So a player can be paid for TV commercials, radio spots, and be paid for their name, image, or likeness being used for commercial purposes. The Federal Congress may see this as an opportunity to tax the same as income. Could this also open the door for the Feds to look at this to also levy a tax on the value of the scholarship? Right now scholarships are considered to be for the "cost of attendance" and neither athletic nor are scholarships awarded to students are subject to income taxation...yet. IIRC, academic scholarships might continue to be exempted since the student is not otherwise compensated. Only funds they receive for other work off campus is potentially taxable. But an athlete being paid to lend his or her name, image and likeness may be subject to federal taxation and perhaps to state tax in those states where income is taxed. This will be interesting to follow, especially if the entity paying them treats them as a mere contractor and does not withhold on the funds paid. Hope the players hire a good attorney and CPA to help them navigate the income tax issues.
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Last edited: Apr 24, 2021