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Taxes owed by NIL’s student athlete millionaires

August 16, 2025
Aviva_Stadium_Panoramic_Dimitris-Glezos_Wikimedia-Commons1

Aviva Stadium in Dublin, Ireland, is home to the Irish rugby union team and the Republic of Ireland football team. But next Saturday, Aug. 23, it will be the site for the 10th U.S. college football game played on the Emerald Isle. (Photo by Dimitris Glezos via Wikimedia Commons)

College football’s 2025 season is almost here. It officially kicks on next Saturday, Aug. 23, at 11 a.m. Eastern time when Kansas State and Iowa State meet.

That’s 4 p.m. in Dublin, Ireland, which is where the Big 12 rivals will play. They are the participants in this year’s Aer Lingus College Football Classic on Saturday, August 23, 2025, at Aviva Stadium in Dublin, Ireland. 

It will mark the first international contest for the Iowa State Cyclones. The matchup will be the second game outside the United States for the Kansas State Wildcats.

Will I be watching since my alma mater, Texas Tech University, is in the same conference? No. I am not a fan of college sports.

Rich student athletes: My explanation used to be that I didn’t feel comfortable yelling, sometimes in colorful language, at college kids. Instead, I focused my cheering for and ranting at highly-paid professional athletes.

How things have changed.

On Oct. 3, 2026, the U.S. Supreme Court declined in Oct. 3, 2016, to hear O’Bannon vs. NCAA, letting stand the lower court ruling that allowed college athletes to be paid for the use of their names, images, and likenesses (NILs).

Now some college athletes are making more than some professional players.

That’s good news for the new young millionaires. It’s also good news for the U.S. Treasury.

So, with some of those now wealthy student college football players getting ready to suit up and take to football fields across the United States, this weekend’s Saturday Shout Out goes to an article on the taxes the NIL payment recipients must pay.

Nathan Goldman, a tax professor at North Carolina State University, provides specifics in his guest article for Forbes, “Breaking Down The Top 20 College Football Stars’ 2025 NIL Tax Bills.”

Goldman notes that NIL deals are typically not disclosed publicly. However, he notes that On3 Media, a sports media and technology company, has an algorithm that estimates an athlete’s NIL valuation. That’s what is used in the listing in Goldman’s article.

Goldman then used the valuations to calculate the federal income tax, state income tax, and total tax owed.

It’s a general, illustrative purpose only calculation, meaning any possible deductions for business expenses or personal deductions aren’t factored. Also, Goldman’s calculations treat all athletes as single taxpayers with no dependents.

“Finally, the calculated taxes owed pertain only to income taxes, excluding property, sales, and jock taxes,” writes Goldman.

Quarterbacks rule: If you haven’t already clicked over to the story, here’s a preview.

Not surprisingly, 17 of the top 20 NIL valuations are deals with quarterbacks.

The University of Texas’ Arch Manning tops the list, with an estimated 2025 NIL valuation of $6.8 million producing a federal tax bill of almost $2.5 million. Lucky for Manning, there's no state income tax in Texas.

I’ll let you peruse the rest of the list at your leisure. Now, I’m off to watch my Dallas Cowboys, the team I grew up rooting for (and actually see win Super Bowls; yes, I am that old!) and in recent years, have just as enthusiastically cursed out (thanks, Jerry 🙄 🤬) host my second favorite team, the Baltimore Ravens, which the hubby and I adopted (and also cheered when they won their NFL championships) when we lived in Maryland.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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