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This year kicked off with several important name, image, and likeness (“NIL”) updates that universities, boosters,¹ and NIL Collectives² would do well to review. Earlier this month, the NCAA Division I Committee on Infractions Panel (the “Committee”) issued a negotiated resolution with Florida State University (“FSU”) following an investigation into alleged impermissible conduct during the recruitment of a football player who was listed in the National Collegiate Athletic Association’s (“NCAA”) transfer portal. This resolution comes on the heels of new NCAA disclosure rules and the NCAA President’s letter that proposes allowing universities to enter into NIL agreements with student-athletes.

The IRS recently issued an internal memorandum to the effect that many Name-Image-Likeness (NIL) collectives will not qualify for 501(c)(3) tax-exempt status, including those that had previously obtained tax exemption letters from the IRS.

Last year’s college football offseason drama came to a head with coaches levying allegations that impermissible name, image, and likeness (“NIL”) payments were made to prospective student athletes to persuade them to attend a certain university. The latest NIL saga is similar, but with a twist.