When the National Collegiate Athletic Association (NCAA) adopted the interim policy on June 30, 2021, implementing new name, image and likeness (NIL) guidelines, student-athletes gained much-needed control and profit making rights to their name, image and likeness. This policy has sparked debates in legal circles regarding its impacts on tax fairness and competition for student-athletes.
Currently, arguments for and against granting tax-favored status to organizations that compensate student-athletes using charitable contribution donations are under scrutiny. Prof. Andres Castillo and Barry Gogel of the University of Maryland School of Law argue, the matter is one of great import that requires Congress’s insight. Organizations providing tax deductions for such donations might affect the competition among student-athletes, while influencing the broader picture of tax fairness.
While the debate continues, it is clear that any decision relating to NIL rights and their tax implications are going to be influential for both student-athletes and the tax system itself.