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#3 With a new tax bill going effective in 2018, there is an increasing challenge for athletic departments, which operate as nonprot: businesses, as they

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#3 With a new tax bill going effective in 2018, there is an increasing challenge for athletic departments, which operate as nonprot: businesses, as they will face a new 21% excise tax on up to ve salaries that exceed $1 million annually Also, this tax bill will make athletic departments increase expenses and take away an important deduction. For more than 30 years, donors have been able to write off 80 percent of a contribution that went toward securing season tickets, like a seat license, but this tax bill eliminates that deduction. This is certainly abig challenge that is associated with the external environment. 1. If you were an AD, (a) how would you deal with this challenge in terms of your efforts to maintain/increase season tickets selling and donation level? Also, (b) what would be an idea to increase revenue sources as the department would lose a new 21% excise tax on the high salaries

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