OT: LSU Being Investigated for Not Reporting NIL Deals

Football
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Multiple sources including the New York Times and CBS Sports are reporting that the College Sports Commission (CSC) has initiated an investigation of LSU, for not reporting to the CSC third party NIL agreements. The article states that other schools have been notified of a similar investigation, but no other names have been identified

It will be interesting to see how this investigation unfolds, if the CSC issues any penalties, and who the other schools are.

Meanwhile, while some schools allegedly failed to submit NIL paperwork, Mississippi is reportedly illegally contacting players from other schools. I hope CSC has enough bandwidth to perform multiple investigations.

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The CSC doesn’t really have the authority to enforce anything at this point. Schools can choose to just treat their opinions as “advisory” and continue what they were doing.

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Nichols St will have scholarships cut to punish LSU.

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I looked up “other schools” in the thesauraus and came back with, “remaining SEC schools.”

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Why wouldn’t they report those deals? The only reason I can think of is one of the parties involved is dodging taxes. And while the CSC might not not have any power, they can tip off the IRS who does.

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I wonder if TT is on the list

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McCasland just tweeted for you to meet him behind the donkey trough

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sec commissioner:

espn’s cfp CEO:

Caught cheating:
In the background we can see running sec schools presidents.
Expect…absolutely nothing
Meanwhile at the ncaa headquarters:

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Don.t be ridicules, everyone knows it will be ULL. :wink:

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Until there is some kind of a legally supported enforcement mechanism, why would the likes of LSU or UT or ATM or Texas Tech agree to report anything to this bogus CSC agency? :thinking:

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Indeed they have been cheating for decades.

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Maybe it has nothing to do with dodging taxes, as reporting to CSC has nothing to do with tax. Maybe it’s simply trying to keep competitive info out of the hands of your competitors. Like if school a knew what school b was paying they could offer more. Especially if there is no real requirement or the CSC has no teeth to enforce it’s rule.

You could absolutely not report to the CSC and still be reporting payments properly to the IRS.

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Clear fact that is undeniable. All of these so called blue bloods have been cheating for decades with the ncaa covering for them. The moment everybody agrees on this we can have a clear path to a true equal playing field.
A true clear playing field can only be achieved through irs reporting. And this is where it becomes the grey area and when the time has come for the ncaa to be disolved and replaced by a true independent body.

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Sorry that’s just wrong. The IRS reporting is not going to give you a true clear playing field. Reporting income to the IRS comes after the payments are made, not before. So for instance if you pay a player to jump to your school in the January transfer portal, the payment wouldn’t be reported in detail until the following January. No matter if it is going to be on a 1099 or W2. Plus income information reported to the IRS is supposed to be kept secret by law.

Now reporting to the CSC or some other body when contracts are signed, and keeping it public, sure. That could absolutely be done with transparency but they would need some sort of legal teeth to enforce it.

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Fine but at least get rid of the ncaa with the irs playing a key role in a new “body/commission”. They are a huge part of the problem. Only a truly Federal independent commission can solve this. Again until we all agree that the these blue bloods have been cheating for decades with the ncaa helping them nothing will truly work.

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Keep the IRS out of it. That is not their function or mission. The IRS is already understaffed, has outdated systems, and other issues. They should not be a part of any sort of regulation of college athletics or nil etc. - yes the income would still need to be reported to the IRS on a 1099, withholding paid to the IRS, and wages reported to social security on the W2 but that should be the extent of the IRS involvement.

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That is your opinion dustin. IRS implications will have a direct impact.

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Chris, I am a tax professional and have been for 10 years. It is my professional opinion that the IRS should not be involved in college athletics other than in their normal role of having income reported.

What isn’t my opinion, but is a fact, is the IRS is chronically understaffed, their systems are way out of date, the income is only reported at the end of the year (or later) and that income information reported to the IRS is confidential by law.

If you want transparency, the IRS can’t and shouldn’t be where you go, if you want timely information on the payments or contracts, the IRS is also not where you would go. Those are facts.

Based on those facts and my experience as a tax professional, I can tell you that it should not be (and you really don’t want it to be) the IRS regulating things like NIL contracts, or anything to do with athletic competition. The lag time alone would make the IRS not helpful for what you are hoping to achieve. The IRS is already understaffed and can’t keep up, giving them more to regulate is a bad idea.

Also, you don’t want to start saying to the IRS that this information here should be public and transparent, where as everything else should be confidential.

The IRS should stick to its mission as it currently exists and not add any sort of athletic competition regulation.

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Asking you as a tax professional, isn’t there already guidelines and rules that every American is supposed to voluntarily report when they hit a specific threshold? So the rules already exist, right? So let the situation sort itself out, and every now and then a Wesley snipes is sent to prison?

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Yes you report your income after the end of the year, April 15 is the due date or you can extend to October 15 which is only an extension of time to file but not to pay. Then it is still confidential.

This isn’t the issue with athletic competition, what people want is the NIL contracts and other payments to be reported at the time of the contract signing and for it to be public for transparency and competitive purposes. That is completely different from what the IRS does or how the IRS works, so they really shouldn’t be involved here. It would be adding a whole new mission to an already understaffed agency that is still struggling to modernize their systems.