There are idiosyncrasies within the NIL space that the typical fan – or reporter – might not think about regularly, if at all.
Among the top concerns for athletic departments as it pertains to their athletes that might not cross the public’s mind is Uncle Sam’s cut. Any money received from collectives, any cars or products collected in deals, endorsements, even digital acquisitions like NFTs, all NIL earnings are taxable income.
“If you do a deal and you get paid in gross, you got a whole backer percentage (you owe in taxes),” outgoing Ohio State athletic director Gene Smith told Eleven Warriors.