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Name, Image, and Likeness: The Financial Playbook Every Athlete Needs

In 2021, college sports entered a new era. The introduction of Name, Image, and Likeness (NIL) rights gave student-athletes the ability to earn money through endorsements, sponsorships, and social media partnerships. For many young athletes, this was the first time their talent could translate directly into financial opportunity.

But with opportunity comes responsibility—and complexity. NIL has blurred the line between athletics and entrepreneurship, meaning athletes (and their families) need to think about money management much earlier than before.

Football athlete running for goal

What Is NIL?

NIL refers to an athlete’s right to profit from their personal brand. This includes endorsements, sponsorship deals, social media partnerships, merchandise sales, and even monetizing personal appearances.

Previously, NCAA rules prohibited student-athletes from earning money, but in July 2021, regulations changed, allowing athletes to monetize NIL rights. The shift has empowered athletes to build their brands—but also created the need for stronger financial literacy and planning.

How NIL Impacts an Athlete’s Finances

While NIL has created exciting opportunities, the financial side is often more complicated than it looks. Earnings arrive in irregular bursts and may not come with much guidance. That’s why it’s important for athletes and their families to understand the financial realities behind NIL:

Tax Obligations

NIL income is taxable. Unlike traditional employment, NIL deals often require athletes to handle self-employment taxes and quarterly estimated payments. Without preparation, tax season can be an expensive surprise.

Budgeting on Variable Income

Sponsorships and deals can fluctuate. Athletes must learn how to manage cash flow, separating essential expenses from temporary income spikes.

Short Earning Windows

Athletic careers can be brief. A smart financial plan helps ensure NIL earnings today provide security well beyond the playing years.

Financial Literacy

For many young athletes, NIL is their first experience navigating contracts, agents, and money management. Without proper guidance, it’s easy to make mistakes that can affect long-term wealth. NIL shows us how quickly money can change hands—and how fast it can disappear without structure. That lesson carries through to later stages of life as well. Just as athletes need a plan for their playing years and beyond, families need a strategy for protecting wealth across generations. That’s where estate planning becomes essential.

Turning NIL Earnings Into Long-Term Wealth

The good news: handled wisely, NIL income can set athletes up for financial security. Some strategies include:

  • Save and invest early. Even modest contributions benefit from compounding over time.
  • Set aside funds for taxes. Dedicated accounts help prevent costly surprises.
  • Plan for retirement. Accounts such as IRAs can help build independence beyond sports.
  • Align partnerships with long-term goals. Choosing brands and opportunities that fit your future ambitions creates a sustainable personal brand.

Lessons Beyond Sports

You don’t need to be a student-athlete to learn from NIL. Sudden financial opportunities—such as career growth, the sale of a business, or an unexpected windfall—can arrive without warning. The same principles apply: without a plan, today’s income may not translate into tomorrow’s security. We’ve seen the same challenges arise in families navigating the hidden costs of competitive youth sports like club volleyball, where planning ahead can make all the difference.

The NIL era is reshaping how athletes think about their financial futures. It’s a reminder that money management, tax strategy, and long-term planning are just as important as performance on the field. Whether you’re an athlete or simply navigating new financial opportunities, having the right playbook makes all the difference.

At Evensky & Katz / Foldes, we help individuals and families create strategies to turn opportunities into lasting financial security. Connect with us to start building your financial playbook.

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