What the heck?

[Hskies4Ever]

my comments are general in nature. Athletes will need to consider their domicile and figure out how much revenue was earned in each state where they performed services. I would assume that UConns NIL would issue W-2s. Generally payroll providers would withhold in each state where money was earned. I’m not exactly certain who is handling payroll for UConn athletes. On the other hand, if the athletes were issued 1099s, then the athletes are responsible for remitting payments to each state. This could get hairy pretty fast.

I presume they sign a contract with whatever entity (or entities) that pays their NIL. They’ll get 1099s and I presume pay taxes based on where they had to perform their duties to earn the NIL. Again, playing football is not a duty since they’re “not paid to play football.”

The revenue sharing they can receive from the schools is a more interesting question to me.

I suspect the schools help out the players to different degrees, but I would think the better run organizations would provide access to tax professionals.

 

[CL82]

If they don't now they will soon. I don't see any way NIL can be defended as not being earned as a participant in the games they play (even if they may miss some games). At some point every tax state will want their share.

Hahaha just when you think this can't become a bigger mess, it does.

For what it's worth, I would guess some may argue that NIL services aren't being performed that on game day. Instead, they are being performed wherever the marketing photo shoots or autographed signings take place?

An interesting question is whether a vendors multi state advertising creates Nexus in all states?

The no State tax thing would apply to revenue sharing though. I guess State legislatures could choose to exempt that income from taxation. Not sure how much blowback that would have from voters.

 

[Kolumbo]

Universities will establish offshore campuses which will house their NIL offices.

I think there will be a lot to sort out by the federal and state agencies. If you play for Florida State and make an appearance in California, that could be considered part of your NIL value.

 

[Windham4th]

I wish I could have gone to the University of Connecticut - Cayman Islands branch

 

[Chin Diesel]

Universities will establish offshore campuses which will house their NIL offices.

I think there will be a lot to sort out by the federal and state agencies. If you play for Florida State and make an appearance in California, that could be considered part of your NIL value.

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I'd love to hear a counselor argue in court no player received "value" by playing against Cal in Berkeley or BCU in Boston. They would have a stronger case players lost value playing against Cal, BCU, etc due to the level of competition and crappy game day environment.

 

[CTpessimist]

Players also get paid for 12 months and only play 6(?) Saturdays away from their campus. So they could easily argue it’s very little income outside of their home state and might not even be taxable at that point.

 

[Spsone07]

Players also get paid for 12 months and only play 6(?) Saturdays away from their campus. So they could easily argue it’s very little income outside of their home state and might not even be taxable at that point.

Every home state is different and will challenge taxpayers domicile (vs residency). Some states are aggressive, for example CA normally taxes you on worldwide income and give you a credit for taxes paid in other states.

CA is pretty aggressive and will find ways to pull you back into paying CA income taxes. Somewhat related (but off topic) looking at contracts like Ohtanis with the dodgers (especially when he returns to Japan), I’m certain that this will be targeted by California when he retires.

Back to CT’s NIL, I would assume that the NIL will have some structured events to uphold the NIL contract so that it would be tied to local events and not games played. If all these were for services for showing up at a charity event in CT, then that revenue would be taxable in CT.

 

[Kolumbo]

I'd love to hear a counselor argue in court no player received "value" by playing against Cal in Berkeley or BCU in Boston. They would have a stronger case players lost value playing against Cal, BCU, etc due to the level of competition and crappy game day environment.

counterpoint: If you have a superstar quarterback at FSU and you play in Boston, your QB is the primary reason people showed up in Chestnut Hill. That's NIL at work and Mass would like a piece of that action.

 

[gioff2323]

counterpoint: If you have a superstar quarterback at FSU and you play in Boston, your QB is the primary reason people showed up in Chestnut Hill. That's NIL at work and Mass would like a piece of that action.

If you get on film in Timbuktu for a college team or an nfl scout to view, u got value. Your witness

 

[Chin Diesel]

counterpoint: If you have a superstar quarterback at FSU and you play in Boston, your QB is the primary reason people showed up in Chestnut Hill. That's NIL at work and Mass would like a piece of that action.

I like your sense of humor. Funny guy you are.

 

[JohnFSilver]

NIL is for media appearances etc., not for performing in football games. They arent going to need a 1099 for each state. Now,how will the money allocated due to house settlement work? No idea.