In the News and Trending: NIL Gives Whitman an Opportunity to Become a Thought Leader in the Business of Sport

Willie Reddic G’12, ’13 Ph.D. is an associate professor in the Joseph L. Lubin School of Accounting at the Whitman School of Management. His academic research interests include the portfolio rebalancing, earnings management, and auditing in regulated environments. His research has been published in top journals and presented at prestigious academic conferences.

In 2021, I joined the Whitman School as an associate professor of accounting, coinciding with the emergence of the concept allowing student-athletes to profit from their Name, Image and Likeness (NIL). My interest in this area had been piqued during my time as an associate professor and associate dean at DePaul University. However, the implementation of NIL brought about a rapid and unpredictable transformation. Presently, numerous queries abound while substantive answers from the NCAA remain scarce. Yet, amid this uncertainty, one fact remains: NIL has transformed into a thriving business realm. This circumstance presents Whitman with an exceptional prospect to
establish itself as a pioneering entity in NIL.

Amid the advent of NIL, student-athletes are presented not only with opportunities to engage in collegiate sports but also the potential for substantial financial gain. Regrettably, many become entranced by the allure of monetary reward, often overlooking the intricate business implications that come with it, including taxes.

Let me be clear: I wholeheartedly support the notion of compensating student-athletes for their NIL. Undeniably, these individuals are perceived as valuable assets. Their representation of educational institutions garners considerable attention (and revenue), warranting appropriate recompense. Nevertheless, whether at Syracuse University or any other institution, there is an inherent duty to provide these student-athletes with guidance that safeguards their financial welfare, educational pursuits and future prospects.

Consider this: How many 17-year-olds genuinely grasp the financial consequences linked to a lucrative NIL arrangement — whether it’s a modest $25,000 or a more substantial $250,000? Whether the compensation arrives through a bank deposit, merchandise sales or even a Venmo transfer, it’s crucial for student-athletes to recognize the need to report this as income and fulfill their tax responsibilities.

My primary concern doesn’t revolve around those destined for the NFL, MLB, NBA, WNBA or any other professional sport. Rather, I’m most worried about the student-athletes who earn humble sums, never contemplating taxes until the IRS comes knocking. Admittedly, the IRS may be trailing due to COVID-related disruptions, but it will catch up. This prompts a pressing question: How will these student-athletes manage to cover their tax obligations, along with associated penalties, when their NIL earnings have long since been expended?

I’ve personally provided guidance to numerous student-athletes, a cause that holds great significance for me. Additionally, I am fortunate to hold a position on Syracuse University’s Faculty Oversight Committee on Athletics, established by the Chancellor in March 1992 to become a permanent part of the review of the intercollegiate athletic program at the University. This aspect of my work is fulfilling, and I like to believe that I am well-suited, not just as an accounting professor but also due to the diverse perspective I contribute as an individual hailing from an underserved and underrepresented background akin to that of many student-athletes in our community.

Through these efforts, I’ve been granted the opportunity to bring in external experts to address various subjects, including taxes, financial planning and branding. In January, we had the privilege of hosting a panel from NKFSB, a Los Angeles-based business management firm known for its collaborations with high-profile individuals such as Tom Cruise and LeBron James. This discussion focused on the intricate nuances of the NIL business landscape. Similarly, this past July, David Meluni, an associate teaching professor in sport management from the David B. Falk College of Sport and Human Dynamics, and I presented to incoming Syracuse University student-athletes around the tax implications and branding aspects related to NIL. Both events elicited numerous inquiries from the audience, and I believe we successfully heightened the awareness that NIL is still in its nascent stages, necessitating keen attention.

As previously mentioned, NIL operates as a business endeavor. The Whitman School, being a business school, stands in a favorable position to establish itself as a trailblazer within the NIL domain. Spanning disciplines from accounting and finance to marketing and entrepreneurship, our School possesses the requisite expertise. Furthermore, we possess the capability to form alliances with counterparts in this realm, such as those at the Falk College and the S.I. Newhouse School of Public Communications, culminating in a comprehensive pool of knowledge that would reflect positively on the entire University. This initiative will not only enable us to aid and potentially recruit student-athletes, but it will also undoubtedly appeal to students aspiring to pursue careers in burgeoning fields of accounting and other sports-related business specializations. The scarcity of comparable initiatives at other universities highlights the opportunity for us to lead in this regard.