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TAX

Name,

image,

liability

Student-athletes may face unexpected tax
liabilities from compensation for their name,

image, or likeness now allowable under

NCAA rules.

By Jacob T. Crowley, CPA

participating at NCAA colleges CPA firms
istorically, student-athletes

Hand universities could not make
likeness (NIL). However, in fall 2019, now have
money based on their name, image, or

California passed S.B. 206, the Fair Pay
be paid for their NIL and regulating the an untapped
to Play Act, allowing college athletes to
practice. California’s law took effect in
suit. Since then, more than two dozen market of
September 2021. Other states followed

states have passed NIL laws (see NIL
Network, “NIL State Laws”). In 2020, new clients.
NCAA President Mark Emmert made
a plea before Congress to enact restric-
tions on NIL deals and practices, but to
date, Congress has not done so. With 13 Subsequently, the college athletics
states’ laws set to take effect on July 1, world has been flooded with NIL deals
2021, the NCAA suspended its previous for student-athletes to represent and
NIL rules on June 30, 2021, and created promote brands and companies. Ad-
interim rules allowing NIL payments ditionally, many large university alumni
under certain guidelines. bases are organizing NIL “collectives,”

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