Name, Image, and Likeness deals have changed college athletics forever. For the first time, student-athletes can earn real money from their talent and reputation before they ever turn pro. That's an incredible opportunity, but it's also a completely new financial responsibility that most college athletes, and often their families, have never had to navigate before.
As a Sports & Entertainment Accredited Wealth Management Advisor (SE-AWMA®), I work with athletes and their families to turn NIL income into a real foundation for long-term financial security. Here's what every athlete earning NIL money should understand before that first deal check lands.
NIL Money Is Still Just Money, Until You Have a Plan for It
It's easy to think of NIL earnings differently than a regular paycheck, it feels like a bonus, a reward, almost like found money. But NIL income is real income, and it comes with real responsibilities: taxes, budgeting, saving, and decisions that can affect your financial future for decades.
Whether your NIL deals bring in a few thousand dollars a year or a significant six-figure income, the same core question applies: what happens to this money after it hits your account? Without a plan, NIL earnings can disappear into spending that feels normal in the moment but leaves nothing behind once the deals stop, or once your playing career ends.
Common NIL Financial Planning Mistakes
In working with athletes and families new to NIL income, a few patterns show up again and again:
- Not setting aside money for taxes. NIL income is typically treated as self-employment or business income, which means it isn't automatically withheld like a traditional paycheck. Athletes who don't plan for this can face a painful surprise at tax time.
- No separation between personal spending and NIL earnings. Mixing NIL income with everyday spending money makes it hard to track, budget, or protect.
- Signing NIL contracts without fully understanding the terms. Some deals include exclusivity clauses, image usage rights, or obligations that can affect future opportunities.
- Spending as if the income is permanent. NIL deals can end when a season ends, when performance changes, or when a coach or sport's popularity shifts. Treating NIL earnings as guaranteed, long-term income is risky.
Building a Real Budget for Your NIL Income
Budgeting for athletes with NIL income looks different than a standard household budget, because the income itself is often irregular. A strong approach usually includes:
- A tax reserve set aside first, before any other spending or saving decisions are made
- A clear split between short-term spending, saving, and investing, so NIL income supports both today and the future
- An emergency fund, since NIL deals can be unpredictable and injuries or eligibility changes can affect earning potential
- A plan for major purchases that separates genuine priorities from impulse spending
Saving and Investing Your NIL Earnings
One of the most valuable things an athlete can do with NIL income is start investing early, even in small amounts. Time in the market is one of the most powerful tools available, and few 19- or 20-year-olds ever get the chance to start investing meaningful income this early in life.
Depending on your goals and circumstances, this might include:
- Opening a Roth IRA to start tax-advantaged, long-term investing
- Building taxable brokerage accounts for more flexible, medium-term goals
- Setting money aside for life after competitive sports, whether that means further education, a business, or simply financial independence
NIL Contracts and Deals Deserve a Second Set of Eyes
Before signing any NIL contract, it's worth having someone review the terms who isn't just focused on getting the deal done. Understanding what you're agreeing to, how you'll be paid, what obligations you're taking on, and how the income fits into your broader financial picture protects you long after the ink is dry.
This is where NIL financial planning and NIL wealth management go hand in hand. It's not just about managing the money that comes in, it's about understanding the deals themselves well enough to make informed decisions.
NIL Education: Knowledge Is Part of the Game Plan
Athletes spend years training their bodies and sharpening their skills. Financial literacy deserves that same discipline. Understanding how NIL income is taxed, how contracts work, and how to build saving and investing habits now can shape financial outcomes for the rest of your life, long after the games are over.
That's the mission behind the work I do with athletes and families: NIL education that empowers you to make informed decisions, not just about the deal in front of you, but about the financial future you're building.
Let's Build a Plan for Your NIL Income
Whether you're a college athlete just signing your first NIL deal, a family trying to understand how to manage a child's NIL income, or an athlete looking ahead to what comes after competition, having a personalized financial plan makes all the difference.
I'd welcome the chance to talk with you about your NIL income and help you build a plan that protects what you've earned and sets you up for lasting financial freedom. Reach out to schedule a conversation.
Ed d'Hemecourt, FSCP®, SE-AWMA®, is an LPL Investment Advisor Representative and founder of d'Hemecourt Wealth Management in Covington, Louisiana. As a Sports & Entertainment Accredited Wealth Management Advisor, Ed works with athletes and their families to navigate NIL income, contracts, and long-term financial planning.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. This material is for general informational purposes only and is not intended as tax, legal, or investment advice. Please consult your own tax or legal professional regarding your specific situation.