One of the things that let the SEC recruit like no other conference was that while they all knew they were paying players, there seemed to be some gentlemen’s agreement that no one would tell.
That never flew in the state of Texas. If your team was successful and not UT-Austin, you were getting ratted out.
Yet they find the time to go after 75 year old grandmothers over a few hundred dollars…
Real question though:
I am curious as to how a company paying a player and marking it down as a marketing expense (ie. NIL) would be treated if no marketing actually occurred. Is that just a stupid business decision where no one cares, or is there some form of fraud or other red flags attached to it that would resemble money laundering or other illegal monetary actions by IRS or treasury dept?
To be clear, I am not saying it is illegal but would it get caught by mechanism designed to catch illegal activity.
Absolutely could be an issue, as business expenses must be ordinary and necessary. Assuming the IRS could prove it was not ordinary and necessary or that no service was performed, they could deny the deduction.
However that is stuff that would have to be found in an audit, and the understaffed IRS may not happen to audit anyone in that situation. Even then, it would be a legal fight to determine if services were provided, if the payment was worth the actual value, if the expense is ordinary and necessary, etc. And if you’re in the class that can pay exorbitant NIL for someone who isn’t doing much with it or for it, then you’re likely also going to afford the lawyers to out muscle the IRS. The IRS has shedded a lot of experienced lawyers and auditors in recent years. The IRS can bring a slingshot to the fight while the rich taxpayer can bring a Howitzer.
Again still this would all be happening years after the player got paid and the season is over. So it doesn’t really help competition now. It could affect it in the future if there are big IRS wins.
Here’s some audit statistics.
Great, then let me ask you this. Who is going to go after them?
The ncaa is out of the question since they are compromised and have been collobarators into this.
Again, who besides the irs is going to go after them?
I’m saying you don’t want to give the IRS that mission. It doesn’t belong there.
It would belong with the CSC but I don’t know what kind of legal teeth that organization has, if any. Congress would have to fix that, and while they could assign that stuff to the IRS, I would recommend they assign that to a different organization. FTC, CSC, or whatever.
Great, we are going somewhere. I am all for that.
Really that’s all I was saying the whole time is you don’t want the IRS trying to regulate nil as it would be unequipped to actually perform in the way you’re hoping for about regulating and bringing transparency to nil and other payments for college athletics.
I wasn’t saying that no one should be doing that. Just give that to a different regulatory organization.
The FTC is an interesting thought.
I would assume they are better equipped for that type of mission.
Thank you.
If the investigation was announced before Kiffin accepted the head coach position, would he have made a different decision?
Why would he care? The CSC doesn’t have authority to do anything about it.
He should care because he needs to know everything going on in that program. If something shady is going on, it can affect his team and he could be held responsible. He should at least ask why they aren’t reporting when other schools are. If they give him some answer like “You don’t want to know”, he should be very worried.
Acting oblivious to what is going on does not work out well.
Who says that all the other schools are reporting? I seriously doubt that’s true.
Maybe they aren’t but the title of the article says LSU is the first to be investigated. If I were Kiffin, I would want to know why they are sniffing around.
No, I doubt that would stop anyone from accepting a coaching job at UT, ATM, LSU or another top SEC program since they’ve never adhered to NCAA rules with respect to paying players.
…and I seriously doubt that Texas Tech is reporting either.
…and I think any such proposed oversight is headed toward litigation &//or federal government intervention & regulations before such an oversight is actually enforceable and is complied with.
Not really. There’s no entity with enforcement authority to hold anyone responsible for anything.
The only reason he would care is if he’s concerned about optics, and that’s not really his thing.
I agree, but I never said or implied that. I’m saying that Kiffin should know what is going on. If the CSC was investigating UH, I would assume people here wouldn’t tell Fritz to just blow it off and don’t worry about it.
Regarding the article and the CSC, it sounds like the burden is on the student athlete to report (not 100% sure on that). The CSC is brand new and it wouldn’t surprise if an athlete just made a mistake in the reporting process, but calling it an investigation doesn’t sound like a paperwork mistake. Maybe the author of the article is embellishing here.
And CSC is the organization tasked with overseeing this stuff. They can take the player/LSU to arbitration. And i don’t know why people are saying there can’t be enforcement. All pro leagues have rules and enforcement about this stuff. College football is basically a po league now. I’m not sure why they would be the only league with no rules. And just reporting NIL is really the bare minimum.
Need one of the lawyers on the board to comment on this.
There’s no enforcement power because the schools haven’t agreed to it. The CSC tried to push an agreement form on everyone back in November, but it wasn’t ratified.
There are numerous articles about this - it isn’t just my opinion.
Thanks for the article, but my confusion is coming from the fact that CSC is doing what the settlement agreement told them to do. Here is a link to the “Participants” page (which includes LSU), and a link to the settlement. You will find the “Mandatory Student-Athlete Reporting” in Article 2, Section 4. I’m not sure how the schools are getting out of that.
Section 4. Mandatory Student-Athlete Reporting. All Division I student-athletes will
be required to report to (a) the Member Institution in which they are enrolled and/or (b) the
Designated Reporting Entity any and all third-party NIL contracts or payments with a total value
of six hundred dollars ($600.00) or more on a schedule to be determined by Defendants. I
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