I recently sent an email to Mr. Neff (AD) and Mr. Babb (IPTAY) stating my concern about the 110 Society overhead and my unwillingness to donate to the 110 Society due to the extremely high overhead rate that was provided (25%) as part of the 110 Society introductory infromation. My email was forwarded by Mr. Babb to the new director of the 110 Society, Mr. CD Davies. I received a very prompt reply from Mr. Davies in which he provided more detail on the overhead costs. I asked Mr. Davies if he would be OK if I shared his response and he was OK with it being shared so below is his response:
First, I share your concern. As we have established 110 Society we made all of our decisions through the lens of minimizing our expenses in order to get the most of the funds to our athletes. We currently have only one employee (me) and have determined to not take on any physical space. Unfortunately, the start-up costs in getting 110 Society off the ground were substantial. Most of these expenses were legal fees and software costs. The legal fees for 110 Society were to establish the entity properly and for research as these collectives are very new and most of the legal and tax guidance does not pertain to these types of LLCs. The software fees were for an external software company that most college athletic depts use in order to track the athlete’s tasks, pay the athletes, and help prepare their taxes. These activities are required to be compliant with NCAA rules.
All of this said, in an attempt to be totally transparent, we disclosed the highest amount of the overhead for the startup at 25%. This is a function of just starting and not have many contributions while we have the start-up costs. Our projections (projecting contributions and expenses) have us getting to 5% very quickly. From your note, we changed the language on our website, to reflect the variability of the overhead percentage.
Mr Davies is also very willing to discuss the 110 Society and answer any questions. His contact information is: cd@110society.com.
First, I share your concern. As we have established 110 Society we made all of our decisions through the lens of minimizing our expenses in order to get the most of the funds to our athletes. We currently have only one employee (me) and have determined to not take on any physical space. Unfortunately, the start-up costs in getting 110 Society off the ground were substantial. Most of these expenses were legal fees and software costs. The legal fees for 110 Society were to establish the entity properly and for research as these collectives are very new and most of the legal and tax guidance does not pertain to these types of LLCs. The software fees were for an external software company that most college athletic depts use in order to track the athlete’s tasks, pay the athletes, and help prepare their taxes. These activities are required to be compliant with NCAA rules.
All of this said, in an attempt to be totally transparent, we disclosed the highest amount of the overhead for the startup at 25%. This is a function of just starting and not have many contributions while we have the start-up costs. Our projections (projecting contributions and expenses) have us getting to 5% very quickly. From your note, we changed the language on our website, to reflect the variability of the overhead percentage.
Mr Davies is also very willing to discuss the 110 Society and answer any questions. His contact information is: cd@110society.com.
Last edited by a moderator:
