Something’s gotta give.

Those excise taxes on huge coaches’ salaries aren’t going to pay themselves, peeps.

Another byproduct of the new legislation is a provision (Section 4960) that forces tax-exempt organizations like many of the colleges and universities across the country to pay an excise tax of 21 percent on the top five highest paid employees who make a salary of $1 million or more.

In most cases, that would include athletics directors and coaches who are sometimes the highest paid employees in the state.

Nick Saban is the highest paid coach in the FBS last season with a salary of $11.3 million. Under the new tax provision, Alabama would be on the hook for an estimated $2.3 million a year in excise taxes.

The issue stretches beyond Alabama. Last season, 78 coaches made at least $1 million. There were also 15 assistant coaches who made more than $1 million last season, led by LSU defensive coordinator Dave Aranda ($1.8 million), and a handful of athletics directors who wer paid more than $1 million as well.

How schools will offset the excise tax is another piece of the overall puzzle that no one seems to have an answer for at the moment. Some of it, unfortunately, could come in the form of cuts to programs. Then there are some more extreme measures, some of which involve third-party sponsorship.

“I think that schools are going to look at, ‘Can I get a shoe company to pay part of this?’” McMillen said. “I mean there is probably some workaround, but whatever they are, there’s probably a price to pay. You don’t want your football coach being paid by shoe companies.”

Well, except when you do.  But I digress.

Kirby’s gonna be in a pretty high tax bracket when the dust settles.  Mel Tucker just pole vaulted over the $1 million a year mark.  Presuming success continues for the football program, he’ll soon be joined by other assistants.  Sounds like another rainy day storm heading our way.  No doubt McGarity is on the mother as I type this.

Of course, instead of giving us another mealy-mouthed explanation for the coming bump in 2019, Butts-Mehre could always get a little creative, like this.  Probably not very Georgia Way-ish, though.  Too fan friendly.



Filed under Georgia Football, It's Just Bidness

10 responses to “Something’s gotta give.

  1. NoAxeToGrind

    Hell, raise donation levels to the Bulldog Club (that’s what us old dawgs call it) and raise ticket prices another 20%. If Kirby keeps on like this past season, no problem.


  2. 69Dawg

    This was long overdue and not in just college football. It would curl your hair to know the compensation of the heads of so called not-for-profits.


  3. DawgPhan

    Amazing that college football landed on the wrong side of republican tax policy. How did that happen?


    • 92 grad

      Anyone in their right mind would refine the tax code to be properly applied. It’s not partisan, it’s closing a loophole. These are huge compensation packages created to circumvent appropriate taxation. If people would just pay the tax they’re supposed to and the gubmit would spend it wisely we’d all be a lot more content.


  4. Hogbody Spradlin

    There’s a naming opportunity there. ‘The Colquitt Moultrie Ogletree, IV Excise Tax Fund, Sponsored by Delta Airlines.’


  5. TnDawg

    It never ceases to amaze me the ingenuity to derive another means to gain tax revenue. Wouldn’t it be something if those same minds tried to find ways to reduce expenses?


  6. Truckin

    Excise tax? Yeah, give the bastards more money to blow.

    Liked by 1 person

  7. Macallanlover

    Could care less about the tax on schools, donors, coaches, etc. But I especially like this tax applies to the charitable organizations as well. Innocent donors give money thinking they are helping a good cause, only it is going into some executives’ pockets, to pay the cost of a week’s trip to Hawaii. NYC, or some other over over priced location to attend some meeting/conference for a week, or their offices in the high rent district instead of some efficient office location.

    On every donation request or commercial they should have to put the % of a dollar that actually is gets the “cause”. I remember decades ago, the American Cancer Society gave 8 cents of every dollar to cancer research. I began looking at other “national” health organizations so many gave to to without thinking American Heart Assoc., March of Dimes, etc, and found while some were better, the waste was awful. I fund other ways to give money directly to medical research organizations, not the fat cats running, what I consider to be, scams. There are operational costs, and there are bloated, wasteful spending.

    I am OK with this tax, glad to see it implemented. Now let’s get after tenured professors.


  8. Gurkha Dawg

    I thought Trump was giving high income earners a big break in the new tax law. More commy propaganda.