Arrests coming due to college bball kickbacks

[mstranahan]

I do like the regional academy concept that Seth Greenberg of all people suggested. Identify potential pros early. Put them in an academy where they train & go to school, paid for by USA basketball & the NBA. If they're good enough to go pro, they go. If they wash out, they're still college eligible.

The NBA and NBAPA have been discussing this for some time. (It's not Uncle Fester's idea. Don't think he's had an original thought in decades.) I do think you'll see this "academy" system put in place as part of the elimination of OAD. Also, don't be surprised if the league has some pretty drastic thoughts about gambling. Several states (NJ is first) are trying to institute legal gambling on college sports, including proposition bets. You think TV generates a lot of money? Wait til hard core gamblers start wagering on who dunks first or which team has more turnovers.......

 

[ESPNjacket]

It's possible that there could be taxable income, even if they show a book loss, based on accounting conventions. I wouldn't expect there to be a huge difference, however.

I think the biggest immediate impact would be the loss of tax-deductibility for contributions by boosters. AAs will get a taste of this under the new tax code with fewer filers itemizing, but the impact on large donations with a loss of tax-exempt status could be significant.

I'd expect once they started depreciating their significant assets that there would likely be no income tax at all in all or almost all cases.

As you say, the big difference would be a drop in large individual contributions. I'm not sure how anyone benefits from that.

I don't know enough about corporate tax law to know if corporate charitable contributions would be greatly changed versus those being marketing expenses (most of those arrangements seem to really be sponsorship or advertising in nature) . I'd imagine that it would be another net negative but lack the knowledge to know the extent. Again, I'm not sure how anyone benefits from that.

 

[lv20gt]

Here's a hypothetical example I want people to consider...

GT opens last season & for the first few weeks of the season, Quon Marshall is one of the hottest players in college football.

A local car dealership wants to pay him a $1,000 appearance fee and let him charge $20/autograph on a Sunday morning.

He's already a GT player, so there are no recruiting implications. It's on a day off and will be done early, letting him return to his studies or whatever else on said day off. None of the money being earned comes out of GT's coffers.

Quon conducts the appearance, earns his money, GT has a couple of more good weeks before things get sideways and he becomes something of an afterthought of the season.

Why would this scenario be so wrong to let Quon capitalize on when the iron is hot?

Rules are primarily made to handle the exploitation of otherwise harmless practices. That harmless situation then brings up the point, what if it was 100,000$ appearance fee and 200$ per autograph? What if it was common knowledge that any football player who went there was likely to be able to get it? What if it was a booster that had a local dealership? Then are you allowing them to make money any way as long as it's not coming from the school while they are there? Could they do commercials for said dealership and get compensated for that? It's not that the particular situation you described is wrong. What's wrong is what it would entail if they allowed it.

 

[BeeRBee]

Rules are primarily made to handle the exploitation of otherwise harmless practices. That harmless situation then brings up the point, what if it was 100,000$ appearance fee and 200$ per autograph? What if it was common knowledge that any football player who went there was likely to be able to get it? What if it was a booster that had a local dealership? Then are you allowing them to make money any way as long as it's not coming from the school while they are there? Could they do commercials for said dealership and get compensated for that? It's not that the particular situation you described is wrong. What's wrong is what it would entail if they allowed it.

And I'll throw another issue - would you allow a student-athlete to make paid appearances at the Cheetah and Magic City, branded as "Georgia Tech student-athlete...".

 

[ESPNjacket]

https://www.si.com/college-basketba...vestigation-ncaa-recruiting-rules-andy-miller

 

[YlJacket]

I'd expect once they started depreciating their significant assets that there would likely be no income tax at all in all or almost all cases.

As you say, the big difference would be a drop in large individual contributions. I'm not sure how anyone benefits from that.

I don't know enough about corporate tax law to know if corporate charitable contributions would be greatly changed versus those being marketing expenses (most of those arrangements seem to really be sponsorship or advertising in nature) . I'd imagine that it would be another net negative but lack the knowledge to know the extent. Again, I'm not sure how anyone benefits from that.

It will be interesting to see how price sensitive individual ticket buyers are to the tax deductions for part of their ticket purchase. AA's are not going to reduce the amount of cash they want/need due to the tax considerations individual purchasers get by paying part of the price through tax deductible contributions to the AA. Corporate guys get to write it off as expense so they are less sensitive as long as the price for a seat/box fits in their budget.

You are right that the general contributions to the AA will drop. Guys like me that are too far to buy season tickets but give a check to AA will think twice now. How it is going to hit guys like Zelniak - I got no idea but some has to go down due to tax considerations.

 

[RamblinRed]

As an active board member in three non-profits, I am curious where you would draw the line. One of mine is a one day a year music festival in Oriental that charges no admission. Another is the restoration of a 100 year old Rosenwald school just outside Oriental. The third is a foundation in Oriental that helps to fund local sailing regattas for high school and college sailors. I think these are more typical of 501C3 organizations than are fund raising activities like the AT Fund.

 

[mstranahan]

The impact of 2017 tax bill on college athletics will be really seen in the 2019 - 20 cycle Most people paid their 2017-18 pledges before 12/31/17 to get the existing tax deduction. Some prepaid their existing 2018-19 and 2019-20 pledges on big multi year pledges.

When A-T and other orgs come knocking for pledges this June, those that prepaid for 2018-19, will keep tickets. Assuming they didn't prepay farther out than that and we'll see how many effectively increase their net gift by 72% to keep getting tickets. (In 2017, $1 of tax deductible donation = $0.58 after tax if you're in 36% Fed tax bracket and 6% State. In 2018, that same dollar is $1 after tax. Thats a 72% increase in your after tax donation.)

 

[dtm1997]

And I'll throw another issue - would you allow a student-athlete to make paid appearances at the Cheetah and Magic City, branded as "Georgia Tech student-athlete...".

I just got home, so will try & catch up, but in regards to this...
1) Most scholarships have a morals clause of some sort that would probably prevent this. Pro athletes may do paid appearances at the night club, but not sure I've ever seen it at the strip club.
2) GT is in ATL, strip club capital of the world, so yes, I'll allow it. Realistically, neither of those 2 players would pay pro athletes, let alone college athletes.

Meanwhile, here are some emergency podcasts & articles...





Rob Dauster going off was really nice in the link below.
https://art19.com/shows/college-basketball-talk/episodes/08932414-a042-427e-8063-6961c3882d93

 

[orientalnc]

FYI, I believe the preferred term nowadays is "Asian."

Yeah, we have all had this conversation a lot. As it happens, the town is named for a ship that wrecked off the Outer Banks in the 1800s. The old town name was Smith Creek, but the town learned they could not get a post office with that name, so when a local had the name plate from the shipwreck and offered it for the town limit sign, we became Oriental. Nothing racial intended.

 

[Peacone36]

Rut Ro Raggie

 

[lauraee]

Lol I love it! Az & Miller better go down. People have been accusing Miller of this for a long time. Guessing ratface & maybe Capel r too smart to get caught the same,way?

 

[jbix80]

Lol I love it! Az & Miller better go down. People have been accusing Miller of this for a long time. Guessing ratface & maybe Capel r too smart to get caught the same,way?

Any way CJP goes back to Arizona? I hope not!

 

[dtm1997]

 

[lauraee]

They better have a ton if sanctions so shouldn't be too appealing. Plus they will be going after a big name.

 

[FightWinDrink]

Any way CJP goes back to Arizona? I hope not!

I mean if people seriously thing this psycho side show story going on with CJP is a bad look for GT, I seriously doubt Arizona wants to add that story to the nuke that's about to get dropped on Miller.

Plus does Josh want to be in Arizona right now with Ron living there? I'd prefer to be across the country in Atlanta

 

[dtm1997]

Rut Ro Raggie

My Zona buddy just texted me that Miller may have just been fired, per a "great" twitter source.

 

[jbix80]

I mean if people seriously thing this psycho side show story going on with CJP is a bad look for GT, I seriously doubt Arizona wants to add that story to the nuke that's about to get dropped on Miller.

Plus does Josh want to be in Arizona right now with Ron living there? I'd prefer to be across the country in Atlanta

True! True! Good points!

 

[jbix80]

If GT is clean through all of this, I don't feel as bad about our recruiting failures over the years. We've been going against some heavy-weight cheaters.

 

[Peacone36]

It’s not a matter of if Pastner wants to coach Arizona, it’s a matter of if Arizona wants Pastner to coach in Tucson. I’m betting the answer is no.

Gregg Marshall come on down...