Scott Hodge in the Indianapolis Star:
Prior to the NCAA allowing NILs, the rap against March Madness (and college sports in general) was that the universities and organizing conferences were getting rich off lucrative TV contracts and corporate sponsorships. Meanwhile, the athletes — who are the show — weren’t paid and shared in none of the spoils.
To some degree, NILs have taken steam out of that argument. For example, USC guard Bronny James is said to have endorsement deals worth $5.9 million, and Iowa Hawkeye Caitlin Clark’s total deals are nearing $1 million. …
Unlike professional leagues like the NBA, which must pay income taxes on the revenues they earn from TV contracts, ticket sales, and licensing merchandise, universities and athletic conferences including the NCAA can pocket the same income tax-free because of their tax-exempt status under section 501(c)(3) of the Internal Revenue Code. …
… college athletics earned upwards of $13.6 billion in total revenue in 2022 through various channels and entities, more than any professional sports league other than the NFL. …
NIL income has turned student athletes into paid athletes; the line between college sports leagues and professional sports leagues is thinning. If student athletes are taxed on their earnings, the NCAA and its brethren should be taxed on theirs.
Caitlin Clark pays income taxes on NIL. It’s time to tax the NCAA, too.
As some feared, NIL was the beginning of a slippery slope.
I could see College football leave the NCAA and become a minor professional league. Paying taxes.
That would be good for education. BAD for everything that is currently funded by College football.
