Wonder how that $30k would look on a W2? Employer: University of Minnesota Sport Department - For Services Rendered
This is actually an interesting point.
Assuming it's real, if the $30k was from a married couple (the donor), it would be better for all parties to avoid DTA and make a "gift" to any named athlete (the donee). There is an "Annual Gift Exclusion" that allows any US citizen to "gift" any other US Citizen up to $17,000 (2023) each year, adjusted for inflation. It was $16,000 in 2022, $15,000 in 2021, and will accelerate to $18,000 for 2024,etc.
If a married couple "split" a gift to any designated athlete, that designated athlete would be eligible to receive a "gift" of, up to $34,000 (2023) ($17,000 x 2) with no tax consequences for either the donor, or the donee, and no need to fill out a form 709 for gifting.
Actually, it might be better to set up an organization like DTA to associate any "annual exclusion gift" to a named athlete, rather than to a pool, or bank to pay a named athlete, and have all those assets, or "gifts" pass through tax free for all parties. It would be harder for that organization to make reasonable compensation for their services, but it could be more tax efficient.