The Name, Image and Likeness (NIL) era has reshaped college athletics. What started as a concept is now a daily reality, letting student-athletes finally profit from their market value. Yet, behind the headlines of big endorsement deals and new financial freedom, a less glamorous truth exists: many young athletes lack adequate support navigating the complexities of contracts, taxes and personal branding.
Name, Image and Likeness (NIL) has, in many ways been a liberating force. It’s empowered athletes, often from tough financial backgrounds, to earn money for themselves and their families. It acknowledges the huge value they bring to their schools and the broader sports world, moving past an outdated amateurism model. For many, it’s a well-earned chance to build a financial base for the future, regardless of whether they go pro.
However, the Name, Image and Likeness (NIL) quick rollout created a “Wild West” scenario. The systems meant to protect and educate these young adults are still playing catch-up. Universities, tied down by National Collegiate Athletic Association (NCAA) rules often hesitate to offer direct guidance on Name, Image and Likeness (NIL) deals, fearing compliance issues. This leaves many student-athletes, some as young as 18 to figure things out alone or lean on outside agents whose goals might not always align with the athlete’s long-term interests.
Contract negotiation presents an immediate challenge. A major Name, Image and Likeness (NIL) deal isn’t just a handshake. It involves legal documents with specific clauses, deliverables and often exclusive agreements. Without proper legal advice, athletes can sign away rights, miss key details or agree to unfavorable terms that could hurt their future careers or finances. The legal language alone can be overwhelming and the pressure to land a deal often overshadows the need for careful review.
Then there are the taxes. Many student-athletes are earning significant income for the first time, often as independent contractors. This means no automatic deductions for Social Security or Medicare. The responsibility for quarterly estimated tax payments and understanding state and federal tax laws falls squarely on them. A lack of financial know-how, combined with no university-provided tax advisors, can lead to unexpected tax bills, penalties or even legal troubles, turning a good deal into a financial headache.
Effective personal branding adds significant demands to student-athlete schedules. Lack of personalized guidance leads to risks like mistakes or burnout. This support gap persists as the National Collegiate Athletic Association (NCAA) is hands-off, universities cautious and agencies inconsistent. Collaboration is vital. Universities should facilitate access to independent financial, legal and branding experts within compliance. The National Collegiate Athletic Association (NCAA) must offer clearer guidelines. Ultimately, fulfilling NIL’s promise requires equipping athletes with essential business and financial literacy. Otherwise, the “Wild West” will continue to balance opportunity with avoidable risk.
