Payments to sportspersons for their “public fame” and “image”

The safe harbour rules apply where:

• payments are received pursuant to a professional sportsperson’s:
• playing contract and/or collective bargaining agreement where those agreements mandate the professional sportsperson’s participation in appearances for the development and promotion of their sport or the use and exploitation of the professional sportsperson’s “public fame” or “image” for the development and promotion of their sport, or
  • agreement to provide additional services where those services are provided in conjunction with the use and exploitation of the professional sportsperson’s “public fame” or “image
• the professional sportsperson has granted a licence for the use or exploitation of their “public fame” or “image” to an associated resident third party, and
• the associated resident third party is contractually entitled to payments for the use and exploitation of the professional sportsperson’s “public fame” or “image” pursuant to a playing contract, additional service agreement and/or collective bargaining agreement

As the exact proportion of a playing contract to split between playing fees and appearance fees is difficult to calculate. As a result, the draft guidance states that the ATO will allow a safe harbour of 10% of the total playing contract value.