Nil payments refer to compensation that college or high school athletes receive for the commercial use of their name, image, and likeness (NIL). This includes payments for activities such as product endorsements, autograph signings, social media promotions, public appearances, and merchandise sales. The concept of NIL payments is rooted in the legal "right of publicity," which protects an individual's control over the commercial use of their personal identity
. Historically, the NCAA prohibited athletes from earning money through NIL, but this changed in 2021 following legal challenges and shifts in policy. Now, athletes can enter into agreements with brands, local businesses, or NIL collectives-groups that pool funds from donors to pay athletes-allowing them to monetize their personal brand while maintaining amateur status in college sports
. NIL payments can be cash or noncash, such as free use of a vehicle or merchandise, and are considered taxable income. Athletes receiving NIL payments are treated as self-employed for tax purposes, responsible for paying applicable income and self-employment taxes
. In summary, NIL payments are earnings athletes receive for leveraging their personal brand in commercial activities, marking a significant shift in college sports by allowing athletes to profit from their own fame without direct payment from their schools
