Suddenly, at 12:00 a.m. on Thursday, a billion-dollar business was conjured out of thin air.
For the first time, players are permitted to sign endorsement agreements and earn money from their reputation thanks to the loosening of regulations regulating name, image, and likeness (NIL). As a consequence, a “transcendent day for American sports” is predicted by Sports Illustrated.
Where did we go wrong?
25 states approved NIL legislation that challenged the NCAA’s regulations prohibiting student players from earning money via endorsement deals or other contracts associated with their popularity. The NCAA relaxed limitations on NIL, making it possible for student-athletes to hook up with companies as soon as they finish completing their NCAA analysis papers.
The new NIL regulations were enacted yesterday, and a complete college roster of players took advantage of them to start their careers.
- The new ambassadors for Boost Mobile are twin sisters who play for Fresno State’s basketball team.
- The starting quarterback for the Badgers, Graham Mertz, unveiled a personal logo.
- Trey Knox, an Arkansas wide receiver, and his well-groomed dog, Blue, agreed to a sponsorship agreement with PetSmart.
You would be completely correct if you believe that NIL would mostly help the greatest talents in the major sports (football, basketball). Many athletes are exceptions to the rule when it comes to using social media.
For example, it is expected that Olivia Dunne, the LSU gymnast, would get any NCAA athlete’s highest NIL endorsement earnings. Her following count on both TikTok and Instagram total over 1 million people.
According to the Opendorse athlete marketing platform, the NIL industry may reach $500 million in 2022 and $1 billion annually.
The time has come for Robinhood to go public
Within a day, Robinhood responded “Okay” and registered to become public, clearing the way for the largest punishment Finra has ever levied. To symbolize the increasing importance of the individual trader on Wall Street, shares of the trading app will be listed under the ticker HOOD when they go public.
If you’re HOOD at the moment, it’s excellent
Robinhood’s sales increased 245% to $959 million in 2020. It became profitable for the first time last year due to a trade boom spurred by a global epidemic.
The cryptocurrency interest has proven profitable. 17% of the entire income generated by Robinhood in Q1 came from crypto-related transactions.
When you have a stock brokerage list, it is possible to go meta and use the list as a spreadsheet to track investment transactions. For instance, Robinhood is offering an IPO on Robinhood to entice new investors. Unlike its shareholders, it’s putting aside 35% of its Class A shares for consumers.
A less romantic way to say the same thing is: In essence, the launch of Robinhood’s highly anticipated IPO is the star of the show on a crowded dance floor. More than $190 billion has already been raised through US-listed IPOs so far in 2021, already surpassing the amount raised in all of 2020.
There are no safe places for your money!
Governments have reduced their corporation tax rates during the last three decades to attract businesses to their nations. The race is almost over.
Over 130 countries, including China and India, have agreed to a 15% global minimum corporation tax, said Treasury Secretary Janet Yellen. It will be the greatest overhaul to the worldwide tax system in a century when implemented in 2023.
Broad perspective: With a global minimum tax in place, it is theoretically possible that multinational companies may cease using the British Virgin Islands and Bermuda as tax havens. This will produce $150 billion in new tax income each year for the OECD since rates in the United States and others are raised to at least 15 percent from the single-digits.
To underline the importance of today’s agreement by 130 nations representing more than 90% of global GDP, Federal Reserve Chair Janet Yellen stated, “This agreement indicates that the race to the bottom is getting closer to ending.”
For Biden, the agreement on the minimum tax will be a crucial step to increasing multinational corporations’ compliance with US tax laws, allowing the federal government to spend more money on initiatives like Biden’s ambitious spending plans.
Bottom-line points here: First, this was the international community’s attempt to solve the problematic issue of tax companies like Google and Facebook, which sell considerable quantities of products in nations they have no physical presence in.