If they can show they deserve the non-profit status, then the IRS can cross them off the list and move on to something else.
I know a lot of small businesses that can and do claim no profit.
I know of a past family business that had several years that showed being in the red before actually making a profit.
Showing little to no profit does not mean you can claim to be exempt due to non profit status.
Non profit status is a much different thing with much different requirements then just being able to show your business did not generate a profit when balancing all the books in regards to expenses and write offs.
And I would guess there are a lot of those that claim to be nonprofits that way over the line on many of the restrictions, doing much digging on many of them probably will put their status in jeopardy if the decide to push it.
https://www.forbes.com/advisor/business/types-nonprofits/
I doubt anyone actually thinks that a business qualifies as non profit simply because they don’t make money.
Fox is disguised as Tony Petitti.
Cody Campbell has a great idea for Michigan and Ohio St and other Legacy B10 members to fix their problems: Pool Media Rights, Double/Triple your media revenues, and rationally realign to get rid of the likes of Rutgers, UCLA, Maryland, etc.
I can only go by what I was replying to, in which it was insinuated that the universities "could show little profit" if they wanted to.
I think they should tax the schools. This is no longer college sports.
Personally, I think they should be required to adhere to the rules of non-profit orgs, more than I think they should be taxed.
The problem is between the money, commercialization, and now the numerous court decisions that include paying players etc, it has gotten pretty difficult to continue with following the regulations for what a non-profit is supposed to be. And that is just the money aspect of it, there are other areas of the rules that are getting pretty far into the gray with the actual rules.
So, do I think these universities, are following the regulations and rules, to be a non-profit, NO, in a number of ways. But I would rather have them be monitored and more strict requirements be enforced, thus they follow the rules, rather than be taxed. But the problem is the system is not set up that way, and things have gotten so far out of hand that unfortunately losing their status may be the only way to correct it.
The question is, does anyone with the power to do something actually have the stones to actually do something.
That would be very sad. I've been following college sports for over 40 years. On the other hand, I really can't justify the government subsidizing my entertainment budget by giving college sports an undeserved tax break, if it is determined that college sports is getting non-profit status that they don't deserve.
Ultimately, it seems pretty clear to me from the Big Ten payday loan scheme that for many (most??) of the colleges, college sports isn't sustainable as it currently is. Might as well rip the band-aid off and start working on something that has a chance of succeeding long term.
For context, that stadium has a capacity of 25K. So that is a factor in those prices as well as the demand.
I've seen that Stadium. It's pretty cool. If you've spent any amount of time in Montana, you know that this story totally checks out.
Are you sure in the black? Just using Iowa, I don’t want to look up all of them, they are just shy of 250MM in debt. 110 would cut it almost in half, but they have been struggling to pay off the 250 and the bonds are going to reset interest rates in the next year or two so most likely the rates will double.
I believe the media payouts will increase, but we may have have seen the large increases already happen. These deals doing 2-3x increases in 6 years may be over. ESPN and others have already trimmed staffing and talent. They have even went with cheaper talent in some regards as the broadcasters aren’t at the same level as they used to be.
But it does lead to the question of, are these P4/5 ADs now a business or still just a non profit? You have hired players basically, huge buyout wages for coaches, and now PE investing in them.
So he’s basically saying we are going down to 3 conferences. If you add up the numbers in the 4, you get around 60-70
Unfortunately, large salaries don't eliminate you from being a non-profit. Look at the ivy league foundations as their CEOs all make two to three million dollars a year running their nonprofits.
