The entrance of name, image and likeness deals in college sports has raised questions about what it means to be a tax-exempt charitable organization
NEW YORK — Three years into the new age of college sports, where athletes are allowed to profit from their successes through name, image and likeness deals, everyone is still trying to find out what the new normal will be.
Greg Sankey, commissioner of the Southeastern Conference, called it “uncharted waters of change” in July at SEC Media Days in Dallas, as college football season approaches. «Anytime you go through a reset, it is difficult,” said Sankey, whose conference not only includes perennial powerhouses Georgia and Alabama, but, as of this year, Texas and Oklahoma, as well.
Those uncharted waters aren't limited to football. The complicated, often murky, world of NIL has touched not just every corner of college sports, but also had an unanticipated effect on the charitable organizations that popped up to help players secure these sponsorship deals.
The basic question NIL raises for nonprofits is: What is charitable about paying college players?
To unravel how NIL deals in college sports have anything to do with the nature of tax-exempt organizations, we have to go back to 2021. That’s when a Supreme Court decision forced the NCAA to allow players to be paid for the use of their name, image and likeness. The ruling allowed players to finally enter into sponsorship and endorsement deals — including everything from the much-anticipated EA Sports College Football 25 video game to promotional appearances for local restaurants and car dealerships.
Fallout from the Supreme Court decision continues, with rules governing NIL deals evolving in response to new lawsuits and
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