Tulsa Football Players Haven't Seen Promised NIL, IRS Cracking Down on NIL Collectives + ICYMI | Newsletter #294

Dec 05, 2024

Today’s Thursday newsletter includes highlights from this week, important news from last week, and what to watch for.

Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!

Recapping Major News This Week:

Tulsa football players are saying they never received their NIL money that they were promised by their head coach, who was fired last month.
Their starting QB, Cooper Legas, came to Tulsa as a transfer from Utah State. Their coach claims he never made any NIL promises because he didn’t have any money to give to players.
"He said, this was back in May,...there was already enough money in the collective fund or the NIL fund for the QB, room to have between $75,000 and $100,000 and of that money, most of that would go to whoever the starting QB was and the rest to the backup," said Legas.
Legas further stated that once the season started, the money kept getting delayed: "If you don't go to class or you miss a lift or you do these things...you're probably not going to get your money that month. They would use it as leverage. Follow the rules, play well, be on time to things - they were using this money as leverage and it just kept getting pushed back."
Linebacker Myles Jackson also claims he was promised NIL, but with their coach being let go, no one has answers on how they can get the money they were promised.
CLICK HERE to learn more.

The IRS has named NIL collectives as a compliance enforcement priority for the 2025 fiscal year. Many collectives are run as non-profits, making them tax-exempt.
The justification for this non-profit status was that athletes would promote charitable causes as part of the arrangement. However, the IRS has seen through this ploy, pointing to the reality that these organizations primarily exist to pay athletes and bolster recruiting, not fulfill legitimate charitable purposes.
Without the tax incentives that come with the non-profit designation, these collectives will likely see a steep donation drop. The combined impact of revenue sharing from the House settlement and the IRS crackdown on nonprofit collectives means that many schools could be forced to overhaul their entire approach to athlete compensation.
CLICK HERE to learn more.

Paige Bueckers becomes first NIL athlete to launch a Nike Player Edition shoe - LINK
Texas A&M looks to draft NIL law changes - LINK
The Cavinder Twins collaborated with drinkwear brand Stanley to promote Stanley's Lionel Messi collaboration - LINK
The Texas Longhorns face a difficult question of who will be their starting QB next season, with many projecting that Ewers may transfer - LINK

Quarterback prospect and No.1 overall recruit, Bryce Underwood, officially announced his commitment to Michigan on Thursday.
Although he was committed to LSU since January, rumors began swirling in October that Michigan was making a real push to convince the Michigan-born prospect to stay close to home.
Michigan was able to lure Underwood away from LSU with the help of an NIL package reportedly worth around $10 million for four years. Shortly before Underwood rumors emerged, Barstool Sports owner (and Michigan super fan) Dave Portnoy announced he’d be willing to pay $2-3 million annually to help Michigan land top quarterbacks.
In addition to Underwood, Michigan was able to flip four-star CB recruit, Elijah Dotson, from his commitment to Pittsburgh. Dotson and Underwood are high school teammates at Belleville High School in Belleville, MI.
CLICK HERE to learn more.

As we transition into college basketball season, coaches and players alike are talking about the effect that NIL and the transfer portal have had on the college basketball landscape.
Gonzaga head coach Mark Few answered the question of whether NIL deals are leveling the playing field: “It most definitely does,” Few affirmed. “What you’re seeing on all these rosters in football and basketball is fifth and, because of the silly COVID rules, even sixth-year players. So, I mean, you’re playing against some really, really older, experienced players that know how to play.”
Rick Pitino, the head coach at St. John’s, shared his views on NIL and the transfer portal: “Now I’m not crazy about the transfer portal, because guys, I have a center, backup center from USC [Vince Iwuchukwu] that I think is going to be a very good player someday, but it’s going to take time and effort. Well, he’s going to say, ‘Well, look, if I’m only playing 10 minutes a game. I’m going to go transfer; they’re promising me 30 minutes a game.’ So that part I don’t like. But as far as the players being paid, I don’t have a problem with that.”
Just as the transfer portal and NIL deals have changed the landscape of college football, college basketball is feeling the effects of athlete compensation rules.

Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!