NIL Athletes Facing Unexpected Tax Bills, Tennessee Senate Update, Charlie Baker and the Future of College Sports + ICYMI & More | NIL Newsletter #227
Welcome to the NIL Newsletter by Optimum Sports Consulting - providing valuable, actionable NIL resources for athletes, administrators, agencies and other sports professionals.
Major News
High School Athletes On The Hook For Unpaid Taxes
High school athletes may be responsible for unpaid taxes on NIL deals once they become adults if their parent or guardian hasn’t paid taxes on that income.
Most high school athletes aren’t advised about their tax obligations.
These athletes receive a 1099, holding them accountable for Social Security, Medicare, and state taxes on revenue coming from social media partnerships.
Ignorance of tax laws or the failure of parents to pay taxes won’t save these athletes from the IRS.
Tennessee Senate Approves Bill In Light Of Preliminary Injunction On NCAA
The Tennessee Senate proposed the bill based on claims that the NCAA rules limitations violate federal antitrust law by limiting athlete compensation.
The bill would change Tennessee law to allow prospective students to hire an agent and would eliminate fair market value limitations on athlete pay.
The Tennessee Senate believes this will mitigate NCAA actions that harm student-athletes.
The Senate bill passed 32-0 and it will head to the House Education Administration Committee this week.
NCAA President Charlie Baker Comments On State of NIL In 2024
Baker acknowledges that spending varies from school to school, even those within the same level.
He wants heavily resourced institutions to make decisions about how certain schools and sports will be governed.
Baker worries about equality in NIL in terms of sports outside of football and basketball.
He also expressed concern about Title IX compliance as schools aren’t allowed to participate directly in NIL compensation.
For Athletes
Deal of the Week
Bumble signs Stanford Forward Cameron Brink, Arizona Guard Jada Williams, and UCLA gymnast Jordan Chiles to NIL partnerships.
The deal was extended as part of a celebration for the 50th Anniversary of Title IX.
Bumble remains committed to empowering and spotlighting women athletes.
ICYMI
Duke Guard Jared McCain signs NIL deal with beauty and nail polish brand Sally Hansen. LINK
Between Division I and Division II, there are over 1400 players currently in the transfer portal. LINK.
NCAA makes clear that multi-time transfers who transfer during or after the current academic year can be eligible to play at their new school the following year. LINK
NCAA notices a significant “uptick” in March Madness sponsorship and influencer marketing campaigns. LINK.
Ice Cube offers Caitlin Clark $5 Million to join the BIG3 league. LINK.
Have you checked out OSC’s website?
Head to www.OptimumSportsConsulting.com to find important resources and features relating to all things NIL. These resources include State by State Resources for Admins, Agents, and Athletes, including our initial “OSC Summaries” for over a dozen states coming soon.
More to come too, including links to helpful state information- agency laws and information about school policies, as well as seminar/congressional notes, worksheets, and much more!