Recent federal tax records reveal that Blueprint Sports, a player in the collective name, funneled nearly $35 million into college athlete NIL contributions through its associated charity in 2024.
The BPS Foundation, which closed its doors at the end of last year amid concerns about its charitable operations, recently filed its IRS Form 990, detailing activities for the 2024 tax year.
The submission indicates that the foundation generated a whopping $41.3 million in total revenue, more than double what it reported in 2023, though expenses reached $43.9 million.
Most of these expenses—$39.8 million—went directly to compensating 150 college athletes for their NIL engagements, primarily in connection with other charities. Impressively, $34.9 million of this sum went through the for-profit Blueprint Sports, which has recently attempted to pivot from its initial focus on NIL collectives toward providing advisory services to athletic departments regarding NIL strategies. However, this transition hasn’t been smooth; Oregon State, an early consulting client, ended its partnership after a short four-month stint, as reported by Sportico.
The BPS Foundation also disclosed spending $3.9 million on “management fees.” According to CEO Rob Sine in a text message, these went to Blueprint Sports to cover various related costs, including employee wages.
Aside from Blueprint Sports, the foundation allocated NIL funds through multiple universities and their affiliated support entities. This included $1.6 million to Boston College, $1.05 million to the Kansas University Endowment Association, $855,078 to the University of Maryland Foundation, $355,895 to the University of Colorado-affiliated collective 5430 Alliance, $291,003 to the UNLV Rebel Foundation, $139,398 to Gonzaga University, $52,059 to Villanova University, and $50,237 to the University of Arizona Foundation.
The BPS Foundation, which gained IRS tax-exempt approval in 2022, functioned as a tax-deductible conduit—considered by some as a “problematic NIL workaround”—to help donors support collectives managed by Blueprint Sports.
Last December, the foundation communicated to its donors that it would dissolve due to the “unpredictable and escalating risks associated with NIL nonprofit operations.” This decision followed a memorandum issued by the IRS’ deputy associate chief counsel in May 2023, which suggested that the primary aim of many NIL collectives, regardless of partnerships with charitable organizations, was essentially to provide payments to college athletes—who are not classified as a charitable group. While this memo didn’t carry binding authority, the IRS have since rejected tax-exempt requests from several aspiring nonprofit collectives.
The BPS Foundation’s shutdown mirrors similar actions from other tax-exempt NIL collectives, including Georgia’s Classic City Collective and the Friends of the University of Notre Dame (FUND).
Classic City reported $16.1 million in contributions for 2024, with its CEO Matt Hibbs receiving $322,500 in compensation. Hibbs has since taken on the role of executive vice president at Pathway Sports & Entertainment, a company founded by former Altius head Casey Schwab that aims to negotiate group licensing rights for college athletes.
FUND reported $6.2 million in contributions for 2024, a significant decrease from nearly $20 million the previous year. Another prominent nonprofit collective, the Texas One Fund affiliated with the Longhorns, is set to file its 2024 return early next year.
