re: Old Recruiting Thread: RIP insiders

There’s so much misinformation going around in this.

They didn’t shut their NIL down. They shutdown their collectives attempt to pay athletes directly for representing the collective itself.

It would be like OTV paying athletes for appearing in the OTV podcast. As far as I am aware, NIL money can only be awarded for representing non-collective businesses, such as a marketing ad for Guthrie’s or a commercial for Yellawood, etc.

If this shuts down the 12th Man Foundation, they’ll have a Gig Em Foundation up and running the very next day with the same amount of support that they were receiving beforehand.

They’ll just start a new entity and roll the funds into that. Based off that wording it sounds like they were funneling donations through a 501(c)(3) to get donors tax write offs.

I still say we go steal ever one of them we want.

Agree with all this. They shouldn’t waste a spot on a project OL when there are plenty about to hit the portal.

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Agree with all this. They shouldn’t waste a spot on a project OL when there are plenty about to hit the portal.

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This is exactly correct, I think 3-4 kids is the most Auburn will be taking every year on the OL.

I think I listed 3-4 kids. OL and QB are the 2 hardest positions to project from high school to college so even 5 stars are “projects”. And you can’t be dependent on 7-8 OL transfers in years 4 and 5.

We want to get to where we get 5-6 guys each year in the portal for bandaids not multiple players to have to build the program

Clemente sure seems to echo Cole a lot, and I like them both. I just can't stop noticing it now.

Cole: "Today's practice nuggets are LOADED"

10 minutes later

Clemente: "LOADED practice notes from today."

Cole: "I've seen enough, Kam to AU"

couple hours later

Clemente: "Made my CB for Kam to AU"

Freeze/Garrett took them to school. LOL @ Garner out recruiting Freeze on a Mississippi kid.

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because they are not losses, they are expenditures. ie advertising expense

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Advertising expenses are deductible... theoretically the fund contributions would be equity contributions into an operating fund/company. That company would generate very little revenue by selling autographs/appearances. Expenses would be accounting/operations/player payments.

The business would perpetually run at a loss. Each "owner" i.e. fund contributor would have a stake in the PnL of the business equal to his equity contribution. I don't see why those losses wouldn't be deductible.

If the collectives are structuring the NIL funds such that contributions are revenue to the business, that seems like an absurdly inefficient structure.

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Advertising expenses are deductible... theoretically the fund contributions would be equity contributions into an operating fund/company. That company would generate very little revenue by selling autographs/appearances. Expenses would be accounting/operations/player payments. The business would perpetually run at a loss. Each "owner" i.e. fund contributor would have a stake in the PnL of the business equal to his equity contribution. I don't see why those losses wouldn't be deductible. If the collectives are structuring the NIL funds such that contributions are revenue to the business, that seems like an absurdly inefficient structure.

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1. Giving every Joe Schmoe who donates equity isn’t realistic for a variety of reasons.

2. Running losses every year in a partnership will land you in the hobby loss rules

3. Collective takes in donations as revenue, then pays out everything it takes in to players or for operating expenses and essentially breaks even every year. No tax, none of the myriad of issues that issuing equity to randos creates.