emu steve
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Posts: 39,475
Joined: Jan 2004
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I Root For: EMU / MAC
Location: DMV - D.C. area
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RE: "Money Monday"
(07-01-2021 09:14 AM)dansplaining Wrote: (07-01-2021 08:36 AM)emu steve Wrote: I'll weigh in later with an article from USA Today where players are already making plans for $33 shirts.
I will remind DP that pro athletes who made big bucks on autographs, didn't pay taxes on such, etc. were prosecuted for tax evasion. Income is income. They will literally be small business men (and women). Lest I be wrong a CFO in NYC has been indicted on charges of not reporting taxable income on things some consider 'perks.'
I believe that a marathon runner who gets 50K or 100K for winning a major marathon that those monies are considered earnings and taxable.
When I worked, I got a bonus for my work on Y2K. That money was in a check and treated like any other earned income. Likewise, a 'performance bonus' for placing in a marathon is taxable income.
Also if it 'quakes like a duck, looks like a duck, it is a duck.' If college players are de facto pros with pro rights, their scholarships, etc. could be considered taxable by IRS.
As far as SCOTUS is concerned, they can rule on anti-trust, etc. but it DOES NOT preclude the IRS considering those athletes to be pros. Those are completely separate issues.
And again I'll indicate that if a Ph.D. student teaches say undergrad courses that teaching assistant income is considered wages for services performed and is taxable.
Much of American business is very mature. Ford has a collective bargaining relationship with the UAW. The legal issues are all flushed out. This changing landscape in college athletics is completely new. Labor laws have not be flushed out. Tax law has not be flushed out.
I suspect Congress will need to decide the laws like IRS has ruled on similar cases of college students receiving things of value. Much of that is settled tax law. This????
(07-01-2021 08:56 AM)emu steve Wrote: This is from USA Today:
"Jordan Bohannon
The Iowa men's basketball player was one of the prominent players who met with NCAA president Mark Emmert last March on this issue, so it is no surprise that he is being aggressive in his approach to profiting off his NIL. Last week, Bohannon posted mockups of T-shirts he planned to sell. List price is $33."
We could say try the following. NOTE: THIS IS TONGUE IN CHEECK.
If EMU signs a 2-star QB, I'll buy one shirt,
If EMU signs a 3-star QB, I'll buy five shirts,
If EMU signs a 4-star QB, I'll buy 25 shirts,
If EMU signs a 5-star QB, I'll buy 100 shirts (and donate all of them to members of this forum).
Is this what we want?
Not to be outdone by EMU Steve, UofMJoe says, I'll buy 500 shirts from a 5-star QB who signed with UofM. Buckeye_Tom says, I'll match UofMJoe and raise him... (think poker).
I'd like address your points individually.
1.) No one thinks money players make from NIL rights shouldn't be taxable. They will earn income and hopefully pay taxes on that income. If I was EMU I would hire a CPA to help the players get all of that done and stay out of trouble with the IRS. Should scholarships be considered taxable? Probably. But that's what comes with giving the players more rights to negotiate better wages and treatment from management.
2.) Yeah that shadiness for shirts or whatever is going to happen but who cares that's the free market? I'm more concerned with regular old players who have had their trade restricted. Heres a tweet from Marshall O-Line players Will Ulmer - a musician who wasnt allowed to perform paid gigs as himself: https://twitter.com/UlmerWill/status/141...4969390083 .
Players are finally being freed by a bunch of REAL dumb shackles and thats great. Personally - I will book any college player who performs stand up because it'll be a draw (maybe).
Fair enough:
Let me 'guess' what I think will or should happen:
IRS will alert Congress that they will investigate the matter and issue guidance as to TAX matters.
IRS will need to decide on issues like scholarships, R&B, COA, etc. and NIL. IRS could say scholarships, etc. have been and are tax exempt because the players are not workers or employees. (As I indicated above, there will be a grand jury indictment(s) issued this afternoon in NYC regarding fringe benefits not treated as income for employees. If anyone was been in a cave the last couple days, it is Weisselberg as CFO of the Trump organization, to be indicted on providing benefits which are taxable but were not treated as taxable. Just like usage of an automobile would be taxable income for a college coach.)
IRS can then indicate, if they wish, that any athlete who wishes to do NIL is considered a small business just like if I would design a killer T-shirt and sell it.
Congress can pass legislation to... (fill in the blank).
I'm literally shocked, but not surprised, that folks who should know better (e.g., NCAA, state legislators, etc.) have NOT asked for an advisory opinion from the IRS.
And SCOTUS, in effect, said, "Joe Thrower can sell 1,000 shirts if he wants, but issues like taxation of those profits are not relevant to this court case. IRS can issue guidance and Congress may legislate as it see fit to the issue of taxation and professionalization."
(This post was last modified: 07-01-2021 09:36 AM by emu steve.)
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