SLU will opt in for NCAA settlement, opening door for direct payment of athletes in 202

[SluSignGuy]

Article from Stu:

Quote

Saint Louis University plans to take advantage of the recent court settlement involving the NCAA to pay athletes directly starting with the 2025-26 academic year.

Athletics director Chris May said Tuesday that SLU will opt in, a move that will move money raised previously by the NIL collective under the athletic department’s control and allow for more revenue to be added to the fund by the university.

https://open.substack.com/pub/stuonslu/p/slu-will-opt-in-for-ncaa-settlement?r=18fbt&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

[kshoe]

Key concept is that the Billiken Victory Fund will go away and payments to the players can come from the school itself. Those that donated to the BVF can now donate to the school and get a tax deduction.

That's right, in 2025 donating to your school so that they can pay $250k for an 18 year old to play basketball is tax deductible...

[Lord Elrond]

1 minute ago, kshoe said:

Key concept is that the Billiken Victory Fund will go away and payments to the players can come from the school itself. Those that donated to the BVF can now donate to the school and get a tax deduction.

That's right, in 2025 donating to your school so that they can pay $250k for an 18 year old to play basketball is tax deductible...

It’s hard to see the IRS allowing it to be tax deductible. Remember, the tax deductibility of your donation is based on what is done with the money. Money for a new building for the college? No problem. Money to directly pay what will be professional athletes?  I can’t see that.

[SluSignGuy]

1 minute ago, Lord Elrond said:

It’s hard to see the IRS allowing it to be tax deductible. Remember, the tax deductibility of your donation is based on what is done with the money. Money for a new building for the college? No problem. Money to directly pay what will be professional athletes?  I can’t see that.

I actually don't know.  But are donations for endowed chairs, which sometimes pay professors, tax deductible? 

[SLU_Lax]

1 minute ago, Lord Elrond said:

It’s hard to see the IRS allowing it to be tax deductible. Remember, the tax deductibility of your donation is based on what is done with the money. Money for a new building for the college? No problem. Money to directly pay what will be professional athletes?  I can’t see that.

Eh. It’s all in how you frame it. If I give $250k, I would frame it as paying for marketing the University to prospective students. 

[kshoe]

Just now, Lord Elrond said:

It’s hard to see the IRS allowing it to be tax deductible. Remember, the tax deductibility of your donation is based on what is done with the money. Money for a new building for the college? No problem. Money to directly pay what will be professional athletes?  I can’t see that.

Any money donated to the Billiken Club is tax deductible. The BC can spend it on whatever they want including Travis Ford's buyout, paying players, whatever. The IRS absolutely should shut this down but they don't/won't and Chris May is quoted in the article as talking about how these deductions are now tax deductible.

[White Pelican]

13 minutes ago, kshoe said:

Key concept is that the Billiken Victory Fund will go away and payments to the players can come from the school itself. Those that donated to the BVF can now donate to the school and get a tax deduction.

That's right, in 2025 donating to your school so that they can pay $250k for an 18 year old to play basketball is tax deductible...

Is this a great country or what?

[Mr. Plainview]

Will this increase the donation portion for season tickets?

[willie]

I am not an accountant but I believe the vast majority of people take the standard deduction. One of the issues on the upcoming tax bill is to repeal or raise the amount allowable for SALT deductions. If that occurs more people will itemize and giving to charities [Billiken Athletics] will become more cost effective. 

[HoosierPal]

15 scholarship rosters with likely no walk-on's.  Do Jaden Schertz and/or Isaac Holmes and/or Nick Patton get scholarships next season?  Low rent players that you might not give 'a full share of revenue'?  Coach already plays a tight rotation.  Players 14 and 15 won't see any meaningful action.  Do we go low?

[billiken_roy]

2 hours ago, SluSignGuy said:

I actually don't know.  But are donations for endowed chairs, which sometimes pay professors, tax deductible? 

Nice.   

[billiken_roy]

I think this move by SLU makes a lot of sense.   I've been saying all along going to our handful of whales year after year wasn't going to last.    As soon many are pointing out with the possible tax advantages there seems to be a much greater opportunity for the University to handle this and satisfy the athletes.

I still don't like the whole fiasco, but this makes more sense to me.

[Old guy]

The issue of deductibility of cash donations vs income is complex and has a lot of ins and outs. You may send money under the idea that it is tax deductible, but at the higher donation levels it may not be. Check this statement regarding the deductibility of cash donations vs income from the IRS, if you would like to understand what is involved.

Another thing that must be considered is that the new administration coming into power soon is going to have a DOGE agency in charge of government excess spending. Keep in mind that they are going to need to raise tons of money to avoid defaulting on the debt and need to raise money or cut expenses to do so.

https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions#:~:text=In most cases%2C the amount,not subject to this limitation.

Check it out and consider the origin of the article I posted. The IRS does things in its own way.

[The Wiz]

Or you could use a QCD to reduce your RMD  which might be more valuable than a deduction.

[Old guy]

1 hour ago, The Wiz said:

Or you could use a QCD to reduce your RMD  which might be more valuable than a deduction.

You can do a number of things to reduce your taxes, but first of all you have to have enough knowledge about taxes to determine what it is that you want to do.

[BrettJollyComedyHour]

13 hours ago, Mr. Plainview said:

Will this increase the donation portion for season tickets?

Paying players aside, are you an oil man? 

[Lord Elrond]

The original concept here was that players get part of the revenue that schools already get. Revenue sharing was what it was called. Now we need whole new revenue sources to pay the students.

[TheA_Bomb]

13 hours ago, billiken_roy said:

I think this move by SLU makes a lot of sense.   I've been saying all along going to our handful of whales year after year wasn't going to last.    As soon many are pointing out with the possible tax advantages there seems to be a much greater opportunity for the University to handle this and satisfy the athletes.

I still don't like the whole fiasco, but this makes more sense to me.

Buckle up. 

Nothing about this precludes the ongoing need for NIL deals. 

Schools will do anything to win. Schools can pay players directly now. However, NIL is still allowable. So look for programs to do both.

Does that mean it needs to be a collective? That essentially is pay for play? Maybe not, but there should be something to facilitate NIL deals for athletes. Schools with better NIL opportunities will on average attract greater talent. 

I hope SLU and the BVF are making adequate plans to stay competitive.

[Cowboy II]

-if this is "revenue sharing" does it only go to (intentionally did not include student) athletes in revenue producing sports? 

-does it have to be allocated equally? ie does the bball player and the cross country runner get the same amount? not picking on CC, just an example

[BrettJollyComedyHour]

1 hour ago, TheA_Bomb said:

Buckle up. 

Nothing about this precludes the ongoing need for NIL deals. 

Schools will do anything to win. Schools can pay players directly now. However, NIL is still allowable. So look for programs to do both.

Does that mean it needs to be a collective? That essentially is pay for play? Maybe not, but there should be something to facilitate NIL deals for athletes. Schools with better NIL opportunities will on average attract greater talent. 

I hope SLU and the BVF are making adequate plans to stay competitive.

I'm ready for the MLB model to come to the NCAA because of this and I hate it. It'll breed a lot of resentment amongst the other sports, I feel, especially at non-FBS. If I were a student, I'd also be angry knowing that they're getting directly paid.

[TheA_Bomb]

17 minutes ago, BrettJollyComedyHour said:

I'm ready for the MLB model to come to the NCAA because of this and I hate it. It'll breed a lot of resentment amongst the other sports, I feel, especially at non-FBS. If I were a student, I'd also be angry knowing that they're getting directly paid.

You know I don't think it'll breed resentment amongst the sports.  For example, football at Texas has always gotten more publicity and money than rowing despite rowings recent national championships. Baseball at SLU gets less money and had a field with no lights despite winning the conference often vs MBB having a coach getting paid $2.5mil/yr playing in an $80mil arena and not winning the conference. Was/Is there resentment? Maybe. But it doesn't concern me, this is just another thing.

My concern is finding a way to be competitive with the teams we need to compete with for the players that are realistically achievable, SBU, DePaul, WSU, VCU, et al, those size programs. That's revenue sharing, NIL, player assessment, recruiting skills and pitching your school/location.

[BrettJollyComedyHour]

3 minutes ago, TheA_Bomb said:

You know I don't think it'll breed resentment amongst the sports.  For example, football at Texas has always gotten more publicity and money than rowing despite rowings recent national championships. Baseball at SLU gets less money and had a field with no lights despite winning the conference often vs MBB having a coach getting paid $2.5mil/yr playing in an $80mil arena and not winning the conference. Was/Is there resentment? Maybe. But it doesn't concern me, this is just another thing.

My concern is finding a way to be competitive with the teams we need to compete with for the players that are realistically achievable, SBU, DePaul, WSU, VCU, et al, those size programs. That's revenue sharing, NIL, player assessment, recruiting skills and pitching your school/location.

This just sounds like NBA G League with more steps and stricter regulations, lol.

[TheA_Bomb]

1 hour ago, BrettJollyComedyHour said:

This just sounds like NBA G League with more steps and stricter regulations, lol.

Don't paraphrase Rick & Morty to me.

It'll be a mess. I think that uncertainty also provides opportunities. If you're on top right now you want to maintain the status quo. If you're not on top maybe a change to the environment creates an opportunity to seize. I want SLU to seize it. Maybe not having Football is finally an advantage.

[Lord Elrond]

How about a European football model, with different tiers, relegation/promotion, and paying transfer fees for players who move around?

[cgeldmacher]

17 hours ago, billiken_roy said:

I think this move by SLU makes a lot of sense.   I've been saying all along going to our handful of whales year after year wasn't going to last.    As soon many are pointing out with the possible tax advantages there seems to be a much greater opportunity for the University to handle this and satisfy the athletes.

I still don't like the whole fiasco, but this makes more sense to me.

This also helps the big donors.  The money they are deducting is coming out of the highest possible tax bracket.  Now, they can either feel better about donating at their present level, or donate more given the tax break they are getting.