Scholarship players??? Can anyone shed light on financials?

by factcheck 20/04/12, 04:55 pm

The last post of the benchsitting topic brings up new questions. How do the economics work? How many teams offer scholarships to players? Do these players play for free or reduced fees? Is it the same at most clubs? How much does coach make with an academy team? What about coaching select team? How much money does a club make? Do coaches make more if they win or make Lake Highlands? I hear the word nonprofit tossed about all the time. How does that relate? Do manager's kids get scholarships? Anyone got the scoop, care to share?

by Blitzed 20/04/12, 05:16 pm

factcheck wrote:The last post of the benchsitting topic brings up new questions. How do the economics work?

How many teams offer scholarships to players? On the boys side, it is very common among the top 15 or so teams. I don't see as many on the girls side but I don't have as much experience with girls soccer (i.e. I have more sons than daughters).

Do these players play for free or reduced fees? Yes, typically either full or half scholarships. Sometimes uniforms are included, sometimes not.

Is it the same at most clubs? It has been pretty consistent for us and I have seen quite a few clubs.

How much does coach make with an academy team? It depends on the Academy fees. All of the academy teams we have been on have paid the coach directly with little or no money to the club so you can probably do some quick multiplication and get pretty close.

What about coaching select team? I have heard around $15000 per team

How much money does a club make? I don't know. Probably a little less per team than the coach

Do coaches make more if they win or make Lake Highlands? No but if they don't perform up to expectations, they could lose good players. If they lose good players, they could lose the team

I hear the word nonprofit tossed about all the time. How does that relate? Soccer clubs are non-profit like NCAA football or basketball is non-profit

Do manager's kids get scholarships? Depends on the club. A couple of clubs we played for gave either 1/2 or 1/4 scholarships for the managers kid. Most didn't do anything.

Anyone got the scoop, care to share?

by Guest 20/04/12, 05:23 pm

factcheck wrote:The last post of the benchsitting topic brings up new questions. How do the economics work? How many teams offer scholarships to players? Do these players play for free or reduced fees? Is it the same at most clubs? How much does coach make with an academy team? What about coaching select team? How much money does a club make? Do coaches make more if they win or make Lake Highlands? I hear the word nonprofit tossed about all the time. How does that relate? Do manager's kids get scholarships? Anyone got the scoop, care to share?

A portion of what each team pays goes back to the club. The club can use the money to pay for the "higher caliber (spelling correct edit)" coaches. In other words, you are likely paying part of a coach's salary that does not coach your dd's team. Not all teams offer scholarships. It should be in the fact sheet you sign at the beginning of the year, but there are certainly ways around this. Typically, the scholarships are based on financial needs and can be broken down by the individual team and doled out to players as needed. You will seldom see more than two full scholarship amounts on a fact sheet, but it may indicate that four players are receiving the money at 50% each (as an example). Did I mention there are ways around this? Parents, coaches, team managers, and clubs can be amazingly creative if they want a certain player regardless of her parents' financial status. Coaches don't necessarily make more if they win or make Lake Highlands. Most of the clubs are non-profit status, but the employees of the club - including coaches - are almost always FOR profit.

by ralfdallas 20/04/12, 08:15 pm

"Non-profit" or "not for profit" status is a bit of a joke, IMO. Club made more $ this year? Awesome! Give the company/club president and other officers a raise/salary bonus, and that'll take care of those icky profits.

Y'all remember the Susan G. Komen Foundation brough-ha-ha earlier this year, right? A not for profit company w/some executive officers making almost half a million/year. Soccer, volleyball, baseball, softball, football, etc. clubs (and many other organizations) are set up the same way. Maybe the club doesn't keep a "profit", but there is an opportunity for some pretty darned lucrative salaries and/or extravagant business expenses (offices, cars, meals, etc.) that improve quality of life for those at top of chain while maintaining non-profit status.

Okay! Sorry for the rabbit trail! Back to scholarship players....

by Marvelousmar 20/04/12, 08:53 pm

It's simply a tax status within the code. It does not mean that there is not a profit incentive, it just relates to the nature of the organization. The purpose of soccer clubs basically fits it the box under the code and with the relation of our crazy tax code it is great that they can qualify as such. Filling a 990 vs an 1120 is the main differnce. Now we can go into UBI and other issues under the code if you would like. But simply put Not for Profit can have individuals making money just as much as a for profit business can end up bankrupt and individuals making no money. Please let's refrain from the negative statements related to the non-profit status of these organizations its okay don't hate the rules just play by them unless you want to change the code.

by ralfdallas 20/04/12, 11:17 pm

Marvelousmar wrote:It's simply a tax status within the code. It does not mean that there is not a profit incentive, it just relates to the nature of the organization. The purpose of soccer clubs basically fits it the box under the code and with the relation of our crazy tax code it is great that they can qualify as such. Filling a 990 vs an 1120 is the main differnce. Now we can go into UBI and other issues under the code if you would like. But simply put Not for Profit can have individuals making money just as much as a for profit business can end up bankrupt and individuals making no money. Please let's refrain from the negative statements related to the non-profit status of these organizations its okay don't hate the rules just play by them unless you want to change the code.

I don't hate that some companies/organizations, including most select sports clubs, are able to claim tax-exempt status because they meet certain qualifications in the tax code (e.g., as to sports clubs, likely they qualify because they are organized/operated exclusively to foster national/international sports competition). I get that such tax exemptions encourage generally desirable societal goals that are better met as a result of the exemption. I think I just hate that 26 USC 501(c) labels such organizations 'Not for Profit'/'nonprofit', because (IMO) a goodly number of intelligent adults interpret that label to mean that the organization/corp is an entity comprised of totally altruistic individuals who do not benefit financially from the organization's financial success, when really some individuals associated with such organizations make big bucks.

Anywho, I get that you can off the cuff 'out-tax-law' me all day long, and no way do I hold a grudge against any organization for doing what it can under US tax provisions to reduce/eliminate taxes owed. It's just that I get irked by what I think is a widespread misperception (in in this case the soccer community) that a 'Not for Profit' status necessarily means that monies left over after payment of business expenses will lbenefit the desirable societal purpose of the organization (here, soccer/soccer players) as opposed to successful business people, because that's not always the case.

by Sooner than later 20/04/12, 11:28 pm

Sound like the Better Business Bureau

by ralfdallas 20/04/12, 11:52 pm

Sooner than later wrote:Sound like the Better Business Bureau

Shhhh. The grown-ups are talking.

by Sooner than later 21/04/12, 12:11 am

Sorry don't have anything better else to do, no soccer.

http://newyork.bbb.org/what-is-the-better-business-bureau?/

If there's a will, there's a way.

by Guest 21/04/12, 12:12 am

i hate to join this and sound like a nerd, but you're considering the wrong end of the tax exempt status. big clubs may possibly reap a benefit on the income side, but it is designed to benefit sponsors and large benefactors who can deduct contributions to non profits on their taxes. we (the moms and dads paying the dues) don't benefit b/c we are getting a "value" in return, however, abc corp. that gives $2000 to your club for soccer goals can included that as a tax deductible contribution, which makes soccer clubs more marketable to seek outside funding and sponsorships.

by Sooner than later 21/04/12, 12:32 am

by ralfdallas 21/04/12, 02:24 am

bobmac15 wrote:i hate to join this and sound like a nerd, but you're considering the wrong end of the tax exempt status. big clubs may possibly reap a benefit on the income side, but it is designed to benefit sponsors and large benefactors who can deduct contributions to non profits on their taxes. we (the moms and dads paying the dues) don't benefit b/c we are getting a "value" in return, however, abc corp. that gives $2000 to your club for soccer goals can included that as a tax deductible contribution, which makes soccer clubs more marketable to seek outside funding and sponsorships.

Agree that in addition to awesome 'income side' tax exemption for qualifying organizations, the 'tax deductible contribution' thing also works out pretty sweet for both all 501(c) corps, including those 'organized exclusively for the purpose of fostering national/international sports competition', and their donors. It's win/win for qualifying corps, and it would be asinine not to form a qualifying entity as 501(c) corp where possible -- desirable societal purpose better served and all that. My point is that "nonprofit" does not necessarily mean altruistic, and I've seen the term used misleadingly by some (not all) to 'gild the rose', IMO.

*******

Well that was fun! What topic can I whip you w/tomorrow?

by Marvelousmar 21/04/12, 04:57 am

I thought this topic was about scholarship players. Some how we got into the tax code. Speaking of the code. I hope that all the scholarship player are recognizing the income associated with that scholarship. I believe the code would consider that boot received. Since a benefit has been provided that uncle Sam wants his piece from. The club should also provide a 1099 to all those players as well. Just something that ralfdallas made me think about when you mentioned scholarship players. Now the magic about our system is it is a volunteer system where you are required to volunteer information to the government. If you club elects to volunteer that information by the appropriate filings then you would be required to include any and all income on your return. Bringing up a discussion from the last topic. For argument sake could one make an argument that a portion of their dues would be tax deductible if they were a "bench player" would that stand up in the courts. Let's say you pay 3K for the dues to play and your child only receives 10% playing time is the $2,700 a deduction since you received nothing in return. I am just messing with the example but I'd like to see someone challenge the IRS with that argument. You would have to be sure that your club is a 501c3 and that you wanted to chance it. Please note this is not intended to be tax advice please contact a professional related to such issues and the opinions expressed in this post are not mine but are used for entertainment purposes only.

It's time to get back to soccer

by ryan80 21/04/12, 07:38 pm

www(dot)scholarshipzone(dot)us maybe can help you

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Scholarship players??? Can anyone shed light on financials?

Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Just a little about Not for profit.

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?

No wories i can't sleep went to bed way too early

Re: Scholarship players??? Can anyone shed light on financials?

Re: Scholarship players??? Can anyone shed light on financials?