Mark Milton Weighs In on Federal NIL Legislation and the Future of College Sports
Key Takeaways
- A bipartisan federal bill led by Sen. Eric Schmitt, Sen. Ted Cruz, and Sen. Maria Cantwell aims to create one national set of rules for college athletics.
- Mark Milton, who advises athletes and entertainers on the tax side of NIL deals, was quoted on why only Congress can grant the NCAA an antitrust exemption.
- The proposal includes a narrow antitrust safe harbor, transfer guardrails, and protections framed around women’s and Olympic sports.
- How the bill defines “fair market value” and “legitimate business purpose” could shape what athletes are allowed to earn.
NILTaxLawyer Mark Milton, Founder and Managing Attorney of Milton Law Group, was quoted in a KMOV-TV report on a federal effort to bring uniform rules to college athletics.
The piece, “Missouri Sen. Eric Schmitt pushes federal fix for college sports amid NIL chaos,” examined a bipartisan bill that supporters say would steady a system reshaped by years of litigation. Milton, who advises athletes on the tax side of name, image, and likeness deals, explained why the fight keeps landing back in court.
Why the NCAA Keeps Losing in Court
The core problem is antitrust law, and Congress is the only body that can change it. As Milton told First Alert 4, the NCAA’s rules keep getting struck down because student-athlete challenges are usually rooted in antitrust claims.
“Congress is the only entity at the federal level that can grant the NCAA antitrust exemption. Without that exemption, the NCAA, every time they make a rule, they’re going to continue losing in court.” – Mark Milton, Milton Law Group
Sen. Schmitt described the current landscape as “rulemaking by lawsuit,” with courts rather than the NCAA deciding which rules survive. The Protect College Sports effort, which Schmitt is advancing alongside Sen. Ted Cruz and Sen. Maria Cantwell, would create one set of rules nationwide, add a narrow antitrust safe harbor, and set new guardrails on transfers and eligibility.
The Fine Print on “Fair Market Value”
For athletes, the details of any federal bill matter more than the headline. Milton cautioned that the risk lies in how the government might define key terms like “fair market value” and “legitimate business purpose.”
“Who’s to say showing up to sign cards at a car dealership isn’t worth $1,000,000? The free market works, and they should be able to go out and earn whatever money somebody’s willing to pay them.” – Mark Milton, Milton Law Group
That tension sits at the center of the debate. A safe harbor could bring order, but legal observers note it may also shift leverage from athletes toward schools, depending on how the language is drafted. Where the lines land will affect not just what athletes can earn, but how those earnings are structured and taxed.
What This Means for Athletes Navigating NIL
NIL income is taxable income, and the rules around it are still taking shape. Athletes who sign endorsement, appearance, and licensing deals are generally treated as self-employed, which carries its own filing, estimated-tax, and recordkeeping obligations that many young earners encounter for the first time.
With his background as a former U.S. Department of Justice Tax Division Trial Attorney and prior experience at public accounting firms, Mark Milton helps athletes and their families understand the tax planning side of these arrangements before problems arise. Milton Law Group works with clients on NIL and broader sports and entertainment law matters, alongside its core tax controversy and tax planning and preparation practices.
Frequently Asked Questions
Is NIL income taxable?
Yes. Money earned from name, image, and likeness deals is taxable income. Athletes are generally treated as self-employed, which means they may owe estimated taxes during the year and have additional reporting obligations.
Why does the NCAA need an antitrust exemption from Congress?
Most legal challenges to NCAA rules are antitrust claims. Only Congress can grant an antitrust exemption at the federal level, so without one, courts can continue to strike down rules the NCAA tries to enforce.
What is the proposed federal college sports bill?
The bipartisan Protect College Sports effort, advanced by Sens. Schmitt, Cruz, and Cantwell, would create one national set of rules, add a narrow antitrust safe harbor, and set new guardrails on transfers and eligibility, framed in part as a way to protect women’s and Olympic sports.
Does Milton Law Group help athletes with NIL tax matters?
Yes. Milton Law Group advises athletes, entertainers, and their families on the tax planning and compliance side of NIL and other sports and entertainment arrangements.
About the Author
Mark C. Milton is the Founder and Managing Attorney of Milton Law Group. A former U.S. Department of Justice Tax Division Trial Attorney recruited through the prestigious Attorney General’s Honors Program, Mark received the DOJ’s Outstanding Trial Attorney Award in 2014. He brings nearly two decades of combined experience in tax controversy, federal litigation, and accounting, having previously practiced at an AmLaw 100 firm in St. Louis and worked at two large public accounting firms prior to law school. He earned his J.D. with Honors from Saint Louis University School of Law and a B.S. in Accountancy, cum laude, from the University of Illinois at Urbana-Champaign. Read Mark’s full bio.
Contact the IRS Problem Solvers at Milton Law Group to schedule a paid privileged consultation by calling 833-LAW-1040 or at miltonlawgroup.com/schedule-now.
This article is for educational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed attorney.