Learn about NIL

[pimo1]

Residency: Frequently Asked Questions | Office of the University Registrar

Most of UT's football players do not have Tennessee residency.

I'm pretty sure if it comes down to it they will figure a way around that yes?

 

[pimo1]

The valid reason is states trying to get out in front of NCAA or Federal regulation by imposing their own rules first. It's a race to make sure you've got the most NIL friendly environment possible.

Exactly this. It's a situation where you can sit still and fall behind or get ahead of the game. As TN does not collect state income taxes it does not have a profit motive here as far as the athletes themselves.. they don't get a cut of the athlete's money at all. The laws they pass are to attract them here. The only way the state makes money from them is them buying things in the state (sales tax) and if they decide to buy a home here (property tax). The laws are mostly in place to protect the athletes and universities from unscrupulous agents, weirdo deals, etc. Because trust me folks are gonna come out the woodworks trying to be agents and sketchy companies will try to get deals done.

 

[igotworms]

I see a lot of threads where people casually mention NIL as if it's one simple thing. It is not. Most states have their own NIL laws. Some are wildly different than others. In cases where the state does not have one, they go by the default NCAA NIL policy


TN Tennessee NIL Law for NCAA - Spry
important part for TN is
(i) An institution, or an officer, director, or employee of the institution may not be involved in the development, operation, or promotion of a current or prospective intercollegiate athlete’s name, image, or likeness, including actions that compensate or cause compensation to be provided to athletes.

Some states have this rule others allow University/Booster involvement to differing extents.

This lead to the founding of Spyre in TN and similar groups in other states are forming. New partnership aims at maximizing NIL for Tennessee athletes

It is gonna take years for all this to get sorted and there will likely be multiple new leas passed overtime to close loopholes. But just understand NIL is not some simple blanket term and applies somewhat differently in different states. This will likely lead to some interesting moves in the portal over the next few years until things normalize. One Huge advantage TN has over a lot of States is we are one of 8 that has no state income tax. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Great! Now. These states are gonna realize they're left out and institute a state tax!!!

Thanks for this info tho

 

[Devo182]

We need to repeal that effing law. Bloodsucking government has no business regulating that

As it reads, it is not restrictive at all. That's the standard NCAA policy. No universities can be involved, in any state.

No big deal.

 

[GAVol]

What is a valid reason that would compel the Federal Government to get involved?

What ever compels the federal government to regulate anything? I think they should stay out of it.

 

[Devo182]

As an aside TN also has two other big factors as a state on it's side. Cost of living and lack of state income tax. As an example an NIL deal for 500k at say UCLA is gonna actually in reality be worth less than one for 200k in Knoxville.

Not even remotely close. CA state tax on 500k would be ~45k. So 500k = 450k

But as someone already mentioned above, very few out-of-state players will qualify as TN residents for tax purposes. Maybe if they play it smart they could down the road.

 

[pimo1]

Not even remotely close. CA state tax on 500k would be ~45k. So 500k = 450k

But as someone already mentioned above, very few out-of-state players will qualify as TN residents for tax purposes.

I didn't say just tax.. there is also cost of living. Try comparing the cost of housing in LA to Knoxville. Secondly, there is also fed and other taxes involved so the actual net pay from 500k in CA would be 284k vs if you made 200k in Knoxville you'd take home about 148k once you factor in the cost of living for both places it breaks about even. As far as getting residency it's not nearly as hard as you are trying to make it seem. Getting in-state residency as far as the university is a completely different situation than income tax. Taxes are based on the location of your employer and workplace. Ask an NBA or NFL player.that is what that artickle was covering it was getting instate residency as it pertains to tuition. total different ball of wax.

 

[pimo1]

Great! Now. These states are gonna realize they're left out and institute a state tax!!!

Thanks for this info tho

That makes zero sense and would never pass. The BENCH of the Memphis Grizzlies has more taxable income than EVERY athlete in the state of TN combined will ever get through NIL. By your logic, the state should have instituted income tax to take advantage of the Grizzlies and the Titans years ago. But even them together constitute a minuscule amount of taxable income compared the rest of the population. TN makes its money in sales and property taxes.,

Anyway this is devolving into having to politics too much I digress. I do appreciate the constructive comments like those from devo182,gavol and beardedvol however. thanks for giving me things to look into and expanding my understanding.

 

[Raebo]

I live just inside of the Georgia border but use to work in Tennessee. I had to pay state income taxes on the money I made in Tennessee. Basically if home of residence is in a state that has an income tax, you pay that state income tax, even if you are in the military and station in a state like Texas that doesn’t have a state income tax.

 

[pimo1]

I live just inside of the Georgia border but use to work in Tennessee. I had to pay state income taxes on the money I made in Tennessee. Basically if home of residence is in a state that has an income tax, you pay that state income tax, even if you are in the military and station in a state like Texas that doesn’t have a state income tax.

That is correct but it's quite easy to change residence in regards to employment. You change your driver's license and you're done. Again the residency article posted above was in regard to residency for tuition. It does not apply to employment. Trust me if one of these kids is getting a big NIL deal their agents will help them set all that stuff up easily. That's mostly about parents claiming the kid on taxes.. If the kid is making over 50k the parents ain't gonna be claiming them on their income tax anymore.

 

[BeardedVol]

I'm pretty sure if it comes down to it they will figure a way around that yes?

It would be really hard for a football player at UT who had residency in another state, to prove they had domicile in Tennessee for any reason other than education/college football participation.

 

[LSU-SIU]

All the NIL legislation is more or less meaningless since the Supreme Court ruling during the summer. We're on to pure compensation in any form now. I have no idea why people keep talking about NIL.

What is a valid reason that would compel the Federal Government to get involved?

The States have various laws involving all kinds of things the federal government isn't involved in or can't be.

The federal government could have either filed civil complaints or criminal indictments under existing law. How about we start by enforcing existing law?

Why don't the schools fix the mess they themselves created? I mean, it beats prison.

 

[GVol1966]

Swain came out the gate at 7 am this morning saying he's been allowed to correct your assumptions about UT NIL. He said there are multiple (as in many) players making 6 figures on this team, and other peoples money is not your business. When swain goes out of his way like that he is usually correct.

This is the second time he has gone out of his way to emphasis UT players are making coin.

Well until we have players making 7 figures we’re losing the battle of NIL to recruits

 

[LAVol1]

it's not A law it's a bunch of laws (state and looking like an upcoming fed law)and policy (NCAA). I would rather the feds mandate NIL than states who have a vested interest (taxes) and especially the NCAA.

OMG...what could possibly go wrong with the idiots in Washington attempting to regulate college athletics. That's why we're in the NIL mess we're in now!

 

[pimo1]

Well until we have players making 7 figures we’re losing the battle of NIL to recruits

you can count on your hands the number of players making 7 figures in the country right now. Heck 6 figures annually is rare. Big NIL deals only apply for a very very select few players in marquee positions like QB and RB. just like in the NFL. Think about it 9/10 if you see a commercial for a big company with an NFL player it's a QB or sometimes a RB. People are not gonna throw millions at kids who haven't played a snap. Folks are feelign this stuff out now ad yeah there have been a few 'announcements' but so far not many real big-money deals period. Seriously name 5.. no ill make it easy name 3 college players with legit NIL deals over a mil. I'll wait. Now name one that's not a QB..

Average NIL compensation per athlete with at least 1 deal:
1. Division I: $391.00
2. Division II: $78.00
3. Division III: $35.00

Note that the vast majority of NIL deals included in this data, 87.7%, are deals that entail posting content. But when it comes to the value of those deals, content-posting accounts for 42.6% of compensation, while licensing rights (2.6% of all deals) shoot up to 20.1% of compensation. Deals that entail actually making an appearance somewhere, doing an interview, signing something, selling a product or providing instruction account for about 4% of all NIL activities, based on Opendorse’s data

taken from An Early Look at Which College Athletes are Getting NIL Deals

 

[VFL-82-JP]

That is correct but it's quite easy to change residence in regards to employment. You change your driver's license and you're done. Again the residency article posted above was in regard to residency for tuition. It does not apply to employment. Trust me if one of these kids is getting a big NIL deal their agents will help them set all that stuff up easily. That's mostly about parents claiming the kid on taxes.. If the kid is making over 50k the parents ain't gonna be claiming them on their income tax anymore.

I don't think it's as easy as you believe, Pimo.

Most states (including Tennessee) will not typically recognize a change in residency status if you are (a) serving our country (military, foreign service, etc.), or (b) a college student, or (c) incarcerated in prison. It can be done, but requires extraordinary effort to prove you intend for the new state to be your permanent home.

And they only allow a person to have one residence. There are no layers of citizenship, no distinctions such as "student (tuition) residence versus employment residence." The state only recognizes one.

I think it would actually be fairly difficult for a college or grad student from outside Tennessee to change their residence to this state while they remain a student.


p.s. Another factor -- even if Tennessee were to amend state law to allow students with NIL concerns to more easily establish residency in the future, there's no guarantee the state of origin would go along. California or New Jersey can continue to count Billy Joe Bob as their resident and demand he pay his state income taxes even if Tennessee is opening their arms to him. Each state has its own say, its own laws.

 

[GVol1966]

you can count on your hands the number of players making 7 figures in the country right now. Heck 6 figures annually is rare. Big NIL deals only apply for a very very select few players in marquee positions like QB and RB. just like in the NFL. Think about it 9/10 if you see a commercial for a big company with an NFL player it's a QB or sometimes a RB. People are not gonna throw millions at kids who haven't played a snap. Folks are feelign this stuff out now ad yeah there have been a few 'announcements' but so far not many real big-money deals period. Seriously name 5.. no ill make it easy name 3 college players with legit NIL deals over a mil. I'll wait. Now name one that's not a QB..

Average NIL compensation per athlete with at least 1 deal:
1. Division I: $391.00
2. Division II: $78.00
3. Division III: $35.00

Note that the vast majority of NIL deals included in this data, 87.7%, are deals that entail posting content. But when it comes to the value of those deals, content-posting accounts for 42.6% of compensation, while licensing rights (2.6% of all deals) shoot up to 20.1% of compensation. Deals that entail actually making an appearance somewhere, doing an interview, signing something, selling a product or providing instruction account for about 4% of all NIL activities, based on Opendorse’s data

taken from An Early Look at Which College Athletes are Getting NIL Deals

Don’t care about any of that, you know who else don’t care ? All them 5 star recruits that just signed with A&M

 

[1world1love]

I don’t care what the law is. My entire position is that there shouldn’t be a law regulating how an adult is compensated for his “brand”. It’s not a valid state interest so long as state aren’t being incorrectly used.

The law has nothing to do with how an adult is compensated. The Tennessee state law is about what Tennessee state employees at a Tennessee state institution can do and can't do. Would you agree that the state government has a valid interest in govern state employees? Or should it be a free for all? Prison guards, teachers, and judges just making it up as they go along.

 

[1world1love]

I don't think it's as easy as you believe, Pimo.

Most states (including Tennessee) will not typically recognize a change in residency status if you are (a) serving our country (military, foreign service, etc.), or (b) a college student, or (c) incarcerated in prison. It can be done, but requires extraordinary effort to prove you intend for the new state to be your permanent home.

And they only allow a person to have one residence. There are no layers of citizenship, no distinctions such as "student (tuition) residence versus employment residence." The state only recognizes one.

I think it would actually be fairly difficult for a college or grad student from outside Tennessee to change their residence to this state while they remain a student.


p.s. Another factor -- even if Tennessee were to amend state law to allow students with NIL concerns to more easily establish residency in the future, there's no guarantee the state of origin would go along. California or New Jersey can continue to count Billy Joe Bob as their resident and demand he pay his state income taxes even if Tennessee is opening their arms to him. Each state has its own say, its own laws.

Is this true though? When I was 19, I changed my primary residence to Tennessee because I moved to Knoxville to go to college and did not plan on leaving. There were no requirements other than saying I moved to TN permanently. Of course my parents did not claim me as a dependent, but it wouldn't have mattered much anyways. Also, that was a few decades ago, but I know college kids that have done the same thing more recently (at least the last 10 years).

 

[Raebo]

Is this true though? When I was 19, I changed my primary residence to Tennessee because I moved to Knoxville to go to college and did not plan on leaving. There were no requirements other than saying I moved to TN permanently. Of course my parents did not claim me as a dependent, but it wouldn't have mattered much anyways. Also, that was a few decades ago, but I know college kids that have done the same thing more recently (at least the last 10 years).

It is my understanding that the AD pays the university for the scholarship (tuition, etc..). Does the AD pay out or state rates for the recruits from out of state or does the AD pay one flat rate regardless of where the recruit is from. If the AD pays a higher rate for the out of state recruits, it would be hard IMO for the recruit to claim they are an in state resident? But I really don’t know how the scholarship payments work.

 

[Devo182]

you can count on your hands the number of players making 7 figures in the country right now. Heck 6 figures annually is rare. Big NIL deals only apply for a very very select few players in marquee positions like QB and RB. just like in the NFL. Think about it 9/10 if you see a commercial for a big company with an NFL player it's a QB or sometimes a RB. People are not gonna throw millions at kids who haven't played a snap. Folks are feelign this stuff out now ad yeah there have been a few 'announcements' but so far not many real big-money deals period. Seriously name 5.. no ill make it easy name 3 college players with legit NIL deals over a mil. I'll wait. Now name one that's not a QB..

Average NIL compensation per athlete with at least 1 deal:
1. Division I: $391.00
2. Division II: $78.00
3. Division III: $35.00

Note that the vast majority of NIL deals included in this data, 87.7%, are deals that entail posting content. But when it comes to the value of those deals, content-posting accounts for 42.6% of compensation, while licensing rights (2.6% of all deals) shoot up to 20.1% of compensation. Deals that entail actually making an appearance somewhere, doing an interview, signing something, selling a product or providing instruction account for about 4% of all NIL activities, based on Opendorse’s data

taken from An Early Look at Which College Athletes are Getting NIL Deals

Swain said today we have a handful alone with 6 figure deals. These are private, not public, so they'll always be underreported/underacknowledged.

 

[1world1love]

It is my understanding that the AD pays the university for the scholarship (tuition, etc..). Does the AD pay out or state rates for the recruits from out of state or does the AD pay one flat rate regardless of where the recruit is from. If the AD pays a higher rate for the out of state recruits, it would be hard IMO for the recruit to claim they are an in state resident? But I really don’t know how the scholarship payments work.

Good question. I do remember that I was not eligible for in-state until I had lived here for 6 months. I think it may even be longer now.

I don't think the question of residency for tax purposes and the question for tuition is related though. I filed taxes as a Tennessee resident starting on the day I changed residence to TN. I had some income from my previous state of residence and I had to pay income taxes to that state for that income, but the income I started earning at my new address was subject to TN tax laws.

When filing taxes, how would another state even know that you earned income? That just doesn't make any sense. People move all the time. Sometimes more than once in a single tax year. If I establish permanent residence in TN and earn income in TN, then that is not really any other state's business and TN has no obligation to tell them. Why would they?

Now, it may be true that listing your permanent residence as Massey Hall may not hold water, but if you have an off-campus apartment and all your mail goes there, I am not sure why that would be questioned. It is plausible and not uncommon for somebody to plant roots where they choose to go to college.

 

[lukeneyland]

The law has nothing to do with how an adult is compensated. The Tennessee state law is about what Tennessee state employees at a Tennessee state institution can do and can't do. Would you agree that the state government has a valid interest in govern state employees? Or should it be a free for all? Prison guards, teachers, and judges just making it up as they go along.

As long as the state employees aren’t using state funds to compensate their players then I don’t see a valid reason for the state to interject itself. All of the examples you listed are vastly different and are of greater societal importance than college athletics

 

[1world1love]

As long as the state employees aren’t using state funds to compensate their players then I don’t see a valid reason for the state to interject itself. All of the examples you listed are vastly different and are of greater societal importance than college athletics

I'm curious. Have you actually read the TN statutes?

 

[37620VOL]

Residency: Frequently Asked Questions | Office of the University Registrar

Most of UT's football players do not have Tennessee residency.

They could be for tax purposes, it's a different set of rules.