Part 2: Tax effects of the new NIL landscape 

The college athletics landscape continues to shift toward educational institutions’ direct involvement in name, image, and likeness (NIL) rules and revenue-sharing arrangements with student-athletes.

Join us for this second webinar on tax considerations for educational institutions due to changes in NIL rules. Our specialists will further discuss shared responsibilities for tax directors and athletics departments to address issues and minimize risks in this changing environment.

Learning objectives

After participating in this session, attendees should be able to:

• Describe the recent legislative, regulatory, and legal activity and newly implemented institutional guidance related to changes in NIL rules and their impact on colleges and universities with athletic programs since the announcement of the House settlement.
• Identify potential tax-exempt status, private benefit, and unrelated business income tax issues that might affect educational institutions when compensating student-athletes for their name, image, and likeness, focusing on  how these issues might vary for schools of different sizes.
  
• Recognize the tax implications of NIL activities based on the nature of the potential payments, including the individual income tax impact of royalty payments versus employee compensation, and payroll tax obligations for institutions, including excess executive compensation, withholding requirements, and reporting obligations at the foreign, state, and local levels.