NCAA Rules wrote:
NCAA rules will actually allow him to take money up to the level of his expenses... This is no longer limited to expenses for that specific race, but expenses for the whole year. He could be paying for massages, travel, training shoes, private coaching etc. But these have to be his expenses, not the school's expenses.
This
Which is why I say he can take at least $3-4,000 and still compete indoors.
Steve Miller wrote:
Go on take the money and run
Steve Miller Band - Take The Money and Run
Led Zeppelin - Your Time Is Gonna Come
Lynyrd Skynyrd - Sweet Home Alabama
(amusing similarities in instrumental sound)
You cannot delay the payment. It is either take it now or don't take it at all. You are allowed, however, to accept prize money up to the cost of your expenses without jeopardizing eligibility. But, like another person posted, $20k is NOT a lot of money. I've won more, and lost more, in one night at the casino. There will be plenty of other opportunities for the guy in the future would be my guess.
Of course, this is all coming from a Dude who's career went belly up due to poor decisions...sooo...grain of salt. haha.
Deadman Running wrote:
April 15th wrote:Doesn't anyone actually do their own taxes?
We honestly don't know how much he will pay in taxes based on this award. Assuming he doesn't have a summer job, his marginal federal tax rate would be close to zero and possibly with such a large winnings, might bump him into the work credit, so he might actually pay negative income tax (i.e. receive money).
And even if he does have a summer job that paid him $10,000 - $20,000, after the standard deduction and personal exemption, he would probably be in the federal marginal tax bracket of 15% for a total tax somewhere around 12%.
Don't know his state income tax situation and doubt he would have to pay FICA taxes. So I would expect the winnings to marginally cost him between (-$300, $2400) in taxes.
This doesn't even take into account that he could claim running is a self-employed business (rather than a hobby). Therefore any expenses related to the business of running could be deducted, such as all his car mileage when he drives to his Sunday runs. At 56 cents a mile, it could add up pretty quickly.
So most likely his taxes would be *at most* in the hundreds, not five or six thousand dollars.
Ding Ding ! Winner ! I was laughing my butt off with all comments that it was $14K after taxes. This is a no brainer. You take the $20K, pay a minimal amount of taxes on it, and forego NCA indoor track (especially since he has never qualified for NCAAs indoor or outdoor. and probably won't this year). Even if he makes NCAA indoors, how many races will he run indoors and forego $20K - 4 or 5 ? Not worth it.
Same here on the tax comments...we have a progressive system folks, some student who wins $20k won't have to pay much at all.
It completely depends on his scholarship situation. Losing half a year on a full ride is at least worth 20k. If he's not getting scholarship money (or not much), I'd say take the money.
Thanks for being the voice of reason and facts.
Here are some facts related to this dilemma:
1) There is a time-sensitive component to this decision; it's take the prize money or not. Not part of it, not turn in receipts over time, no 'trust fund,' etc. Choice has to be made or the money bumps down to the next in line. Same with Sisson and Stinson.
2) NCAA athletes can accept money up to actual and necessary expenses. Depending on Schrader's arrangement with USATF, he may have already accepted travel, room and board to compete yesterday.
3) If Brian intends to compete post-collegiately, the odds that he will sign a contract for more the $20k yearly are very slim. May seem hard to believe, but that is the market for male distance runners. That makes the prize money very real and hard to dismiss.
4) Collegiate runners showed well at the 12k championships in part becuase it lines up perfectly with the rhythms of the NCAA season. For many professionals .US is an add on that does not fit well into the yearly competitive seasons, but for anyone training with NCAA teams, mid-November is one of two yearly peaks. This has added an intriguing element to the race.
5) Diego is an NAU alum, and if he and Schrader work out a deal of their own that could run afoul of NCAA to as much of a, if not a greater, degree than if Schrader took the money himself. By nature of his connection to the program Estrada is considered a booster for life and has to be very careful of his steps.
If Brian is in debt he should accept the money and start getting out of debt. Then again, if he feels he is on the cusp of doing great times he should run, get the times, and maybe then get a pro contract. Either way, he has to attack his debt if there is any.
If he takes the money, he *also* gets to start taking money in other races, so he can add that additional sum to his cost/benefit vis-a-vis any scholarship funds remaining. This is not even counting any possibility he would have of gaining a resume towards a pro contract, probably more so than by competing indoors (sounds like he is better suited to roads).
If he feels he is having a real breakthrough, he could be sitting much better in six months by going pro right now.
