Navigating NIL Deals for High School Athletes in Georgia

NIL deals explained for high school athletes.

The landscape of high school sports has undergone a significant transformation with more states approving NIL deals for high school athletes. This post shares what NIL deals mean for high school athletes, their parents, their taxes, and the schools. I’ve included a list of frequently asked questions about NIL deals for high school athletes at the end of the post.

A lot of good can come from NIL deals for high school athletes, but there are precautions to be aware of. Here’s an explanation of NIL deals and the guidelines for high school athletes in Georgia.

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NIL deals for student athletes are great but know the precautions.

Understanding the NIL Landscape in Georgia

Including Georgia, 29 states and the District of Columbia now allow NIL deals for high school student athletes. Interestingly, there are 3 sports-heavy states that do not: Alabama, Florida and South Carolina. This absence raises questions about the factors influencing these decisions, considering the rich sports culture embedded in these states.

The Georgia High School Association has approved NIL deals for high school athletes. That brings opportunities for high school athletes to use their name, image, and likeness to generate income. Monetizing a NIL deal could look like wearing merch, promoting products and services, appearances, or social media features.

Guidelines regarding name, image, likeness (NIL) for high school athletes in Georgia

Engaging in NIL activities will not put a student athlete's amateur status at risk as long as (1) the student meets all requirements for maintaining amateur status in compliance with GHSA bylaws and (2) there’s no violation of recruiting, undue influence, or following a coach to a school.

NIL deals cannot be linked to stats or performance. Name image and likeness deals are based on the high school athlete’s brand and exclude any reference to the school that the student attends. High school athletes are not allowed to use their schools’ name, logos, uniforms, premises, or other intellectual property.

Schools or school representatives may not use NIL deals to entice an athlete to enroll in their schools either. Also, NIL compensation cannot be provided by the school or its representatives.

High school athletes or their parents must notify the school’s principal or athletic director within seven days of entering into an NIL agreement. High school athletes may not engage in NIL deals or NIL activities that violate the school district’s policy. Examples include, but are not limited to, endorsing tobacco products, alcohol products and controlled substances.

Financial Literacy and Tax Implications of NIL Deals

I strongly recommend that students and their families seek professional guidance about how income from NIL activities could impact collegiate financial aid.

Student athletes with NIL deals are businesses, whether they know that or not.

Equally important is the financial education, cash management, and tax planning that needs to happen - especially for parents claiming kids with NIL income on their tax returns. Forming a separate entity like an LLC or corporation is an ideal way to keep NIL activities organized.

Looking Ahead: A Glimpse into the Future of NIL Deals for College Athletes

NIL deals for high school athletes in Georgia serve as a preview for what lies ahead in college sports. College athletes are choosing to stay in school instead of entering sports drafts because of the high value placed on their brands with NIL deals. Travis Hunter, one of the superstar players at Colorado, has a NIL valuation of almost $2 million dollars!

To delve deeper into this evolving landscape, check out our Comprehensive Guide to NIL Deals for Student Athletes.

As high school athletes in Georgia embark on this new era of NIL deals, a nuanced understanding of guidelines, limitations, and financial implications becomes paramount. Navigating this landscape successfully requires a combination of business awareness, financial literacy, and strategic planning. Stay informed, stay empowered, and let the world witness the rise of the next generation of student-athlete entrepreneurs.

Get in touch with Winston CPA Group for personalized guidance on managing money and taxes with NIL deals.

Need to talk to a CPA? Book Time Here.

Have questions about NIL deals for student athletes? Here’s questions student athletes, their parents, and schools often ask us.

What is a NIL deal, and how does it apply to high school athletes?

Are NIL deals legal for high school athletes in all states?

Can high school athletes use their school’s logos or uniforms in NIL deals?

How do high school athletes navigate the guidelines set by their state’s athletic association for NIL deals?

What types of products or endorsements can high school athletes pursue in NIL deals?

Are there financial implications for high school athletes engaging in NIL deals?

Do high school athletes need to notify their school about entering into NIL contracts?

Can parents claim their high school athlete as a dependent if they have NIL deals?

How do high school athletes balance academics and the demands of NIL deals?

What is the future outlook for NIL deals in high school sports?

Still have questions? Book time with a CPA.

Note: While this post offers valuable insights, this information should not be considered a substitute for professional tax advice. Tax laws and regulations can be complex and vary by jurisdiction. Consider a consultation with Winston CPA Group for personalized tax guidance tailored to your specific situation.