US Congress weighs tax relief for college athletes amid NIL earnings

U.S. lawmakers are considering changes to ease the tax burden on college athletes whose name, image and likeness (NIL) deals generate substantial income. During a House Wage and Means Committee hearing on the multi‑billion‑dollar sports industry, members learned that many student‑athletes, often teenagers, receive large endorsement payments but lack guidance on complex tax rules.

Former NFL player and ESPN analyst Sam Acho cited an 18‑year‑old football player who earned $750,000 through NIL contracts, only to discover a tax liability of roughly $320,000 because no withholding was applied. The athlete’s remaining cash fell to about $6,000 after purchasing a house, a car and an apartment. Former IRS official Todd Madon explained that athletes are treated as self‑employed independent contractors, requiring them to pay federal income tax, Social Security and Medicare without automatic deductions. Lawmakers are urged to mandate withholding on NIL payments and improve financial‑literacy programs for student‑athletes.

The discussion also touched on broader sports‑industry economics, including public subsidies for stadiums and the growing reliance on international talent in U.S. college sports, which can face additional immigration‑related tax challenges.