News & Brews Sports Biz: Navigating Taxes on NIL Earnings

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Summary

July 2021 is one of the most impactful months in collegiate athletics history as the rules are changing to allow student-athletes to—for the first time—legally profit from their name, image and likeness. This month, we dive into some of the lesser-talked-about issues surrounding NIL in a three-part series. Join us as we chat with our special guests about important financial issues that may not be front of mind.

Katie and Ken chat with Melody Lechleidner, Tax Director specializing in state and local taxes at James Moore, about navigating taxes on NIL earnings. As discussed in previous episodes, having a basic understanding of tax implications in an NIL landscape is important but often overlooked. We’re here to help highlight some basic tax issues and red flags that athletics staff and student-athletes should be aware of as NIL earnings become a reality.

00:12 – Welcome

03:34 – Tax Landscape – Pro vs. College Athletes

06:36 – State Tax Landscape – Residency vs. School vs. Earned Income

11:30 – Taxability of Non-Cash Items

13:17 – Taxability of Social Media Influencing

17:10 – Taxability of LLCs

22:30 – Tax Planning Do’s and Don’ts

26:40 – Brew Selections

28:01 – Wrap-up

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Learn more about James Moore Collegiate Athletics Services Team: https://www.jmco.com/industries/collegiate-athletics/