Havoc unlimited details/questions

Ramaholic said:
That is what I would think. But I read that the Bam appearance at Planet Fitness was brokered by Learfield. I have a friend who is a JMU bball walk on. He gets no scholarship money and the family is struggling to put him thru school. I was going to throw a little NIL love his way to help him out. So I hopped on the JMU site and it says all deals have to go thru their collective and collective will decide which athlete will be your spokesperson. They also claim to be tax deductible.
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The whole tax deductible part is a complete mystery to me. Some collectives claim they are, others don’t, and honestly I have no clue what is what when it comes to that stuff. Hopefully this townhall they are hosting next week can clear some of that up.
 
mrgeode said:
I suppose you could request to work with the person in question/make the contribution conditional on having him do NIL spots for your company.

Would also highly recommend talking to your tax guy before considering any of this deductible.
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I have talked with our tax team and there is no way this is deductible as of the second IRS advisement (posted above previously by @Mercury https://www.irs.gov/pub/lanoa/am-2023-004-508v.pdf)
I called JMU and they flat out noped out of being able for me to designate my NIL $$ to a walk-on. Oh well, "No soup for you" JMU.
 
Ramaholic said:
That is what I would think. But I read that the Bam appearance at Planet Fitness was brokered by Learfield. I have a friend who is a JMU bball walk on. He gets no scholarship money and the family is struggling to put him thru school. I was going to throw a little NIL love his way to help him out. So I hopped on the JMU site and it says all deals have to go thru their collective and collective will decide which athlete will be your spokesperson. They also claim to be tax deductible.
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If you can reach the person you are wanting to donate to or offer an opportunity to I don't think that would negatively affect their eligibility. Not 100% sure on that but around 99%. Athletes are the same as anyone else now as far as that stuff goes. I think you can just hand a player money now, or buy an autographed picture for $500, or give them $100 for a phone call and no one else has to be involved. If the school finds out and they want everything to go through them they may frown upon that but I don't think it affects eligibility any longer. Definitely wouldn't be tax deductible on your end and it would probably be something they would need to report. As long as all that is done properly I believe that is completely legal and within the NCAA rules.
 
Ramlove81 said:
Is the collective our only source of NIL money? We've got guys doing commercial spots on TV and radio, is that going through the collective?
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If you are thinking about it like professional sports the NIL collective money is similar to a salary. Then you may have endorsements as well like appearances, ads, signings. Those could come from being contacted directly or contacting the team and them deciding who might be the best fit. They also have merchandise but they make very little off of that when going through third parties.
 
Deductibility seems more likely as an advertising-related business expense, rather than through the charitable route.

www.cerebraltaxadvisors.com

Are NIL Donations Tax Deductible?

This tax strategy has been making the rounds on social media. But, like much tax advice you might hear on social media, take it with a grain of salt. This article explains the NIL tax implications and what to know before engaging in these types of contracts.
www.cerebraltaxadvisors.com www.cerebraltaxadvisors.com
 
An email just went out regarding the NIL situation at VCU. In case you didn't get it, here it is:

Dear Ram Nation,

With the end of our men’s and women’s basketball seasons coming over the last two weeks in postseason play, I want to give you an update on the Preliminary Injunction for the Commonwealth of Virginia and the state of Tennessee in regard to Name, Image and Likeness (NIL) in college athletics.

As the NIL landscape has evolved in a disjointed way over the past few years, the only clarity we maintain is that NIL has had a significant impact on the success of our teams by providing enhanced opportunities to VCU student-athletes. Given recent short-term rules changes, NIL opportunities will become even more important to our programs’ successes.

The unprecedented preliminary injunction granted by a federal district court in Tennessee provides a short-term victory for the Tennessee and Virginia Attorneys General in their antitrust suit against the NCAA and the most significant change in NIL since its inception in 2021. The court’s decision prevents the NCAA from enforcing its Interim NIL Policy or any Bylaws that prohibit prospective student-athletes from negotiating compensation for NIL with any third-party collectives (Havoc Unlimited Collective) or boosters. The judge indicated that a Policy restriction, which previously barred binding NIL offers from third-parties during the recruitment process was a violation of the prospective student-athletes competitive marketplace rights and as a result, a possible antitrust violation. The preliminary injunction will remain in place until a final decision is made on the matter.

Given this historic temporary deregulation in recruiting legislation, VCU Athletics has never witnessed a more important time for supporters to consider involvement with the Havoc Unlimited Collective. The organization’s community-driven NIL opportunities greatly support our student-athletes and play a vital role in the interest and retention of VCU student-athletes. Prior to the court’s ruling, the Policy prohibited boosters and collectives from engaging in binding NIL offers with prospective student-athletes. Boosters and collectives (like the Havoc Unlimited Collective) could not guarantee or promise that an NIL agreement was contingent upon a prospective student-athlete’s initial enrollment to a particular school.

The impact of this ruling will result in cataclysmic changes to recruiting student-athletes for VCU Athletics and the NCAA. Collectives (Havoc Unlimited Collective) and other boosters can directly influence the recruiting process by offering binding NIL agreements to prospective student-athletes in exchange for their enrollment at VCU. Prospective and current student-athletes still will need to provide a service in return for the contracted compensation. Prospective student-athletes will have more leverage in the recruiting process by having the ability to compare legally enforceable offers from competing schools with full knowledge of their NIL value prior to committing to VCU. The landscape now resembles a true open and competitive market for the services that prospective or current student-athletes have to offer. For the time being, institutions cannot pay student-athletes directly or indirectly. VCU is not permitted to use any institutional funds to compensate prospective or current student-athletes for use of their NIL. As such, available NIL compensation for prospective and current student-athletes is fully dependent on the recently empowered third-parties. This group includes fans, local and national businesses, individual donors and the Havoc Unlimited Collective.

We need your help. Throughout the history of VCU Athletics, the student-athletes have rightfully stood as the most important aspects of our programs. Coaches and administrators come and go but the young people who wear the Black and Gold and graduate from the institution remain the heartbeat of the Rams. In order for VCU Athletics to continue its championship culture and chase our first NCAA national championship, we need to support a robust NIL program for the strongest roster possible.

Over the last 20 years, college athletics has faced a facilities arms race and VCU has stood in that fight. The best facilities on the planet now serve as a tool to develop young men and women into the best versions of themselves, and we need the top young men and women in order to reach our goals and yours. The new future of college athletics will turn to an NIL arms race and VCU Athletics needs your support to overcome this new challenge.

Go Rams!

- Ed McLaughlin
 
WillWeaverRVA said:
An email just went out regarding the NIL situation at VCU. In case you didn't get it, here it is:

Dear Ram Nation,

With the end of our men’s and women’s basketball seasons coming over the last two weeks in postseason play, I want to give you an update on the Preliminary Injunction for the Commonwealth of Virginia and the state of Tennessee in regard to Name, Image and Likeness (NIL) in college athletics.

As the NIL landscape has evolved in a disjointed way over the past few years, the only clarity we maintain is that NIL has had a significant impact on the success of our teams by providing enhanced opportunities to VCU student-athletes. Given recent short-term rules changes, NIL opportunities will become even more important to our programs’ successes.

The unprecedented preliminary injunction granted by a federal district court in Tennessee provides a short-term victory for the Tennessee and Virginia Attorneys General in their antitrust suit against the NCAA and the most significant change in NIL since its inception in 2021. The court’s decision prevents the NCAA from enforcing its Interim NIL Policy or any Bylaws that prohibit prospective student-athletes from negotiating compensation for NIL with any third-party collectives (Havoc Unlimited Collective) or boosters. The judge indicated that a Policy restriction, which previously barred binding NIL offers from third-parties during the recruitment process was a violation of the prospective student-athletes competitive marketplace rights and as a result, a possible antitrust violation. The preliminary injunction will remain in place until a final decision is made on the matter.

Given this historic temporary deregulation in recruiting legislation, VCU Athletics has never witnessed a more important time for supporters to consider involvement with the Havoc Unlimited Collective. The organization’s community-driven NIL opportunities greatly support our student-athletes and play a vital role in the interest and retention of VCU student-athletes. Prior to the court’s ruling, the Policy prohibited boosters and collectives from engaging in binding NIL offers with prospective student-athletes. Boosters and collectives (like the Havoc Unlimited Collective) could not guarantee or promise that an NIL agreement was contingent upon a prospective student-athlete’s initial enrollment to a particular school.

The impact of this ruling will result in cataclysmic changes to recruiting student-athletes for VCU Athletics and the NCAA. Collectives (Havoc Unlimited Collective) and other boosters can directly influence the recruiting process by offering binding NIL agreements to prospective student-athletes in exchange for their enrollment at VCU. Prospective and current student-athletes still will need to provide a service in return for the contracted compensation. Prospective student-athletes will have more leverage in the recruiting process by having the ability to compare legally enforceable offers from competing schools with full knowledge of their NIL value prior to committing to VCU. The landscape now resembles a true open and competitive market for the services that prospective or current student-athletes have to offer. For the time being, institutions cannot pay student-athletes directly or indirectly. VCU is not permitted to use any institutional funds to compensate prospective or current student-athletes for use of their NIL. As such, available NIL compensation for prospective and current student-athletes is fully dependent on the recently empowered third-parties. This group includes fans, local and national businesses, individual donors and the Havoc Unlimited Collective.

We need your help. Throughout the history of VCU Athletics, the student-athletes have rightfully stood as the most important aspects of our programs. Coaches and administrators come and go but the young people who wear the Black and Gold and graduate from the institution remain the heartbeat of the Rams. In order for VCU Athletics to continue its championship culture and chase our first NCAA national championship, we need to support a robust NIL program for the strongest roster possible.

Over the last 20 years, college athletics has faced a facilities arms race and VCU has stood in that fight. The best facilities on the planet now serve as a tool to develop young men and women into the best versions of themselves, and we need the top young men and women in order to reach our goals and yours. The new future of college athletics will turn to an NIL arms race and VCU Athletics needs your support to overcome this new challenge.

Go Rams!

- Ed McLaughlin
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Very honest take on the situation.
 
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