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Texas A&M University is doing away with its NIL collective.
According to a report from CBS Sports, the university has decided to shut down its NIL collective, the 12th Man+ Fund, after receiving a memo from the IRS.
The 12th Man+ Fund was planning to use booster funds to pay out NIL deals which are banned by the NCAA.
However, Texas A&M continued its plan to move forward with the collective but that has all now changed with the IRS paying attention and ruling it was ineligible for the 501(c)(3) non-profit status.
NEW: The 12th Man+ Fund, which was long thought to be the next evolution of NIL collectives, is being discontinued.
The move comes after discussing the IRS memo released in early June with advisors.
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“Following consultation with external advisors, the 12th Man Foundation is altering its approach to NIL, which includes discontinuing the 12th Man+ Fund,” the university said in a statement.
“This decision was made to ensure the 12th Man Foundation meets its high standards for compliance and to protect the organization’s mission.”
The non-profit status would have allowed for larger donations, but now the school will have to find another way to be creative if they want to push the limits of the current NIL rules.