Department
Finance, Economics & Accounting
Document Type
Article
Publication Date
2-2026
Abstract
Student athletes have not historically been recipients of cash-based compensation while simultaneously participating in collegiate sports. Alternatively, these respective athletes have received academic “in-kind” or “non-cash” funding in the form of scholarships. While these aforementioned scholarships often vary by individual sport and institution, they often include several of the following classifications: tuition, housing, meal plans, textbooks, and related supplies/expenses (Brown, 2019). Until recently, student athletes have not been allowed to seek external revenue aside of their scholarship as a condition of maintaining their “amateur status” as regulated by the National Collegiate Athletics Association (NCAA), the governing body of collegiate sports (Staurowsky, 2021).
Initially the NCAA decided that athletes, as a condition of remaining eligible for participation within intercollegiate sports, would be forbidden from enriching themselves financially from revenue streams related to Name, Image, and Likeness (NIL) concepts (Jessop & Sabin, 2021). However, a series of legislative acts spanning from the early 1980s to the present have gradually changed the landscape for college athletes and recognized their right to profit from new revenue streams such as NIL. The Supreme Court ruling of NCAA v. Alston (2021), opened the doors for student athletes to receive compensation outside of their athletic scholarships, thus creating today’s current landscape of collegiate NIL and its related emerging issues (Ternes & Gurney, 2022). The current prominence of social media and related technology is paramount to NIL and the compensation that accompanies it. Athletes are now being evaluated jointly on their academic prowess and respective market/brand values; those with the highest value are sought after by collectives and companies for sponsorships (Frederick, Pegoraro, & Burch, 2022).
While generally perceived as having a positive effect on the lives of student-athletes, large volumes of currency being placed into the hands of young adults has the potential to create various financial difficulties. To date, the NCAA has issued minimal regulation over NIL compensation indicating there is little guidance in assisting student athletes once this income is acquired. Generally speaking, most student-athletes do not possess a background of financial literacy and lack extensive knowledge on this subject (Edelman & Harrison, 2021). For the first time, many college athletes are being exposed to a world rife with financial issues and resulting pitfalls they may not be aware that even exist. One of the most important issues within this financial planning lexicon is the area of income taxation and proper filing. While the possibility of additional income streams such as NIL income has opened many doors of opportunity, college athletes must be equipped with the appropriate knowledge and tools to prevent their dreams from becoming financial nightmares within this new environment (Smith, 2021).
Recommended Citation
Staples, J. & Lowe, K. (2026). College Athlete Revenue Sharing and NIL: Financial Considerations and Implications. E-Journal of Business and Economic Issues, 12(1), 1-20.
Publication/Presentation Information
E-Journal of Business and Economic Issues, 12(1), 2026, 1-20.