Holden & Kisska-Schulze: The Taxable Future Of College Sports

John T. Holden (Indiana; Google Scholar) & Kathryn Kisska-Schulze (Clemson; Google Scholar), The Taxable Future of College Sports, 77 Ala. L. Rev. ___ (2025):

College sports are changing. Historically the National Collegiate Athletic Association (NCAA) exercised a strong arm to prohibit college athletes from receiving any form of compensation. Today, a power shift is occurring across the entire college sports arena. Gone are the days of college athlete earnings prohibitions; the NCAA is losing strength and influence, while the athletes themselves are taking to the courtroom to break down century-long restraints on trade. Since 2021, name, image, and likeness (NIL) compensation has become the new norm, revenue-sharing between institutions and their athletes is coming, conferences are expanding to further capitalize on increased broadcast revenue, and the Third Circuit Court of Appeals set the stage for college athletes to one day be deemed employees of their institutions under select labor laws.

Amidst this rapidly evolving billion-dollar industry, questions have emerged about the potential tax consequences resulting from such changes. Historically, the greater college sports arena largely enjoyed significant shielding from the bounds of taxation. However, as college sports enters a new era that is inherently different and distinct from the NCAA’s archaic ideology of pure amateurism, tax questions relating to the classification of college athletes as employees versus independent contractors, differing earnings models tied to revenue-sharing versus NIL opportunities, and the financial impact of college athletic conference expansion are surfacing. The purpose of this Article is to take a deep dive into the impending tax considerations that could impact the future of college sports.

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