Commentary
Since 1987, taxpayers have been denied charitable deductions for contributions to their university’s athletic department if the taxpayer receives the right to purchase tickets, preferred seating, etc.
Until 2021, no university athletes were allowed to be paid by donors to play sports. Athletic scholarships to athletes to play sports were and are not taxable.
Beginning in July 2021, after years of controversy and lawsuits, the NCAA now allows players to receive payments for the use of their name, image, and likeness (N.I.L.).
The N.I.L. payments are not made by the universities where the athletes are playing sports. The funds for the N.I.L. payments come from boosters, be they individuals or businesses. There is no limit per athlete or per school on the number of N.I.L. contracts that may exist or the amount of such payments that can be made….