The Final 2%

[drudy23]

“There's been an increased emphasis over the last seven-plus months on raising NIL funds. XU's collective has gone public and reached out to the fanbase to crowdsource donations after operating in silence for the last two years. No one is going to share specific numbers when it comes to NIL funds. I've been told the efforts have helped but there is still a sizeable gap between XU and the Big East programs with the biggest war chests (Villanova & St. John's). I believe somewhere in the neighborhood of $3-3.5 million would get a team to the top of the conference in NIL spending.”

From an online basketball recruiting site. I’m just going to leave this here and let people think about it.

I don't have a problem with not being transparent about what each player is getting, but there needs to be more info.

Of that $3.5M, what is being crowdsourced vs. what is being done by the university to raise funds? If they are looking for $500k from crowdsourcing (with a matching donation from a whale) and the NIL team is working to raise the other $2.5M, I'm probably ok with that.

I think most fans just want to feel like the university is taking on the lionshare of the work, and the fans can supplement if they feel so inclined. I'd have a huge issue if all of this was an expectation of the fans for the crowdsourcing.

Still not sure I know the answer to that, but I'd find it pretty surprising if the school didn't have a team out collecting money for this from bigwigs, sponsors, corporations and other fundraising events.

[XUGRAD80]

The Xavier Athletics site lists an Associate Athletics Director for Development and an All for One Fund Coordinator. I’m sure that they, and the people that work for them, are doing exactly that. The NIL 2% fund is in addition to what they have been doing for years.

[Final4]

The Xavier Athletics site lists an Associate Athletics Director for Development and an All for One Fund Coordinator. I’m sure that they, and the people that work for them, are doing exactly that. The NIL 2% fund is in addition to what they have been doing for years.

I don't think this is right and I posted something similar in another thread. The university is not soliciting $$$ to fund NIL's. Final2percent.com is a 501c3 and is not affiliated with Xavier University. It clearly states that on their webpage. While I suspect the transactions (transfer of $$$ to players) occur in all types of make and manner, the money they receive comes from a third party and not the university.

[A Fan]

I don't think this is right and I posted something similar in another thread. The university is not soliciting $$$ to fund NIL's. Final2percent.com is a 501c3 and is not affiliated with Xavier University. It clearly states that on their webpage. While I suspect the transactions (transfer of $$$ to players) occur in all types of make and manner, the money they receive comes from a third party and not the university.

Correct . If the University were fundraising for the collective which is paying the players that would be a violation. Some have asked why the Collective does not seeks corporate sponsorships for the players. Again it is a non profit and cannot engage in commercial activites. There is nothing to prevent the university to have another for profit collective to do those things. But no contributions would be tax deductible as a charitable deduction as is now the case for donors but corporations could expense the contribution as a marketing expense. .

[A Fan]

“There's been an increased emphasis over the last seven-plus months on raising NIL funds. XU's collective has gone public and reached out to the fanbase to crowdsource donations after operating in silence for the last two years. No one is going to share specific numbers when it comes to NIL funds. I've been told the efforts have helped but there is still a sizeable gap between XU and the Big East programs with the biggest war chests (Villanova & St. John's). I believe somewhere in the neighborhood of $3-3.5 million would get a team to the top of the conference in NIL spending.”

From an online basketball recruiting site. I’m just going to leave this here and let people think about it.

If $ 3M in and out each year is the standard I can’t imagine The Final2% would be near that. That requires XU’s large donors to make a large annual commitment. Keep in mind those donors are being asked to fund the new medical school and its operating losses until it breaks even.

[GoMuskies]

As a taxpayer, I think it's ridiculous that anyone gets a tax deduction for giving to an NIL collective. These are essentially gifts, and generally people giving large gifts pay gift tax. This is obviously the exact opposite of that, and it doesn't make sense to me why they would get that treatment.

[XUGRAD80]

I don't think this is right and I posted something similar in another thread. The university is not soliciting $$$ to fund NIL's. Final2percent.com is a 501c3 and is not affiliated with Xavier University. It clearly states that on their webpage. While I suspect the transactions (transfer of $$$ to players) occur in all types of make and manner, the money they receive comes from a third party and not the university.

I was trying to point out that the university does have people soliciting money for the athletics department, not that they are soliciting for the 2% fund. Sorry if I didn’t make that clear. That was in response to people that feel that the 2% fund should be funded by companies and run by the school. As I stated before, the University has been working hard for many years to get corporate support for the athletics department. The final 2% fund is over and above those efforts, it’s not designed to replace those efforts.

[A Fan]

It is obviously an artifice. The collective asks the player to spend two hours at the boys club shooting baskets with the kids and pays him $ 10 K. Since the boys and girls club is also a 501 (c) (3) organization the collective and the player is engaged in a non commercial activity and therefore the collective maintains its non profit status. Some experts question whether the IRS will disqualify these non profit collectives since it is using the tax code to pay athletes to attend and participate in athletics and the “ Charitable Work” is incidental to that purpose. To avoid that problem the large schools have for profit collectives which solicit business to do promotional deals with their athletes. I assume Xavier felt that their collective could raise more money by offering a tax deductible collective but nothing prevents them having both.

[MHettel]

It is obviously an artifice. The collective asks the player to spend two hours at the boys club shooting baskets with the kids and pays him $ 10 K. Since the boys and girls club is also a 501 (c) (3) organization the collective and the player is engaged in a non commercial activity and therefore the collective maintains its non profit status. Some experts question whether the IRS will disqualify these non profit collectives since it is using the tax code to pay athletes to attend and participate in athletics and the “ Charitable Work” is incidental to that purpose. To avoid that problem the large schools have for profit collectives which solicit business to do promotional deals with their athletes. I assume Xavier felt that their collective could raise more money by offering a tax deductible collective but nothing prevents them having both.

Sweet. Now we have to have a tax attorney on staff for the BBall team.

Thank god we dicided that a free education, tons of exposure and free drinks for life wasnt enough to get these teenagers to play a game that they love.

[xudash]

Sweet. Now we have to have a tax attorney on staff for the BBall team.

Thank god we dicided that a free education, tons of exposure and free drinks for life wasnt enough to get these teenagers to play a game that they love.

Public reps. That provided a good chuckle.