Quick Summary

Here’s a summary of how college sports are changing in ways many families may not expect.

College athletes can now transfer schools more easily, earn money from their name and image, and even share in university athletic revenue. These changes are reshaping college athletics into something that looks more like professional sports. While this creates new opportunities for athletes, it also raises questions about fairness, stability, and how colleges operate financially.

The ripple effects may reach beyond sports — even into charitable giving and long-term planning decisions.

Why This Matters

Over the last several years, college athletics has gone through dramatic changes.

One major shift is the Transfer Portal, which allows student-athletes to move between schools and play immediately in many situations. At the same time, athletes can now be paid for their name, image, and likeness (often called “NIL”), meaning they can receive compensation through sponsorships, endorsements, and other agreements.

More recently, universities have begun sharing athletic revenue directly with athletes.

These changes have created new flexibility and opportunity for student-athletes. They can choose programs that better fit their goals, coaching relationships, or financial opportunities. Some schools have used transfers and NIL programs to rebuild athletic teams quickly.

But the system also brings challenges.

Frequent transfers can disrupt teams. Schools with larger financial resources may have an advantage in recruiting athletes. Disputes over NIL agreements have already led to lawsuits. And many people feel college sports now resemble professional free agency more than traditional college athletics.

For families, one of the quieter questions involves how universities are perceived.

Colleges and universities are still recognized as charitable organizations under the tax law. Donations to them remain tax-deductible. But as athletic programs become more commercialized — with revenue sharing, endorsement deals, and litigation — some donors may begin to think differently about where they want their charitable gifts to go.

This doesn’t change the law — at least not yet.  But I can envision a world where the IRS says that colleges (at least the sports part) are no longer being run for charitable purposes.  And even if the law hasn’t changed, the evolving college sports landscape may make you think differently about your own legacy giving.

That’s why it’s important to review charitable planning decisions from time to time. A gift that made perfect sense years ago may deserve another look as circumstances evolve.

Good planning always adjusts to the world as it actually works — not just how it used to work.

Simple Lesson

The world changes, and good planning changes with it.

Action Step

If charitable giving is part of your estate plan, take a few minutes to review those decisions and make sure they still reflect your goals and values.

If this topic raises questions for you or your family, feel free to call (517) 548-7400 or contact us online: https://www.michiganestateplans.com/contact-us