The 1890 Initiative

zeWilbur said:
That opens so many ugly doors it might not actually ever happen. Unions, workers comp, individual state labor laws. Even having to pay taxes on their current scholarship would be a huge shift.
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None of this is new. And frankly, schools will employ financial advisors to help players as part of the services they offer. 

Players will unionize and sign a Collective Bargaining Agreement (CBA) just like the NBA/NFL does. They'll probably negotiate for 50% of the revenue. What remains to be seen is if that CBA is individual to a school, conference or a new governing body for the sport. 

Just to give you an idea of the money players would receive - B1G TV money is going to approach $100 million alone. Typically a union would also split all revenue - ticket sales, concessions, parking, apparel, etc. - but for this example let's stick to $100 million per year. Nebraska players negotiate for $50 million. With 85 scholarship players that equals $588k per player, per year.

 
runningblind said:
Do you get taxed for lunch your work provides, or swag? I don't and I work for a large company who would get audited for that sort of thing, so I don't think that's accurate.
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Speaking of taxes, I wonder if the schools in states with zero state income tax are playing that card when it comes to NIL funding as a differentiator when NIL is similar across a few schools for a recruit.  
Obviously, program fit, quality of program, etc….are biggest factors, but now that money is involved and we are talking hundreds of thousands of dollars in some cases, schools in some states could have a slight advantage.   

 
Archy1221 said:
Speaking of taxes, I wonder if the schools in states with zero state income tax are playing that card when it comes to NIL funding as a differentiator when NIL is similar across a few schools for a recruit.  
Obviously, program fit, quality of program, etc….are biggest factors, but now that money is involved and we are talking hundreds of thousands of dollars in some cases, schools in some states could have a slight advantage.   
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That's a good point, but probably lost on a lot of kids.

BigRedBuster said:
Technically, you should.  But, it's obviously not enforced much.  There are things I've wanted to do for employees and was told...."well, we will have to include that in their income then".
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Gotcha.  Maybe the larger the company the easier it is to get away with it then.  They do official yearly presents (a blanket or jacket etc), that I'm sure are done properly but then my local office cooks us lunch or provides coffee, I think just happens under the radar.

 
runningblind said:
Gotcha.  Maybe the larger the company the easier it is to get away with it then.  They do official yearly presents (a blanket or jacket etc), that I'm sure are done properly but then my local office cooks us lunch or provides coffee, I think just happens under the radar.
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Yeah...We'll give employees hats and shirts and I'll cook for the employees every once in a while.  That's not the issue.  Where it's an issue is if maybe we have a company cafeteria and it's a true benefit to the employee because they can eat there every day for free.  Or, let's say you work at a law firm that requires suits every day and they buy all your expensive suits for work.  Those situations are considered a true benefit and should be taxed.

 
BigRedBuster said:
Yeah...We'll give employees hats and shirts and I'll cook for the employees every once in a while.  That's not the issue.  Where it's an issue is if maybe we have a company cafeteria and it's a true benefit to the employee because they can eat there every day for free.  Or, let's say you work at a law firm that requires suits every day and they buy all your expensive suits for work.  Those situations are considered a true benefit and should be taxed.
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That makes more sense.

 
did anyone see the NIL deal that the kid from Florida made.  He was drafted by the Bears and it came out that whoever he did the deal with snuck in a %15 of his pre-tax NFL earnings for 25 years!!.  They are going to court

 
MyBloodIsRed16 said:
did anyone see the NIL deal that the kid from Florida made.  He was drafted by the Bears and it came out that whoever he did the deal with snuck in a %15 of his pre-tax NFL earnings for 25 years!!.  They are going to court
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Florida legislator says Bears DT Gervon Dexter's NIL deal violated law (msn.com)

Dexter, a second-round draft pick, agreed to pay Big League Advance Fund (BLA) 15% of his pre-tax NFL earnings for the next 25 years in exchange for a one-time payment of $436,485 in 2022
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runningblind said:
Do you get taxed for lunch your work provides, or swag? I don't and I work for a large company who would get audited for that sort of thing, so I don't think that's accurate.
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A one-off lunch would not be taxed but providing multiple meals per day 7 days a week would be considered a fringe benefit by the IRS.  Same with swag.  If your employer gives you a coffee mug or shirt or something small it wouldn't be taxable, but with the amount of gear handed out by Adidas/Nike/Under Armour to everyone in the athletic department it would likely be taxable.

 
Archy1221 said:
These loans happen in minor league baseball.   Elly De La Cruz (Reds phenom signed one). 
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Yeah, I think Real Sports on HBO did a profile on one guy/company who will “invest” in a minor league baseball player and pay him more than typical wages in exchange for a percentage of future wages. It does give the young/minor league player a more livable wage early in their career, but critics have pointed out that these companies seem to prey on young Latin players who may not know what they are getting into. 

 
Kris Brown no longer running The Big Red Collaborative.  Considering basically nothing has been heard out of them for months (a year?), it seems like that endeavor is pretty much gone.  Leaving 1890 as the only operating collective for Husker sports.

 
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