“I’m happy for those guys.”

Again, this is one of those moments when I hope you’ve got an Athletic subscription, because David Ubben’s piece on NIL compensation ($$) is definitely worth a read, starting with this lede:

Here’s a sentence I’ve never heard: “Does that kid working the register at the student bookstore on campus know they have to pay taxes?”

He’s right.  All this faux concern about how college athletes will handle their brave new world — whether it comes from resentment, amateur romanticism, or whatever other motive you may want to attribute — is exactly that.  Fake.

I don’t pretend to know where things are headed or where they’re likely to finish.  I suspect that anyone who pretends they do know after a week or so is talking straight out of their ass.  What I do know is that these kids’ lives got a little bit fairer, because they’ve been given a little more control over what is theirs.  The rest of this is nothing but noise, at least for now.  As Ubben puts it,

Then there’s the possibility that some players might earn more than others. Is that fair? Will there be fistfights in the locker room borne of jealousy? We don’t hear many tales of top salespeople in companies being assaulted in their offices by less-productive employees who believe they should earn a commission on someone else’s sales out of fairness.

Should the amount of money players can make be capped? Find me something less American than that. Other than college sports a week ago.

Far too much of the conversation has centered around inspiring fear of what might happen to a few people in a few instances. Far too little has centered around what will happen for far more athletes now and in the future.

My less than educated guess is that for most college athletes things won’t change too much because of NIL.  But maybe they’ll change just enough to make a difference.

Some might waste it and find themselves at the end of their careers with little to show for it. But there have been enough cautionary tales of players going broke in professional sports to learn from, and it doesn’t take millions of dollars to change a life. Sell some T-shirts, hold a few autograph signings or get a local endorsement from a car dealership. What can $20,000 in endorsement money do?

Over the course of a college career, that’s a realistic earning goal for a lot of athletes. And many athletes across a variety of sports will cross that modest threshold in a single year. It’ll improve their college experience substantially. For some, it could change their life.

Again, I don’t know.  And I can’t say that I really care where the numbers may wind up landing.  I never have.  It’s enough for me that these athletes have been given the opportunity to… well, have something of the same opportunity you and I had when we started out.  A chance to make something without being prevented from doing so because somebody went to great (and illegal) lengths to preserve a lucrative business model.  With that opportunity will come experience, some good, some bad.  But at least they’re now in a world where they get to learn about that.

I’m more than good with just that.

48 Comments

Filed under The NCAA

48 responses to ““I’m happy for those guys.”

  1. I will say this concerning the kid at the register and taxes. The one possible difference, because I do not know how NIL deals are actually paid, is that for register kid, some taxes will be withheld.

    IF, and a big IF, the athletes are paid as contract personnel and just get a check, it could be a rude awakening.

    Of course the assumption they don’t know that is disheartening. I would assume it is part of the education that the AA is allegedly providing.

    Liked by 1 person

    • So, I guess it would just be better for these kids not to have the opportunity to make the money in the first place.

      Liked by 2 people

      • The faux concern over taxes cracks me up.

        Liked by 2 people

        • I think there should be some concern over taxes and NIL. Tax issues are complicated as it is (Turbo Tax helps). But can’t you see a situation where a player does an autograph signing and someone pays them in cash. They forget to pay taxes for it and the IRS decides to come after them. Will the NCAA hand out suspensions for tax evasion (because they like to do stupid things like that). I don’t think that is fear mongering, just an honest questions on how those situations will be handled. You would hope school compliance offices would help.

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          • Not to get all Playpenny, but the hilarity over the faux concern about taxes is that the Venn diagram for many of the folks that have a sudden interest and outrage over whether 18-22 college athletes are going to pay taxes on their NIL gains perfectly overlaps with those that have spent years yelling about taxes being theft.

            Liked by 1 person

            • I’m not really concerned about them paying taxes, more concerned about the situations where they accidentally don’t and the NCAA steps in and suspends a guy for “tax evasion”. The NCAA has a past of stupid decisions and everyone knows that hate NIL. A chance to stick it to kids who make little mistakes? You know they will be all over that mother.

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            • Yes. And now that quarterbacks will earn more than backup punters, income inequality isn’t a concern?

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        • stoopnagle

          Here’s the thing: if you think for one minute that the recruiting machine that is Kirby Smart doesn’t have a plan in place to demonstrate to recruits how UGA is going to help them make sure they’re not getting gotcha’d by the government over their NIL earnings, then I don’t know what to tell you.

          Liked by 3 people

        • silvercreekdawg

          Frankly, it’s not a faux concern. Paying taxes as a contract worker/1099 recipient/self-employed entity is just a bit different than as a W-2 recipient. Having recently transitioned from the latter world into the former, I was very happy to have an accountant walk me through it.

          That being said, I fully expect any of these athletes who have representation for their NIL deals will be learning about setting up a LLC forthwith. It would be malpractice for their agents not to do so.

          Liked by 3 people

  2. That kid at the bookstore has his taxes withheld from his gross pay. The typical college student doesn’t earn enough to be required to file and most of the time doesn’t earn enough to exceed the standard deduction. Most of the time that student is filing to get back what he didn’t need to pay in the first place.

    These guys are going to have to do all of this. Those who engage with outside advisors will have someone to make sure it happens. It’s not a reason to be against NIL.

    I’m glad these guys are getting this opportunity and hope every one of them maximizes his/her earning potential.

    Liked by 1 person

    • I know you’re trying to split the baby here and be fair-minded and all, but how many kids in this day and age aren’t computer savvy? If you’ve got access to one, you have access to Turbo Tax.

      For most college athletes, it won’t take rocket science to pay their taxes.

      Liked by 1 person

      • Derek

        You’re answering question:

        Can an athlete determine the amount of his taxes owed?

        The more pressing question may end up being:

        Did the athlete hold onto enough money to pay his taxes?

        (Not that this issue should have any bearing whatsoever on policy, but I can definitely see these guys not holding back enough to cover their tax liability. Lots of us would be fucked in April but for withholding.)

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        • Maybe there should be a law banning people who can’t figure out how to do their taxes from earning money.

          Liked by 5 people

          • Got Cowdog

            FWIW, I started doing 1099 work in my early twenties. That first year filing after a pretty good gross was damn sure a rude awakening and I HAD people telling me it was coming.
            Didn’t make me stop wanting to earn, though. I took my lumps and walked away wiser. Just like these guys are going to do.

            Liked by 1 person

            • rigger92

              When I was 16 and a senior in high school my “employer” who I cleaned the offices for and wore a beeper to Delta Dash circuit boards through Hartsfield 24/7, he just paid for my senior cruise (girlfriend too, hubba hubba) rather than paying me what the service would have cost.

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              • Got Cowdog

                1992ish I was getting paid by the fixture for plumbing. Being young and industrious I made great money, but didn’t set near enough aside for taxes. Hard lesson.

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        • spur21

          Looks like that political science degree is paying dividends.

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          • Derek

            It paid off by being so fucking useless I was forced into a postgraduate degree. So thank God for that.

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      • I’m not trying to split the baby. I have kids with jobs who are tech savvy. Guess who does their taxes? Me on Turbo Tax.

        I agree most college athletes are going to earn walking around money and won’t exceed the standard deduction and personal exemption (if they claim themselves).

        This situation is different from a typical college job. I’m sure the AA is engaging with the very capable Tull School tax faculty to make sure these guys get it right especially those who decide not to engage with an NIL agent.

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      • Anon

        I doubt you have seen lately how little you have to know to get out of hi scrool. Quarterly estimated taxes ain’t on the radar

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  3. bucketheridge

    Drew Butler’s group collects all of the tax information for the kids from whatever source and generally make things as easy as possible for the players. I’m sure that most do or will.

    Liked by 4 people

    • W Cobb Dawg

      Agree. Is there incentive for those providing the compensation to foist tax problems upon a player? The question is whether kids get a guiding hand, or get used and tossed aside like amazon warehouse employees.

      Like

  4. But Senator, think of all the money the UGA Athletics Dept lost from that deal between Chris Smith and Dawgstats.

    Liked by 4 people

  5. kingcmo2000

    Here here, Senator. The positives far, far outweigh any hypothetical negatives. This is a great and long overdue win for the most important constituency in college athletics, college athletes. I’m happy for them.

    Though I do enjoy watching the pearl-clutchers squirm as well. Maybe I’m not doing it for the kids, maybe I’m doing it for the schadenfreude.

    Liked by 3 people

  6. akascuba

    Over the years I’ve come full circle on this issue. Those running CFB have shown their greed to be endless. Let the student athletes earn whatever their free market valve is. Will there be some kids that totally screw up and get into trouble with the IRS. Of course that will happen. Just like all of the adults who decide they don’t have to pay taxes.

    I believe like seemingly everything that happens to recruits Kirby is on it and will do everything he can to help his players. I would be very surprised if people inside BM were not focused on helping all student athletes navigate this new opportunity. I can say that now that GM is gone.

    Liked by 1 person

  7. If you think that having an infrastructure like Drew Butler’s group and having people to help the potential student-athlete understand that yes, UGA and its football administrative infrastructure will help them with every aspect of exploiting their NIL isn’t part of the recruiting pitch Kirby sells, you’re totally not giving Kirby any credit despite all indications you should. Kirby’s attention to detail in recruiting is extraordinary — why would that suddenly change when a new detail arises?

    What I’m saying is this: the NFL has a rookie get-together each year for new draft picks to help them deal with all the money, pressures, and issues that comes with being a new NFL player. As best I can tell, there is nothing that stops UGA from doing the same thing each year for its incoming freshmen classes of athletes.

    Liked by 3 people

  8. classiccitycanine

    That article was the best rebuttal of the naysayers I have read! Once again, the Athletic is proving its worth as a subscription.

    Like

  9. shellbine

    Maybe I should know but I do not-can a player appear in his/her UGA uniform without the university receiving payment for NIL?

    Like

    • silvercreekdawg

      The player would have to receive permission to use the UGA trademarks from the school. What that entails, I do not know.

      I can tell you all LSU requires from their SAs to use the school’s trademarks is written permission. No payment required.

      Liked by 1 person

  10. Greg

    “more and more”….the tail is wagging the dog.

    they should just get it over with and run it like the NFL.

    Like

  11. Tony BarnFart

    The only thing I’ve tried to say about the jealousy thing is to ask whether or not it would happen. Never to assert that the more prominent guy doesn’t have his own full constitutional right to get what’s his….Thankfully, this may not end up happening as I had feared, what with the Arkansas O-Line getting that cool endorsement deal and others popping up.

    Still, the author is obfuscating with that analogy. The analogy is NOT “top salespeople” vs. “less productive” employees (who are probably sales guys too based on his language but he doesn’t elaborate). No, the issue would be the FULLY PRODUCTIVE offensive lineman who remains in the old world of amateurism simply because drive-by joe consumer doesn’t know football. The analogy remains: a nerdy behind the scenes engineer at a device company isn’t a sales guy either…… but he isn’t in this weird purgatory where he can’t get directly paid by his organization.

    You know you’re over the target when you continue to get flak. Strange that for what I’m told is a ridiculous concern, writers keep bring it up over and over and over.

    Like

    • “Over the target” — exactly how does someone dismiss your concerns without mentioning them first?

      It’s been about a week since this came down. I don’t know how you can take a victory lap this soon.

      Like

      • Tony BarnFart

        Not sure I understand what you’re getting at. There’s been months of lead up and it’s perpetually tee’d up for discussion (and summary dismissal) in damn near every article.

        The question is not “will O-Lineman get deals too.” We all hope they do and hope it sticks. The question is what happens when the (fully productive / good / great) O-lineman gets zero, zilch….while the guys he’s blocking for get a ton. Nobody can actually tell me a real world analogy where this happens. In every other industry the fully productive and necessary guy behind the scenes can get paid market rate by anybody who needs his ACTUAL expertise. His value isn’t only public facing name recognition. A starting lineman in the NFL with zero endorsement deals would never make 40X less than Tom Brady, even with his endorsements. In college, a starting lineman could conceivably get only his $5,000 stipend while his QB gets a 200k endorsement.

        It doesn’t matter whether “that’s life.” It’s whether this is gonna be an issue if that scenario pops up. But I quibble with anyone lecturing the scorned O-lineman that this is “free market.” A truly free market would allow entities who need something beyond a public face for advertising (i.e. the georgia athletic association) to pay them what they (uga) think they’re (the o-lineman) worth.

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        • I assume you are in favor of pay for play based on your comment especially the last paragraph of your comment. Not trolling … just curious.

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          • Tony BarnFart

            I think so. I just think you’re going to see a group of excellent football players that “make the proverbial engine go” who will be sitting on the sidelines watching their coaches and skill player teammates make good money while the no-names still do it “for the love of the game.”

            Like

  12. Dylan Dreyer's Booty

    “Far too much of the conversation has centered around inspiring fear of what might happen to a few people in a few instances. Far too little has centered around what will happen for far more athletes now and in the future.

    THIS! Sums the whole thing up exactly. Will some kid screw this up? Maybe. Over time, probably. Is that a reason to say “See? I told ya so!” Not in my book unless none of the other kids doing fine are fewer than the one or two who screwed up. Does scooter gate at UGA mean that scooters should be outlawed?

    As far as taxes are concerned the kids signing with companies will either have taxes taken out get 1099. The company just has to do that. Cash payments? My answer to that is that it needs to be a lot of provable cash for the IRS to be interested.

    Educate the kids as much as they are willing to be educated and leave them alone after that.

    Liked by 1 person

    • Withholding is typically not done for non-employees. These guys will not be employees but will be 1099ed. Therefore, making sure tax payments are made and those quarterly payments avoid underpayment penalties are the responsibility of the player/contractor.

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      • Dylan Dreyer's Booty

        Yep. Which is why I said “Educate the kids as much as they are willing to be educated…” In other words they will be just like other people. Which is how it should be. They may not all be Rhodes Scholars, but they aren’t idjits, either.

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        • Totally agree. I’m glad these guys are getting these opportunities. I also want to make sure this isn’t going to get these guys in hot water with various taxing authorities.

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  13. jhorne2000

    “It’s enough for me that these athletes have been given the opportunity to… well, have something of the same opportunity you and I had when we started out.”

    You mean you want them to take out college loans and pay rent ? That meal plan ain’t cheap!

    “Something” is doing some serious work there

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  14. If you ain’t deducting tats as advertising expenses and weed as medical expenses then you ain’t using TurboTax right.

    Liked by 1 person

  15. jdawg108

    Trenton Thompson. This could have kept him here another year and maybe he’d be in the league. Or graduated and working.

    Like