With sponsorships worth several million dollars suddenly available to young students, some universities are urging them to allocate enough of their new earnings to cover taxes. Is the message getting through?
- Raikwan Smith of Norfolk State University became the “King of the Nile” despite playing in a small school.
- Accountants say student-athletes should create retirement accounts to protect income from taxes.
- Some schools such as the University of Illinois teach student-athletes financial literacy.
Rayquan Smith doesn’t play football nor compete as a decathlon in a major college, but that didn’t stop Norfolk State University’s dual-sport is making money from sponsorships now allowed under a new policy that is changing the financial landscape in amateur sports.
Until last July, student-athletes could not profit if their name, photo or image was used to sell products. Now, under the new NIL policy introduced in the summer of 2021, they can, and many are learning that their newly earned earnings come with responsibilities that go beyond just practicing and marketing themselves.