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Lee / Gilman... TnT with the quack???

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Wrestling: Ahhhh!!!! Sweet baby jesus! Everything is getting cut from kids clubs to colleges to olympics! This is awful! We need to be innovative to remain relevant as a niche sport!

Also wrestling: If my team isn't getting paid then no one gets nice things.

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2 hours ago, wrestlingphish said:

Is a quid pro quo like that within the rules? I don't know enough about them. Does the money have to go to a 501 3 c? Can it go to any org ?

The tweet by the HWC guy was just talking about the overall purchases for the event

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3 hours ago, 1032004 said:

The tweet by the HWC guy was just talking about the overall purchases for the event

Right I understand that. My question is can Lee say "Yeah, I'll wrestle on your Rokfin event but you have to give 20k to *insert org/person here*"? If so, does it have to be a registered tax exempt thing like HWC and NLWC or could it be Uncle Joe's Rib Shack? Or Uncle Joe directly?

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1 hour ago, wrestlingphish said:

Right I understand that. My question is can Lee say "Yeah, I'll wrestle on your Rokfin event but you have to give 20k to *insert org/person here*"? If so, does it have to be a registered tax exempt thing like HWC and NLWC or could it be Uncle Joe's Rib Shack? Or Uncle Joe directly?

Well Spencer Lee wouldn't say that so it probably doesn't matter, but I would assume that would not be allowed.   Brands might be able to though.

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On 11/5/2020 at 2:50 PM, wrestlingphish said:

I don't think Lee can accept money for these matches.

Technically none of the athletes are allowed to be paid for competing in these events, even the athletes who have graduated. The compensation creates a prohibited private benefit to the wrestlers, which is not allowed for 501(c)(3) organizations. It will be interesting to see if these events continue should the IRS catch wind of what is going on.

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On 12/2/2020 at 6:25 PM, Alwaysright said:

Technically none of the athletes are allowed to be paid for competing in these events, even the athletes who have graduated. The compensation creates a prohibited private benefit to the wrestlers, which is not allowed for 501(c)(3) organizations. It will be interesting to see if these events continue should the IRS catch wind of what is going on.

Considering all the lawyers Flo has on call, one would think they’d know if these events were illegal, right?  But then again their lawyer didn’t know the difference between Penn State and NLWC...

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2 hours ago, 1032004 said:

Considering all the lawyers Flo has on call, one would think they’d know if these events were illegal, right?  But then again their lawyer didn’t know the difference between Penn State and NLWC...

Flo isn’t doing anything wrong by compensating the RTCs; it’s the RTCs that aren’t supposed to be paying the athletes to compete.

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53 minutes ago, Alwaysright said:

Flo isn’t doing anything wrong by compensating the RTCs; it’s the RTCs that aren’t supposed to be paying the athletes to compete.

What about Flo paying the athletes directly like on their other cards?  I figured that’s what you meant by “these events.”  The RTC Cup seems to be the first one where the RTC is the intermediary.

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Based on my reading of the law, there’s nothing wrong with the other cards where Flo pays the athletes directly, so long as the RTC doesn’t use its own resources in getting the athletes there.

But there have been several events outside of Flo where the RTCs have been paying the athletes specifically for competing: NLWC on Rokfin, THWC on Fite TV, Wisconsin RTC had an event, and the HWC had one on Trackwrestling where they even paid the athletes a subscription bonus which is a huge no no. 

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9 minutes ago, Alwaysright said:

 

But there have been several events outside of Flo where the RTCs have been paying the athletes specifically for competing: NLWC on Rokfin, THWC on Fite TV, Wisconsin RTC had an event, and the HWC had one on Trackwrestling where they even paid the athletes a subscription bonus which is a huge no no. 

Interesting.  That's documented somewhere?  

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40 minutes ago, Mphillips said:

Interesting.  That's documented somewhere?  

I’m assuming you are referring to the HWC event, in which case Andy Hamilton of Track mentions on his Twitter feed that the wrestlers got $5k to compete, $5k to win, plus a PPV bonus.

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15 minutes ago, Alwaysright said:

I’m assuming you are referring to the HWC event, in which case Andy Hamilton of Track mentions on his Twitter feed that the wrestlers got $5k to compete, $5k to win, plus a PPV bonus.

"But there have been several events outside of Flo where the RTCs have been paying the athletes specifically for competing: NLWC on Rokfin, THWC on Fite TV, Wisconsin RTC had an event, and the HWC had one on Trackwrestling where they even paid the athletes a subscription bonus which is a huge no no."

I'm asking about everything you wrote regarding the RTC's and being illegally paid.

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37 minutes ago, Mphillips said:

I'm asking about everything you wrote regarding the RTC's and being illegally paid.

Yes, it’s documented in Section 501 of the tax code. Professional sports is not a purpose that qualifies for tax exemption. That’s why no professional sports teams are 501(c)(3)

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26 minutes ago, Alwaysright said:

Yes, it’s documented in Section 501 of the tax code. Professional sports is not a purpose that qualifies for tax exemption. That’s why no professional sports teams are 501(c)(3)

I'm not sure if you're being obtuse or if I'm asking the wrong question?  I'm asking if the ones you mentioned were compensated illegally as you say and if that's documented.

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