Since the introduction of name, image, and likeness (NIL) in college athletics three years ago, many schools have created ‘NIL Collectives’ as a way for donors to help schools offer NIL money to student-athletes. The University of Texas is no exception with their collective, the Texas One-Fund which distributed $11.7 million to student-athletes.
A Sportico article revealed that One Fund raised almost $10.5 million in 2023, and they spent more than $13.3 million. Other distributions went to Charity Grady, the One Fund’s athletic director who received $138,461, and the JHL Company, an event management company in Austin, who received $230,998 for management and fundraising.
They also paid Opendorse $621,548 after using the platform to distribute $9 million to athletes, accrued almost $600,000 from sponsorship fees, and spent another $600,000 on a variety of things such as advertising and promotion, meetings and conferences, and renting event space.
The One Fund is now one of the richest organizations doling money out to college athletes, making Texas athletics even richer. The money from this fund comes on top of money from other donors, and Texas reportedly received $86 million in donations during the 2022-2023 school year.
In an effort to incentivize donations, the Longhorn Foundation announced in August that people who contributed to the One Fund would receive “Loyalty Points” which could help them receive better access to football season–tickets.
The One Fund was also the first NIL collective to sign a deal with Jake Paul and Joe Montana’s content creator platform “Passes” involving 40 Longhorn athletes across a variety of sports.
Recently, NIL collectives have fallen under criticism from the IRS due to their tax-exempt status as 501(c)(3) non-profits. This has meant that donors have been able to write off donations to their favorite college team on their taxes, but that is potentially coming to an end. The IRS issued a memo in June of 2023 saying that NIL collectives serve a “substantial non exempt purpose” which would put them out of compliance with the Tax Code.
The BPS Foundation, a large multi-school NIL collective, dissolved at least one of its partners at the end of 2024 due to scrutiny from the IRS concerning their exemption status.
With new regulations and rules coming out as a result of the House settlement, the collectives are facing a new kind of scrutiny as any payments they disperse to athletes will be subject to review by the NCAA and could be denied if they are found to be outside of the “fair-market value”.
I think if you receive money in any shape or form outside your scholarship’s benefits, the same amount should be deducted from that scholarship. You can’t be a Pro Collage Athlete and get a full scholarship. It’s called double dipping.
Regardless of the sport!
Thats less than I would have expected really
Lets say every football player gets minimum 50k. thats 5 million, plus extra 3 million dispursed amongst important football players, then a mil on the mens basketball team + baseball team each. That leaves 1 million to go to non-revenue sports of which there are a lot at Texas, guessing the swim team gets like around $150k to distribute.
Serious question, Is any of this money going to swimmers? I don’t see any current swimmers with obvious meaningful NIL deals. Maybe a little dribble here and there, but not much.
It is. There’s enough smoke that there is definitely fire. When you hear firm rumors of an athlete going to multiple different schools, that’s a good sign that they’re negotiating for NIL money (because in this new world, every school is convinced that “oh $20k will get the job done!”)
The one credible, solidly-fact checked NIL offer to a swimmer that I can report is that a solid but not spectacular mid-major that made a $1000 NIL offer to a swimmer who would have an immediate impact on their program. International athlete. So if they’re offering a grand, you can imagine what Texas is offering.
Is it taxable as income?
NIL is. Scholarships are not. In a world where scholarships are unlimited, there will probably be some kind of loophole formed where at least some of this money can be counted as qualified education expenses and not be taxable.
This got me thinking that this really all that new for some coaches. I know schools that were/are not fully funded, reaching out to alumni associations and groups for some small scholarships (grand here, grand there) to help and entice swimmers.
I heard that most of this money is transferring to SMU👀
So, less than the head football coach (one person) makes in a year? Got it.
Sarkisian’s salary is only $10.3 million per year, and bonuses don’t get him past $11 million.
(Yes the head coach at Texas also gets outside endorsements I’m sure, but so too do student-athletes).
The coach is a highly credentialed employee, with a career. The players are college students–or supposed to be. Big difference. It’s like complaining that company CEOs are making lots more than the interns–or people in the mail room. That said, all major-college football/BB coaches ARE overpaid…just like CEOs….but they should not be compared to students.
Their swim program gets more help from donors than any other collegiate swim program and still has an unusual amount of high profile choke jobs and flops
Can you provide some support for your insane statement? Or are you just going to continue to be a keyboard loser?
The latter, I think.
Definitely the latter.
2022 NCAA championships they lost with a superteam
2018 NCAA championships exposed them when Conger and Licon couldnt score 110 relay points
Even more humiliatingly their best swimmer dips out second semester to a rival team to ring chase😭
“Even more humiliatingly their best swimmer dips out second semester to a rival team to ring chase.” – can you remind us who you are talking about?
I think he’s referring to Corbeau, but that doesn’t really make sense to me?
More NCAA titles than anyone and 6 wins and 5 seconds since 2010
But carry on
Andrew show us your swimcloud and show us how many high profile choke jobs and flops you have, also who is ranked 1st in the NCAA mens swimming poll right now and is gaining a versatile olympian now?
Your hatred for all things Texas is almost as bad as relay names person. Keep ’em coming! The locker room bulletin board in Austin still has space. HOOK’EM
99.9% going to football which pays for swimming and everything else in Athletics.
DURRR
Sounds like a meritocracy to me
Not really – it’s more capitalism than meritocracy. Football gets the money because of market demand, not because other sports like swimming don’t create immense brand value through championships and Olympic success. We love both of them.
If you’re over 18 and want to do progressive brain damage in football with repeated hits, tackles, etc., have it! I hope you find the financial compensation you’ll need. Thankfully, I swam in college – and loved it – Brain and Ph.D. are intact.
Well, that is some type of thinking. Not all swimmers have PHD’s and not all football players are dumb. In fact a lot more of the football players are more likely to be minorities than swimmers.
playing the race card is really not acceptable debate, IMHO.