Avila NIL Deal with Chicago White Sox and others

[Pistol]

3 minutes ago, brianstl said:

The things like the lease, taxes on the car and titling probably are covered, but all those payments on Robbie’s behalf will be considered income earned by the IRS, MO and the city.  Robbie will have to pay income taxes on that.

I figured some of this stuff would be grossed up so players are prepared when tax season comes around.

[slu72]

1 hour ago, thatskablamo said:

Wouldn’t Avila’s tax attorney set up some sort of Delaware-incorporated foundation for him so Bommarito could say they are donating the car to a charity ala 1-877-KARS4-KIDS? It would be a win for everyone. 

You must be a tax attorney. 

[thatskablamo]

2 hours ago, slu72 said:

You must be a tax attorney. 

Ha! I wish, SLU72. Had the best admin law professor, Dr Ken Warren, but never did the law school route! 

[SLU_Lax]

5 hours ago, brianstl said:

The things like the lease, taxes on the car and titling probably are covered, but all those payments on Robbie’s behalf will be considered income earned by the IRS, MO and the city.  Robbie will have to pay income taxes on that.

Who knows how it is worked, but Bommarito can give him the lease for free AND pay him enough to cover the taxes. That is an option available and is something my company often does when giving people incentives like a $200 gift card. The card will show up on their payroll receipt as $240 or something similar and the $40 is applied to the tax liability. 

[SLU_Lax]

5 hours ago, brianstl said:

 

Edited June 7, 2024 by SLU_Lax
Double Post

[Zink]

9 hours ago, slu72 said:

No escaping the long arm of the IRS unless your last name is Biden. 

This is dumb. 

[NextYearBill]

THANK YOU BOMMARITO.... thats Power 5 NIL stuff right there

[Lord Elrond]

3 hours ago, SLU_Lax said:

Who knows how it is worked, but Bommarito can give him the lease for free AND pay him enough to cover the taxes. That is an option available and is something my company often does when giving people incentives like a $200 gift card. The card will show up on their payroll receipt as $240 or something similar and the $40 is applied to the tax liability. 

Whatever they pay him is taxable

[SLU_Lax]

8 minutes ago, Lord Elrond said:

Whatever they pay him is taxable

Correct, but you can make the math work. Part of the $40 is paying the tax on the gift card and part is paying the tax on the $40. I promise it can be done. It is just a question of whether that is how it was set up or not. 

[slu72]

4 hours ago, Zink said:

This is dumb. 

But true. 

[Old guy]

This is ridiculous guys, no one is going to have any problems with the IRS over a $40 payment.  We are talking about a car with an MSRP of $125,000. That is a substantial amount of money. Any lease of such a car will involve a lot more than $40. None of us knows this contract terms, or any of his other NIL contract terms. I assume the amount that will count as taxable related to this car may be significant.

My basic point is that these kids may be getting lots of taxable money and need real professional help handling it. For  example, are these kids making good NIL money expected to pay estimated taxes? Do you think any of the NIL  sources withhold funds for Federal and State taxes? We have no way to say. However, lack of knowledge does not diminish the obligation of the NIL recipient to pay taxes on time to the IRS and State revenue centers. 

The truth remains that Avila should have a lawyer, an accountant, and a financial advisor to provide help with NIL deals. If he only has his agent providing advise he may wind up in trouble. I think that many other players getting large amount of taxable income from multiple NIL sources may also wind up in trouble as well. Whether Avila or anyone else is actually in trouble is unknown to me. 

[Lord Elrond]

In the old days before NIL, when some sleazy guy handed you a bag full of cash, you never had to worry about taxes. Now, better keep track now that’s it’s all on the open, the IRS knows. 

[willie]

31 minutes ago, Old guy said:

This is ridiculous guys, no one is going to have any problems with the IRS over a $40 payment.  We are talking about a car with an MSRP of $125,000. That is a substantial amount of money. Any lease of such a car will involve a lot more than $40. None of us knows this contract terms, or any of his other NIL contract terms. I assume the amount that will count as taxable related to this car may be significant.

My basic point is that these kids may be getting lots of taxable money and need real professional help handling it. For  example, are these kids making good NIL money expected to pay estimated taxes? Do you think any of the NIL  sources withhold funds for Federal and State taxes? We have no way to say. However, lack of knowledge does not diminish the obligation of the NIL recipient to pay taxes on time to the IRS and State revenue centers. 

The truth remains that Avila should have a lawyer, an accountant, and a financial advisor to provide help with NIL deals. If he only has his agent providing advise he may wind up in trouble. I think that many other players getting large amount of taxable income from multiple NIL sources may also wind up in trouble as well. Whether Avila or anyone else is actually in trouble is unknown to me. 

You make some good points about tax liability. I would hope the Athletic Department or the Billiken Victory Fund have advisors for all of these players not only the stars. I know the BVF has at least one lawyer on its board. Someone needs to make sure these players have enough cash to pay whatever tax bill they will have. Even NBA players sometimes have a problem with this. 

[Old guy]

48 minutes ago, willie said:

You make some good points about tax liability. I would hope the Athletic Department or the Billiken Victory Fund have advisors for all of these players not only the stars. I know the BVF has at least one lawyer on its board. Someone needs to make sure these players have enough cash to pay whatever tax bill they will have. Even NBA players sometimes have a problem with this. 

Honestly willie, the BVF is not rich in resources. These guys do what they do after hours. They do not have staff, and they do not have an office. They have to work elsewhere to make a living. I do not think they can provide these services themselves, but they could compile a list of reputable well trained lawyers, accountants, and financial advisors and give it to all the players. That might help them.

[SLU_Lax]

2 hours ago, Old guy said:

This is ridiculous guys, no one is going to have any problems with the IRS over a $40 payment.  We are talking about a car with an MSRP of $125,000. That is a substantial amount of money. Any lease of such a car will involve a lot more than $40. None of us knows this contract terms, or any of his other NIL contract terms. I assume the amount that will count as taxable related to this car may be significant.

My basic point is that these kids may be getting lots of taxable money and need real professional help handling it. For  example, are these kids making good NIL money expected to pay estimated taxes? Do you think any of the NIL  sources withhold funds for Federal and State taxes? We have no way to say. However, lack of knowledge does not diminish the obligation of the NIL recipient to pay taxes on time to the IRS and State revenue centers. 

The truth remains that Avila should have a lawyer, an accountant, and a financial advisor to provide help with NIL deals. If he only has his agent providing advise he may wind up in trouble. I think that many other players getting large amount of taxable income from multiple NIL sources may also wind up in trouble as well. Whether Avila or anyone else is actually in trouble is unknown to me. 

My example is done many thousands of times and in aggregate is several million every year. I do not disagree with the premise that NIL creates taxable income that is a liability that needs to be accounted for. 
 

I actually just think the car example is a bad one. We don’t have any of the details. Avila’s deal may be to go out and “show off” the car and it is simply a tool required for him to perform that job. Not very different from a company giving a carpenter a hammer to perform his job. 
 

it all depends on the actual deal made and what services Avila is expected to perform. A car offers many more loopholes than just cash. Avila could be part of an ergonomic focus group of one to provide valuable feedback on how the car’s ergonomics are for a 6’10 person. We just don’t know. 

[brianstl]

 

[Aquinas]

That's fun.

[OkieBilliken]

 

This is pretty cool to hear.   Nice to see positives about the BVF from the new guys.