Retaining Players in the Portal Era

[stinger78]

NIL is taxable. Athletes may have to do estimated withholding. It's kind of like having your own business.

NIL contracts have conditions, like appearances and other "work". If you don't fulfill your side, they don't have to pay.

NIL agents charge 15-25% for their services. I don't know if that includes accounting fees, but the athletes should have an accountant. I wouldn't rely on the tax prep guy in the strip mall.

If an athlete gets use of an apartment or a car or other assets, that's taxable too.

Key is a state employee of a certain income, so the budget for his role is semi-public. NIL deals are private. If Key had an endorsement contact with Kia, we wouldn't have that financial info unless someone shared it. Same for the athletes.

Athletes probably want as much cash up front as possible; their sponsors will want to delay the payments as much as possible; how it works out is all in the contract.

NIL Deals and Tax Implications: A Guide for College Athletes

NIL deals allow college athletes to monetize their name, image, and likeness, but there are tax implications that students should be aware of.

www.investopedia.com

Sports agents typically take under 5% of the contract face value. If NIL agents are taking 20-25% it’s highway robbery.

 

[GoldZ]

I think they care more about the degrees than they get credit for. About 50% of 4* rated players make the nfl. And the average nfl career is 3.3 years. Even if you’re very good there is such a slim chance that you have a lucrative career playing football. That’s actually why this NIL money is so attractive. Hell, take a couple million to play football and then go back and get your degree after. You’re better off that way than by getting the free education. This is why it’s ruining the sport. The free agency part plays right into the fears and concerns about the longevity of the athletes. Normalize it with multi-year contracts, caps, buyouts, etc. It’s where all pro sports landed over many years and it’s where this will ultimately land as well. Then it’s just another pro sports, unfortunately.

50% might be a tad high, but not an exaggeration.

 

[Lil G]

I would enter the portal every single year if I was in this. Would my love be for Tech or whatever team I grinded with? Absolutely. But if I had the opportunity to be thrown another 50k, that’s a house down payment I couldn’t refuse. Or rent for 2-4 years. Not a single player should be looked down on for thinking the same.

Like I heard some coach say the other day. This is the adult’s fault for busting it wide open and starting the fall of CFB culture. Not a kid problem.

You are kidding yourself if you think Kiffin doesn’t have ways of whispering $ to kids all season.

The only route I see to end this is making players sit a year or certain amount of games if they leave. But I don’t see that happening.

 

[stech81]

NIL is taxable. Athletes may have to do estimated withholding. It's kind of like having your own business.

NIL contracts have conditions, like appearances and other "work". If you don't fulfill your side, they don't have to pay.

NIL agents charge 15-25% for their services. I don't know if that includes accounting fees, but the athletes should have an accountant. I wouldn't rely on the tax prep guy in the strip mall.

If an athlete gets use of an apartment or a car or other assets, that's taxable too.

Key is a state employee of a certain income, so the budget for his role is semi-public. NIL deals are private. If Key had an endorsement contact with Kia, we wouldn't have that financial info unless someone shared it. Same for the athletes.

Athletes probably want as much cash up front as possible; their sponsors will want to delay the payments as much as possible; how it works out is all in the contract.

NIL Deals and Tax Implications: A Guide for College Athletes

NIL deals allow college athletes to monetize their name, image, and likeness, but there are tax implications that students should be aware of.

www.investopedia.com

going to be funny to see half the players go to jail for not paying their taxes

 

[gte447f]

Getting a college degree… awe, that’s a cute idea… bless y’all’s hearts for thinking about that.

 

[slugboy]

Sports agents typically take under 5% of the contract face value. If NIL agents are taking 20-25% it’s highway robbery.

Received money for your NIL? Great, now it’s time to make it last

More money usually means more problems. Without proper financial guidance, hard-earned NIL cash can easily be wasted. And once it’s gone, it’s gone. So, if you’re fortunate enough to capitalize on your NIL, here are four guidelines you should keep in mind.

www.sportsbusinessjournal.com

Agent reveals how NIL really works in college sports

A sports agent explains how college athletes are getting paid, and some problems with NIL

www.mlive.com

NIL agency offering advising on claims, connecting athletes to PE for upfront payments for House settlement

With the House v. NCAA long-form settlement now left to Judge Claudia Wilken, athletes are starting to understand how they will profit.

www.on3.com

https://www.nytimes.com/athletic/54...s-transfer-portal/?source=user_shared_article

Lots between 10-20%. I can’t confirm if there are other fees that might be listed.

The NY Times article is probably the best researched.

This opens up the possibility that, if a player has their own agent vs one from the school, that their agent might be calling them and telling them to test the market. At 15-20% commission, that’s an easy way for an agent to boost their income.

 

[MonroeJacket]

I don’t know which one of our 4-5 portal threads is best for this, so I’ll put it here…

Fifth school. Fifth.

 

[awbuzz]

I don’t know which one of our 4-5 portal threads is best for this, so I’ll put it here…

Fifth school. Fifth.

Gun for higher, will shoot his mother for enough $$$$

 

[CEB]

I don’t know which one of our 4-5 portal threads is best for this, so I’ll put it here…

Fifth school. Fifth.

Maybe he’s a trail blazer today…
Don’t suspect five schools will be very noteworthy for long.
Ridiculous state of affairs.

 

[vamosjackets]

It's easy to see why things (kids, transfers, coaches, program success, cake majors, etc) go the way they do (when it's not about the money, it's about the money). To me the only question left is whether John Q Public will consume it. If so, it will be sustainable and may grow even crazier. If not, it will self-destruct (NIL money gone, player contracts broken, TV contracts broken, coaching salaries taking huge decreases, some programs shuttering, non-revenue sports being cut). So, what about John Q Public?? That's the only question. Can anyone predict that? I'd love to hear a compelling prediction.

 

[apatriot1776]

Don’t know how things are going to change going forward. Maybe if we pay something close to factory money we can convince the guy sitting on the bench at Bama that he is better off starting at tech things will change.

The key to Bama's or Georgia's recruiting is their bench or mediocre starter guys have still been getting picked in the 4th-5th round.

I look forward to multiple draft picks coming to fruition because that shows we can get guys into the league. I think that is an additional pain point to losing ESJ and Corey Robinson and Romello Height. But we already see the fruits of how this is going to change. We have an A+ OL coach and we are attracting 4- and 5-star OL recruits because they believe he can bring them to the league. We have other guys on this roster that can push for a pick (namely King, Haynes, Fusile, Rutledge, Biggers, Van Den Berg, Efford) and if we can at least start the cycle going elsewhere even if they're 5th-7th round guys, that would be huge.

 

[gte447f]

The key to Bama's or Georgia's recruiting is their bench or mediocre starter guys have still been getting picked in the 4th-5th round.

I look forward to multiple draft picks coming to fruition because that shows we can get guys into the league. I think that is an additional pain point to losing ESJ and Corey Robinson and Romello Height. But we already see the fruits of how this is going to change. We have an A+ OL coach and we are attracting 4- and 5-star OL recruits because they believe he can bring them to the league. We have other guys on this roster that can push for a pick (namely King, Haynes, Fusile, Rutledge, Biggers, Van Den Berg, Efford) and if we can at least start the cycle going elsewhere even if they're 5th-7th round guys, that would be huge.

I may be misunderstanding your post, but I think your gold colored glasses might be obscuring your vision. You have named some players that I don’t think have a snowball’s chance in hell of getting drafted into the nfl.

 

[Randy Carson]

Getting a college degree… awe, that’s a cute idea… bless y’all’s hearts for thinking about that.

According to an article written last year by Sports Illustrated:

"In the latest data, Georgia Tech athletics set a new all-time record for the third straight year by posting a 92% NCAA Graduation Success Rate (GSR). Prior to 2021, Georgia Tech had never achieved a GSR above 90% and prior to 2016, Tech never had a GSR above 85%. Georgia Tech’s 92% GSR is also higher than the national average of 90%, while 10 of the Yellow Jackets’ 13 teams – women’s basketball, men’s cross country/track & field, women’s cross country/track & field, football, golf, softball, men’s swimming & diving, women’s swimming & diving, men’s tennis and volleyball – have individual team GSRs that are at or above the national average in their respective sports. Leading the way are women’s basketball, golf, softball, men’s tennis and volleyball, which all have perfect 100% GSRs (Information courtesy of Georgia Tech Athletics)." (Source: Sports Illustrated)

Another site said we set another record in 2023-24 making it four years in a row that we have broken this record.

 

[gte447f]

According to an article written last year by Sports Illustrated:

"In the latest data, Georgia Tech athletics set a new all-time record for the third straight year by posting a 92% NCAA Graduation Success Rate (GSR). Prior to 2021, Georgia Tech had never achieved a GSR above 90% and prior to 2016, Tech never had a GSR above 85%. Georgia Tech’s 92% GSR is also higher than the national average of 90%, while 10 of the Yellow Jackets’ 13 teams – women’s basketball, men’s cross country/track & field, women’s cross country/track & field, football, golf, softball, men’s swimming & diving, women’s swimming & diving, men’s tennis and volleyball – have individual team GSRs that are at or above the national average in their respective sports. Leading the way are women’s basketball, golf, softball, men’s tennis and volleyball, which all have perfect 100% GSRs (Information courtesy of Georgia Tech Athletics)." (Source: Sports Illustrated)

Another site said we set another record in 2023-24 making it four years in a row that we have broken this record.

Sounds great, but of course it includes non-revenue sports, and those aren’t really relevant to the discussion about nil and transfer portal and the Eric Singletons of the world.

 

[4shotB]

It's easy to see why things (kids, transfers, coaches, program success, cake majors, etc) go the way they do (when it's not about the money, it's about the money). To me the only question left is whether John Q Public will consume it. If so, it will be sustainable and may grow even crazier. If not, it will self-destruct (NIL money gone, player contracts broken, TV contracts broken, coaching salaries taking huge decreases, some programs shuttering, non-revenue sports being cut). So, what about John Q Public?? That's the only question. Can anyone predict that? I'd love to hear a compelling prediction.

these are great questions and ones that I have been thinking about as well. In general, the comments made here on the topic seem to be mostly negative about the current state of affairs (there are exceptions to this of course). However (imo), this has been largely offest by the positive trend under Key, Batt and Cabrera. I don't want to speak for others but, at the moment, the positives are outweighing the negatives. However, this is true at GT. What about at Wake Forest, which used to be competitive more or less but doesn't seem to have the deisre to compete under the new paradigm. They lost a damn fine FB coach as a result. So, I think a lot of especially us older fans are waiting and watching. Right now, we have our fingers crossed but the moment GT looks to be unable or unwilling to compete for ACC championships, the surrounding circumstances will cause us dinosaurs to fold up our tents and hand the keys over to the next generation. We will return our Saturdays back to other recreational pursuits.

 

[Thwg777]

Money-wise, I don’t understand how the NIL model is sustainable but frankly, there’s a lot of other businesses that seem to be doing just fine with me questioning why people spend their money there. Just because it doesn’t make sense to me, doesn’t mean it won’t work…

Having a large six or potentially seven figure sum of money at such a young age, should theoretically set them up for life.

I remember at Tech, we were required to take a 1 hour class from the industrial engineering college - basically how to manage money. Hopefully stuff like that is still taught.

 

[tomknight]

You assume that most 4 and 5 star players give a darn about an Education/Degree. They do not.

yes. they major in football, just like the top players in all sports major in their sport. a few care, but not most.

 

[vamosjackets]

According to an article written last year by Sports Illustrated:

"In the latest data, Georgia Tech athletics set a new all-time record for the third straight year by posting a 92% NCAA Graduation Success Rate (GSR). Prior to 2021, Georgia Tech had never achieved a GSR above 90% and prior to 2016, Tech never had a GSR above 85%. Georgia Tech’s 92% GSR is also higher than the national average of 90%, while 10 of the Yellow Jackets’ 13 teams – women’s basketball, men’s cross country/track & field, women’s cross country/track & field, football, golf, softball, men’s swimming & diving, women’s swimming & diving, men’s tennis and volleyball – have individual team GSRs that are at or above the national average in their respective sports. Leading the way are women’s basketball, golf, softball, men’s tennis and volleyball, which all have perfect 100% GSRs (Information courtesy of Georgia Tech Athletics)." (Source: Sports Illustrated)

Another site said we set another record in 2023-24 making it four years in a row that we have broken this record.

So, I guess SA's are getting smarter and more responsible.
Graduation rate is the most absurd metric for measuring the value of a school I can think of. The only thing it does is lower standards and water down entire fields and professions of human enterprise. That's it. So, congrats for that. (Not talking directly to you @Randy Carson, just tilting at windmills.)

 

[ThatGuy]

I don’t know which one of our 4-5 portal threads is best for this, so I’ll put it here…

Fifth school. Fifth.

"COMMITTED"

 

[LT 1967]

Some interesting comments about NIL from Dave Clawson during his resignation press conference:

See article and excerpt below

The headwinds of the current era of college football over the past two years at Wake Forest complicated how Clawson built teams. He'd redshirt players to have older rosters, and leaned on continuity and player development as competitive advantages. The inability to retain top talent financially, because of NIL and the transfer portal, has blunted the effectiveness of Wake Forest's edges.

"I tried to embrace it, I tried to fight through it," Clawson said. "I tried to get in the mindset with it. I could do it, I just don't want to do it. It's really where I am. It's not the way I'm wired. It's not how I build programs. It's not why I got into coaching."

There have been plenty of breadcrumbs to Clawson's frustration, and he has hinted at Wake Forest's NIL limitations as the Demon Deacons have gone 4-8 in each of the past two seasons.

After a loss to Louisiana of the Sun Belt earlier this season, Clawson explained his frustration: "To fix problems, you need a lot of money. And we recruited what we could afford."

Clawson resigns as Wake coach, becomes advisor

Wake Forest football coach Dave Clawson has resigned after 11 seasons with the Demon Deacons and will remain with the university in an advisory role.

www.espn.com