In this episode of Beyond the Ledger, host Shardae Layfield sits down with Peter Stathopoulos, Partner in Bennett Thrasher’s Entertainment Practice, to explore how Name, Image, and Likeness (NIL) has transformed college athletics into a complex financial and tax landscape. The conversation examines the tax implications of NIL income, common record-keeping mistakes, multi-state tax challenges, and strategic planning opportunities that can help athletes, schools, and collectives navigate this rapidly evolving environment with greater confidence.

Takeaways

• NIL Income Is a Business: Student-athletes should approach NIL earnings as business income from the very beginning, with the same financial discipline expected of entrepreneurs.
• Record-Keeping Is Essential: Maintaining organized records of income, contracts, expenses, and payments can help prevent costly tax issues and simplify reporting.
• Tax Bills Can Be Unexpected: Many athletes are surprised by their tax liability, making proactive planning and setting aside funds for taxes a critical part of managing NIL income.
• Multi-State Taxes Add Complexity: Earning income across multiple states can trigger additional filing requirements and tax obligations that athletes often overlook.
• Business Structures Can Create Opportunities: As NIL earnings grow, forming the right business entity may provide tax planning and liability benefits.
• Schools and Collectives Have Compliance Responsibilities: Proper payment reporting, documentation, and education are increasingly important for institutions supporting NIL programs.
• Professional Guidance Pays Off: Working with qualified tax advisors early can help athletes avoid common mistakes and make more informed financial decisions.
• Planning Beyond College Matters: NIL income presents an opportunity to build long-term financial success through strategic tax planning, savings, and investment decisions.
• The NIL Landscape Will Continue to Evolve: As regulations and guidance develop, athletes and organizations must remain adaptable to new tax and compliance requirements.

🔗 Learn more: btcpa.net | Follow Bennett Thrasher for more conversations that move business forward.