5 Things Every Parent Should Know About NIL Deals
Parents, NIL isn't just for the pros anymore. Here's how to protect your athlete, support their dreams, and avoid mistakes when those first deals start rolling in.
NIL (Name, Image, and Likeness) is changing the game — literally. Now, your student-athlete can earn money from brand deals, social media, camps, appearances, and even selling their own merch. But with these new opportunities come new challenges — especially for parents. Here’s what every parent needs to know to help their athlete thrive (and stay protected!) in the world of NIL:
1. NIL Isn’t Just for College Athletes Anymore
While the biggest headlines started with NCAA athletes, many high school athletes are now eligible to sign NIL deals too. However, rules vary by state. For example, California, New Jersey, and Illinois allow high school athletes to participate, while some states still have restrictions (NFHS). Before signing anything, double-check your state athletic association's NIL policy.
2. NIL Income Is Taxable
Yes — if your child earns money through NIL, the IRS sees it as taxable income. Depending on the amount, they may need to file taxes or even pay estimated quarterly taxes (IRS.gov). Find a certified tax professional in your state who understands NIL income. It’ll save you headaches later.
3. Contracts Are Legal Documents (And Can Get Tricky)
NIL contracts are real, binding agreements. They can include clauses about exclusivity, how long your athlete must work with a brand, and penalties for breaking the deal. Always have a sports attorney or NIL consultant review a contract before your athlete signs. It’s worth the investment to avoid future problems (Business of College Sports).
4. Your Athlete’s Brand Matters More Than Ever
Today, athletes are more than their stats — they’re a personal brand. Companies look for athletes who are positive, engaging, and have strong values (especially on social media). A messy Instagram feed or questionable TikTok posts could cost your athlete real money. Help your athlete audit their social media and focus on building a positive, authentic presence.
5. Managing Money Is Just as Important as Earning It
A few NIL deals can add up fast — but without smart money management, it can also disappear fast. From saving for college to paying taxes, your athlete needs a basic financial game plan. Connect with a financial advisor familiar with young athletes to help your student set goals, budget, and plan for their future (Forbes Advisor).
Final Thoughts
Parents — you’re the first line of defense for your athlete. By staying informed, asking the right questions, and building a trusted team, you can help your child maximize NIL opportunities safely and smartly.
Ready to dive deeper? Download our NIL Planning for Parents to get started.
Sources:
NFHS: High School NIL Policy Updates
IRS: Guide for Young Entrepreneurs and Tax Responsibilities
Forbes Advisor: Best Financial Tips for College Students
