I want to take you back to the room where the NIL conversation started. Not the press releases and the headlines — the actual room, where a small group of people were trying to explain a new idea to legislators who had never thought about student athlete compensation before.

The examples we used to explain NIL were simple. If a student athlete was an artist and sold a piece of their artwork, they could do that without losing their scholarship eligibility. If a student athlete played in a band on the weekends and got paid for a gig, they could do that too. That was the scale of the conversation in 2021.

Nobody in that room — nobody — knew that NIL would become what it is today.

What NIL Actually Is

NIL stands for Name, Image, and Likeness. Since July 2021, college athletes have had the legal right to earn money from their personal brand. That means endorsement deals, social media partnerships, autograph signings, training camps, merchandise, and more. Before 2021, any of those activities could cost an athlete their eligibility. That rule is gone.

The House v. NCAA settlement — finalized in 2024 — took things further. Schools can now share revenue directly with their athletes. That means a student athlete at a major program can receive payments directly from their university in addition to any NIL deals they sign independently. We went from "you can sell your artwork" to "your school can pay you six figures to play" in less than four years.

What Most Families Still Do Not Understand

NIL income is not a scholarship. It is not a gift. It is taxable self employment income — the same category as a freelancer, a contractor, or a small business owner. That means your athlete may owe quarterly estimated taxes, needs to track every payment they receive, and should have a business structure in place before the first check arrives.

Most families find this out at tax time. By then, the money has been spent, the structure was never built, and the IRS is asking questions nobody planned for.

The Financial Literacy Gap Nobody Filled

When NIL bills were being written, some states included a provision requiring schools to provide financial literacy education to student athletes before any money was paid out. That was the right idea. But as the money got bigger and moved faster, that requirement was quietly dropped in most states.

What we have today is families navigating a completely new financial landscape with no map, no guide, and no one explaining the rules before the game starts. Agents have moved in. Brands have moved in. Universities have moved in. And most families are sitting across the table from all of them without anyone in their corner.

What the Window Actually Looks Like

Here is what I tell every family I sit down with. NIL is a window, not a salary. It is tied to eligibility, performance, health, and brand value. Every one of those things is temporary. The window for a college athlete is typically four years — sometimes less if an injury happens, a transfer portal move changes the situation, or a brand deal expires and does not get renewed.

Sixty percent of athletes are in financial distress within five years of leaving college sports. That number is not about bad people making bad choices. It is about income arriving without a plan, and a window closing before anyone built a foundation underneath it.

"The game will end. It ends for everyone. The question is what is left standing when it does."

What Your Family Can Do Right Now

If your athlete is currently earning NIL income, or is about to, there are three things that need to happen before the next deal gets signed. First, you need a tax structure in place — at minimum, a separate account and a plan for quarterly payments. Second, you need someone reviewing any contract before your athlete signs it. Third, you need a plan for where that income is going — not just where it is coming from.

If your athlete is not yet earning but is heading into a program where NIL opportunities exist, now is the time to have the conversation. The families who are prepared when the first deal arrives are the ones who end up with something to show for it.

That is exactly the conversation we have in a 30 minute consultation. No pressure. No product pitch. Just an honest look at where your family stands and what needs to be in place.