Different types of agents I assume but I really don't know. There's probably a governing body for sports agents who if the agent is affiliated with you can't use them but I doubt there's a governing body for these "NIL agents."
i'm thinking it goes like this.... Say i'm Scott Boras and I want to sign Brice Young..... I offer him a NIL deal, with the understanding that he's going to be a client after graduation.....
I would bet that many home states will seek to tax college students instead of the state where the college is located. My son had to pay income tax (or at least report it -- not sure how much tax was due) in Ohio and in our city (local income tax) when he worked part time in Ann Arbor while at UM. If that is true, the tax laws of state where the college is located may be irrelevant.
I'm not a tax attorney, so don't take this to the bank, but I think I may be right about this.
Correct, you pay taxes in the state of your primary residence.
But you may also owe state tax in states you work. Then your home state may or may not also tax you. Fun stuff.
While California’s income tax is high, the property tax is actually quite low. California schools would benefit from a Reggie Bush style NIL compensation scheme.
crypto.....
CFB recruits from here on out...
Ha ha. Will not be surprised if this becomes a line item.
Prime 18-year old athletes furiously using adding machines...
This certainly is a concern in professional sports and definitely factors into negotiations. Of course salary caps and other collective bargaining terms factor in for professional leagues, but nonetheless it will still matter to recruits. They will need to do a little bit of math to determine what offers really mean. It's not as simple as where the school they attend is located. It will also matter where they maintain a permanent residence as well as where the NIL will be earned.
An example is if a business owner pays $1M to a kid from state X who attends his alma mater in state Y to travel to state Z and film a commercial for his business there. Depending upon the state(s) involved, the tax implications could be very different.
If these guys are shopping offers to a point that 5% makes a difference above fit, location, opportunity, and development then good luck.
These are 18 year old kids who have no guarantees. They could wash out or lose their football career to injury. This could be the only payday they get. Sure, the other criteria you put out there are important and maybe even more important than the total $$. Nonetheless, I have no problem with top recruits using $$ as criteria. For the top recruits, it's hundreds of thousands of dollars,. Investing just that 5% conservatively at 18 years old can have a tremendous impact on the financial security of these young athletes.
It's a factor but the variation in size of the NIL deals themselves will far outweigh the impact of state income tax
I think this is giving too much credit to NIL final number best offers. Yes there may be a couple of "best offer, bottom line" recruits out there.
I think for the most part however, these kids are still evaluating the overall package - school, town, weather, educational opportunties, coaches, team, fellow recruits, starting opportunity/depth chart, chances of making the playoffs/title game, winning, getting NFL exposure, player development, and yes NIL will be a major final factor.
I don't think percentage points on taxes will be heavily weighed by most recruits.
Related: regardless of the state income tax, the NIL money is also federally taxable. Two things: (1) I hope sensible people are advising these young folks to put aside money for the tax bill; and (2) I wonder if, for the purpose of taxation, the NIL would be considered "self employment" income, and thus subject to FICA withholding?
Very, very likely self employment. These kids will get 1099s. The fed tax bill is going to be pricey. 15.3% on top of regular income tax. They’ll all probably max out on social security tax pretty quick at least.