Author Topic: Tax reform plan has nasty surprise for athletic departments?  (Read 564 times)

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Online CoachMaclid

Tax reform plan has nasty surprise for athletic departments?
« on: November 16, 2017, 09:17:42 PM »
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  • See the link below, but the tax reform bill passed by the House (and with similar text in the Senate bill) would basically eliminate tax deductions to schools used as part of priority systems tied to ticket sales.

    I think this will hurt the P5's more than the G5's, but this could mean as it's currently structured, the Big Green might lose its status as a tax deduction if it maintains a priority points system if this becomes law.


    Quote
    Tax legislation that passed the U.S. House on Thursday contains a key provision that LSU leaders say could be "disastrous" for the school's athletic programs.

    The U.S. Senate has not yet taken up its own tax proposal, but it contains the same language that would eliminate a deduction for college sports fans who donate to their schools as part of priority systems tied to season ticket sales

    LSU officials say that potentially as much as $50 million for the university's heralded athletic programs could be lost if Congress eliminates the tax deduction that helps bring in millions to pay for its highly-ranked football, baseball, basketball and gymnastics programs, among others.

    http://www.theadvocate.com/baton_rouge/news/politics/article_12b5490e-cb13-11e7-83f6-03ab774afd6c.html

    « Last Edit: November 16, 2017, 09:20:06 PM by CoachMaclid »
     

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    Tax reform plan has nasty surprise for athletic departments?
    « on: November 16, 2017, 09:17:42 PM »

    Offline herdman

    Re: Tax reform plan has nasty surprise for athletic departments?
    « Reply #1 on: November 16, 2017, 09:29:56 PM »
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  • There is a day of reckoning coming for big time college sports in this country. It is a deck of cards that is going to tumble. You can see the beginning of it now. Lower attendance. Out of control coaches salaries. And, things like this. Many of the schools can't keep supporting this.
     
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    Online CoachMaclid

    Re: Tax reform plan has nasty surprise for athletic departments?
    « Reply #2 on: November 16, 2017, 09:41:51 PM »
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  • In coming years, there will be (and in some states, currently is) pressure to eliminate student fees for college education supplementing athletic departments.  If subsidies come under attack, school that have real, legit support can still have life, but those schools that are 75-80% subsidized might be in trouble for the long term.

    In reviewing the NCAA athletic department financials from USA Today, Marshall was among the best of G5 schools in having the least of its athletic department expenditures subsidized.  Marshall fans have generally supported fairly well at our level - last three football games not withstanding.  I think that's why its very important for the department to really look at the overall fan optimism, customer engagement and gameday experiences, and marketing efforts - the status quo isn't working.  We have to keep people engaged, and supportive because, I agree, the day is ultimately coming where organically generated revenue and donations will be the only way collegiate athletics survive.
     
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    Offline herdman

    Re: Tax reform plan has nasty surprise for athletic departments?
    « Reply #3 on: November 16, 2017, 10:09:34 PM »
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  • In coming years, there will be (and in some states, currently is) pressure to eliminate student fees for college education supplementing athletic departments.  If subsidies come under attack, school that have real, legit support can still have life, but those schools that are 75-80% subsidized might be in trouble for the long term.

    In reviewing the NCAA athletic department financials from USA Today, Marshall was among the best of G5 schools in having the least of its athletic department expenditures subsidized.  Marshall fans have generally supported fairly well at our level - last three football games not withstanding.  I think that's why its very important for the department to really look at the overall fan optimism, customer engagement and gameday experiences, and marketing efforts - the status quo isn't working.  We have to keep people engaged, and supportive because, I agree, the day is ultimately coming where organically generated revenue and donations will be the only way collegiate athletics survive.

    I heard a guy speak who was one of these guys who predicts technology and trends for the business world. He said college in general over the next 20 years will change. Parents and students are wising up to massive amounts of college debt and wasting time going to brick and mortar colleges and racking up 100 grand in debt on a degree you can't find a job in or one that pays low.

    His point was the effects on college athletics. He said the above along with technology(web based, virtual classrooms, etc.) will lead to declining enrollment and student fees.  He said the Alabamas and Ohio States of the world be fine but the lower half of D1 athletics will be in trouble, particularly in football.  He said it is going to reshape the landscape of colleges, college life, and big time college athletics.       
     
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    Offline QuickStrike

    Re: Tax reform plan has nasty surprise for athletic departments?
    « Reply #4 on: November 17, 2017, 07:22:44 AM »
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  • There is a day of reckoning coming for big time college sports in this country. It is a deck of cards that is going to tumble. You can see the beginning of it now. Lower attendance. Out of control coaches salaries. And, things like this. Many of the schools can't keep supporting this.

    That day of reckoning will come much sooner if college athletes start the taking a knee krap and disrespecting the anthem, flag, and country.  Fans, Supporters, and Donors will not stand for that krap.
     

    Offline bbcard1

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    Re: Tax reform plan has nasty surprise for athletic departments?
    « Reply #5 on: November 17, 2017, 08:29:46 AM »
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  • We'll see what happens. College athletics have powerful friends. They are named Biff and they yell when they don't get their way.

    Two thoughts.  The cost of a college education is crippling and enslaving an entire generation of kids. Student debt is not dischargeable even if you go bankrupt. Lots of kids get degrees they will never pay for.  We have to do something to change that and not having athletic fees piled on top of a staggering tuition is a small move in that direction. I think it is worth mentioning that we are very fortunate that our tuition is still low, our diploma carries a national brand recognition and there are areas of excellence that we truly provide a great education in.

    A second thought is that supporting an athletic program is not like feeding a hungry child.  I get that you can make an argument that getting a scholarship to a kid like Chubb Small or Byron Leftwich and helping them get a degree and a better future is something that contributes to the greater good.  But it starts getting shaky when you start paying for cosmetic upgrades for facilities to create a wow factor. It's kind of the difference between contributing to a transportation museum and a free clinic. I do both and completely get the allure, but I completely understand the time and money I contribute to the Free Clinic has a straighter line to impacting the world in a positive way.

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    Re: Tax reform plan has nasty surprise for athletic departments?
    « Reply #5 on: November 17, 2017, 08:29:46 AM »