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Those in trenches know real problems with NIL, and some in Congress starting to finally get it

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About an hour into the Senate Judiciary Committee meeting on Name, Image & Likeness on Tuesday at the Hart Senate Office Building in Room 216, some light started coming through the chambers.

“With all due respect,” NCAA president Charlie Baker said to Walker Jones, who is the head of “The Grove” collective at Ole Miss. And the booster-run collectives are at the root of all the evil of NIL. Jones says he is fixing that with his conglomerate with two dozen other collectives around the country.

“We do not participate in the recruiting process,” Jones claimed, and I almost started laughing. “That is best left to coaches and athletic directors under the strict watch of the NCAA.”

Then I really started laughing.

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Senate Committee On NIL Provided Some Laughs

Charlie Baker, president of the NCAA, arrives for the Senate Judiciary Committee hearing titled “Name, Image, and Likeness, and the Future of College Sports,” in Hart Building on Tuesday, October 17, 2023.  (Tom Williams/CQ-Roll Call, Inc via Getty Images)

Jones’ comment was the NCAA’s original guideline toward NIL back in the summer of 2021 when all this supposedly legal cheating started under the guise of athletes making money off their name, image and likeness. Only the elite college athletes in a few sports should make money because they are the only ones people would want to pay for their name, image and likeness.

Collectives give money to virtually all football and basketball players – even the ones not playing yet, or who are not any good. Check some of LSU’s defensive backs, for example. They’re actually being paid. And you can bet that NIL cash is either promised or on the way to most athletes everywhere before they get to their new school.

So, when Baker said, “With all due respect,” I sat up in my chair. It rang a bell because that phrase is the central character in of many classic episodes of perhaps the greatest television show of all time – “Curb Your Enthusiasm.”

Larry David Of Curb Your Enthusiasm Makes Appearance

This particular episode, which is called “A Disturbance In The Kitchen,” drives home the fact that when someone says, “With all due respect,” look out. Because he or she is about to hammer you. Or as Larry David himself says in the show, then “you say what you really want to say.”

And Baker said it to the unsuspecting Jones.

Actor Larry David made a lot of sense with his “With all due respect” comment. (Getty Images)

“With all due respect to you, Walker,” Baker said. “Nobody knows what’s going on. It’s a guess and a rumor.”

Baker is off to a great start as NCAA president, as far as his attitude, approach and demeanor. The former governor (R-Mass.) has only been on since March. But because of his experience in politics and governing that is unique to the bean counter former athletic department types in the NCAA, he will eventually get this NIL mess he inherited from weakling previous president Mark Emmert corrected and reformed.

New NCAA President Charlie Baker Showing Ability

Charlie Baker testifies

From left, Charlie Baker
president of the NCAA, Tony Petitti, commissioner of the Big Ten Conference, and Trinity Thomas, gymnast, the University of Florida, are sworn in to the Senate Judiciary Committee hearing titled “Name, Image, and Likeness, and the Future of College Sports,” in Hart Building on Tuesday, October 17, 2023. 
(Tom Williams/CQ-Roll Call, Inc via Getty Images)

“Our new NIL bylaw proposal requires student-athletes to disclose certain information to their schools only and offers incentives to use fair contract terms and reputable agents,” Baker said previously in his formal statement to the committee. “We want to partner with Congress to go further and curtail inducements and prevent collectives and other third parties from tampering with students. And we would like to have a national standard where a patchwork of state laws (more than 30) currently exist.”

If Baker can get just what is in that above statement done with or without the help of Congress, it would be a significant step in the right direction that would weaken collectives. Some may be forthright and above board, but I fear more tend to be a bit mafia like.

With all due respect, Jones had little to say for the rest of the day.

Quite a few of the senators on the committee had several uninformed things to say as they don’t seem to possess a working knowledge of NIL. This is amazing because this was the 10th meeting of this committee.

Charlie Baker has obviously been speaking to those in the trenches outside of Washington D.C. who do understand the mess that NIL has become, One of those is new Big Ten commissioner Tony Petitti, who is a former Major League Baseball executive.

He is also interested in just how these “collectives” do their collections with the idiotic, instant gratification-laced NCAA Transfer Portal. That new rule with no waiting period after transfer just happened to start at the same time as NIL in 2021.

Big Ten Commissioner Tony Petitti Has The Right NIL Ideas

“We need the ability to effectively identify true NIL deals from pay-for-play or inducement schemes, particularly with the precipitous rise of collectives,” he said. He could have added another, “With all due respect” to Walker Jones of The Grove Collective.

“Student-athletes are frequently being induced by collectives to attend specific institutions and transfer from one school to another without a true NIL deal,” Petitti continued. “This has resulted in a pay-for-play system primarily controlled by boosters and executed under the guise of NIL. We are concerned that management of college athletics is shifting away from the universities to collectives. They are now trying to create competitive advantages.”

And he delivered a clincher that Alabama coach Nick Saban said at the outset of NIL. Collectives are not fiscally responsible, and some have already not paid athletes as promised and have gone under.

“We are already seeing that payments from collectives will not be easy to sustain,” Petitti said. “Without action from Congress, we will continue to lack the ability to manage collegiate athletics.”

Petitti is also zeroed in on the ridiculous myriad of State U-absorbed state laws around the country that strategically try to give advantages to their schools and disadvantages to those from other states. This has resulted in an unfair playing field across the board.

Senate Committee Needs To Look At Conflicting State Laws

“There are now more than 30 different state laws related to NIL,” he said. “Many states are passing NIL and associate laws designed specifically to provide their in-state universities with a competitive advantage in recruiting through the promise of NIL. To provide equity, a uniform feral statute is needed to preempt this network of state laws.”

St. Joseph’s athletic director Jill Bodensteiner also knows what needs to be done. She outlined a need to stop the collectives-inspired bidding wars and conflicting state laws.

“We desperately need reform when it comes to NIL,” she said.

This goes against the comments from the liberal end of the press, which keeps saying, “The toothpaste is out of the tube. They can’t do anything about it.”

If Congress listens to Charlie Baker, Tony Petittie, Jill Bodensteiner and some others and perhaps not several of its own, it sounded Tuesday as if proper changes could be made. It might be two or five years from now, considering that Congress often operates like Iowa’s offense – No. 130 out of 130. But it could still happen.

It was the 10th meeting of this motley crew, but there was at least a first down on this day.

Blumenthal in 2023

Sen. Richard Blumenthal, D-Ct., speaks to reporters Wednesday, May 31, 2023, on Capitol Hill in Washington.  (AP Photo/Mariam Zuhaib)

“What I hear here is really a strong endorsement of college athletes as a unifying force for our communities,” U.S. Senator Richard Blumenthal (D-Ct.) said as if he had just discovered electricity. His statement was true 75 years ago, 50 years ago, 25 years ago and 10 years ago.

NIL Senate Committee Out To Avoid Race To The Bottom

“But we need to avoid a race to the bottom in NIL,” he said, actually brilliantly.

Get that toothpaste back in there, and put the year waiting period back into transfers so these young people can think about their decisions for more than five minutes.

“We need to avoid a bidding war among colleges that often tempt athletes with unscrupulous deals or agents who put colleges ate the mercy of an uneven playing field,” Blumenthal added.

Correct again. But he should know that bidding wars were happening for athletes 75, 50, 25, 10 and five years ago before NIL. Funny thing, though, when those things were illegal, they were more fiscally responsible. Because only the really good players got paid.

U.S. Senator John Kennedy (R-La.) had one of the best comments that should have been said in the spring of 2021 before the NIL mess started. He suggested the NCAA do what it didn’t do back then with regard to NIL.

“Try to get together to come up with a new system,” he said, “that looks like someone designed it on purpose.”

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No one did their homework back then, meaning a study of how things may develop. Finally, a collective effort is underway. And in that regard, with all due respect, a “collective” is not a dirty word.

Phillies great Lenny Dykstra dishes on Bryce Harper’s greatness, says Aaron Nola could pitch on 1993 team

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The Philadelphia Phillies have a 2-0 lead in the NLCS. Aaron Nola pitched six shutout innings, and superstar first baseman Bryce Harper kept his postseason hitting streak alive. 

Outfielder Lenny Dykstra started his career with the New York Mets and won the 1986 World Series with the team, but he spent the majority of his major league career with the Phillies.

On Tuesday, Dykstra made an appearance on Dan Dakich of Outkick’s “Don’t @ Me” show and suggested Harper and Nola’s style of play would translate to his 1986 Mets team, but he also believes both would be stars on the 1993 Phillies squad.

“The ‘93 Phillies made the ’86 Mets look like school children,” Dykstra said when asked whether Harper and Nola could play for the World Series-winning Mets team.

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Lenny Dykstra of the Philadelphia Phillies in the dugout against the San Francisco Giants during a game in 1993 at Candlestick Park in San Francisco. Dykstra played for the Phillies from 1989-96.  (Focus on Sport/Getty Images)

The 1993 Phillies upset the 104-win Atlanta Braves in the National League Championship Series but ultimately lost to the Toronto Blue Jays in the World Series. 

The Phillies are undefeated at home in this year’s playoffs, and the fans inside Citizens Bank Park have been credited with helping give the team a significant home-field advantage. Dykstra also talked about his experiencing playing in New York City and Philadelphia.

PHILLIES POWER PAST D’BACKS IN NLCS GAME 2 BEHIND KYLE SCHWARBER HOMERS, AARON NOLA PITCHING

“And that’s the thing about Philadelphia you see. … I was very fortunate to play in the two best sports cities in the country. You have to have a certain mentality to play in them cities. The fans … they know what’s going on, you get a guy over from second with nobody out … they’ll clap. Dodger Stadium, the playoffs … don’t matter … seventh inning they’re all gone.” 

Harper left the Washington Nationals after the 2018 season. He is now in his fifth year in Philly and is a two-time NL MVP and a seven-time MLB All-Star. Dykstra praised Harper for getting the Phillies going in the right direction.

Bryce Harper reacts to dugout

Bryce Harper of the Philadelphia Phillies reacts after hitting a solo home run in the first inning against the Arizona Diamondbacks during Game 1 of the NL Championship Series at Citizens Bank Park Oct. 16, 2023, in Philadelphia. (Tim Nwachukwu/Getty Images)

“Harper, he’s also brought a new kind of excitement that Philadelphia was missing,” Dykstra said. 

“The biggest key for Philadelphia that people really haven’t talked about is Robert Thomson. A manager in the big leagues isn’t so much about making moves. It’s getting players who want to play for you … motivating your players.” 

Aaron Nola throws

Philadelphia Phillies starting pitcher Aaron Nola throws against the Arizona Diamondbacks during the first inning in Game 2 of the NL Championship Series in Philadelphia Tuesday, Oct. 17, 2023.  (AP Photo/Brynn Anderson)

The Phillies cruised to a 10-0 victory over the Arizona Diamondbacks in Game 2 of the NLCS. 

Dykstra also shared his prediction on this year’s World Series winner.

“I do think Philly is going to win the World Series,” he said. “They just have a lot of momentum.”

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The series shifts to Phoenix Thursday, where the D-Backs will look to bounce back at Chase Field.

IRS crypto tax reporting rules threat to industry — Coinbase legal chief

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Coinbase crypto exchange chief legal officer Paul Singh Grewal called upon the crypto community to join the movement against the United States Treasury’s proposed tax reporting regulations on cryptocurrencies. Grewal urged the community to oppose the proposed regulations as it could set a dangerous precedent for surveillance.

Grewal took to X (formerly Twitter) to address the concerns associated with the proposed crypto tax reporting rules and claimed that the proposed regulations go beyond the congressional mandate to establish tax reporting rules. He added that if the proposed regulations become a law, it would put the “digital assets at a disadvantage and threaten to harm a nascent industry when it’s just getting started. “

The Internal Revenue Service (IRS) released a draft of proposed regulations for crypto tax reporting on Aug. 25. Under the proposed rules crypto brokers would be required to use a new form to report to simplify tax filing and cut down on tax cheating. The proposed regulations include both centralized and some decentralized exchanges, crypto payment processors, and certain online wallets as crypto brokers.

The Treasury Department claimed that the new form would simplify the tax filing process as it would help taxpayers determine if they owe taxes rather than having to make complicated calculations or pay digital asset tax preparation services to file their tax returns. If approved, the new tax regime will come into effect from 2026 and the brokers will be required to start reporting 2025 transactions in January 2026 via Form 1099-DA. However, many U.S. lawmakers urged the IRS to implement crypto tax reporting requirements before 2026.

Related: European regulator: DeFi comes with significant risks as well as benefits

The Treasury Department claimed the crypto tax reporting rules would put digital assets in line with traditional financial reporting, but Coinbase’s legal officer insists this is not the case. Grewal, in his X post, noted that the proposed rules would set a “dangerous precedent for surveillance of the everyday financial activities of consumers by requiring nearly every digital asset transaction – even the purchase of a cup of coffee – to be reported.”

Coinbase chief legal officer noted that the proposed regulations would require the collection of a significant amount of user data that bears no “legitimate public purpose.” Grewal said the data collection would overburden Web3 startups with costly requirements while offering the “IRS with more data than they can ingest and analyze.”

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

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