Until now, athletes getting paid in college sports teams via their names and likeness hasn’t been permitted. Athletes haven’t been able to profit from anything involving their name to create income. As of now, college athletes will be able to take up numerous entrepreneurial opportunities to earn income for themselves. As a college athlete taking on these new and exciting entrepreneurial tasks, you will likely need help such as an agent and tax accountant to assist in dealing with the complex policy surrounding the new regulations.
Key Points and Takeaways:
The NCAA’s new policy allows college athletes to now be able to monetize their name and images, stretching over all three collegiate sport divisions.
Why Is This Significant?
Until now, the NCAA has banned student-athletes from receiving income that exceeds the cost of attending school. Students have also been prohibited from endorsing commercial products, making it challenging to create an income from their names and likeness. For the first time, athletes getting paid in college can open up vast opportunities for entrepreneurial pursuit to make money without losing student’s eligibility.
There are now copious entrepreneurial opportunities presenting themselves for the first time to college athletes and, with it, a few complex and challenging decisions. In many cases, students have to consider tax consequences and may have to register as independent contractors and pay tax on their earnings. Perhaps they need advice on which business ventures to collaborate with following the new regulations. Obtaining professional assistance from tax accountants can make this process more seamless.
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Fusion CPA specialises in tax accounting, bookkeeping and business advisory nationwide and remotely. Schedule a free discovery call with Fusion CPA today to have the rest of your questions answered.
What Can Athletes Do To Earn an Income?
- Appear in national advertising
- Partner with brands on social media
- Launch their own businesses
- Sell memorabilia
- Make paid public appearances
How Do You Collect NIL Revenues?
Opendorse is a platform, built by athletes, for athletes. They provide technology to the athlete endorsement industry and assist in educating, measuring, booking and more to ensure their athletes are supported and their brand value monetized.
Why Did It Take So Long?
CBS talks to UNH professor about why this ruling took so long
Can Athletes Hire Agents To Simplify The Process?
Yes, NCAA rules allow athletes getting paid in college to hire professional help and assistance in the form of lawyers, agents, and tax accountants as many policies, regulations, and rules need to be adhered to.
Why Do You Need To Hire Help?
There are other restrictions on state laws, policies, and rules on how college athletes are allowed to make money. These policies are also highly dependent on the specific school and the place or region.
For example, Athletes cannot endorse alcohol, tobacco, or gambling products or services.
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At Fusion CPA, we are able to assist you with a variety of business needs; accounting, tax planning, software integration and business advisory. If you want to know more about our service offerings, click the button below to learn more about how we help professional athletes.
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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.