💰 3 Things Every Athlete Should Actually Worry About with NIL
Because “free merch” isn’t always free, and that contract might outlive your playing career.
You’re finally making money from your talent. You’ve got a highlight reel, a growing follower count, and someone just slid into your DMs with a “collab opportunity.”
Cue the confetti — NIL is working for you!
But before you sign that deal for energy drinks, protein powder, or a hoodie with your face on it… let’s talk about what actually matters.
There’s a whole lot of hype around NIL, and very little fine print being read. You’re the brand now. And guess what? Brands come with contracts, taxes, and consequences.
Here are the three things every athlete should actually worry about when it comes to NIL — especially if you’d like to keep your eligibility, your money, and your face off a billboard in five years selling something you never liked.
🚨 1. The Contract: It's Not Just a “Collab,” It’s a Legal Commitment
Let’s put it this way: if the phrase “use your name, image, and likeness in perpetuity across all media now known or hereafter developed” doesn’t send a chill down your spine… it should.
Most NIL deals come with actual contracts — and those things are filled with traps. You’re not just agreeing to post once. You might be:
Giving the company the right to use your photos forever. (That’s what “perpetuity” means.)
Accidentally promising not to work with any similar brands. (That’s an exclusivity clause.)
Auto-renewing your deal without realizing it. (You missed the cancel-by date, and now you're locked in.)
And let’s not forget: many deals are drafted to benefit the business, not you. They’re counting on you not reading it.
Takeaway: Every NIL deal is a legal contract. If you don’t understand it, don’t sign it. (Or better yet — call someone who does.)
💸 2. The IRS Doesn’t Accept “But I’m Just a Sophomore” as an Excuse
NIL money feels like free cash… until the government shows up with a bill.
You might be paid through Venmo. You might be “gifted” gear. You might get a check after a photoshoot. Cool — now report it.
The IRS doesn’t care if you’re still living in a dorm.
They don’t care if it was “just one post.”
They do care that you’re making money and not reporting it.
And if you're not setting aside money for taxes? Let’s just say that April 15th will be the worst day of your spring season.
Also: if you're over the threshold, you might need to file quarterly. Miss it? Penalties. File late? Fees. Ignore it? Audits.
Takeaway: NIL = business. Business = taxes. Find someone who knows what they're doing, and don’t wait until it's too late.
🧠 3. Your Reputation Is the Deal
Sure, you can sign with that “edgy” supplement company or that brand whose customer service reviews are radioactive. But should you?
NIL isn’t just about this deal — it’s about the next one. And the one after that. And the brand you’re building along the way.
Your online presence is your resume now. That includes:
Who you work with
What you post
What you say
And what you don’t say
You don’t need to be perfect. But you do need to be intentional.
Because you never know who’s watching — a coach, a scout, a sponsor, a future employer.
Takeaway: NIL isn’t just about cashing in — it’s about cashing in wisely. Don’t sacrifice long-term credibility for short-term clout.
Final Thought: NIL Is a Game — Play It Like a Pro
You don’t need to be a lawyer.
But you do need to understand that NIL is more than likes, followers, and one-time payments.
It’s your name.
It’s your image.
It’s your likeness.
And you only get one shot at managing it well.
So ask questions. Read contracts. Call someone who can help. Because once your face is out there, your brand is the business — and smart businesses protect their future.
🛡️ Need help navigating NIL the right way?
We’ve got the guide, the answers, and the warnings you didn’t know you needed — no sugarcoating.
👉 Newburg Law — Your Family. Your Future. Your Foundation.
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