(05-22-2024 11:33 AM)ken d Wrote:  

(05-22-2024 09:42 AM)BruceMcF Wrote:  

(05-22-2024 07:17 AM)ken d Wrote:  ... I'm not sure what you mean by "tax-free treatment" here. ...

The donations and other revenue funding the NIL being tax free. I'm not a tax accountant or attorney, so I don't know whether the revenue sharing would upset the section 501©(3) tax free status of the media revenue earned by Universities, but if it would, that would be an impediment to putting this system in place.

As things stand today, I don't believe donations to NIL collectives are deductible to the donors. ...

I thought I hard heard that the ones established with eligible charitable purposes are. That is, the "the athletes visit sick kids in the hospital" NIL agreements, not "the athletes are on a billboard advertising a sports car" NIL agreements.

There is no particular need for the "NIL as actual payments for company advertising" agreements to ever have to come in house, and at the company doing the advertising, it's tax free because it's deducted as a business expense. What would be brought in-house would be the "pretense" NIL agreements which are just boosters getting bags together to help recruit players, following the practices that have rapidly become established in order to maintain the facade of it being an independent payment for some use of the individual athlete's name, image and likeness.