College Football Teams In Florida And Texas Flex Major Financial Advantage With NIL Money Loophole

Although it has always played a huge role in success, money is more important than ever in the modern era of college football. Especially when it comes to NIL in recruiting.

With that in mind, UCF and Houston want prospective future athletes to consider their taxes.

Not all college football paychecks are made equal. A lump sum in one state does not come out to the same amount in another!

NIL money drives success in college football.

When Name, Image and Likeness first came to exist, athletes were supposed to be paid for things like public appearances, sponsored posts on social media and other marketing campaigns. However, the lack of regulation very quickly created a system of pay-for-play.

Maybe not directly, but pretty much.

Teams with the largest booster base were able pump more money into “NIL” opportunities that were only created to pay the athletes as much money as possible. The addition of revenue share makes it even more direct. College football teams are signing and re-signing players like free agency. Except there are no rules.

Rather— there are some rules. They just aren’t enforced. At all. It is a professional amateur sport.

Programs with the most money in the bank can offer the largest contracts to high school recruits and athletes in the transfer portal. The most talented athletes in the transfer portal typically commit to the programs that offer the most money. Programs that land the most talented athletes are better suited for success. Money drives success.

Consider income tax!

There is a lot more to think about with finances than just the number on the paycheck. Not all money is created equal. It depends on the cost of living. It also depends on taxes.

Lets start with $100,000 and use California, New York, Texas and Florida as examples.

• California is ~45% more expensive than Texas
  • $100K in CA = $69,000 in TX
• California is ~33% more expensive than Florida
  • $100K is in CA = $75,000 in FL
• New York is ~42% more expensive than Texas
  • $100K in NY = $70,000 in TX
• New York is ~29% more expensive than Texas
  • $100K in NY = $78,000 in TX

You are essentially losing money right out of the gate in the more expensive states. Your dollar does not go as far. That same principle also applies to income tax by state.

State income tax in California ranges from 1% to 12.3%. State income tax in New York ranges from 4% to 10.9%. California and New York are taking up to 12.3%/10.9% of your money before you get it.

Florida and Texas do not have a state income tax. You keep all of that money.

A recruit who commits to a school like Syracuse on a deal worth $100,000 are making less money than a recruit who commits to a school like Texas State on a deal worth $100,000. That’s just how it is.

UCF made sure to remind its prospective athletes of this reality with a post on social media. Houston saw the post and shared the same reminder.