NIL, the NCAA, and the IRS

This program explores the rapid evolution of Name, Image, and Likeness (NIL) rights has introduced a complex legal landscape for student-athletes, educational institutions, and NIL collectives offers attorneys an in-depth analysis of emerging taxation and compliance issues surrounding NIL activity. Attendees will explore the IRS's recent guidance on the ineligibility of many NIL collectives for charitable status, and the legal implications for donors, collectives, and universities. The program will also examine critical considerations for foreign student-athletes navigating visa restrictions, taxation on NIL earnings, and eligibility risks under current NCAA and immigration rules.

Topics include:

• NIL Generally. General information on NIL laws and overview of tax implications

• Student-athlete status. IRS Worker classification issues and foreign student visa issues

• Pure NIL vs. Third-Party NIL. Pure NILs, Collectives and 501(c)(3) status now in question

• Other Tax Considerations. Self-employment taxes, estimated taxes, dependency issues, and Qualified Business Income deduction.

• Support for Rulemaking and Enforcement. Potential additional legislation on the horizon.

Whether advising a NIL collective, university, or individual athlete, this session will equip attorneys with the knowledge to navigate NIL's legal gray areas and anticipate future developments in taxation, compliance, and regulation.

Learning Objectives: 

1.  Analyze the evolving legal framework governing Name, Image, and Likeness (NIL) rights and the tax implications for athletes, collectives, and universities.
2. Evaluate IRS guidance on NIL collectives' ineligibility for charitable status and assess the consequences for donors and institutions.
3. Identify compliance challenges for foreign student-athletes, including visa restrictions, taxation of NIL earnings, and NCAA eligibility risks.
4. Apply tax rules affecting NIL activity, including self-employment taxes, estimated payments, dependency considerations, and the Qualified Business Income deduction.
5. Anticipate potential regulatory and legislative developments in NIL rulemaking and enforcement, and advise clients on proactive compliance strategies.