Katie Davis Quoted in Front Office Sports Article on NIL Tax Exemptions

James Moore partner Katie Davis is quoted in a recent Front Office Sports article analyzing the growing trend of states introducing tax exemptions for college athletes’ NIL earnings. With lawmakers in Georgia, Alabama, Illinois and Louisiana pushing for these policies, the debate over their effectiveness—and potential unintended consequences—is intensifying.

Katie, who leads James Moore’s Collegiate Athletics and Higher Education segment teams, provides expert insight into the risks these tax breaks pose for athletic departments and universities. In additional commentary below, she discusses how such policies could create deeper divides while failing to deliver a meaningful recruiting advantage.

“These tax breaks could backfire, adding another black eye that athletic departments aren’t necessarily asking for. If a PhD student in a work-study program is required to pay state taxes while athletes are exempt, it can deepen the divide between athletic and academic interests on campuses. This is especially problematic when both sides should be collaborating to justify increased institutional support to help fill a $20.5M post-House gap in athletics budgets.”

She also challenges lawmakers’ assumptions about NIL tax incentives, emphasizing the complexities of tax law and their limited impact on recruiting.

“Legislators don’t understand tax law if they’re thinking of this through the lens of being paid for service based on location without consideration of residency rules. It’s a lot more complicated than they understand, and I’m not sure it’s really a recruiting advantage. There are smarter ways to accomplish the same goal.”

With more states considering NIL tax exemptions, the financial and policy implications remain a critical discussion for athletic programs nationwide.

You can read the full Front Office Sports article here.