USC-focused NIL collective House of Victory, Baker Tilly announce partnership
House of Victory is making sure USC athletes have the tools to file taxes correctly next spring.
The NIL collective focused on Trojans athletics has announced a partnership with the accounting firm Baker Tilly. Most athletic departments have provided tax education for their student-athletes in the NIL era. Some have been deterred, however, following October’s guidance stating institutions cannot provide athletes with services to support NIL activities that are not available to the general student body.
This could mainstream the tax process for USC student-athletes. Baker Tilly will offer consultation opportunities to House of Victory athletes, with an explanation of 1099 payments and tax implications. The firm will also make itself accessible for personal tax preparation services for any contract athlete House of Victory athlete.
“One of my greatest concerns over the past couple of years is that athletes understand the importance of following the U.S. tax code and filing timely returns,” said attorney Darren Heitner, who has worked closely with collectives and athletes in the last 22 months. “Any assistance they have the option of receiving is a net positive, and I’m happy to see that efforts are being taken to help athletes in this regard.”
The need for tax education has become clear since the start of name, image and likeness activity. The NCAA released the results of an association-wide survey of more than 9,800 athletes last May. Forty-nine percent of respondents indicated “a need for educational resources on tax and financial literacy.”
The apparent need for tax guidance is even stronger in Division I, too. Fifty-three and 55% of male and female athletes at the DI level, respectively, said they need more tax resources. A similar message was repeated by athletes at the inaugural INFLCR NIL Summit in Atlanta last June.
“If athletes were paid in cryptocurrency, it has tax implications,” Intuit‘s Lisa Greene-Lewis previously told On3 on the many factors athletes have to navigate when filing taxes. “If you’re paid in crypto, it goes on a 1099 form. That would go into your income. When you hold onto that, when you sell it, you would have a capital gain or loss. So the education [is important] on the many different ways their income can be taxed, as well as the fact they’re self-employed. They can expect $1,000 or more in tax payments.”
Baker Tilly to assist House of Victory with day-to-day finances
House of Victory’s relationship with the advisory CPA firm extends past athlete services. Baker Tilly will support the collective with accounting and tax services, including the management of incoming funds and expenses, budget analysis, issuing athlete payments, tax planning and day-to-day record keeping.
The collective formally joined the USC NIL market in April as a nonprofit organization servicing all Trojan athletes. Alumni-led and board-operated, the collective has a flavor of BLVD LLC, which was launched in August 2022 as the official USC NIL entity.
BLVD shut down for good in February, but Spencer Harris stuck around and is now the executive director for House of Victory. USC’s former Director of Player Personnel, he’s running the day-to-day operations of the collective.
House of Victory did secure a sponsorship agreement through USC’s multimedia rights holder Playfly prior to its launch. With permission to use the institution’s marks and colors and the ability to have athletes appear in their jerseys publicly, it sends a clear message to USC fans.
“As a proud USC alumna, I am especially excited to work with House of Victory to provide student-athletes with the support they need to navigate the complex world of personal finances and tax strategy,” Baker Tilly director of business management Andrea Leventhal said in a statement. “Our collaboration will help ensure that USC student-athletes have access to the tools and resources they need to succeed.”