College athletes making money on NIL deals, reminded to pay taxes
Written by Tim Hartwell on September 23, 2022
- Rayquan Smith of Norfolk State University has become “King of NIL” despite playing at small school.
- Accountants says student-athletes should set up retirement accounts to shelter income from taxes.
- Some schools like University of Illinois are teaching student athletes financial literacy.
Rayquan Smith doesn’t play football or compete as a decathlete at a major college, but that hasn’t stopped the Norfolk State University dual athlete from cashing in on sponsorships that are now allowed under a new policy changing the financial landscape in amateur sports.
Until last July, student-athletes couldn’t profit if their name, image or likeness was used to sell products. Now, under the new NIL policy introduced in summer 2021, they can, and many are learning their new-found earnings come with responsibilities beyond going to practice and marketing themselves.