Katie Davis Quoted in AL.com Article: NIL Collectives’ Future and Impacts

With the rapid changes in the name, image, and likeness (NIL) landscape, 501(c)(3) NIL collectives are beginning to reevaluate their operations. Concerns over increased scrutiny from the IRS are prompting some organizations to consider whether continuing these initiatives is worth the potential risk.

Katie Davis, a partner at James Moore & Co. and leader of the firm’s Higher Education Services team, recently discussed the challenges these collectives face with AL.com. She highlighted the growing apprehension among universities and collectives regarding the potential for the IRS to target them as they navigate this new era of college athletics.

“I could see where universities and collectives might say, ‘It’s not worth the risk of having the spotlight on us and having the IRS make an example of us as we’re trying to navigate this new generation of college athletics, so let’s just not even go there anymore,’” Davis remarked.

As these 501(c)(3) collectives consider winding down operations, Davis’s insights underscore the complexities and uncertainties that come with managing NIL initiatives under the current regulatory environment. The decisions made in the coming months could significantly shape the future of NIL in collegiate sports.

You can read the complete AL.com article here.