The sports world is buzzing with a new opportunity for young athletes: name, image, and likeness (NIL) rights. As the NIL landscape continues to evolve, understanding how NIL works is crucial for athletes and their families. This guide explains what NIL means, how to potentially earn money through it, and how to manage your income wisely for long-term success.
What Is NIL?
Name, Image, and Likeness (NIL) refers to an athlete’s ability to profit from their personal brand. Historically, student-athletes were not allowed to receive any financial compensation related to their athletic status. However, the NCAA now permits student-athletes to earn money by selling the rights to their name, image, and likeness. This means athletes can now build real income streams during their college years.
When Can Student-Athletes Start Earning from NIL?
Right now! Student-athletes in all sports can capitalize on NIL opportunities. Whether you play a revenue-generating sport like football or basketball, or a less prominent sport, your NIL rights may have value. Many athletes are already earning through social media, local sponsorships, appearances, and branded merchandise.
How Can College Athletes Monetize NIL?
Here are some popular ways student-athletes can earn income through NIL deals:
- Autographs and Memorabilia: Sell signed gear or game-worn items.
- Camps and Clinics: Host training events for young athletes.
- Merchandise: Create and sell branded apparel or gear.
- Personal Appearances: Attend events, fan meet-and-greets, or speaking engagements.
- Brand Endorsements: Partner with local or national brands for sponsorships.
- Social Media Sponsorships: Earn money through sponsored posts or ads on platforms like Instagram, TikTok, or YouTube.
Understanding NIL Rules and Compliance
NIL rules vary by state, school, and athletic conference. To be compliant:
- Know your state and school NIL policies.
- Report all NIL deals to your school or compliance officer if required.
- Keep records of contracts and payments.
- Avoid signing any deals that could affect your eligibility.
Use Professional Resources
The NIL world is exciting but complex. Student-athletes should consider working with trusted professionals—financial advisors, agents, or lawyers—who understand NIL contracts, tax implications, and compliance requirements. Having the right support could help protect your earnings and your future eligibility.
Financial Planning Tips for Student-Athletes
Earning money through NIL is a big step, but managing it wisely may be even more important.
Create a Budget
Start by listing your income sources and your monthly expenses. Track where your money goes and make adjustments to avoid overspending.
Set Long-Term Goals
Think beyond short-term spending. Save for future goals like a car, college expenses, or even a home. The earlier you plan, the better prepared you’ll likely be.
Understand Taxes
NIL income is taxable. Always set aside part of your earnings for taxes to avoid surprises at tax time. Consider working with a tax advisor to explore strategies like contributing to an IRA or other tax-advantaged accounts.
Manage Risk
Insurance can help protect your income and your future. Health insurance, disability insurance, and even liability coverage can help safeguard what you’ve earned. Always read contracts carefully and get legal advice when needed.
Frequently Asked Questions About NIL
What does NIL stand for?
NIL means Name, Image, and Likeness. It gives student-athletes the right to earn money from their personal brand.
Can high school athletes make money from NIL?
In some states, yes. Some states allow high school athletes to profit from NIL, but rules vary. Always check local and school district policies.
How do I report NIL deals?
Most colleges and many high schools require athletes to report any NIL activities. Reporting helps you stay compliant and may protect your eligibility.
Is NIL income taxable?
Yes. Money earned from NIL deals is taxable income. Set aside a portion for taxes and work with a professional to file correctly.
Do I need an agent or advisor for NIL deals?
For larger or more complex deals, having an advisor or sports agent can help you understand contracts and negotiate appropriate terms.
Can colleges pay student-athletes directly for NIL?
No. Colleges cannot pay you directly for playing your sport. NIL income must come from third-party deals, such as brands or businesses.
What’s the biggest risk with NIL deals?
Not following state or school rules can cost you your eligibility. Also, signing unfair contracts or ignoring taxes can create bigger problems down the road. Work with trusted professionals to stay protected.
Take Control of Your NIL Future
Navigating NIL opportunities can be life-changing for young athletes who plan carefully and make smart decisions. If you want help understanding NIL compliance, managing your money, or building long-term wealth, connect with an MAI Wealth Advisor. We’re here to help you succeed both on and off the field.
MAI Sports + Entertainment provides specialized guidance for student-athletes navigating NIL rights, financial planning, risk management, and tax strategies.
MAI does not provide legal advice. Please consult your legal and/or tax advisor who is licensed in your state before implementing any tax or legal strategies.
This is for informational purposes only. The opinions and analyses expressed herein are subject to change at any time. Any suggestions contained herein are general, and do not take into account an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Distribution hereof does not constitute legal, tax, accounting, investment, or other professional advice. Recipients should consult their professional advisors prior to acting on the information set forth herein. In accordance with certain Treasury Regulations, we inform you that any federal tax conclusions set forth in this communication, were not intended or written to be used, and cannot be used by any taxpayer, for the purposes of avoiding penalties that may be imposed by the Internal Revenue Service.
