There are rumors stemming from people associated with D1 schools in Texas of of illegal payments from alumni to athletes under the guise of ‘Name, Image, Likeness.’ In addition, it is alleged that athletes are making local deals with restaurants are often not aware there are huge tax implications on any money earned. These athletes separate small amounts of money paid (sort of) under-the-table, and big deals with major companies.
Undoubtedly, financial “advisors” looking to take advantage of the naivete of the athletes.
In an article by Laine Higgins for the Wall Street Journal, April 14, 2022, Peter Schoenthal, chief executive of Athliance (a company that helps athletes navigate the NCAA rules was quoted):
“Although NIL [name, image and likeness] is a wonderful thing and it will get figured out…there will be bumps in the road and one of them is going to be April 18. (Tax day).”
As a keynote speaker, consultant and book author in the areas of sport ethics and business ethics, while I celebrate NIL, I also worry that athletes see the rainbow and the pot of gold, but not the slime that can come from making poor choices around good money.
As part of our experience and ethics outreach, Sports Ethics LLC sees major pitfalls to NIL. While we support it in theory, we also acknowledge the dangers.
Sports Ethics, (828) 244-1400
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