Smoke your cigars and enjoy the band while you can....

[Spracne]

If student athletes become university employees, does all their scholarship benefits become taxable?

People keep saying that's unknown, but it's seems very obviously that they wouldn't. Every university is filled with thousands of students on scholarship who are also university employees and their scholarships aren't taxable, I don't know why this would be different for athletes.

Does this apply to funds in excess of tuition that universities cut a check to students for? Because I seem to recall that those were taxable as income during my time at KU. It's entirely possible I'm wrong, though.

[passranch]

I think it's hilarious to see how concerned people are about student athletes' tax liabilities.  Like, WTF does it matter?

[Spracne]

I think it's hilarious to see how concerned people are about student athletes' tax liabilities.  Like, WTF does it matter?

It's definitely a concern in the modern environment. I assume (read: hope) that any university worth its salt is providing financial counseling to athletes to address this. I know I didn't know dick about tax law when I was in undergrad.

[MakeItRain]

If student athletes become university employees, does all their scholarship benefits become taxable?

People keep saying that's unknown, but it's seems very obviously that they wouldn't. Every university is filled with thousands of students on scholarship who are also university employees and their scholarships aren't taxable, I don't know why this would be different for athletes.

Does this apply to funds in excess of tuition that universities cut a check to students for? Because I seem to recall that those were taxable as income during my time at KU. It's entirely possible I'm wrong, though.

I don't recall that. Either way, scholarship funds aren't income so I have no idea how it could be taxable. Now students who actually work for the university have taxable income as it relates to their employment, but that isn't scholarships and grants.

[Houstoncat93]

If student athletes become university employees, does all their scholarship benefits become taxable?

People keep saying that's unknown, but it's seems very obviously that they wouldn't. Every university is filled with thousands of students on scholarship who are also university employees and their scholarships aren't taxable, I don't know why this would be different for athletes.

https://www.irs.gov/taxtopics/tc421

Taxable
You must include in gross income:

Amounts used for incidental expenses, such as room and board, travel, and optional equipment.
Amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant   

Based on that I would think some of it is taxable now but I agree should just be like for any other student.

[Spracne]

If student athletes become university employees, does all their scholarship benefits become taxable?

People keep saying that's unknown, but it's seems very obviously that they wouldn't. Every university is filled with thousands of students on scholarship who are also university employees and their scholarships aren't taxable, I don't know why this would be different for athletes.

Does this apply to funds in excess of tuition that universities cut a check to students for? Because I seem to recall that those were taxable as income during my time at KU. It's entirely possible I'm wrong, though.

I don't recall that. Either way, scholarship funds aren't income so I have no idea how it could be taxable. Now students who actually work for the university have taxable income as it relates to their employment, but that isn't scholarships and grants.

All I remember is a boilerplate warning that scholarship funds in excess of tuition *may* be taxable as income. I don't think I ever had to pay income tax, though (or at the very least, I just didn't). Could have just been a case of over lawyering/CYA.

But certainly these NIL stars need some prudent financial guidance. I hope they're getting it.

[Houstoncat93]

I think it's hilarious to see how concerned people are about student athletes' tax liabilities.  Like, WTF does it matter?

I think it is because we are putting these 18 year old kids into some potentially very complex tax situations where they may not even realize they need professional help to not get themselves in a crap-ton level of trouble with IRS or state tax agencies.

Imagine this scenario:

Briggs gives Avery Johnson a  4 year, $50K NIL deal with some bonus clauses.  At the 2025 Big 12 Championship game in Phoenix (we agreed to rotate the game there to sweeten the deal to get the AZ schools to jump) they pay him $5k extra to roll up to a special Briggs-sponsored pep rally and say a few words and sign a couple of autographs.  After we win that game and go to Atlanta to defend our National Championship, they have the same deal for him but this time it is $10k.

Does he own state income tax in AZ?  If yes, is it on some percentage of his total compensation or just the $5K.  Does it matter that we played two away games in AZ that year meaning he played 3 games in the state?

What about the taxes in GA?

This is why I would really like to see them be declared employees, set up a union and then have some protections in the collective bargaining agreement related to having a pool of trustworthy professionals to hire.  The CBA could have a clause that says the conference will provide basic financial education and provide a list of vetted professionals who can help with taxes, money mgmt etc.  Similar to how the NFL CBA has agent registration requirements.

[Katpappy]

I just watch this podcast and this guy has some good opinions and ideas.  It's crazy what he says because this is an ESPN-sponsored podcast.


                                                                                 
                                                                                               

[stunted]

hard hitting stuff pappy

[Katpappy]

You probably didn't even listen to the podcast, since it didn't have dribble heads in it.    This guy is sponsored by ESPN and he's dogging the crap out of the SEC.  Says most teams in the SEC play two to three competitive games and 5 to 6 are all pud.  His opinion is if the CFP required the big 10, SEC, ACC, and BIG XII to play ten in-conference games along with one out-of-conference home and home with another P5 team it would make the CFP a true auto bid of the top 5 teams(if PAC 12 survives) and at large very competitive. 

[Houstoncat93]

You probably didn't even listen to the podcast, since it didn't have dribble heads in it.    This guy is sponsored by ESPN and he's dogging the crap out of the SEC.  Says most teams in the SEC play two to three competitive games and 5 to 6 are all pud.  His opinion is if the CFP required the big 10, SEC, ACC, and BIG XII to play ten in-conference games along with one out-of-conference home and home with another P5 team it would make the CFP a true auto bid of the top 5 teams(if PAC 12 survives) and at large very competitive.

Is he really sponsored by ESPN, I thought he was just stealing their logo

[Katpappy]

 

[stunted]

yea, espn really decided to sponsor a random youtuber named "depressed ginger"

[Katpappy]

Yea, you're right.  ESPN will let anyone who is making money publicly display their logo on their business.   
                                                                                         
                                                                                             

[HugeCat]

WTF
https://twitter.com/MHver3/status/1551383298399764480?s=20&t=zlTwKfNbiJvz7xwKm92rHw

[sonofdaxjones]

Well he does have the Cal situation correct. They’re a financial clusterfuck.

[MakeItRain]

lol, that's total horse crap

[Spracne]

lol, that's total horse crap

Yes. That MHver3 guy is a charlatan. If he's ever been right about anything, it's only because he's thrown everything against the wall. Total clown. I'm kinda over realignment speculation. I'll wait for official announcements. The rest is shadows and dust.

[wetwillie]

lol, that's total horse crap

Yes. That MHver3 guy is a charlatan. If he's ever been right about anything, it's only because he's thrown everything against the wall. Total clown. I'm kinda over realignment speculation. I'll wait for official announcements. The rest is shadows and dust.

You will be right here with the rest of us lapping it up you slut

[Spracne]

lol, that's total horse crap

Yes. That MHver3 guy is a charlatan. If he's ever been right about anything, it's only because he's thrown everything against the wall. Total clown. I'm kinda over realignment speculation. I'll wait for official announcements. The rest is shadows and dust.

You will be right here with the rest of us lapping it up you slut

I'll read it, but I won't believe it.

['taterblast]

Stanford and Cal to the Big 12 with a sprinkle of Notre Dame lmao

[HugeCat]

https://twitter.com/ESPN_BillC/status/1551564771216035840?s=20&t=EEjKC87CLpD5nqiQW95rpw

[MadCat]

Would there be any value in picking up Navy and/or Army for the one game where they are the only game being televised?

[MakeItRain]

no

[Shooter Jones]

lol, that's total horse crap

Yes. That MHver3 guy is a charlatan. If he's ever been right about anything, it's only because he's thrown everything against the wall. Total clown. I'm kinda over realignment speculation. I'll wait for official announcements. The rest is shadows and dust.

You will be right here with the rest of us lapping it up you slut

I'll read it, but I won't believe it.

MHver3 is the perfect follow for realignment speculation. He takes every single ounce of internet rumor he can find and posts it on his feed like it's his. He scours the depths of social media and blogs so that we don't have to, the one stop shop for it all (don't really care that he lies and claims it's from his sources).

It's great, as long as you understand it's all bullshit.