Name, Image, & Likeness (NIL) at tOSU

[calibuck]

You can fact check me, but NFL teams usually always show a net loss. How come? Owners depreciate their highly paid players over a number of years. If a $120 million contract (over five ((?)) years), then there's a write-off of $24 million year against tv revenue, salaries, what have you. That depreciable body is non-cash (which means you get the deduction against revenue without expending a nickel). Someone can take it from here, but no one, and I mean no one, buys an NFL team expecting to lose money. PS, ever get a phone call from a fund raiser, looking to raise money for what, police charities (put in your own here)? Ask them how much actually gets to the charity in question. They'll tell you it's 20 cents on the dollar that you contribute. PS, on player depreciation, you can write off the expense over five years, but make payments over 20 (in my scenario), giving the player less up front and more in later years. Owner pays salary over ten years, but writes off the contract over five. Puts away an amount in a bank/stock market/oil wells, whatever, and he'll have an income stream to pay that now $12 million from.

 

[heisman]

They own the property that their facility sits upon across the King Ave from the OSU medical center.

Outside of not filing properly, which accounts for almost 98% of companies losing their NP status, owning property is always the second biggest red flag. I'm not sure why, but my guess is that the municipalities run these up the flag pole. And let's face it, municipalities are just swamped with Karens.

 

[kujirakira]

They own the property that their facility sits upon across the King Ave from the OSU medical center.

Who knew Bob Evans was a non profit?

You can fact check me, but NFL teams usually always show a net loss. How come? Owners depreciate their highly paid players over a number of years. If a $120 million contract (over five ((?)) years), then there's a write-off of $24 million year against tv revenue, salaries, what have you. That depreciable body is non-cash (which means you get the deduction against revenue without expending a nickel). Someone can take it from here, but no one, and I mean no one, buys an NFL team expecting to lose money. PS, ever get a phone call from a fund raiser, looking to raise money for what, police charities (put in your own here)? Ask them how much actually gets to the charity in question. They'll tell you it's 20 cents on the dollar that you contribute. PS, on player depreciation, you can write off the expense over five years, but make payments over 20 (in my scenario), giving the player less up front and more in later years. Owner pays salary over ten years, but writes off the contract over five. Puts away an amount in a bank/stock market/oil wells, whatever, and he'll have an income stream to pay that now $12 million from.

Oh that's just Creative Accounting... which is a whole new subject, but i suppose not mutually exclusive for NGOs and their 990 forms.
But all the tools the corporats and uber rich use to reduce their taxes to 0 are a whole different discussion. I seem to recall Bezos actually got a refund from the IRS for his childrens education one year.

 

[DaddyBigBucks]

They own the property that their facility sits upon across the King Ave from the OSU medical center.

So, Battelle then

i worked my way through Ohio State there

 

[ORD_Buckeye]

The not for profits are a little risky. In order to be a NFP they have to be spending their money for the common good. Collecting money from doners, those doners using it as a write off, and then giving it to football players who then post some tweets or do some other minor thing is a very risky proposition. I wouldn’t be surprised if the IRS started going after the NFP collectives in the coming years. Hundreds of millions of dollars of donations are being written off every year. 1870 is playing it safe.

This has already begun, and the IRS has publicly said that many of these non-profit NIL funds will end up having that non-profit status revoked.

 

[heisman]

This has already begun, and the IRS has publicly said that many of these non-profit NIL funds will end up having that non-profit status revoked.

Standard operating procedure. It was an internal memo on definition to make sure leadership understands how to define the entity. The IRS believes no one should be tax exempt. It's the one and only area that they consistently lose when legally challenged. Perhaps they shouldn't use such idiotic vague language for everything. Creates a loophole for pretty much every tax dodge known to man.

Just so I'm clear with everyone. Personally, I think all of this is a bunch of nonsense. Unless the University takes over, then all of this should be a taxable event. It's just going to be tough to revoke tax exempt status if legally challenged when you allow entities like Scientology and GoFundMe to operate as 501(c)(3)'s.

 

[Buckeye86]

This is what Birm is talking about regarding rules changing after Ohio State starts doing something successfully… teams were and are spending out their ass for three years but as soon as Ohio State has notable success doing something, it’s national headlines in the Wall Street journal about how unprecedented it is, implying how the system is broken now.

Prime brings in 50 transfers and it’s so exciting and fun, Ohio State brings in six transfers and keeps its current roster and “Oh my god the system is broken!”

 

[heisman]

This is what Birm is talking about regarding rules changing after Ohio State starts doing something successfully… teams were and are spending out their ass for three years but as soon as Ohio State has notable success doing something, it’s national headlines in the Wall Street journal about how unprecedented it is, implying how the system is broken now.

Prime brings in 50 transfers and it’s so exciting and fun, Ohio State brings in six transfers and keeps its current roster and “Oh my god the system is broken!”

Other than Deion's two sons, and Hunter, the other 47 are some broke ass mother fuckers!

 

[ScriptOhio]

This is what Birm is talking about regarding rules changing after Ohio State starts doing something successfully… teams were and are spending out their ass for three years but as soon as Ohio State has notable success doing something, it’s national headlines in the Wall Street journal about how unprecedented it is, implying how the system is broken now.

Prime brings in 50 transfers and it’s so exciting and fun, Ohio State brings in six transfers and keeps its current roster and “Oh my god the system is broken!”

Skull Session: Ohio State is the “Apex Predator” of the NIL World, “Culture” Must Prevail for Buckeyes to Win 2024 Title and a Look at Ohio State Sports Illustrated Covers Through the Years

Ohio State is the "apex predator" of the NIL world, "culture" must prevail for the Buckeyes to win the 2024 CFP and a look at Ohio State's SI covers through the years.

www.elevenwarriors.com

GOOD WORK, BUCKEYE NATION. When Pate said Ohio State has become an “apex predator” in the NIL world after Michigan won the College Football Playoff, he didn’t share an opinion — he shared a fact.

This week, Laine Higgins and Jared Diamond of The Wall Street Journal interviewed Drew Esler of The 1870 Society to learn more about Ohio State’s NIL movement since Michigan defeated Washington in the national championship on Jan. 8.

Ohio State’s holiday season was straight out of a nightmare. First, the Buckeyes lost a heartbreaker to Michigan, costing them a perfect record and a spot in the College Football Playoff. Then they had to watch from home as Michigan, the rival program up north so despised that no self-respecting Ohioan will even utter its name out loud, won the national championship.
But in the weeks since the Wolverines stomped on the souls of Buckeyes fans everywhere, a strange truth has emerged: Michigan’s victory might have been the best thing to ever happen to Ohio State football.
Buckeyes supporters have responded to the carnage of the past two months in a way that perfectly encapsulates the state of college sports in 2024. They have donated exorbitant sums of money to entice top players to transfer to Ohio State and reap lucrative endorsement deals—the fastest path to reload a roster in need of reinforcements.
This surge of fundraising in the wake of Michigan’s success has resulted in several stars from other programs decamping to Columbus, upending the power structure of the Big Ten and returning Ohio State to its usual status as a serious national championship contender. And the money that helped make it happen was given with a singular goal: to ensure that what just happened with Michigan doesn’t ever happen again.
“You never want to see your rival hoist the trophy,” said Drew Esler, vice president of operations for the 1870 Society, an organization that aims to raise money from fans to fund endorsement deals for players. “Instead of complaining, everyone’s put their money where their mouth is.”
The 1870 Society, the newest of Ohio State’s three booster collectives, is funded through one-time donations and recurring gifts from members, who can join by giving anywhere from $1.99 to $5,000 per month. The group’s member base spiked after Michigan’s championship—Esler approximated that 60% of the collective’s 2,500 members have joined since Jan. 8, the day the Wolverines knocked off Washington in the title game.

You created funds for 2024 recruits Jeremiah Smith, Eddrick Houston, Mylan Graham, Aaron Scott Jr. and Air Noland. You created funds for seniors TreVeyon Henderson, Emeka Egbuka, Donovan Jackson, JT Tuimoloau, Jack Sawyer, Tyleik Williams, Denzel Burke and Jordan Hancock. You created funds for transfers Will Howard, Quinshon Judkins, Seth McLaughlin, Caleb Downs and Julian Sayin.

You deserve some praise.

Maybe Ryan Day can send you all a “Thank You” card.

Keep up the excellent work, Buckeye Nation.

 

[buckeyeintn]

This surge in fundraising is great, but the collectives need to constantly push to find new donors. The average new donor to a NFP lasts 3-5 years. If they don't work to cultivate good will with the new donors it could be less than that. Acquiring new donors and stewarding existing donors is an ongoing process. I'm afraid the collectives are full of people who know how to spend the $ but don't have a good grasp on how to raise it.

 

[BuckeyeNation27]

This is what Birm is talking about regarding rules changing after Ohio State starts doing something successfully… teams were and are spending out their ass for three years but as soon as Ohio State has notable success doing something, it’s national headlines in the Wall Street journal about how unprecedented it is, implying how the system is broken now.

Prime brings in 50 transfers and it’s so exciting and fun, Ohio State brings in six transfers and keeps its current roster and “Oh my god the system is broken!”

I bitched about this in Jeremiah Smith's thread. It's exhausting.

WR Jeremiah Smith (Official Thread)

do they still have to Fax it in? Can't just do a Docusign?

buckeyeplanet.com

 

[Fungo Squiggly]

I did in Marv's thread as well. A week after Caleb WIlliams (with his Wendy's & Dr. Pepper deals) sits out a meaningless bowl game and nothing of note is written, Yahoo drops a piece about Harrison sitting out the Cotton Bowl.

 

[pnuts34]

 

[ScriptOhio]

The 1870 Society Announces Signing of Entire '24 Early Enrollee Recruiting Class, Transfers, and Current Players​

The 1870 Society announced the signing of Ohio State Football's entire '24 early enrollee recruiting class, marking a significant addition to their student-athlete roster. The impressive recruiting class finished in the #2 spot in 247's rankings, brings a wealth of talent and promise to the Ohio State football program.

1870 inked deals for all 15 early enrollees in just one week's time. Early enrollees include Jeremiah Smith, Eddrick Houston, Air Noland, Miles Lockhart, Aaron Scott Jr., Bryce West, Payton Pierce, Eric Mensah, James Peoples Jr., Deontae Armstrong, Devontae Armstrong, Ian Moore, Garrett Stover, Sam Williams-Dixon, and Jaylen McClain.

In addition to the signing of all early enrollees, 1870 also signed coveted Ole Miss transfer running-back Quinshon Judkins along with former Alabama starting center, Seth McLaughlin. Both Judkins and McLaughlin will play significant roles in Ohio State's vaunted offense this coming season.

Last but not least, The 1870 Society also secured deals with returning Ohio State stars JT Tuimoloau, Denzel Burke, Donovan Jackson, Carnell Tate, Cody Simon, Luke Montgomery, and Mitchell Melton.

 

[kujirakira]

Standard operating procedure. It was an internal memo on definition to make sure leadership understands how to define the entity. The IRS believes no one should be tax exempt. It's the one and only area that they consistently lose when legally challenged. Perhaps they shouldn't use such idiotic vague language for everything. Creates a loophole for pretty much every tax dodge known to man.

Just so I'm clear with everyone. Personally, I think all of this is a bunch of nonsense. Unless the University takes over, then all of this should be a taxable event. It's just going to be tough to revoke tax exempt status if legally challenged when you allow entities like Scientology and GoFundMe to operate as 501(c)(3)'s.

I have a more liberal view of it, and we should have more non-profits imo.
The State's goal is to tax every.single.transaction between every.single.entity. It's too much.
If the organization has no profit, it should be untaxed imo. If it went this way, i would concede there needs to be hard laws on compensation being taken by ownership (presently there are guidelines, but those are soft limits).
But i don't have a problem with NFL being nonprofit. The commissioner gets an appropriate salary, all the profit is being made by the teams... where it should be taxed.
If you told me my local mom and pop cafe was a nonprofit, i would say "good for them". Put that money into the business, worker comp/benefits, etc. They still get us on sales tax (the only tax that should exist imo, but that's another topic).

Tldr: It makes sense to me for an NIL collective to be nonprofit. They bring in donations (not revenue for services or goods), and those donations go to athletes barred from employment.
Other than the salaries (hopefully reasonable - our job to look at 990s) for staff, they aren't taking money in. Just acting as the go-between to mediate and connect donors to athletes.