College Athlete Revenue Sharing and NIL: Financial Considerations and Implications

College Athlete Revenue Sharing and NIL: Financial Considerations and Implications

Date

2-14-2024

Faculty Mentor

Julie Staples, Finance, Economics & Accounting; Keith Lowe, Finance, Economics & Accounting

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Files

Submission Type

Conference Proceeding

Location

3:15-3:25pm | Houston Cole Library, 11th Floor

Description

The landscape of college athletics has changed significantly over the past several years. Due to the ruling from the 2021 court case NCAA v. Alston, athletes are now allowed to earn compensation from their Name, Image, and Likeness (NIL). This compensation originates from external sources, such as collectives, donors, and companies, not the academic institutions themselves. The compensation received is determined by each athlete’s specific market/brand value. Social media has become a major factor in defining market value in the modern era of technology. The more “valuable” the athlete, the more likely for them to receive NIL income. However, there are issues that arise with this new stream of income. They may not realize the responsibilities attached to the new income stream they are receiving, especially the taxation rules that will apply to them. A dearth of tax education for student athletes currently exists. Many athletes do not have any substantial background in financial planning or financial literacy. Mandated guidelines by the NCAA are needed to aid these student athletes or individual institutions to navigate these new financial considerations.

Keywords

student research, finance

Rights

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Disciplines

Finance and Financial Management

College Athlete Revenue Sharing and NIL: Financial Considerations and Implications

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