Hello There, Guest! (LoginRegister)

Post Reply 
Sports programs tax bill
Author Message
Bookmark and Share
usm99 Offline
Heisman
*

Posts: 9,027
Joined: Apr 2005
Reputation: 240
I Root For: Southern Miss
Location:
Post: #1
Sports programs tax bill
So will this put a bigger financial hit on P5 programs or cause some of the G5 to drop down to FCS:

http://www.espn.com/college-sports/story...w-tax-plan

Here's the intro into the article:


A group of college athletic administrators say they're extremely concerned that a proposed measure in the House's tax bill that passed Thursday will greatly impair college sports funding.

In the proposed measure, Section 1306 would cut deductions associated with charitable contributions for tickets. Not allowing fans to deduct for donations that give them the right to buy tickets would immediately cost college programs hundreds of millions of dollars, according to athletic directors who spoke with ESPN.

"If that deduction goes away, what you will see is a dramatic sea change in the college sports landscape," said Duke athletic director Kevin White. "We need to put speed bumps up now to slow this thing down, because I don't think the politicians have any idea how much this will pull apart our system."
11-17-2017 01:10 PM
Find all posts by this user Quote this message in a reply
Advertisement


beefcake0520 Offline
Special Teams
*

Posts: 656
Joined: May 2013
Reputation: 50
I Root For: marshall
Location:
Post: #2
RE: Sports programs tax bill
I don't think it will hit the G5 as hard as it will the P5, if anything it may help level the playing field a bit
11-17-2017 02:10 PM
Find all posts by this user Quote this message in a reply
MinerInWisconsin Offline
Hall of Famer
*

Posts: 10,685
Joined: Apr 2004
Reputation: 504
I Root For: UTEP, of course
Location: The Frozen Tundra
Post: #3
RE: Sports programs tax bill
(11-17-2017 01:10 PM)usm99 Wrote:  So will this put a bigger financial hit on P5 programs or cause some of the G5 to drop down to FCS:

http://www.espn.com/college-sports/story...w-tax-plan

Here's the intro into the article:


A group of college athletic administrators say they're extremely concerned that a proposed measure in the House's tax bill that passed Thursday will greatly impair college sports funding.

In the proposed measure, Section 1306 would cut deductions associated with charitable contributions for tickets. Not allowing fans to deduct for donations that give them the right to buy tickets would immediately cost college programs hundreds of millions of dollars, according to athletic directors who spoke with ESPN.

"If that deduction goes away, what you will see is a dramatic sea change in the college sports landscape," said Duke athletic director Kevin White. "We need to put speed bumps up now to slow this thing down, because I don't think the politicians have any idea how much this will pull apart our system."

Something needs to pull apart their system. Might as well be this. It will hurt the P5 much more than the rest of us.
11-17-2017 02:11 PM
Find all posts by this user Quote this message in a reply
beefcake0520 Offline
Special Teams
*

Posts: 656
Joined: May 2013
Reputation: 50
I Root For: marshall
Location:
Post: #4
RE: Sports programs tax bill
"pull apart this system" as he states it. maybe it needs pulled apart. The only programs screaming about it is the upper p5's right now. I think the taxes go beyond just donations though, or at least that was what was proposed. Like start increasing taxation on coaching salaries once 7 figures is reached etc (the program/school gets taxed for it). This type of unregulated "money" has been going on for too long and done nothing but damage college athletics. jmho
11-17-2017 02:15 PM
Find all posts by this user Quote this message in a reply
SVHerd Offline
All American
*

Posts: 4,175
Joined: Sep 2004
Reputation: 75
I Root For:
Location:
Post: #5
RE: Sports programs tax bill
Next it will be Schools have to quit relying on student fees to fund athletics. Thankfully Marshall doesn't rely heavily on those funds.
11-17-2017 02:36 PM
Find all posts by this user Quote this message in a reply
goliath74 Offline
5318008
*

Posts: 8,945
Joined: Nov 2013
Reputation: 558
I Root For: FAU, FSU
Location: Hollywood, Florida
Post: #6
RE: Sports programs tax bill
It will hit P5 hard but some programs in the Group of 5 will feel it too. The tax bill is an expensive pile of garbage to begin with and to pay for it they have attempted to cut all kinds of deductions and they were really unscrupulous in determining which.
11-17-2017 03:04 PM
Visit this user's website Find all posts by this user Quote this message in a reply
Advertisement


Saint Greg Offline
Heisman
*

Posts: 5,111
Joined: May 2012
Reputation: 133
I Root For: Louisiana Tech
Location:
Post: #7
RE: Sports programs tax bill
Supposedly the LSU AD said it would cost them 50mil/yr.
11-17-2017 04:00 PM
Find all posts by this user Quote this message in a reply
usm99 Offline
Heisman
*

Posts: 9,027
Joined: Apr 2005
Reputation: 240
I Root For: Southern Miss
Location:
Post: #8
RE: Sports programs tax bill
(11-17-2017 04:00 PM)Saint Greg Wrote:  Supposedly the LSU AD said it would cost them 50mil/yr.

http://abcnews.go.com/Sports/funding-spo...d=51204284

don't think it would cost them the full $50 mil. here's the quote:

"We take in $50 million to $65 million a year in donations related to tickets," said LSU athletic director Joe Alleva. "If even 10 percent of people say, 'We're not going to do that anymore,' that's at least $5 million to us. We have no other place to make that money up."
11-17-2017 04:28 PM
Find all posts by this user Quote this message in a reply
goliath74 Offline
5318008
*

Posts: 8,945
Joined: Nov 2013
Reputation: 558
I Root For: FAU, FSU
Location: Hollywood, Florida
Post: #9
RE: Sports programs tax bill
(11-17-2017 04:28 PM)usm99 Wrote:  
(11-17-2017 04:00 PM)Saint Greg Wrote:  Supposedly the LSU AD said it would cost them 50mil/yr.

http://abcnews.go.com/Sports/funding-spo...d=51204284

don't think it would cost them the full $50 mil. here's the quote:

"We take in $50 million to $65 million a year in donations related to tickets," said LSU athletic director Joe Alleva. "If even 10 percent of people say, 'We're not going to do that anymore,' that's at least $5 million to us. We have no other place to make that money up."

Well, even if it is just 10% of people. The LSU would be forced to find the way to do without $5M. Maybe they can, who knows. Smaller programs might just lose $1M, but have a more difficult time replacing it.
11-17-2017 04:47 PM
Visit this user's website Find all posts by this user Quote this message in a reply
UABslant Offline
Moderator
*

Posts: 9,397
Joined: Mar 2004
Reputation: 77
I Root For: UAB
Location: @UABslant

DonatorsBlazerTalk AwardBlazerTalk Award
Post: #10
RE: Sports programs tax bill
Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.
11-17-2017 04:53 PM
Visit this user's website Find all posts by this user Quote this message in a reply
usm99 Offline
Heisman
*

Posts: 9,027
Joined: Apr 2005
Reputation: 240
I Root For: Southern Miss
Location:
Post: #11
RE: Sports programs tax bill
(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.
11-17-2017 05:05 PM
Find all posts by this user Quote this message in a reply
Advertisement


goliath74 Offline
5318008
*

Posts: 8,945
Joined: Nov 2013
Reputation: 558
I Root For: FAU, FSU
Location: Hollywood, Florida
Post: #12
RE: Sports programs tax bill
(11-17-2017 05:05 PM)usm99 Wrote:  
(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.
11-17-2017 05:09 PM
Visit this user's website Find all posts by this user Quote this message in a reply
mturn017 Offline
ODU Homer
*

Posts: 16,740
Joined: May 2012
Reputation: 1592
I Root For: Old Dominion
Location: Roanoke, VA
Post: #13
RE: Sports programs tax bill
(11-17-2017 05:09 PM)goliath74 Wrote:  
(11-17-2017 05:05 PM)usm99 Wrote:  
(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.

This has nothing to do with the purchase of the tickets. Though the bill also eliminates the business entertainment expense so if you're used to taking clients out to games and writing it off then that wouldn't be allowed anymore but that would include golfing, strip clubs, dinners or anything else you might do to shmooze customers. Currently you only get 50% of these costs.

Individuals aren't allowed a deduction for the purchase of athletic tickets but if they make a contribution to amateur sports organizations then they're considered a charitable deduction. If you get "points" or any kind of priority in your ability to buy tickets based on your donation then that deduction is limited to 80%. The house bill would eliminate that deduction altogether. However, you can give to college athletics with no limitation if you don't receive rights to buy tickets and as far as I know that won't change. So let's say you give 10k to you schools athletic club and you get to pick your seats based on that donation and your satisfied with those seats. If you wanted to donate to say a capital campaign or fund an athletic scholarship endowment, as long as those donations don't increase your standing in the seating priority ranking they are and as far as I can tell still will be fully deductible.

It'll be interesting how schools would respond if this went through. Maybe give more weight to how long you've been giving. I think where there's strong competition for good seats there still will be but it would likely take a chunk out of everyone. I'm not sure if it's included in the senate bill, which is really the one to watch. I doubt the senate will bother taking up the house version.
11-17-2017 06:16 PM
Find all posts by this user Quote this message in a reply
goliath74 Offline
5318008
*

Posts: 8,945
Joined: Nov 2013
Reputation: 558
I Root For: FAU, FSU
Location: Hollywood, Florida
Post: #14
RE: Sports programs tax bill
(11-17-2017 06:16 PM)mturn017 Wrote:  
(11-17-2017 05:09 PM)goliath74 Wrote:  
(11-17-2017 05:05 PM)usm99 Wrote:  
(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.

This has nothing to do with the purchase of the tickets. Though the bill also eliminates the business entertainment expense so if you're used to taking clients out to games and writing it off then that wouldn't be allowed anymore but that would include golfing, strip clubs, dinners or anything else you might do to shmooze customers. Currently you only get 50% of these costs.

Individuals aren't allowed a deduction for the purchase of athletic tickets but if they make a contribution to amateur sports organizations then they're considered a charitable deduction. If you get "points" or any kind of priority in your ability to buy tickets based on your donation then that deduction is limited to 80%. The house bill would eliminate that deduction altogether. However, you can give to college athletics with no limitation if you don't receive rights to buy tickets and as far as I know that won't change. So let's say you give 10k to you schools athletic club and you get to pick your seats based on that donation and your satisfied with those seats. If you wanted to donate to say a capital campaign or fund an athletic scholarship endowment, as long as those donations don't increase your standing in the seating priority ranking they are and as far as I can tell still will be fully deductible.

It'll be interesting how schools would respond if this went through. Maybe give more weight to how long you've been giving. I think where there's strong competition for good seats there still will be but it would likely take a chunk out of everyone. I'm not sure if it's included in the senate bill, which is really the one to watch. I doubt the senate will bother taking up the house version.

This has everything to do with purchasing the tickets. Let's say my employer buys 1000 tickets to Florida Panthers matches and deducts their cost for tax purposes. Let's say an average cost of these tickets is $50. So, the company spends $50,000 for 1000 tickets. And then it deducts, say, $15,000 off of these tickets. All of a sudden the cost becomes $35,000 or $35 per ticket. The company may choose to pay the price when it knows it is really a bargain versus when they are not. Or maybe they just buy half of these tickets. So, clearly, the school does not get this money.
11-17-2017 06:56 PM
Visit this user's website Find all posts by this user Quote this message in a reply
mturn017 Offline
ODU Homer
*

Posts: 16,740
Joined: May 2012
Reputation: 1592
I Root For: Old Dominion
Location: Roanoke, VA
Post: #15
RE: Sports programs tax bill
(11-17-2017 06:56 PM)goliath74 Wrote:  
(11-17-2017 06:16 PM)mturn017 Wrote:  
(11-17-2017 05:09 PM)goliath74 Wrote:  
(11-17-2017 05:05 PM)usm99 Wrote:  
(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.

This has nothing to do with the purchase of the tickets. Though the bill also eliminates the business entertainment expense so if you're used to taking clients out to games and writing it off then that wouldn't be allowed anymore but that would include golfing, strip clubs, dinners or anything else you might do to shmooze customers. Currently you only get 50% of these costs.

Individuals aren't allowed a deduction for the purchase of athletic tickets but if they make a contribution to amateur sports organizations then they're considered a charitable deduction. If you get "points" or any kind of priority in your ability to buy tickets based on your donation then that deduction is limited to 80%. The house bill would eliminate that deduction altogether. However, you can give to college athletics with no limitation if you don't receive rights to buy tickets and as far as I know that won't change. So let's say you give 10k to you schools athletic club and you get to pick your seats based on that donation and your satisfied with those seats. If you wanted to donate to say a capital campaign or fund an athletic scholarship endowment, as long as those donations don't increase your standing in the seating priority ranking they are and as far as I can tell still will be fully deductible.

It'll be interesting how schools would respond if this went through. Maybe give more weight to how long you've been giving. I think where there's strong competition for good seats there still will be but it would likely take a chunk out of everyone. I'm not sure if it's included in the senate bill, which is really the one to watch. I doubt the senate will bother taking up the house version.

This has everything to do with purchasing the tickets. Let's say my employer buys 1000 tickets to Florida Panthers matches and deducts their cost for tax purposes. Let's say an average cost of these tickets is $50. So, the company spends $50,000 for 1000 tickets. And then it deducts, say, $15,000 off of these tickets. All of a sudden the cost becomes $35,000 or $35 per ticket. The company may choose to pay the price when it knows it is really a bargain versus when they are not. Or maybe they just buy half of these tickets. So, clearly, the school does not get this money.

Florida Panthers? That's professional hockey? There's nothing in what you typed that has anything to do with what this article is about.

If a business wants to buy tickets to a sporting event for thier employees they can do that and deduct the expense. It doesn't matter if it's professional or college. That's not changing as far as I know and certainly not what this article is about.
11-17-2017 09:03 PM
Find all posts by this user Quote this message in a reply
MUther Offline
Heisman
*

Posts: 8,167
Joined: Jun 2002
Reputation: 621
I Root For: Marshall
Location:

CrappiesCrappies
Post: #16
RE: Sports programs tax bill
(11-17-2017 05:09 PM)goliath74 Wrote:  
(11-17-2017 05:05 PM)usm99 Wrote:  
(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.

I would think non-profit organizations wouldn't have to write them off anyway. They'd be bought with donations and given as donations by an entity, that by definition, doesn't pay taxes anyway.
11-18-2017 01:55 AM
Find all posts by this user Quote this message in a reply
Advertisement


EagleX Offline
Wake me when the suck is over
*

Posts: 14,790
Joined: Sep 2011
Reputation: 706
I Root For: Southern Miss
Location: Happy Hour
Post: #17
RE: Sports programs tax bill
(11-17-2017 02:11 PM)MinerInWisconsin Wrote:  
(11-17-2017 01:10 PM)usm99 Wrote:  So will this put a bigger financial hit on P5 programs or cause some of the G5 to drop down to FCS:

http://www.espn.com/college-sports/story...w-tax-plan

Here's the intro into the article:


A group of college athletic administrators say they're extremely concerned that a proposed measure in the House's tax bill that passed Thursday will greatly impair college sports funding.

In the proposed measure, Section 1306 would cut deductions associated with charitable contributions for tickets. Not allowing fans to deduct for donations that give them the right to buy tickets would immediately cost college programs hundreds of millions of dollars, according to athletic directors who spoke with ESPN.

"If that deduction goes away, what you will see is a dramatic sea change in the college sports landscape," said Duke athletic director Kevin White. "We need to put speed bumps up now to slow this thing down, because I don't think the politicians have any idea how much this will pull apart our system."

Something needs to pull apart their system. Might as well be this. It will hurt the P5 much more than the rest of us.

exactly. their system deserves to be pulled apart.
11-18-2017 02:19 AM
Find all posts by this user Quote this message in a reply
usm99 Offline
Heisman
*

Posts: 9,027
Joined: Apr 2005
Reputation: 240
I Root For: Southern Miss
Location:
Post: #18
RE: Sports programs tax bill
some more info has come out now that the new tax bill is close to being finalized. Below is the link to the full article while I posted mainly the high points

https://www.usatoday.com/story/sports/nc...968741001/

For example, as currently constructed, Alabama’s contract with football coach Nick Saban likely will cost the university at least $1.2 million in addition to the $7.125 million in basic compensation he is scheduled to be paid if remains the Crimson Tide’s coach throughout the 2018 calendar year.

Overall for schools, “this is going to cost hundreds of millions of dollars a year,” said Tom McMillen, a former congressman who is now president and CEO of the LEAD1 Association, which represents athletics directors at schools in the NCAA’s top-level Football Bowl Subdivision. “It’s literally half a College Football Playoff (worth of money). When you put it at that kind of magnitude, it wakes you up a little bit.”

It also shows why college sports administrators are not likely to get a lot of sympathy as they go forward under the new tax rules.

Like other non-profit organizations, colleges will be responsible for paying a 21% excise tax on annual compensation above $1 million that goes to any of the organization’s five most highly compensated employees.

According to data compiled by USA TODAY Sports, in the sport of football alone, there are 90 head or assistant coaches making more than $1 million this season. It’s possible not all of those coaches are among their respective schools’ five highest-paid employees, and certain forms of deferred compensation will not be subject to the excise tax. But based on pay for the 2017 season, 65 public schools would have faced a combined total of about $30 million in tax just for their football coaches. (Private schools will be subject to the tax.)

Cincinnati AD Mike Bohn said Tuesday: “We were doing some quick math on this today, and (with the compensation being paid to men’s basketball coach Mick Cronin and football coach Luke Fickell) it’s half-a-million dollars.”

Iowa State AD Jamie Pollard estimates his school is facing $700,000 in additional cost from this provision.

Even before the legislation passed in Congress, some athletics departments were reaching out to donors to act while the deduction remains available. In a posting Tuesday on Baylor’s athletics website, AD Mack Rhoades wrote: “(W)e encourage you to consider completing your 2017-18 Bear Foundation commitment and/or pre-paying for 2018-19 before December 31, 2017, in order to claim the maximum deductions from your giving.”
12-20-2017 02:34 PM
Find all posts by this user Quote this message in a reply
UTSAMarineVet09 Offline
Corporal of the Board.
*

Posts: 16,354
Joined: Oct 2011
Reputation: 1271
I Root For: UTSA
Location: West Michigan
Post: #19
RE: Sports programs tax bill
am I the only one that doesnt itemize their donations for tickets?
12-20-2017 02:48 PM
Find all posts by this user Quote this message in a reply
TOPSTRAIGHT Offline
Heisman
*

Posts: 7,786
Joined: May 2013
Reputation: 451
I Root For: WKU
Location: Glasgow,KY.
Post: #20
RE: Sports programs tax bill
Sounds like a good change. If the P5's are griping and complaining---I'm all in.
12-20-2017 03:11 PM
Find all posts by this user Quote this message in a reply
Post Reply 




User(s) browsing this thread: 1 Guest(s)


Copyright © 2002-2024 Collegiate Sports Nation Bulletin Board System (CSNbbs), All Rights Reserved.
CSNbbs is an independent fan site and is in no way affiliated to the NCAA or any of the schools and conferences it represents.
This site monetizes links. FTC Disclosure.
We allow third-party companies to serve ads and/or collect certain anonymous information when you visit our web site. These companies may use non-personally identifiable information (e.g., click stream information, browser type, time and date, subject of advertisements clicked or scrolled over) during your visits to this and other Web sites in order to provide advertisements about goods and services likely to be of greater interest to you. These companies typically use a cookie or third party web beacon to collect this information. To learn more about this behavioral advertising practice or to opt-out of this type of advertising, you can visit http://www.networkadvertising.org.
Powered By MyBB, © 2002-2024 MyBB Group.