Fascinating turn of events in Tallahassee with Mike Norvell restructuring his contract to donate $4.5 million to the school's NIL boosters.

Most of the time the head football coach is their state's highest paid state employee and head coaching salaries keep getting more and more absurd.

Is this a last ditch gamble to save his job?
Should coaches do it to jumpstart their programs when initially hired?

This certainly could turn the structure of millionaire coaches, ADs, and programs begging fans for NIL money on its head.

I think it'd be a smart gamble for a coach to do this in his first two years on the job. He'd really endear himself to the fan base, prove that he's serious. It's obviously easier to do for a coach who's already made millions and it's easier when you're still taking home $4.5m after your generous donation but it's a bold strategy to buy your players with your own money.

Are contributions to NIL tax deductible?

MrCraig wrote: ↑

Tue Dec 17, 2024 9:56 am

Are contributions to NIL tax deductible?

No.

t4pizza wrote: ↑

Tue Dec 17, 2024 10:00 am

MrCraig wrote: ↑

Tue Dec 17, 2024 9:56 am

Are contributions to NIL tax deductible?

No.

Correct, no. In layman's terms...NIL contributions are made with the intent of profiting (in a unique way), ergo they are not charitable donations and are not tax exempt.

Oklahoma St had Gundy restructure his for the same reason

I believe we will see more and more schools over time divide their budget up. Instead of allocating 10 million dollars for a head coach salary, that number will go down to 6 with the remaining 4 million going to NIL for roster construction

Or you could be UNC..give coach 10 and promise him $20 in nil

MrCraig wrote: ↑

Tue Dec 17, 2024 9:56 am

Are contributions to NIL tax deductible?

It depends on who is facilitating the endeavor. From an App stance; donations to 3333 and TIGMA are not. Donations to the schools Mountaineer Football Fund are.

HurricaneYosef wrote: ↑

Tue Dec 17, 2024 10:40 am

Oklahoma St had Gundy restructure his for the same reason

I believe we will see more and more schools over time divide their budget up. Instead of allocating 10 million dollars for a head coach salary, that number will go down to 6 with the remaining 4 million going to NIL for roster construction

Under the current “guidelines” would the university be able to contribute to NIL? Seems to me this would simply be the university paying the players directly. Don’t they need to launder the money?

Mjohn1988 wrote: ↑

Tue Dec 17, 2024 10:44 am

HurricaneYosef wrote: ↑

Tue Dec 17, 2024 10:40 am

Oklahoma St had Gundy restructure his for the same reason

I believe we will see more and more schools over time divide their budget up. Instead of allocating 10 million dollars for a head coach salary, that number will go down to 6 with the remaining 4 million going to NIL for roster construction

Under the current “guidelines” would the university be able to contribute to NIL? Seems to me this would simply be the university paying the players directly. Don’t they need to launder the money?

It definitely feels like skirting the rules.

I would be very wary of writing off contributions that are used for paying players. The IRS has always held that anything that doesn’t further the charitable cause is not deductible. That’s why you have to eliminate the value of any good or service you receive in exchange for your donation. The IRS has also said that collectives that pay athletes are operating for a non- exempt purpose. I don’t see how that changes even if the university is managing the payments to the players. It is the payment itself that is non-exempt. I’m sure this will be addressed in more detail, but I wouldn’t deduct it right now.

FSU is gonna destroy Norvells career...

He's a good coach at a place that has unrealistic expectations. This year in Tallahassee has shown that you can't build through the portal like that.

If I was him I wouldn't have stayed after this year. Quit, go be a commentator for a year or 2 then get back into coaching at a place that doesn't have all the problems FSU has.

kornegaylw wrote: ↑

Tue Dec 17, 2024 3:05 pm

FSU is gonna destroy Norvells career...

He's a good coach at a place that has unrealistic expectations. This year in Tallahassee has shown that you can't build through the portal like that.

If I was him I wouldn't have stayed after this year. Quit, go be a commentator for a year or 2 then get back into coaching at a place that doesn't have all the problems FSU has.

He got a long extension last year, like 10 years or so. Nobody in their right mind walks away from that type of guaranteed money.

He's making enough money to give some back, whether his choice or theirs, and still be making a lot of money. He can also earn it back if the "Noles win 9 games/season from 2026-2031. If he can bring them back from this year's terrible season, he may earn it back at his next job.