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Post by rbj on Jun 3, 2023 9:36:50 GMT -5
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N.I.L
Jun 3, 2023 10:43:04 GMT -5
rbj likes this
Post by motorcitysam on Jun 3, 2023 10:43:04 GMT -5
I imagine that is upsetting to the impacted MSU athletes. Besides the stated reason (attempting to avoid a conflict of interest after buying the Suns and Mercury), I have to believe that it was a pure business decision. I can't imagine they get much return on investment from that arrangement.
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Post by rbj on Jun 3, 2023 11:30:29 GMT -5
I imagine that is upsetting to the impacted MSU athletes. Besides the stated reason (attempting to avoid a conflict of interest after buying the Suns and Mercury), I have to believe that it was a pure business decision. I can't imagine they get much return on investment from that arrangement. I'm sure some of those athletes probably had that money worked into their monthly budgets. Thats gotta hurt.
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Post by titansforever on Jun 3, 2023 13:19:37 GMT -5
Seriously, how much of a business bump would a mortgage company get out of tweets, Instagram posts, etc., by college athletes?
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N.I.L
Jun 3, 2023 15:20:16 GMT -5
rbj likes this
Post by motorcitysam on Jun 3, 2023 15:20:16 GMT -5
I imagine that is upsetting to the impacted MSU athletes. Besides the stated reason (attempting to avoid a conflict of interest after buying the Suns and Mercury), I have to believe that it was a pure business decision. I can't imagine they get much return on investment from that arrangement. I'm sure some of those athletes probably had that money worked into their monthly budgets. Thats gotta hurt. No doubt. It was a sweet deal for the student athletes. I don't think the company benefitted from it much, if at all, outside of the CEO having a legal way to pay student athletes at his alma mater. I imagine there wasn't a contract involved, so an abrupt cancellation of the arrangement is probably legal.
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Post by Rogobob77 on Jun 12, 2023 11:08:11 GMT -5
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Post by ptctitan on Jun 21, 2023 6:37:03 GMT -5
Update on the troubles for Life Wallet, Miami's big NIL booster. Missed filing plan to avoid delisting from the NASDAQ. www.actionnetwork.com/ncaaf/miami-nil-booster-misses-yet-another-deadline-en-route-to-possible-delisting-by-nasdaqLifeWallet — the company that is most tied to name, image and likeness — might need a lifeline itself after missing yet another important deadline. On Tuesday, the company failed to provide the Nasdaq with an organizational plan to avoid its delisting from the stock exchange. After it didn’t file its fourth quarter and fiscal 2022 earnings, LifeWallet was given two months — a deadline of June 20 — to submit that plan. The company said at the time that it expected to be able to meet the deadline. Attempts to reach LifeWallet through its listed communication contacts were unsuccessful. The missed deadline comes amid a series of foibles from the company created by John Ruiz, who has spent millions to support college athletes at the University of Miami. Ruiz helped construct Miami’s Final Four men’s basketball team, giving $800,000 to Nijel Pack to transfer from Kansas State and $100,000 to Isaiah Wong to incentivize him to stay put. He has deals with Hanna and Haley Cavinder, twin influencers who transferred to Miami from Fresno State before leaving collegiate athletics earlier this year. LifeWallet received a delisting notice in April after trading below $1 for 30 consecutive days. That’s after losing roughly 93% of its share value since its IPO in 2022. At its height, Ruiz’s company was worth up to $33 billion on paper, the second-largest SPAC of all-time. But much of the valuation was based on what Ruiz and the company told investors were proprietary algorithms that allowed them to find the right cases, litigate them and make money. Ruiz claimed the company could recover up to $89 billion by doing this. Ruiz provided guidance that 2022 revenue would approach $1 billion. When the company first reported quarterly earnings, nine months of revenue yielded just $3.9 million after projecting income of $992 million. And even those paltry numbers are unreliable, the company said in April. In fact, the company said in that April release that any financial information released by LifeWallet in 2022 should be considered unreliable.
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N.I.L
Jun 21, 2023 15:01:07 GMT -5
Post by motorcitysam on Jun 21, 2023 15:01:07 GMT -5
Update on the troubles for Life Wallet, Miami's big NIL booster. Missed filing plan to avoid delisting from the NASDAQ. www.actionnetwork.com/ncaaf/miami-nil-booster-misses-yet-another-deadline-en-route-to-possible-delisting-by-nasdaqLifeWallet — the company that is most tied to name, image and likeness — might need a lifeline itself after missing yet another important deadline. On Tuesday, the company failed to provide the Nasdaq with an organizational plan to avoid its delisting from the stock exchange. After it didn’t file its fourth quarter and fiscal 2022 earnings, LifeWallet was given two months — a deadline of June 20 — to submit that plan. The company said at the time that it expected to be able to meet the deadline. Attempts to reach LifeWallet through its listed communication contacts were unsuccessful. The missed deadline comes amid a series of foibles from the company created by John Ruiz, who has spent millions to support college athletes at the University of Miami. Ruiz helped construct Miami’s Final Four men’s basketball team, giving $800,000 to Nijel Pack to transfer from Kansas State and $100,000 to Isaiah Wong to incentivize him to stay put. He has deals with Hanna and Haley Cavinder, twin influencers who transferred to Miami from Fresno State before leaving collegiate athletics earlier this year. LifeWallet received a delisting notice in April after trading below $1 for 30 consecutive days. That’s after losing roughly 93% of its share value since its IPO in 2022. At its height, Ruiz’s company was worth up to $33 billion on paper, the second-largest SPAC of all-time. But much of the valuation was based on what Ruiz and the company told investors were proprietary algorithms that allowed them to find the right cases, litigate them and make money. Ruiz claimed the company could recover up to $89 billion by doing this. Ruiz provided guidance that 2022 revenue would approach $1 billion. When the company first reported quarterly earnings, nine months of revenue yielded just $3.9 million after projecting income of $992 million. And even those paltry numbers are unreliable, the company said in April. In fact, the company said in that April release that any financial information released by LifeWallet in 2022 should be considered unreliable. As I think back on the business principles I learned while sitting in the Commerce and Finance Building at U-D, I find it crazy to think that Life Wallet was valued at 33 billion at one point. Based on Ruiz telling investors that he had a magic algorithm? That's smoke and mirrors. NIL is so far from what it was intended that it's common knowledge and openly discussed that Ruiz paid players to transfer to, or remain at, Miami. That's supposedly forbidden, and was not the stated purpose of NIL. NIL is not supposed to be school specific.
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N.I.L
Jun 21, 2023 19:15:20 GMT -5
Post by motorcitysam on Jun 21, 2023 19:15:20 GMT -5
I learned a new phrase recently: "NIL Walk-On". It was used to refer to class of 2023 guard Simeon Wilcher, who asked for a release from his national letter of intent with North Carolina and signed with St. John's. At the time Wilcher left UNC, St. John's had no available scholarships. Wilcher is reportedly receiving a sweet NIL deal from someone that will cover his tuition, at least. That allowed him to walk on and circumvent the scholarship limit.
It's just getting wilder out there in NIL land.
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N.I.L
Jun 27, 2023 14:01:13 GMT -5
Post by motorcitysam on Jun 27, 2023 14:01:13 GMT -5
The NCAA tries to bring clarification to the NIL rules with this letter. I am thinking something about closing a barn door after the horse has left.
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N.I.L
Jul 1, 2023 11:02:27 GMT -5
Post by motorcitysam on Jul 1, 2023 11:02:27 GMT -5
This Associated Press article details a memo from the IRS that will impact some of the NIL "collectives" that have formed for the purpose of playing players. From the article: The IRS was granting tax-exempt status to collectives for more than a year before issuing the memo that determined, in many cases, paying players isn't merely incidental to the charitable cause but "is the very justification for the organization's existence."
"The only question was to what extent would the IRS would put its thumb on the scales. It was pretty clear many of these organizations were pushing the boundaries," said Brian Mittendorf, an accounting professor at Ohio State with a concentration on nonprofits.
"The IRS memo put a line in the sand," Mittendorf said. "Paying college athletes is not a charitable purpose. Paying an athlete and doing some charitable work on the side, is also not a charitable purpose."
The IRS warning should not have come as a surprise, said Jason Belzer, founder of Student Athlete NIL, which operates several commercial collectives for schools across the country.
"All of these nonprofits were paid solely for paying student athletes, not for doing the charitable work," Belzer said. "That's racketeering."www.espn.com/college-sports/story/_/id/37939005/some-nonprofit-nil-collectives-not-qualify-tax-exempt
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Post by Commissioner on Jul 1, 2023 15:30:12 GMT -5
This Associated Press article details a memo from the IRS that will impact some of the NIL "collectives" that have formed for the purpose of playing players. From the article: The IRS was granting tax-exempt status to collectives for more than a year before issuing the memo that determined, in many cases, paying players isn't merely incidental to the charitable cause but "is the very justification for the organization's existence."
"The only question was to what extent would the IRS would put its thumb on the scales. It was pretty clear many of these organizations were pushing the boundaries," said Brian Mittendorf, an accounting professor at Ohio State with a concentration on nonprofits.
"The IRS memo put a line in the sand," Mittendorf said. "Paying college athletes is not a charitable purpose. Paying an athlete and doing some charitable work on the side, is also not a charitable purpose."
The IRS warning should not have come as a surprise, said Jason Belzer, founder of Student Athlete NIL, which operates several commercial collectives for schools across the country.
"All of these nonprofits were paid solely for paying student athletes, not for doing the charitable work," Belzer said. "That's racketeering."www.espn.com/college-sports/story/_/id/37939005/some-nonprofit-nil-collectives-not-qualify-tax-exemptI'm currently the Chairman or President of four different non-profits, with annual budgets ranging from about $700K up through $30 million. I'm no big fan of the IRS exempt organizations division. But on this they are exactly right. And it will be interesting to see if this reverberates through alumni and booster organizations that often seem to exist for no reason other than to boost a coach's salary and perks. Which takes us back to the whole NIL thing to begin with. It is a total sham. The athletes are not being paid because their name, image, or likeness has commercial value to the booster or company paying--they are being paid to play the sport by people who simply want to see the team win. There are, in most big time athletic college towns, various restaurants and diners, tatoo parlors, and other small businesses who simply benefit from having players hanging around--for them it is worth it to throw a few bucks to players just to come in and hang out. There are a few others who benefit from players--usually the stars--more directly promoting a product in ads and public appearances. But in a true commercial market, there are very few businesses that would see their bottom line benefit from, for example, paying the right offensive tackle on the North Carolina State football team for vague, unspecified services. We could just throw in the towel, say the players are pros, and let them get what they can. At that point, though, why not go further--why make them attend college classes and maintain a GPA? We don't demand that of NBA players, for example. The problem is that that would reveal that fans were now just watching minor league professional sports, where the players had no more tie to the school or student life at the school than any random stranger. That can still work as a model--people attend NFL and NBA games, right?--but again, are we really going to see 80,000 people pack a stadium if we admit it is just minor league professional sports and schools are merely sponsoring entities? Does anyone attend Lion games because the Ford family owns the team? Long term, I just don't think that model is sustainable for collegiate athletics. So kudos to the IRS (something I once thought I'd never say). But the universities--whether through the NCAA or some other mechanism--are going to have to do a lot more if NIL is not to cause the long-term death of collegiate athletics.
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N.I.L
Jul 22, 2023 12:34:20 GMT -5
Post by motorcitysam on Jul 22, 2023 12:34:20 GMT -5
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N.I.L
Jul 22, 2023 13:12:52 GMT -5
Post by fan on Jul 22, 2023 13:12:52 GMT -5
These Senators and congressmen are self-serving and have regional loyalties. A Texas or Ohio representative will look at thE NIL in a different light than say a New Jersey representative.
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N.I.L
Jul 26, 2023 15:43:02 GMT -5
Post by motorcitysam on Jul 26, 2023 15:43:02 GMT -5
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