
Tennessee athletic director says collective bargaining with athletes the only solution amid chaos
Tennessee athletic director Danny White said the only solution to the real problem in college sports right now is collective bargaining with athletes.
'It's a real issue,' White said an interview with Tennessee Chancellor Donde Plowman, who shared the video on social media Thursday. 'I'll say it. We got a camera on us. I don't really care at this point. Collective bargaining is the only issue. It's the only solution.'
Plowman agreed immediately: 'It's the only way we're going to get there. I agree with you.'
The statements are unusual.
For decades, universities and athletic conferences that comprise the NCAA have insisted that athletes are students who cannot be considered anything like a school employee. This stance has long been a part of the amateur model at the heart of college athletics, a model that is rapidly being replaced by a more professional structure fed by millions in name, image and likeness compensation for athletes — money that is coming from donors, brands and very likely in a matter of weeks the schools themselves.
A federal judge is weighing final approval of a $2.8 billion NCAA antitrust settlement that will clear the way for schools like Tennessee to share as much as $20.5 million directly their athletes every year. Schools are also likely to be asked to fall in line with the settlement given the patchwork of state laws in many places intended to benefit flagship schools.
The settlement involving thousands of athletes who sued the NCAA and the five largest conferences does not include collective bargaining, which White made clear he believes will be needed.
Michael LeRoy, a labor and employment professor at Illinois familiar with college athletics, noted White's support of collective bargaining was atypical. He recalled then-Notre Dame athletic director Jack Swarbrick saying something similar in October 2023 in testimony before Congress.
'This would be a very healthy development for college athletics,' LeRoy said.
It's a complicated topic: While private institutions fall under the National Labor Relations Board, public universities must follow labor laws that vary from state to state and it's worth noting that virtually every state in the South has 'right to work' laws that present challenges for unions.
LeRoy said while states may vary on labor laws, sports eliminates regional differences. Bargaining with athletes would provide labor stability, he said, and eliminate a major source of future lawsuits and more billion-dollar costs for damages.
'If you ask Roger Goodell, 'How would you think about this as a commissioner of the SEC?' He would say, 'No brainer,'' LeRoy said.
Tennessee hasn't been shy at speaking up. The chancellor helped lead the university's fight against the NCAA last year to guarantee NIL rights for recruits as the Tennessee attorney general joined Virginia's attorney general to win a court order.
White said he is busy trying to position Tennessee to be 'competitively excellent in this new world' with guidelines still being hammered out. He said change isn't happening fast enough.
'The infrastructure was not set up to really guide a national agenda,' White said. 'It's a conglomeration of hundreds of schools, and everybody's got day jobs. It's just really complicated. It's a really complicated issue. The more I've talked to people in pro sports and private equity and all this stuff, it's an extremely complicated issue. But we have to come up with a solution.'
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Forbes
6 minutes ago
- Forbes
UFC 316 Fight Card: Odds, Lines, Prop Bets, Predictions And Picks
NEWARK, NEW JERSEY - JUNE 05: (L-R) Opponents Merab Dvalishvili of Georgia and Sean O'Malley face ... More off during the UFC 316 press conference at Prudential Center on June 05, 2025 in Newark, New Jersey. (Photo by Ed Mulholland/Zuffa LLC) Saturday's UFC 316 fight card features two bantamweight title fights at the top of the marquee. In the main event, men's UFC bantamweight champion Merab Dvalishvili meets the man he took the title from, Sean O'Malley, in a rematch. Meanwhile, in the UFC 316 PPV card co-headline, Julianna Pena begins her second stint as the women's 135-pound champ against former PFL lightweight champion Kayla Harrison. Also appearing on the main card is high-profile free agent signing Patchy Mix. Mix faces Mario Bautista in a bantamweight bout. We look at the betting odds, line movement, prediction, picks, and prop bets for the UFC 316 PPV card, which takes place on Saturday, June 7 from Prudential Center in Newark, New Jersey. The UFC 316 PPV fight card streams on ESPN+ following prelims on ESPN and early prelims on UFC Fight Pass. NEWARK, NEW JERSEY - JUNE 05: (L-R) Opponents Merab Dvalishvili of Georgia and Sean O'Malley face ... More off during the UFC 316 press conference at Prudential Center on June 05, 2025 in Newark, New Jersey. (Photo by Mike Roach/Zuffa LLC) Merab Dvalishvili (19-4), a long-time training partner of former UFC bantamweight champion Aljamain Sterling stepped into the spotlight of the promotion's 135-pound division in September 2014 when he scored a unanimous decision win over then-champion Sean O'Malley in the main event of UFC 306. The 33-year-old Dvalishvili joined the UFC in 2017 as much-hyped prospect. At the time, Dvalishvili was 7-2 and had won and defended the Ring of Combat bantamweight crown. Dvalishvili did not have a smooth start to his UFC run, losing his first two fights. Falling to Frankie Saenz by decision, and the second, to Ricky Simon, via submission. In September 2018, things clicked in place for the Serra-Longo Fight Team product, and he has not lost since. Heading into UFC 306, Dvalishvili was on a 10-fight winning streak. Prior to his matchup against O'Malley, Dvalishvili had defeated Marlon Moraes, Jose Aldo, Petr Yan, and Henry Cejudo. The win over O'Malley stretched his winning streak to 11 straight. Dvalishvili extended that streak to 12 when he defended his title with a unanimous decision win over the previously unbeaten Umar Nurmagomedov at UFC 311. Sean O'Malley (18-2-0-1) was 7-0 with six finishes when he got the chance to fight for a UFC contract on the first season of Dana White's Contender Series back in 2017. O'Malley, scored a first-round knockout, and a UFC contract that night. He went 4-0 in his first bouts with the promotion, picking up three fight-night bonus awards for his efforts, including a brutal one-punch KO win over UFC veteran Eddie Wineland at UFC 250. The win over Wineland put O'Malley at No. 14 in the UFC bantamweight rankings and got him a fight against Marlon 'Chito' Vera. Vera won that fight by TKO, handing O'Malley the only defeat on his record. The loss to Vera knocked O'Malley out of the rankings, but he bounced back in his next fight, knocking out Thomas Almeida and earning another fight-night bonus in the process. He followed that win with a TKO win over Kris Moutinho. Despite those back-to-back wins, O'Malley remained unranked when he next stepped into the Octagon for a December 2021 matchup against Raulian Paiva. O'Malley wrapped that fight up with a knockout at the 4:42 mark of the first round. That victory put O'Malley back in the rankings. O'Malley's next bout ended in a no contest, when an eye poke in the second round left Pedro Munhoz unable to continue. Then, in October 2022, O'Malley was matched up with former UFC bantamweight champion Petr Yan. He entered that contest as the +230 underdog to the -275 ex-champ. The pair went the three-round distance, with O'Malley getting the split decision nod. That victory set up O'Malley to face Sterling in August 2023. O'Malley has not fought since his loss to Dvalishvili. He is the No. 1 fighter in the official UFC bantamweight rankings. When the betting odds opened for UFC 316, the defending champ was a -325 betting favorite over the former champ. Today, Dvalishvili is listed at -275, while O'Malley comes in at +225. O'Malley has picked up 93 percent of the bets and 91 percent of the handle. Yes, O'Malley has the striking to catch Dvalishvili and turn out his lights, but let's remember, in their first meeting, O'Malley only managed to throw 89 significant strikes. In his win over Vera, O'Malley attempted a whopping 356 significant strikes. The difference between Dvalishvili and Vera was pressure. Vera was happy to stand with O'Malley, while Dvalishvili used his chain wrestling and forward pressure to put his opponent on the back foot and keep him there for almost the entire 25 minutes of that meeting, landing six takedowns on 15 attempts and racking up 10:03 of control time. Simply put, I don't think O'Malley and his team can put together a game plan that will allow the former champ to avoid the pressure of the current champ while also accumulating enough damage to sway the judges in O'Malley's favor. The betting pick is for Dvalishvili to grind out a decision win. For those looking for value on an upset, the pick is O'Malley via knockout, but be sure to place that wager in an amount you're willing to lose. NEWARK, NEW JERSEY - JUNE 05: (L-R) Opponents Julianna Pena and Kayla Harrison face off during the ... More UFC 316 press conference at Prudential Center on June 05, 2025 in Newark, New Jersey. (Photo by Ed Mulholland/Zuffa LLC) Julianna Pena (12-5) earned her UFC contract by winning Season 18 of The Ultimate Fighter. A member of Team Tate, Pena knocked out Jessica Rakoczy in the first round of their November 2013 matchup. The win moved Pena's record to 5-2. Pena ran off three victories after that, beating Milana Dudieva, Jessica Eye and Cat Zingano before Valentina Shevchenko ended her winning streak with a January 2017 armbar submission. In October 2017 Pena announced her pregnancy. When she returned to action in July 2019, Pena defeated Nicco Montano by decision. A submission loss to De Randamie in October 2020 followed. In January 2021, Pena submitted Sara McMann. Pena, sitting at No. 3 in the women's bantamweight rankings, earned a shot at Amanda Nunes and her bantamweight title in December 2021. She entered that contest as a -650 underdog to the champ, who was the -1000 betting favorite. In one of the more shocking upsets in UFC title fight history, Pena submitted Nunes in the second round, ending the Brazilian's title reign. Pena's time at the top of the division was short, as Nunes won their July 2022 rematch by decision. Pena was set to face Nunes in a trilogy bout at UFC 289, but an injury knocked the former champ from that scrap. Nunes defeated Pena's replacement, Irene Aldana, on that card and then retired. When Pena returned to action it was at UFC 307 where she defeated then-champion Raquel Pennington via split decision. She makes her first defense of that belt at UFC 316. A two-time Olympic gold medal winner in judo (2012 and 2016), Kayla Harrison (18-1) made her MMA debut in the 155-pound division with PFL in 2018. Harrison ran over her first six opponents, picking up three submissions, two knockouts, and a decision before winning the women's lightweight title by defeating Larissa Pacheco by decision. In November 2020, Harrison defeated Courtney King by TKO in a 145-pound scrap. Shen then moved back to 155 pounds. In 2021, Harrison won the PFL 155-pound tournament with a submission win over Taylor Guardado. By 2022, Harrison had amassed a 15-0 record. However, her unbeaten ended in the finals of the 2022 PFL lightweight tourney when Pacheco scored a unanimous decision win over Harrison. The ex-champ fought once more for the PFL, beating former UFC fighter Aspen Ladd via decision in November 2023 in a 150-pound catchweight fight. In January 2024, the UFC announced it had signed Harrison and that her promotional debut would take place in the 135-pound weight class. Harrison impressed in that performance, submitting former UFC women's bantamweight champion Holly Holm by submission in the second round at UFC 400. In her next, and most recent, outing, Harrison defeated Ketlen Vieira via unanimous decision. Harrison is the No. 2 ranked fighter in the official UFC women's 135-pound rankings. When the betting odds opened for the UFC 316 co-main event, Pena was a +500 underdog to the -700 Harrison. Today, Harrison is the -750 favorite over the champ, who is the +525 betting underdog. Pena has earned 89 percent of the bets, while 63 percent of the money is on Harrison. Pena is a tough fighter, and that toughness will be tested on Saturday when she faces Harrison at UFC 316. The concern on the Harrison side of the equation is her ability to make 135 pounds and rehydrate and recover. The weight cut will be tough, there's no doubt about that, but Harrison has been a high-level athlete for a long while, and she knows her body and how far she can push herself. That's a plus in this matchup; it could also mean that she will pace herself against Pena so that she does not overextend herself and run out of gas. Harrison is the better athlete and has more routes to victory than Pena. The betting pick is a Harrison win, either by late submission or decision. With the odds being what they are, the value pick is Pena to win via upset, but that's a wager that one should be careful in making. NEWARK, NEW JERSEY - JUNE 05: (L-R) Opponents Kelvin Gastelum and Joe Pyfer face off during the UFC ... More 316 press conference at Prudential Center on June 05, 2025 in Newark, New Jersey. (Photo by Ed Mulholland/Zuffa LLC) Kelvin Gastelum (19-9-0-1) has been with the UFC since April 2013, when he won Season 17 of 'The Ultimate Fighter' with a split decision over Uriah Hall. The victory over Hall put Gastelum's professional record at 7-0. Gastelum dropped to welterweight for his next UFC fight. He remained unbeaten through 2014, losing his first fight in January 2015 when Tyron Woodley defeated him via split decision. Gastelum missed weight for the Woodley matchup, coming in at 180. It was not his first issue on the scale as a member of the UFC roster. He also came in heavy for his June 2014 win over Nico Musoke, weighing 172.75. Weight issues have plagued Gastelum throughout his UFC career, as he has struggled at times to make welterweight and middleweight. Gastelum's career has been up and down since his loss to Woodley. Since that 2015 clash, his record stands at 8-8-0-1, and he has not won more than two fights in a row. The 33-year-old is a very talented fighter, but his struggles to make weight and consistency issues inside the cage have hurt him. The high point of Gastelum's career is his 2019 interim UFC middleweight title fight opposite Israel Adesanya, a bout that recently enshrined the two men in the UFC Hall of Fame. Gastelum has a 3-6 record dating back to April 2019, when he faced Adesanya. He is coming off a June 2024 unanimous decision win over Daniel Rodriguez. Joe Pyfer (13-3) had a first go at gaining a UFC contract in 2020 at a Dana White Contender Series event. At the time, the 23-year-old was 7-1. His only career loss to that point was a second-round submission setback to Jhonoven Pati under the Ring of Combat banner. Pyfer lost the ROC middleweight championship in that outing. Pyfer faced Dustin Stoltzfus on that DWCS card. Pyfer looked good in the early going of that matchup, walking down his foe and looking to land powerful strikes. With a bit over two minutes left in the first round, Pyfer scored an easy takedown on Stoltzfus, who calmly looked to set up a submission while Pyfer did his best to create openings to land heavy ground strikes. With the clock ticking down, Stoltzfus stood and went for a slam takedown. Pyfer landed with all his weight on his extended right arm, causing an injury that ended the fight. Pyfer recovered from that injury, but he did not fight again until he earned a first-round knockout win over Austin Trotman on a Cage Fury fight card. The UFC gave Pyfer a second opportunity to earn a contract in July 2022. Pyfer faced Ozzy Diaz on a DWCS card. Pyfer was a +100 betting underdog at that event. Pyfer didn't mess around on the feet against Diaz. He scored a takedown inside the first minute and then worked for a submission until Diaz reversed Pyfer with two minutes left in the round. Diaz could not keep Pyfer on the mat, as Pyfer worked back to his feet, where he scored with low kicks and an effective jab. In the second stanza, Pyfer pressured Diaz and then, showing off his power, ended the fight with a powerful left hook that put his opponent on his back. In awarding Pyfer a UFC contract, UFC CEO Dana White said, "If you want to get into the UFC, and this is where you want to be, act like Joe Pyfer. Okay? Be Joe Pyfer. Be excited to be here. Be fired up to fight. Try to finish the fight. Try to win. Be Joe Pyfer, and you will get into the UFC." Pyfer put together a 3-0 run under the UFC banner between September 2022 and October 2023, scoring three stoppages and two 'Performance of the Night' bonuses. Seeing promise in Pyfer, the UFC booked him in a main event against veteran Jack Hermansson in February 2024. Pyfer was a favorite in that matchup, but he fell short, as Hermansson's veteran skills showed gaps in Pyfer's game. Pyfer rebounded from that loss with a first-round knockout win over Marc-André Barriault at UFC 303. The odds have held on this matchup with Gastelum at +310 and Pyfer at -400. Bettors are siding with the veteran. Gastelum has 75 percent of the bets and 63 percent of the handle. Gastelum has one of the best chins in the business, and if Pyfer gets too aggressive and thinks he will be able to put his opponent away based on his power, things might get tricky for the younger fighter. Pyfer's best bet is not to chase the knockout here but to use his power to rack up damage while being sound defensively. The betting pick is for Joe Pyfer to beat Kelvin Gastelum by decision. However, for those who do not have faith in Pyfer's fight IQ, a Gastelum upset win via decision is a value betting pick to think about. NEWARK, NEW JERSEY - JUNE 05: (L-R) Opponents Mario Bautista and Patchy Mix face off during the UFC ... More 316 press conference at Prudential Center on June 05, 2025 in Newark, New Jersey. (Photo by Ed Mulholland/Zuffa LLC) Patchy Mix (20-1) comes too the UFC following his release by PFL. The 31-year-old Mix is riding a seven-fight undefeated streak. He won the interim Bellator bantamweight title in April 2023 with a knockout victory over Raufeon Stots. Then, in November 2023, Mix unified the Bellator 135-pound titles with a submission victory over Sergio Pettis. In his most recent outing, Mix defended his crown with a split decision win over Magomed Magomedov in May 2024. Mix's only professional defeat came in September 2020 when Juan Archuleta defeated him via unanimous decision in a contest for the vacant Bellator bantamweight crown. Mario Bautista (15-2) has been with the UFC since 2019. The 31-year-old opened his UFC run with a 2-2 record, but he is unbeaten since early 2022, with a run of seven straight wins. In his most recent outing, Bautista defeated Jose Aldo via split decision at UFC 307 in October 2024. The opening odds for this matchup had Mix as the -175 favorite over Bautista, who came in at +145. Today, Mix is the -200 betting favorite and Bautista is the +165 betting underdog. Mix has 51 percent of the action and 75 percent of the handle. Mix enters UFC 316 coming off a long layoff. His last bout took place in May 2024 when he went five rounds in beating Magomed Magomedov in defense of his Bellator bantamweight belt. When you combine that layoff with the fact that Mix is taking this fight on short notice, there is some room for concern when it comes to Mix's fitness level. However, Mix and his team know how important this fight is to his career and future UFC prospects, so I believe he will be ready for his Octagon debut. I expect Bautista to move forward and to look to overwhelm Mix with striking. However, that pressure could allow Mix to implement his game plan of getting the fight to mat and working his ground skills (Mix has 13 submission wins). The betting pick is for Mix to win via decision, with a chance of picking up a submission. NEWARK, NEW JERSEY - JUNE 05: (L-R) Opponents Vicente Luque and Kevin Holland face off during the ... More UFC 316 press conference at Prudential Center on June 05, 2025 in Newark, New Jersey. (Photo by Ed Mulholland/Zuffa LLC) Vicente Luque (23-10-1) enters UFC 316 as the No. 14 fighter in the official UFC welterweight rankings. The 33-year-old has been with the UFC since July 2015. Luque had some good winning streaks in his early days with the UFC, putting together winning runs of four fights, six fights, and four fights, but whenever he stepped up to face top-level competition, he faltered. The opponents who ended Luque's winning runs were Leon Edwards, Stephen Thompson, and Belal Muhammad. Luque is 2-2 since losing to Muhammad in 2022. He has wins over Rafael dos Anjos and Themba Gorimbo, while his losses have come via knockout against Geoff Neal and Joaquin Buckley. In his most recent outing, Luque earned a technical submission stoppage over Gorimbo. That fight took place in December. Kevin Holland (27-13-0-1) was 12-3 when he earned his shot at a UFC contract on a Dana White's Contender Series card in June 2018. Despite getting a win, UFC CEO Dana White did not offer Holland a contract. However, Holland got the chance to fight for the UFC in August 2018 when Thiago Santos needed a short-notice opponent. Holland has been one of the more active UFC competitors since losing that contest by decision, fighting at middleweight and welterweight. Holland followed the loss to Santos with an 8-1 run, a stretch that included five victories between May 2020 and December 2020. His last win of that run was a 'Performance of the Night' bonus-winning knockout of ex-Strikeforce champion Ronaldo 'Jacare' Souza. Holland's career has been up-and-down since the highlight-reel win over Souza. He has a 5-7-0-1 record since then, never winning, or losing, more than two fights in a row. Holland is 2-2 in his past four outings with a submission win over Michal Oleksiejczuk, a corner stoppage TKO loss to Roman Dolidze, a submission setback to Reinier de Ridder, and most recently, a decision win over Gunnar Nelson in March. When the lines opened on this contest, Holland was a -200 favorite over the +165 Luque. The betting line has moved on this one. Today, Holland is -275 to Luque's +220. Luque has earned 73 percent of the bets, while Holland has picked up 61 percent of the handle. Holland is a talented fighter, but the problem with Holland is his consistency. At points, it seems as if Holland is more interested in booking fights and earning a paycheck than he is interested in being competitive in those bouts. And while Luque has had his ups and downs, he seems to take his career more seriously than Holland. Holland has an advantage in height and reach in this bout, and if he can use those strengths, he has a good chance of picking up the win. However, Luque is effective in spots where Holland struggles, mainly in takedown defense. The betting pick in this bout is to go where there is value, and that is Luque to use his wrestling to grind out a decision win over Holland. Sean O'Malley by KO/TKO or DQ +450 O'Malley by Decision/Technical Decision +600 Patchy Mix by Submission +200 Merab Dvalishvili by Submission +800 O'Malley by Submission +2500 *All bets and odds via BetMGM Saturday, June 7, 2025 Prudential Center in Newark, New Jersey Main Card: ESPN+ PPV Preliminary Card: ESPN and ESPN+ Early Prelims: UFC Fight Pass and ESPN+ Early Prelims: 6:00 p.m. ET Prelims: 8:00 p.m. ET Main Card: 10:00 p.m. ET Stay tuned for more coverage from the UFC 316 fight card. Including live UFC 316 results, reactions, recaps and video highlights during Saturday's event.


Forbes
6 minutes ago
- Forbes
What To Know About The IRS's $4 Billion Tax Assessment On Yum! Brands
KFC Taco Bell (Photo by Artur Widak/NurPhoto via Getty Images) The IRS has assessed $4 billion in taxes, penalties, and interest on Yum! Brands. The issue stems from a tax-deferred reorganization in 2014. Yum! Brands is now suing to prevent the IRS from collecting these funds. M&A is often among the most complicated tax issues large corporations face, which can often lead to uncertainty and scrutiny from the IRS. In this article, I discuss the Yum! Brand corporation, what happened in 2014, and why they are facing such a steep tax penalty now over a decade later. Yum! Brands is the parent company of KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill. As noted by The Washington Post, this corporation spun off from PepsiCo in 1997 to become among the largest set of restaurant chains in the United States and the world. While it currently features those three staples, the corporation has also previously held other chains, such as A&W and Long John Silvers. Yum! Brands has been known to be innovative by having combination restaurants. In these situations, customers can order from a KFC or Taco Bell (or both) at the same location. What makes Yum! Brands particularly impactful is their international appeal. As stated on the Yum! Brands website, the brands total over 61,000 locations and can be seen in 155 countries. According to CNN, KFC has blossomed to become an international staple in countries like Japan, where people often have KFC as their Christmas dinner. Yum! Brands is also no stranger to tax-related news. In early 2025, the company announced a different restructuring. While the company is famously headquartered in Louisville, Kentucky (hence, Kentucky Fried Chicken), Fortune reported that it will be relocating to Plano, TX, due to, among other things, taxes. Kentucky is a state that levies a corporate income tax (5% in 2025). Meanwhile, Texas famously has a 0% tax rate on corporate profits. Individual income tax is also not levied in Texas. Newsweek suggests that Texas has become a bit of a tax haven for new corporate headquarters such as Tesla, Toyota, Charles Schwab, Chevron, and now Yum! Brands. Prior to 2014, Yum! Brands was made up of separate legal entities based on brand and region. For example, there were separate legal entities for KFC Asia and KFC Europe. According to court filings, On November 30, 2013, Yum! Brands publicly announced a corporate reorganization. In this reorganization, the company would no longer be broken out into segments based on geography. Instead, it would focus its organization based on brands (i.e., KFC, Taco Bell, and Pizza Hut). It would also have separate divisions for China and India. The goal of this reorganization was to drive growth. To help facilitate the reorganization, the new subsidiaries issued stock in exchange for stock in the previous subsidiary. This stock for stock reorganization often falls under the Internal Revenue Code Section 368(a)(1)(B), which allows for the acquisition of a corporation solely in exchange for all or part of its voting stock. As long as all of the conditions are met, the Yum! Brand legal entities can exchange the stock without recognizing a gain on the appreciated value of the stock. The conditions for this type of reorganization are as follows: Reorganizations under Section 368 are valuable for a company like Yum! Brands because it wishes to restructure the company's organization to enhance future profits. In a normal transaction where Yum! Brands were selling its stock to another company, Yum! Brands would have a gain (or loss) on the appreciated (depreciated) value of the stock. However, Section 368 allows companies to meet certain conditions to defer the gain to a future period. Importantly, companies still have to recognize a gain on the stock's appreciated value, but this gain will not typically happen until the company ultimately disposes of it. In this case, Yum! Brands thought that the conditions under Section 368(a)(1)(B) were met, which would defer the gain, allowing the reorganization to make more sense from a financial perspective. In Yum! Brand's 2024 10-K financial statements, the company notes the following: As reported by Bloomberg Tax, this disagreement comprises over $4 billion dollars in damages: the $2.1 billion in taxes that the IRS believes Yum! Brands should have paid during their reorganization in 2014, $418 million in underpayment penalties and over $1.5 billion in interest on the money that has not yet been paid to the taxing authority. $4 billion is a large assessment for any firm. However, to put it into context, Yum! Brands in 2024 had a pre-tax income of $1.9 billion and paid income taxes of $414 million on that income. Thus, a tax bill of over $4 billion is astronomical for even a company of this size. NRN reports that the disagreement stems from Yum! Brands believe to have met all of the requirements under Section 368 for the reorganization to be tax-deferred, whereas the taxing authority believes that these matters were not all addressed and initiates billions of dollars of income by way of a sale of appreciated value of stock. NRN also reports that Yum! Brands has taken this matter to court and appeals court but was unsuccessful. In turn, Law360 reports that Yum! Brands have taken the IRS to court to sue them over the collections of this $4 billion. While the matter is still uncertain, many in the M&A tax space continue to watch this saga unfold since it represents a significant assessment being levied against some of the U.S.'s most recognizable restaurant brands.


Forbes
9 minutes ago
- Forbes
The AI Paradox: When More AI Means Less Impact
Young business man with his face passing through the screen of a laptop on binary code background AI is in the news every day. On the one hand, this highlights the vertiginous speed at which the field is developing. On the other, it creates a sense saturation and angst that makes business organizations either drop the subject altogether or go at it full throttle without much discernment. Both approaches will lead to major misses in the inevitable AI-fication of business. In this article, I'll explore what happens when a business goes down the AI rabbit hole without a clear business objective and a solid grasp of the available alternatives. If you have attended any AI conference lately, chances are that, by the end, you thought your business was dangerously behind. Many of these events, even if not on purpose, can leave you with the feeling that you need to deploy AI everywhere and automate everything to catch up. If you've succumbed to this temptation, you most likely found out that is not the right move. Two years into the generative AI revolution, a counterintuitive truth is emerging from boardrooms to factory floors. Companies pursuing 100% AI automation are often seeing diminished returns, while those treating AI as one element in a broader, human-centered workflow are capturing both cost savings and competitive advantages. The obvious truth is already revealing itself: AI is just one more technology at our disposal, and just like every other new technology, everyone is trying to gain first-move advantage, which inevitably creates chaos. Those who see through and beyond said chaos are building the foundations of a successful AI-assisted business. The numbers tell a story that contradicts the automation evangelists. Three in four workers say AI tools have decreased their productivity and added to their workload, according to a recent UpWork survey of 2,500 respondents across four countries. Workers report spending more time reviewing AI-generated content and learning tool complexities than the time these tools supposedly save. Even more revealing: while 85% of company leaders are pushing workers to use AI, nearly half of employees using AI admitted they have no idea how to achieve the productivity gains their employers expect. This disconnect isn't just corporate misalignment—it's a fundamental misunderstanding of how AI creates value. The companies winning the AI game aren't those deploying the most algorithms. They're the ones who understand that intelligent automation shouldn't rely on AI alone. Instead, successful organizations are orchestrating AI within broader process frameworks where human expertise guides strategic decisions while AI handles specific, well-defined tasks. A good AI strategy always revolves around domain experts, not the other way around. Consider how The New York Times approached AI integration. Rather than replacing journalists with AI, the newspaper introduced AI tools for editing copy, summarizing information, and generating promotional content, while maintaining strict guidelines that AI cannot draft full articles or significantly alter journalism. This measured approach preserves editorial integrity while amplifying human capabilities. AI should be integrated strategically and operationally into entire processes, not deployed as isolated solutions to be indiscriminately exploited hoping for magic. Research shows that 60% of business and IT leaders use over 26 systems in their automation efforts, and 42% cite lack of integration as a major digital transformation hurdle. The most effective AI implementations focus on task-specific applications rather than general automation. Task-specific models offer highly specialized solutions for targeted problems, making them more efficient and cost-effective than general-purpose alternatives. Harvard Business School research involving 750 Boston Consulting Group consultants revealed this precision matters enormously. While consultants using AI completed certain tasks 40% faster with higher quality, they were 19 percentage points less likely to produce correct answers on complex tasks requiring nuanced judgment. This 'jagged technological frontier' demands that organizations implement methodical test-and-learn approaches rather than wholesale AI adoption. Harvard Business Review research confirms that AI notoriously fails at capturing intangible human factors essential for real-world decision-making—ethical considerations, moral judgments, and contextual nuances that guide business success. The companies thriving in 2025 aren't choosing between humans and machines. They're building hybrid systems where AI automation is balanced with human interaction to maintain stakeholder trust and capture value that neither could achieve alone. The mantra, 'AI will replace your job,' seems to consistently reveal a timeless truth: everything that should be automated will be automated, not everything than can be automated will. The Path Forward The AI paradox isn't a failure of technology—it's a lesson in implementation strategy. Organizations that resist the allure of complete automation and instead focus on thoughtful integration, task-specific deployment, and human-AI collaboration aren't just avoiding the productivity trap. They're building sustainable competitive advantages that compound over time. The question isn't whether your organization should use AI. It's whether you'll fall into the 'more AI' trap or master the art of 'smarter AI'—where less automation actually delivers more impact.