Think of it as a bucket with all of the private money generated by the athletic department in it. At USC, that’s around $40 million outside of TV money, conference payouts and the like. Money from tickets and licenses adds up to around $23 million.
It wasn’t accepted, leaving longtime fans like Johnston on the fence about renewing.
“You mess with college football, you’re going to get creamed,” Graham said in pushing to keep the deduction, according to The Raleigh News & Observer.
Eigenbrot and his IPTAY counterpart, Davis Babb, had the same thoughts as Radakovich and Tanner. They hope that the teams’ successes on the field will overshadow the financial picture of the tax law.
And schools will have to keep trying to raise that money from donors who will lose all of the 80 percent tax deduction on any purchase of seat licenses or the right to buy tickets they previously had. That could mean as much as $200 million in new revenue per year in government take, according to the House Ways and Means Committee.
They simply don’t know if they can afford to give at the same level as they have been, or if they can give at all.
That’s what has athletic directors, booster club administrators and fans scrambling for ledgers.
“Could it affect the way we run our business? It certainly could, but we have to wait and see where we end up,” USC Athletic Director Ray Tanner said. “We know right now the seat license fee is affected. We clear around $6 million off that.”
Initial estimates indicate the government will reap $1.7 billion in revenue on the excise tax of college athletic salaries, based on USA Today’s most recent coach compensation survey.