Taxpayers likely would see no impact from high school NIL

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(The Center Square) – If principals vote to allow high school athletes to make money off their name, image and likeness, taxpayers likely won’t see an impact.

Players and parents, however, could.

The Ohio High School Athletic Association announced a Nov. 17-21 vote by member schools on an emergency bylaw change that would allow student-athletes to earn money through NIL.

The vote, initially scheduled for May, was pushed up after a Franklin County judge issued a temporary restraining order earlier this week that stopped the current NIL ban.

Ohio is one of only six states that continues to ban NIL for high school players.

The association’s plan allows students to sign contracts to profit from their name, image and likeness through appearances, licensing, social media, endorsements and the use of branding based on their public recognition or notoriety.

The plan would set up reporting procedures and other limitations to protect recruiting and amateur status.

The plan bans collectives, which are prevalent in college sports, and are generally created by alumni and boosters to provide NIL deals for athletes.

Athletes would be banned from entering into an agreement with schools or agents of the school like booster clubs or foundations, and players would not be able to transfer to a new school because of an NIL deal.

Athletes would also be prohibited from using the name, logo or mascot of any state association school or team during any promotions.

The association plans to send informational webinars and more details to schools over the coming days.

The tax implications for NIL earnings likely will fall only on the athlete and their parents, according to Anthem Tax Services.

Anthem says money earned through NIL generally falls under self-employment taxes and parents could be responsible for their minor children’s tax obligations.

Also, any NIL earnings could impact college financial aid status.