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Texas Recruiting Notes 2022 - Idiotic Slapfights Unrelated To 2022 Recruiting


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24 minutes ago, ShowMeALoss said:

There is a risk of some bag money being funneled through it. There are still a lot of grey areas with this NIL and Texas laws being more strict than perhaps other states. Someone from another university tips the IRS and they decide to look under the hood. If you are doing it as a for profit business, then it's a different case. This will be run by fans who typically don't mind bending the rules to give the school they love an edge. It can start out as a noble venture, but in my humble opinion, runs the risk of breaking laws down the road. In the NIL thread, I offered my support through my business, which is probably more in line with the intent of the NIL program.

 

All contracts have to go through UT compliance, which is interpreting the statute extremely broadly.
The NIL statute is not hard to follow and basically the only remedy for a violation of it is the school can (does not have to) punish the player or remove eligibility. There is no criminal or civil penalty, or other enforcement mechanism provided for the sponsors.
 

So there’s really very minimal risk as long as the person who runs it doesn’t decide to go rogue and start laundering money/under reporting funds, which again is not necessary since NIL is legal. This is not intended to be a bag operation for HS recruits. That would entail a very high level of risk, but that is something completely different. As long as the person actually follows their job duties, there’s not much risk at all here. 

The NCAA basically doesn’t exist anymore, so no one’s going to launch a massive investigation arguing these are not legitimate, market value deals (especially because it’s almost impossible to establish a market value for these services). And there’s no real risk with the FBI, because this is all legal now so there’s no money laundering/illegal transfer concerns here, like the FBI investigation a couple years ago.

Edited by Burt Macklin
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15 minutes ago, Burt Macklin said:

All contracts have to go through UT compliance, which is interpreting the statute extremely broadly.
The NIL statute is not hard to follow and basically the only remedy for a violation of it is the school can (does not have to) punish the player or remove eligibility. There is no criminal or civil penalty, or other enforcement mechanism provided for the sponsors. On top of that, all contracts go through UT compliance so they can catch any unintended violations of the statute. 
 

So there’s really very minimal risk as long as the person who runs it doesn’t decide to go rogue and start laundering money/under reporting funds, which again is not necessary since NIL is legal. This is not intended to be a bag operation for HS recruits. That would entail a very high level of risk, but that is something completely different. As long as the person actually follows their job duties, there’s not much risk at all here. 

The NCAA basically doesn’t exist anymore, so no one’s going to launch a massive investigation arguing these are not legitimate, market value deals (especially because it’s almost impossible to establish a market value for these services). And there’s no real risk with the FBI, because this is all legal now so there’s no money laundering/illegal transfer concerns here, like the FBI investigation a couple years ago.

I was not worried about the NCAA. My concern was someone going rogue and running amok with federal and state laws. The NIL, as I understand it, is meant for businesses to pay players for their image, name and likeness. I don't know how setting up a new venture to collect donations from fans fit into that. If you're selling UT merchandise with player's autographs, would Co-op and others like UT athletics have problem with it? Lastly, it seemed like a lot of effort for someone to do it on a part time basis for a long period of time. Personally, I prefer simplicity but that's just me being lazy. :)

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16 minutes ago, Burt Macklin said:

All contracts have to go through UT compliance, which is interpreting the statute extremely broadly.
The NIL statute is not hard to follow and basically the only remedy for a violation of it is the school can (does not have to) punish the player or remove eligibility. There is no criminal or civil penalty, or other enforcement mechanism provided for the sponsors.
 

So there’s really very minimal risk as long as the person who runs it doesn’t decide to go rogue and start laundering money/under reporting funds, which again is not necessary since NIL is legal. This is not intended to be a bag operation for HS recruits. That would entail a very high level of risk, but that is something completely different. As long as the person actually follows their job duties, there’s not much risk at all here. 

The NCAA basically doesn’t exist anymore, so no one’s going to launch a massive investigation arguing these are not legitimate, market value deals (especially because it’s almost impossible to establish a market value for these services). And there’s no real risk with the FBI, because this is all legal now so there’s no money laundering/illegal transfer concerns here, like the FBI investigation a couple years ago.

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12 minutes ago, ShowMeALoss said:

I was not worried about the NCAA. My concern was someone going rogue and running amok with federal and state laws. The NIL, as I understand it, is meant for businesses to pay players for their image, name and likeness. I don't know how setting up a new venture to collect donations from fans fit into that. If you're selling UT merchandise with player's autographs, would Co-op and others like UT athletics have problem with it? Lastly, it seemed like a lot of effort for someone to do it on a part time basis for a long period of time. Personally, I prefer simplicity but that's just me being lazy. :)

How did you convince anybody to invest in a venture that you are in charge of?

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14 minutes ago, Nivek said:

What do you mean risk of bag money? If you hand me $20k to boost the Oline I will find a way to pay them. Either via a paid interview, or autographs, or RGB’s gameshow of fucks. Seems to me there is a way to legitimize anything.

Bag money is what I consider paying money to a recruit or student without the payor receiving anything similar of value.

Orangeblood paying players for interviews is legit because it boosts their visibility as a business.

Some rich lawyer paying a player $20k for his autograph doesn't seem like a legit business transaction. 

With that said, I will let this topic go. Obviously, there is enough interest from posters here to try to do it. I prefer to offer my support, as I posted in the following thread: "Surly Horns Burnt Ends NIL Program- How YOU can help Texas with the NIL right now!

"I own a full-service commercial solar business in California and have an installation partner based in Austin, TX who we are planning to buy. If you guys living in Texas can identify building owners (including UT campus) who are Texas alums and wouldn't mind going solar, we can pay the players a lot of money ($50-100k per site) for a cameo. Perhaps the player does the unveiling, signs autographs and take pictures, so the building owner gets to keep them as souvenirs or hang them on the walls. The building owner doesn't pay a dime for anything. We would pay for the system and pay the player for helping with the biz dev. It would be less work for all involved. I am just throwing it out there as an option that I can support."

This can be a huge money making machine given how many buildings and parking lots that could have solar on them.

 

Edited by ShowMeALoss
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I was not worried about the NCAA. My concern was someone going rogue and running amok with federal and state laws. The NIL, as I understand it, is meant for businesses to pay players for their image, name and likeness. I don't know how setting up a new venture to collect donations from fans fit into that. If you're selling UT merchandise with player's autographs, would Co-op and others like UT athletics have problem with it? Lastly, it seemed like a lot of effort for someone to do it on a part time basis for a long period of time. Personally, I prefer simplicity but that's just me being lazy.

Dude, I thought you were some hotshot VC, even I know that you don’t run this like some drunken cowboy. The NIL ruling allows for funneling money to players/recruits via legitimate means.

A paper trail isn’t going to harm the program, in fact it only helps it. Now we are free to buy F250s as payment. Hell, I could hire Bryce Anderson to give me a haircut or mow my yard for $50,000 or give me interior decorator advice. I imagine CTJ-SC industries would be there to help connect player to the buyer, and help the player with filing taxes and compliance. Assuming that is his business model, of which I have no actual idea.
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8 minutes ago, Nivek said:

What do you mean risk of bag money? If you hand me $20k to boost the Oline I will find a way to pay them. Either via a paid interview, or autographs, or RGB’s gameshow of fucks. Seems to me there is a way to legitimize anything.

First off, I'm obviously in support of what the guys here are trying to do with this NIL stuff. I think they've considered everything and are on the right path. But with any of these NIL deals, from what we're seeing suggested here all the way to whatever some group might try doing at Ohio State/Wherever that may be similar, there is going to be a risk of bags just because you're mixing athletes and big money fans in an environment where the big money is already spending. People get greedy, want another inch (twss). So not necessarily bags coming from the organizers, but from the participants, secretly.

But that's just the risk you have to take, and work to control as much as possible, because you can't just sit and do nothing a la Crystal while everyone else gets theirs off. 

 

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32 minutes ago, ShowMeALoss said:

I was not worried about the NCAA. My concern was someone going rogue and running amok with federal and state laws. The NIL, as I understand it, is meant for businesses to pay players for their image, name and likeness. I don't know how setting up a new venture to collect donations from fans fit into that. If you're selling UT merchandise with player's autographs, would Co-op and others like UT athletics have problem with it? Lastly, it seemed like a lot of effort for someone to do it on a part time basis for a long period of time. Personally, I prefer simplicity but that's just me being lazy. :)

We get it. You don’t know shit. You can stop going out of your way to demonstrate how little about this you understand while you simultaneously conjure up non-existent risk and boogeymen to go with your ignorance. 

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Just now, SydneyCarton said:

We get it. You don’t know shit. You can stop going out of your way to demonstrate how little about this you understand while you simultaneously conjure up non-existent risk and boogeymen to go with your ignorance. 

No you don't get it and that's the saddest part. I would love to see your background so we can judge if you only talk out of your ass to make yourself seem important or you actually know shit about business.

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9 minutes ago, ShowMeALoss said:

No you don't get it and that's the saddest part. I would love to see your background so we can judge if you only talk out of your ass to make yourself seem important or you actually know shit about business.

You're trying too hard for someone who claims to be lazy.

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44 minutes ago, ShowMeALoss said:

I was not worried about the NCAA. My concern was someone going rogue and running amok with federal and state laws. The NIL, as I understand it, is meant for businesses to pay players for their image, name and likeness. I don't know how setting up a new venture to collect donations from fans fit into that. If you're selling UT merchandise with player's autographs, would Co-op and others like UT athletics have problem with it? Lastly, it seemed like a lot of effort for someone to do it on a part time basis for a long period of time. Personally, I prefer simplicity but that's just me being lazy. :)

Part of NIL is having a contract with the player. The university compliance department reviews the contract before time to make sure it doesn't violate any laws. So that shouldn't be an issue

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41 minutes ago, SydneyCarton said:

We get it. You don’t know shit. You can stop going out of your way to demonstrate how little about this you understand while you simultaneously conjure up non-existent risk and boogeymen to go with your ignorance. 

I liked the part about violating federal and state laws. This shit is one of the few things we don't have federal law on yet, and the state law has no enforcement provisions, so it's basically just our lege's suggestions. 

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1 hour ago, ShowMeALoss said:

Bag money is what I consider paying money to a recruit or student without the payor receiving anything similar of value.

Orangeblood paying players for interviews is legit because it boosts their visibility as a business.

Some rich lawyer paying a player $20k for his autograph doesn't seem like a legit business transaction. 

With that said, I will let this topic go. Obviously, there is enough interest from posters here to try to do it. I prefer to offer my support, as I posted in the following thread: "Surly Horns Burnt Ends NIL Program- How YOU can help Texas with the NIL right now!

"I own a full-service commercial solar business in California and have an installation partner based in Austin, TX who we are planning to buy. If you guys living in Texas can identify building owners (including UT campus) who are Texas alums and wouldn't mind going solar, we can pay the players a lot of money ($50-100k per site) for a cameo. Perhaps the player does the unveiling, signs autographs and take pictures, so the building owner gets to keep them as souvenirs or hang them on the walls. The building owner doesn't pay a dime for anything. We would pay for the system and pay the player for helping with the biz dev. It would be less work for all involved. I am just throwing it out there as an option that I can support."

This can be a huge money making machine given how many buildings and parking lots that could have solar on them.

 

So you want to crowd source the sales function.  Got it.

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17 minutes ago, Hookah Horns said:

Half of my brain thinks "this is altogether accurate and reasonable," and the other half thinks "this is some weak ass shit, learn how to sell got dammit!"

I'm with you.. I read that and I'm like wtf - End of day you are a salesman - sell the program, sell the opportunity. Fuck.. just wink and say the contract says 2025 but you know how those things go... f

 

 

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1 minute ago, TexasBeta said:

I'm with you.. I read that and I'm like wtf - End of day you are a salesman - sell the program, sell the opportunity. Fuck.. just wink and say the contract says 2025 but you know how those things go... f

 

 

Important to point out that this is a press conference in front of the media.

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1 hour ago, ShowMeALoss said:

No you don't get it and that's the saddest part. I would love to see your background so we can judge if you only talk out of your ass to make yourself seem important or you actually know shit about business.

Oh, we're comparing business bonafides? Are we going to line up back to back and measure height next? How about SAT scores?

I don't need to compare anything with you because you're illustrating a complete lack of understanding for all here to see. And you think you "get it." That is the saddest part. You literally offered to pay a player 50-100k as part of your solar business to appear at a groundbreaking or deal close to sign autographs, but you balk at the basic concept of paying 20k for a kid's autograph as a "legit business transaction." You literally just offered to do the same thing. You illustrated that value and worth to a person or company is subjective, and there is no fucking enforcement agency for determining if a company got "fair value" for the service they purchased. Are the Deal Police around arresting rich people for over-paying for art or wine? No. It's the same thing, you just can't see it. 

The market sets the prices. 

Also, the idea of risk because someone is going to just inadvertently slip through the cracks of an organization and sneak through some bags is absurd. If that is the case, they can do that right now. I CAN DO IT RIGHT NOW. I have an OpenDorse account and could go pay a player any amount I wanted as long as I had the funds, to do whatever I want. OpenDorse takes a fee and then everyone pays taxes. THAT IS LITERALLY the Bag Game. But you think somehow somone is going to pull a fast one on an agency and allowing some kind of illicit bag game to get a company in trouble? I can't even figure out how that would happen, or work. That's the point of having an organization. By your logic your commercial solar business must be just a rampant money laundering operation because WHO CAN KNOW?!?

Just. Stop. 

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1 minute ago, Ricky Butler said:

Important to point out that this is a press conference in front of the media.

Hartzell was asked during his testimony, in front of those assholes in the Texas Senate, whether Texas has used the move to the SEC to recruit players or coaches.  I think they probably have to be careful about what they say publicly.

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8 minutes ago, Hiphopopotamos said:

Hartzell was asked during his testimony, in front of those assholes in the Texas Senate, whether Texas has used the move to the SEC to recruit players or coaches.  I think they probably have to be careful about what they say publicly.

I'm sure there are more candid conversations with recruits, but yeah, it's not the time to speak publicly about this shit.

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1 minute ago, longhornmatt said:

I’m just going to tell myself he’s lying because someone told him we can’t publicly make any suggestion that we might be going to the SEC before 2025

I don't see how that's not 100% fact.

I dunno how exactly they're wording it to recruits, but in front of cameras and mics at a press conference, not ONE Texas employee in the athletic department and above is going to address that question much differently. To be honest, he may have said too much there.

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I liked the part about violating federal and state laws. This shit is one of the few things we don't have federal law on yet, and the state law has no enforcement provisions, so it's basically just our lege's suggestions. 

I assume he meant IRS, non reporting. So I didn’t see a problem here. But what the fuck do I know, I am just a rock scientist.
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2 hours ago, TexasBeta said:

It's the wild wild west out here - Get comfortable in the gray areas or get out of the way. We are trying to buy a championship.. ain't nobody got time for an analysis of all the risks that may imply. 

There’s a lot of teams hitting the ground running to try and buy a championship, we SHOULD be trying to fund a dynasty that sits at or near the top.  
 

Sydney has been on point with the lack of coordination and competency in our AD, there is a lot of money on the sidelines without any direction.  Probably should put a sticky note on top that says “Schools don’t pay players, boosters pay players”.  That’s how the bag game works, that’s how NIL will work.  Lot of misconceptions about paying players.  
 

UT has a lot of money, sure.  But we have a huge brand, a lot of wealthy alums and a lot of alums who are passionate about football and willing to contribute.   BMD or 1k per year, they are all looking for guidance for who/what/when/how much and our AD should be leading that charge   

The earlier mention of a football only AD is spot on, someone who can actually run point instead of the multiple groups forming like CTJs and others who are likely overlapping and certainly less productive.

Phil knight paying 6 figs for Thibodeaux, Miller drawing 2M to play B-Ball at Tennessee state, Bo Nix at Bama, the entire Cane team getting paid along with King getting a 20k bonus on top, meanwhile at UT it looks like the dipshits at Surly are front running NIL for the university.  
 

 

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