This post will be updated as new deals are made public. Contact me if you have a new deal I should add. Last update September 17, 2021.
Car deals were often the example given when we all talked about the opportunities name, image and likeness might bring for student athletes. Dealerships aren’t disappointing, jumping right in during the first two months of this new NIL era.
So far, deals have mostly been for football student athletes, but there has been one announced for a men’s basketball player. The deals made public include:
Myles Brennan (LSU Football, Quarterback)
Dealership: Hollingsworth Richards Ford
Deal brokered by: Matchpoint Connection
Vehicle: Ford F-250
Derek Stingley Jr. (LSU Football, Cornerback)
Dealership: Jimmy Granger’s Natchitoches Ford
Vehicle: Ford ShelbyGT 500
Bryce Thompson (Oklahoma State Basketball, Shooting Guard)
Dealership: Bill Knight Ford of Stillwater
Vehicle: Ford Mustang
Jack Sawyer (Ohio State Football, Defensive End)
Dealership: Mark Wahlberg Chevrolet
Vehicle: Chevy Silverado
Quinn Ewers (Ohio State Football, Quarterback)
Dealership: Ricart Automotive
Vehicle: Ford F250 Super Duty
Jayden Daniels (Arizona State Football, Quarterback)
Dealership: Jones Ford Verde Valley
Vehicle: 2020 Ford Mustang GT Premium
Kenny Pickett (Pittsburgh Football, Quarterback)
Dealership: Bowser Automotive
Vehicle: GMC Sierra
Haskell Garrett (DT), Zach Harrison (DE), C.J. Stroud (QB), Chris Olave (WR), Miyan Williams (RB) and Teradja Mitchell (LB) (Ohio State Football)
Dealership: Coughlin Chevrolet
Deal brokered by: NIL Management
Chris Olave – 2021 Chevy Camaro SS
CJ Stroud – 2021 Chevy Z71 Silverado with the SCA Black Widow Package
Haskell Garrett – 2021 Ford F-150 with the SCA Black Widow Package
Zach Harrison – 2020 Chevy Tahoe Limited
Teradja Mitchell – 2021 Chevy Camaro RS
Miyan Williams – 2022 KIA K5
Spencer Rattler (Oklahoma, Quarterback)
Dealership: Fowler Dodge
Vehicles: 2021 Ram TRX or a 2021 Widebody Charger Scat Pack
Tax Implications for Student Athlete Car Deals
Although details vary by deal, most of these deals include some combination of social media promotion and personal appearances. Others have mentioned print and broadcast advertising possibilities as well.
I asked CPA Katie Davis (who was previously on my podcast talking taxes for student athletes) of James Moore & Co. to break down for us the tax implications for student athletes accepting these deals. She used the first deal made public, LSU quarterback Myles Brennan’s, as an example.
For purposes of this example, Davis said she assumed the truck was a loaner for football season. She says the auto dealer will issue Brennan a 1099 for the fair market lease value of the truck. Assuming an average lease value on a Ford F-250 of $714/month, Brennan would receive a 1099 for $3,570 for 2021. That deal alone (if was Brennan’s only NIL deal) would fall below the US standard deduction of $12,500.
“He could also be subject to state taxes: Mississippi if he still has residency there, and Louisiana as the income was sourced in that state,” said Davis. “For both states, the truck value also falls below their thresholds for incurring tax. However, he still has to file a US tax return to pick up the 15.3% self-employment income.
“For the truck alone, that would be $546 of tax to go toward Social Security and Medicare. Then, the act of filing a federal return may require the filing of state returns depending on the state and residency status, even if no tax is due.”
“In Brennan’s case, he could generate taxable income (income exceeding deductions/exemptions) at the federal level and in multiple states by the time you take into account other NIL deals plus his taxable cost of attendance and other education-related benefits,” said Davis.
“I’m not saying taxes are a bad thing or a reason to not allow student athletes to benefit from their NIL or additional education-related awards. But I think it’s incredibly important for some tax basics to be included in the schools’ NIL financial literacy education programs. Student-athletes should understand their responsibilities, how 1099 income differs from W-2 (which their parents may be more familiar with), and the potential state tax requirements.
“They should also understand that non-cash compensation is still subject to tax, which has to be paid with cash, so that cash should be set aside. There could also be penalties if taxes are paid in a lump sum when tax returns are filed instead of throughout the year. Also, there are some tax benefits the high earners could take advantage of to reduce their taxable income, such as putting money in an IRA.”
Want to check out more NIL deals? Check out our NIL Quick Links for more:
- How to Get a College Coaching Job as an International Candidate
- LSU Gymnast Olivia Dunne Announces First NIL Brand Deal Is With Activewear Brand Vuori
- The Earning Potential for Student Athletes in Arizona
- Turnkey Tailgating Business Booming As Fans Return To College Football Stadiums
- The NIL Economy in Columbus, Ohio