Category Archives: Political Wankery

“Everyone is going to feel it.”

If by “everyone”, you mean the usual wallets, well, yeah.

Iowa State AD Jamie Pollard estimates his school is facing $700,000 in additional cost from this provision.

“That figure will have to either be passed on to ticket holders and donors, or taken out of the budgets of sports that are not … being targeted by the federal government,” Pollard said in an e-mail. “It is ironic that the compensation paid in those two sports, by sheer market pressure, will actually now generate an additional financial burden for athletics directors to try and solve in our industry. It will be interesting to watch the new wave of creative ideas and suggestions that will be developed by lawyers, agents and financial advisors, to try and get around the new excise tax.”

That process already is underway, according to Roger Denny, a St. Louis-based lawyer with Spencer Fane LLP whose practice areas include representation of coaches, AD’s and schools.

“Our athletic director/university clients are certainly asking about this and other issues in the bill, and we’ve been asked to start consider ways to mitigate the effects of the tax,” said Denny, who assists USA TODAY Sports with the compilation of its coaches’ compensation surveys.

Pollard said he believes many ticket buyers will retain their seats even with the elimination of the deduction for donations connected to those purchases. He said that the increase in the standard deduction might offset the loss of the itemized deduction.

But Marc Ganis, a sports business consultant who used to work with colleges but now focuses on pro sports, had concern not only about the mathematic effect, but also about what he called “the perceptive effect.”

“Certainly one of the things used to market (season tickets and suites) is the deductability,” he said. The loss of the deduction “may chill the sale to some people even more than the actual additional cost,” which, for businesses, may not be that significant because business-tax rates are being lowered.

Even before the legislation passed in Congress, some athletics departments were reaching out to donors to act while the deduction remains available. In a posting Tuesday on Baylor’s athletics website, AD Mack Rhoades wrote: “(W)e encourage you to consider completing your 2017-18 Bear Foundation commitment and/or pre-paying for 2018-19 before December 31, 2017, in order to claim the maximum deductions from your giving.”

Add that colleges will be responsible for paying a 21% excise tax on annual compensation above $1 million that goes to any of the organization’s five most highly compensated employees and a change in the rules governing taxation of income from non-profit organizations’ unrelated businesses, and you’re talking about some real money, peeps.  Get ready for the pass through.  That reserve fund ain’t gonna save itself.



Filed under It's Just Bidness, Political Wankery

A.B.C. Always. Be. Closing.

Never one to miss an opportunity, here’s a little something the Georgia Bulldog Club sent out:

From: The Georgia Bulldog Club <>
Date: Fri, Dec 15, 2017 at 2:36 PM
Subject: Important TGBC Notice: Proposed Tax Legislation

Dear Valued Bulldog Club Member,

Thank you for your generous investment in the success of UGA’s student-athletes through your financial contributions to The Georgia Bulldog Club (TGBC). Your support provides more than 600 student-athletes with opportunities to succeed in the classroom, excel in competition, and serve in the community.

We would like to inform you about some impending legislation that could impact the tax deductibility for future ticket-related per-seat contributions. As you are likely aware, Congress is currently considering changes to the tax code that could be signed into law in the next couple weeks. While much is left to be determined, the proposed changes may have a direct impact on your ticket-related per-seat giving. For example, current IRS tax code allows donations to be 80% deductible if paying such amount provides the right to purchase tickets for seating at university athletics events. While still subject to revision, under a current federal tax proposal, annual contributions required for season ticket purchases, including club seats and sky suites, would no longer be deductible beginning in 2018.

While the priority giving deadline for the 2018 Hartman Fund is February 15, 2018, we wanted you to be aware of this legislation as the 2017 tax year comes to an end. Due to the uncertainty regarding the potential changes in tax code and future tax-deductibility of ticket-related per-seat donations, along with other potential adjustments to tax credits and deductions, it may be to your advantage to make annual, ticket-related per-seat contributions for 2018 and future years prior to December 31, 2017 to guarantee tax-deductibility under current tax law. If it benefits you to donate appreciated securities, this giving option is available and our staff is happy to discuss it with you prior to the end of the year.

Please keep in mind that the proposed legislation is subject to change, including the effective date of any changes to existing tax provisions. We advise you to consult with your own tax advisors to determine whether this opportunity is of value to you.

We will provide any updates as we know more about how this legislation may impact TGBC members who purchase season tickets. Please note, per-seat donations and premiums will still be required for all football season tickets and for select seating areas for basketball, baseball, and gymnastics for the 2018-19 seasons. Click here to review some of the most frequently asked questions pertaining to this matter.

The Georgia Bulldog Club staff is happy to personally assist you with making a gift or answer any questions you may have related to your ongoing generous support of UGA Athletics. TGBC office is open from 8:00 a.m.-4:00 p.m.Monday-Friday, excluding December 25 and 26, and can be contacted at 877-GA-DAWGS whereas online giving is available 24/7 by visiting

All of us here at UGA Athletics are thankful for the commitments that you make to our student-athletes, and we wish you and your family all the best this holiday season. Go Dawgs!


Matt Borman

Executive Associate Athletics Director

Executive Director of The Bulldog Club

This is not intended as legal or tax advice. We advise you to consult with your professional tax advisor before making any tax-based decisions on determining whether giving before the end of the calendar year is of value to you.

The Georgia Way’s just trying to help, y’all.


Filed under Georgia Football, Political Wankery

Just a few dollars more

For those of you who wonder how schools could afford to pay student-athletes, perhaps this story about the excise tax on large salaries contained in the tax bill currently winding its way through Congress might give you some ideas.

Both the House and Senate versions of the bill include a new 20 percent excise tax on salaries of $1 million or more paid by universities and other nonprofits. Universities also would take a financial hit from the elimination of a tax deduction for the donations that many schools require for the right to purchase season tickets. Donors currently get to deduct 80 percent of those contributions. Without the tax break, giving could plummet.

How schools would absorb those costs is an open question. But economists and other experts say an excise tax is not the best way to drive down coaches’ salaries or combat the widespread public perception they are overpaid.

In its most recent survey, USA Today found 78 football coaches and 41 men’s basketball coaches making $1 million or more, topped by Nick Saban’s $11.1 million salary at Alabama. If the tax proposal does become law, Alabama would face a $2.24 million tax bill every year.

That’s some major jack, even for ‘Bama.  What to do, what to do?

Tom McMillen, a former Democratic congressman from Maryland who is now the CEO of the Lead1 Association, which represents Division 1 athletic directors, doesn’t expect the new tax to drive down salaries.

“Certainly our schools, if they have to choose between a great football team and getting a coach that’s going to deliver that and making cuts elsewhere, they’re probably going to make cuts elsewhere,” McMillen said.

The hit on universities from getting rid of the season-ticket tax deduction and adding the salary tax will be in the hundreds of millions of dollars annually, McMillen said, and he believes Olympic sports subsidized by football and basketball revenue likely will be affected the most.

But John Colombo, a University of Illinois law professor who has studied the economics of college sports, said cuts to other programs “would have to be done on the sly” to avoid an outcry from faculty. He said schools most likely would raise ticket prices or hit up their donors, arguing that more money is necessary “to stay competitive.”

The correct answer is, of course, all of the above.

There’s always more money.  That’s not the big issue.  This is:

“This is happening really quickly,” Washington athletic director Jennifer Cohen said. “I’m not sure any of us are well prepared to figure out how to manage.”

Ain’t that the truth.


Filed under It's Just Bidness, Political Wankery

If there’s one thing you don’t mess with in Alabama…

it’s Roll Tide.

Maybe somebody knew what they were doing with this write-in instruction video.

The Moore-Jones Senate race has been entertaining, to say the least.  The perfect capper would be if a Nick Saban write-in vote swung the election.


UPDATE:  Per the New York Times,

And a number of votes will almost certainly go to someone widely considered the most important man in the state, the University of Alabama football coach Nick Saban.


UPDATE #2:  What a country.


Filed under Nick Saban Rules, Political Wankery, Whoa, oh, Alabama

“So we have differing opinions, thanks for playing.”

Meet Oregon state representative Bill Post, politico, Duck fan and general douche nozzle.


Filed under Pac-12 Football, Political Wankery, Recruiting

The players may be amateurs, but the government ain’t.

This sounds like a real kick in the nuts.

Ordinarily, nonprofits don’t pay federal taxes on their income – and that includes most colleges. But under the Senate’s tax bill, royalties generated by nonprofits based on their names and logos will be taxed. It could be a large hit to universities with popular athletic departments that generate lots of money through merchandise sales…

The government expects to collect $2 billion over 10 years with the provision.

Damn it, schools work hard to keep that money all to themselves.  Doesn’t the Senate realize Uncle Sam’s name isn’t on the front of the jersey, either?


Filed under It's Just Bidness, Political Wankery

Old times there were not forgotten.

Not that anyone in the SEC negatively recruits or anything, but if I were chasing a prospect who was interested in Ole Miss, I’d damned sure put this in front of momma.  Just sayin’.


Filed under Political Wankery, SEC Football