Today, in mo’ (and less) money

Jere Morehead speaks truth to power.

There also is a new line-item buried within. It’s $1.8 million, which is the new federal excise tax that is being assessed on nonprofits that pay employees more than $1 million in salary. So Georgia is now being assessed a 21 percent tax rate on anything over that amount that it pays coaches. Currently that is on three individuals: Smart, basketball coach Tom Crean ($3.2 million) and football defensive coordinator Mel Tucker ($1.5 million).

The federal excise tax was part of a legislative package passed last year that also will eliminate donations to athletic departments to buy tickets.

“I understand the theory behind passing the legislation [to discourage excessive salaries] but I’m not sure in the current marketplace that it’s going to achieve its goal,” UGA President Jere Morehead said. “So far it has not.”

That’s an understatement if I ever heard one.  Jimmy Sexton ain’t got time for your silly excise tax games, Congress.  And he’ll probably laugh out loud when he hears about this feeble attempt at the state level to rein in coaching salaries.

According to an article by the Daily Bruin, California state legislators have announced a proposed amendment that would restrict the salaries of non-faculty members at schools under the University of California’s umbrella.

The proposal would cap non-faculty salaries at $200,000 per year as well as a number of other terms in it not related to coaches, and will require a vote of two-thirds in the Assembly and state senate as well as a majority vote on public ballot.

Of course, non-faculty members include football coaches, and on its face, this could have a direct impact on the California state schools that play football and their coaches including Chip Kelly at UCLA, Justin Wilcox at Cal, and Dan Hawkins at UC Davis.

Gaming this, of course, would be so easy that Nick Saban wouldn’t even break a sweat.

… when it comes to coaches, common sense leads one to think that boosters and universities would just get creative to pay their coaches what they feel they’re worth. We may see the “base salary” of coaches capped at $200,000, but there’s no limit on the creativity athletic directors and boosters could ultimately use to make up the difference.

A far less likely (but infinitely more fun) possibility is to imagine Kelly or Wilcox teaching a single Football 101 class so they could be considered “faculty.”

Might as well try to legislate our passion for sports.


Filed under Georgia Football, It's Just Bidness, Political Wankery

2 responses to “Today, in mo’ (and less) money

  1. Hogbody Spradlin

    Whatever the total annual collections be from that excise tax, it’s enough to fund the government for about ten seconds.


  2. Former Fan

    I am not sure why they think the tax was all about trying to “limit salaries”. I never saw it that way. I saw it as a tax on a “non-profit” that wasn’t really non-profit. If it was just about salaries, surely the tax write off for “donations” would have continued. I wonder if they re-organized to a C Corp if the excise tax would stay in place or not.