1. I initially felt donations to these collectives would not pass the test as an IRS charitable contribution because these entities are just a pass thru with no real clear charitable intent, there is a quid pro quo (this is an area I have a lot of experience in). I thought those setting them up would have paid for an expensive letter ruling from KPMG or similar firms to document the legality or illegality. I think the cost to do this would have minimum been $30K. If they determined it was legal, and if these entities followed the tax guidance to a 'T", these entities might have legal recourse with the entities they paid for tax advice. I hope PWAP did this. I feel the long silence from the IRS on this in this instance is really bad, at this point I assumed it was accepted practice even though it looked really odd. The IRS has done no one any favors with dragging this out this long, even if you don't like NIL and the collectives, this was not fair in my opinion although I do agree with the ruling. They owe it to all tax payers to be far more responsive.
2. Does PWAP have the cash reserves on hand now, to pay all current tax liabilities, back taxes, plus potentially penalties and interest?
3. If 2 above is no, will donors make PWAP whole to keep them solvent and pay all liabilities?
4. If 3 above is no, can PWAP pay to our current athletes what they promised for this upcoming season?
5. If the answer to 4 above is no, have athletes taken out small loans they will not be able to pay back, what does this do as a distraction outside of the locker room that could be a huge morale issue and pretty stressful to the players?
Based on my comments in 1 above, this is a situation Weiberg's lack of support of PWAP was the right play. And it is a situation that not being a leader in NIL donations means potentially unfunded liabilities in PWAP is not near as large as it could be.
Long term I believe this will level the field a little, so there is some positive from this.
What do you all see immediately and long term?
I hope PWAP comes out ok on this, they are really good people who were doing their best to help OSU.
2. Does PWAP have the cash reserves on hand now, to pay all current tax liabilities, back taxes, plus potentially penalties and interest?
3. If 2 above is no, will donors make PWAP whole to keep them solvent and pay all liabilities?
4. If 3 above is no, can PWAP pay to our current athletes what they promised for this upcoming season?
5. If the answer to 4 above is no, have athletes taken out small loans they will not be able to pay back, what does this do as a distraction outside of the locker room that could be a huge morale issue and pretty stressful to the players?
Based on my comments in 1 above, this is a situation Weiberg's lack of support of PWAP was the right play. And it is a situation that not being a leader in NIL donations means potentially unfunded liabilities in PWAP is not near as large as it could be.
Long term I believe this will level the field a little, so there is some positive from this.
What do you all see immediately and long term?
I hope PWAP comes out ok on this, they are really good people who were doing their best to help OSU.
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