NIL News

[Cowboy II]

-for some reason my appetite to contribute to NIL and the ADept has greatly lessened

 

[johnbj14]

Looks like the UMass collective has inked their first deal with a player 

 

[thetorch]

15 minutes ago, johnbj14 said:

Looks like the UMass collective has inked their first deal with a player 

 

Not sure how this is legal.

[Lord Elrond]

3 hours ago, johnbj14 said:

Looks like the UMass collective has inked their first deal with a player 

 

The rules for international students and their visas get tricky, a NIL deal may void their visa

COMPANIES SHOULD CONFIRM EACH INTERNATIONAL STUDENT-ATHLETE’S VISA CATEGORY
There are different visa categories with different rules. Most international student-athletes are in F-1 international student status, sponsored by their college or university. That means the school is responsible for the student-athlete’s immigration compliance and has discretion to cancel the international student’s F-1 visa status if the student-athlete does anything that violates F-1 rules. Working outside of permitted parameters is a status violation that requires the school’s Designated School Officials (DSOs) to terminate the student’s F-1 visa status. The school’s DSOs have significant discretion in determining whether a student in F-1 visa status violated status by working without proper authorization.

Many visa categories do not offer work authorization, so only passive income is allowed. Some international students on campus are in other visa status categories, typically as dependents of parents or guardians living in the U.S. with work visas. Examples include children of diplomats, professionals, or business executives. Some international students are in the U.S. with their own work visas or as spouses of individuals with work visas. As a general rule, international students in visa status categories other than F-1 have no work authorization at all, so they have to restrict any NIL activities to passive income that doesn’t qualify as work (the only exception is that some spouses may be eligible for work authorization, depending on their visa status category). Their college or university has no responsibility or role in their immigration compliance.

Be sure to confirm an international student-athlete’s visa category at the outset. So for NIL deals, the first crucial point is to verify the specific visa status category of an international student-athlete. For individuals who are not in F-1 student status and don’t have work authorization as a spouse in their visa category, maintaining compliance by limiting activities to only passive income is a matter between the student, the company, and government (Internal Revenue Service and Social Security Administration). Accountants can help these international student-athletes maintain compliance. They may obtain an Individual Taxpayer Identification Number, form a corporation or limited liability corporation (LLC), file LLC or corporate tax returns, and benefit from passive income from NIL activities.

Don’t assume! International student-athletes may have other scenarios, subject to different rules. Student-athletes also may be permanent residents with green cards, Deferred Action for Childhood Arrivals (DACA) beneficiaries, or undocumented. Lawful permanent residents with green cards are U.S. nationals and have unrestricted work authorization. Applicants for lawful permanent resident status who don’t have green cards yet may have work authorization, depending on the progress of their permanent residency applications. Individuals with DACA protection have unrestricted work authorization. Undocumented individuals have no work authorization. So again, it’s important to confirm the status of each international student-athlete before negotiating NIL arrangements with them.

SPECIAL RULES FOR INTERNATIONAL STUDENT-ATHLETES IN F-1 STATUS SPONSORED BY THEIR SCHOOLS
Schools enforce F-1 student visa employment rules, as required by the U.S. Department of Homeland Security (DHS). Schools may be authorized by DHS to sponsor international students in F-1 visa status, which affords college and university students some limited work authorization. But international students in F-1 status are subject to discretionary compliance decisions of their school, and of Immigration and Customs Enforcement (ICE), the division of DHS which regulates the Student and Exchange Visitor program (SEVP). ICE delegates authority to F-1 sponsoring schools to monitor and enforce F-1 visa compliance and requires schools to enforce the rules strictly or lose the right to sponsor F-1 visas for international students.

F-1 students have limited work authorization, on and off campus, and violating the employment rules can have devastating consequences. F-1 international students are allowed to work on campus, but there are restrictions as to the hours per week; they may work off-campus, but only for optional practical training in their field or curricular practical training as part of their education. All off-campus work requires specific authorization by a Designated School Official (DSO) at their school, and also may require specific approval of the U.S. Citizenship and Immigration Services (USCIS). Any work on campus beyond permitted parameters and any off-campus employment without the required DSO and/or USCIS approval is a violation of status requiring the DSO to terminate the international student’s F-1 visa status, often with drastic consequences for the international student. Determining what activities qualify as “work” is important; volunteering in work that usually is paid is prohibited under both immigration laws and employment laws.

The schools decide whether an F-1 student violated status by working outside approved parameters, and the DSOs have to be very strict about this. For F-1 international students, the school’s DSOs have discretion to decide if the student violated status through employment. If a DSO decides the F- international student violated status, the DSO is required by law to terminate the student’s F-1 visa status. DSOs tend to take a conservative approach to immigration compliance for international students and they are required to take their responsibilities for ICE very seriously, to protect their school’s F-1 international student program. So it’s vital for F-1 international students to work closely with their school’s DSOs, to avoid any employment that a DSO would view as unauthorized. Without a campus policy, DSOs have to follow DHS guidance about what type of NIL activities DHS believes is allowed.

[JMM28]

That is why it said "Shortly after he landed in Auckland.." 

Collectives/NIL sponsors pay players on summer foreign trips, when they're at home for breaks, or when they are in the islands for the MTE tournaments. 

[billikenfan05]

2 minutes ago, JMM28 said:

That is why it said "Shortly after he landed in Auckland.." 

Collectives/NIL sponsors pay players on summer foreign trips, when they're at home for breaks, or when they are in the islands for the MTE tournaments. 

But if the money is presumably coming from a US bank account...?

 

[JMM28]

Just now, billikenfan05 said:

But if the money is presumably coming from a US bank account...?

 

As long as they 'earned' it while they were not in the US, there is no issue with their student visa. There is also somewhat of a loophole that they can work on campus serving other students so coachs' summer basketball camps can count towards that as well. 

[billikenfan05]

8 minutes ago, JMM28 said:

As long as they 'earned' it while they were not in the US, there is no issue with their student visa. There is also somewhat of a loophole that they can work on campus serving other students so coachs' summer basketball camps can count towards that as well. 

 

[HoosierPal]

12 minutes ago, JMM28 said:

That is why it said "Shortly after he landed in Auckland.." 

Collectives/NIL sponsors pay players on summer foreign trips, when they're at home for breaks, or when they are in the islands for the MTE tournaments. 

Yeah, they have this figured out how to get NIL to foreign athletes.  Kentucky's Oscar Tshiebwe is from the Congo and signed a $2 million NIL deal when the team was on a summer tour, in the Bahama's I think.  It's all shade and mirrors.

[JMM28]

11 minutes ago, HoosierPal said:

Yeah, they have this figured out how to get NIL to foreign athletes.  Kentucky's Oscar Tshiebwe is from the Congo and signed a $2 million NIL deal when the team was on a summer tour, in the Bahama's I think.  It's all shade and mirrors.

SLU's foreign guys got paid while the team was in Europe over the summer. 

[HoosierPal]

https://www.indystar.com/story/sports/college/indiana/2022/12/26/indiana-basketball-player-uses-nil-money-to-pay-sisters-student-debt/69756940007/

Here is a great NIL story.  Leal isn't a rotation player for Indiana, but has enough NIL $ to pay off his sister's college debt.

[Taj79]

A local Lexus dealer is giving four Penn State football players the use of a Lexus for one year.  Each player gets his own and drives around campus with them (or wherever).  Of course, the cars are all painted up with the dealership’s logo, phone number and so on.  Like a Domino’s Pizza Car.

Free wheels are free wheels, I guess.

[Matty Light]

1 hour ago, Taj79 said:

A local Lexus dealer is giving four Penn State football players the use of a Lexus for one year.  Each player gets his own and drives around campus with them (or wherever).  Of course, the cars are all painted up with the dealership’s logo, phone number and so on.  Like a Domino’s Pizza Car.

Free wheels are free wheels, I guess.

Not too different from what I observed at the end of the Spoonball Era.

[Old guy]

OK people, is anyone aware that the equities market lost over $30 Trillion in value this year? The bond prices (which I do not follow) may have lost even more. Do you really think there will be an abundance of money readily available to be spent in NILs next year?

[Billiken Rich]

Yes

[Taj79]

Ooops --- Penn State players got Teslas not Lexus.

[Slowry]

23 hours ago, Old guy said:

OK people, is anyone aware that the equities market lost over $30 Trillion in value this year? The bond prices (which I do not follow) may have lost even more. Do you really think there will be an abundance of money readily available to be spent in NILs next year?

Yes people still have money just not as much.  So maybe instead of paying someone 500k they give them 300k.  Still a ton of cash for a college player.

[Old guy]

13 hours ago, Slowry said:

Yes people still have money just not as much.  So maybe instead of paying someone 500k they give them 300k.  Still a ton of cash for a college player.

If you say so... I think people do not think about investment asset losses too much until the loss gets above 10% of their asset base, then they tend to over react. I think a lot will depend upon what the market does in 2023. There is nothing written in stone about what we can expect in 2023 from the market. By the time the current season ends in March, we will have a better idea. However, looking at the real estate implosion started in late 2022, I doubt the market will do well.

[Lord Elrond]

4 minutes ago, Old guy said:

. I think people do not think about investment asset losses too much until the loss gets above 10% of their asset base, then they tend to over react.

Elon Musk lost $200 Billion in 2022….

[Old guy]

He really lost only the paper value of his stock in Tesla, he did not sell the stock at loss, he still has it. Market asset loss is never final until you loose your cool and sell your stocks in a panic, usually at the worst moment.

[HoosierPal]

On 12/27/2022 at 3:52 PM, HoosierPal said:

https://www.indystar.com/story/sports/college/indiana/2022/12/26/indiana-basketball-player-uses-nil-money-to-pay-sisters-student-debt/69756940007/

Here is a great NIL story.  Leal isn't a rotation player for Indiana, but has enough NIL $ to pay off his sister's college debt.

 

[Old guy]

Hoosier, this is indeed a beautiful and inspiring story. Good for him and for his family.

[Slowry]

1 hour ago, Old guy said:

He really lost only the paper value of his stock in Tesla, he did not sell the stock at loss, he still has it. Market asset loss is never final until you loose your cool and sell your stocks in a panic, usually at the worst moment.

How can you say people don’t think about investment losses until they hit 10%.  Then say it’s only paper value.  Kind of a contradiction isn’t it?  

[Old guy]

14 minutes ago, Slowry said:

How can you say people don’t think about investment losses until they hit 10%.  Then say it’s only paper value.  Kind of a contradiction isn’t it?  

No contradiction at all. People do not think about their investments, they have them under management by somebody. They feel wealthy regardless of what may be going on, because they pay no attention to the market and trust their advisor. The  year end report comes and Nasdaq has lost over 30%, Russel has lost about 22%, the SP has lost about 20%. If they have the usual 60/40  distribution between fixed income and equities, they have lost evven more in their fixed income securities  value. The cash remains the same unless you factor in inflation. If you read the report, you will want to talk to the advisor, who will do his best to calm you down. A number of people will have all they are able to take and decide to sell it all and go into cash.

Those are the ones that take the rash action. When they sell, their losses become real losses.

Before this time they are valuation losses, or paper losses. The stock or whatever you have was bought because it was valued at a high level and was supposed to keep on going up. Instead it went down, deeply down. There were "dead cat bounces during the summer that amounted to nothing. The market has kept on going down and is likely to continue going down.

You, the investor, have been unaware of all of this, thinking your wealth is safe. Then you find it is NOT. What you, the investor,  do at this time depends upon how hard you take it. 

You are likely unaware of most of the facts I am going over. People do not think about their money, they feel wealthy until they stop feeling wealthy. This reality may come as a total surprise to them, and when they get it they tend to panic and do things they  should not do, like sell off.

Do you understand this or not? People believe what they want to believe. A lot of people believe they are wealthy, the reality is that they have become a lot less wealthy than they believe to be and are in the way for more of the same. You get it?

[Slowry]

I think your very mistaken if you think people don’t know what’s going on with their investments. They might not know exact totals.  But most people have an idea if they are up or down.  Taking this back to NIL money.  If people are putting large sums into NIL you can guarantee they know their position.