NIL Investment Accounts for Student-Athletes and Agent Protections
This act establishes tax-exempt investment accounts for student-athletes, allowing them to save Name, Image, and Likeness (NIL) income with deferred tax obligations and potentially lower tax rates upon graduation. It also strengthens protections against unscrupulous sports agents by setting fee caps, mandating agent registration, and granting student-athletes the right to sue agents for violations. The goal is to support long-term financial security for athletes and increase transparency in the industry.
Key points
Student-athletes can open special NIL Investment Accounts to save income from their name, image, and likeness with tax deferral.
NIL income contributed to these accounts is not immediately taxed and may be taxed at lower capital gains rates after graduation.
A 5% cap is placed on fees charged by sports agents for NIL contracts, and agents must register with the state.
Student-athletes gain the right to sue agents for violations and cannot be forced into pre-dispute arbitration.
NIL accounts can be converted into retirement accounts (IRA/Roth IRA) after college, with a $35,000 lifetime limit.
Trustees of NIL accounts must provide educational materials on financial planning and investing to student-athletes.
Introduced
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