New tax law stipulates a 21% excise tax an non profit employees making over 1 million or on the top 5 employees even if their salaries don't exceed six figures. This excise tax is on top of payroll taxes. That adds about 1 million onto the Tom Herman price tag and 630k onto Shaka Smarts compensation.
Our coaching staff just got more expensive.
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If it makes you feel any better Aggy is on the hook for over 90 million for Fisher. It also looks like the same is true for buyouts. It also cuts off tax deductions for quite a few donation types to athletic departments so the end results could be lower salaries and longer coaching tenures
Making a donation for tickets is now going to be non deductible a lot of cases. I know a handful of universities are saying "make a 3 year donation before year end" so that you can take the entire deduction t his year and then you will get the benefit going forward.
In the end lower salaries and longer tenures are probably a postive thing. Not sure Jimbo Fisher making more than Bill Beleicheck is a postive thing. Especially for institutions trying to keep up the sham of “its about education”
