“Name, image and likeness,” also known as NIL, has fundamentally changed what it means to be a college athlete.
Since NCAA rules first permitted student-athletes to profit from their personal brands in 2021, the NIL landscape has evolved rapidly. The June 2025 House v. NCAA settlement expanded those rights further, allowing Division I institutions to directly compensate student-athletes for the first time.
These shifts present tremendous opportunities, but they also demand a new level of financial discipline, legal awareness and professionalism that many students aren’t fully prepared to navigate.
When student-athletes lack the guidance to effectively manage NIL rights, the consequences can range from eligibility issues and reputational damage to financial instability that affects academic performance and retention.
Athletic departments are uniquely positioned to bridge that gap by helping athletes build the skills and support structures they need to manage NIL responsibly and protect their long-term success on and off the field.
Preparing athletes to treat NIL like a business
NIL has effectively turned student-athletes into entrepreneurs. Beyond competing and studying, many athletes are now simultaneously managing endorsement deals, social media partnerships, appearance fees and direct institutional compensation.
Each carries contractual obligations, tax implications and reputational considerations that require a level of business acumen most 18-to-22-year-olds are still building.
For universities, investing in this support goes beyond helping individual athletes. It can also help safeguard program eligibility, institutional reputation and long-term competitive standing. The following are core areas where education and access to professional guidance matter most.
1. Financial literacy and asset protection. Managing NIL income requires a level of financial sophistication most student-athletes haven’t yet developed. Nearly 50% of student-athletes report having a need for financial literacy resources, according to NCAA survey data.
Understanding tax obligations, setting up appropriate business structures such as an LLC, keeping personal and business finances separate and building a budget around variable income are all foundational skills. Without that foundation, athletes are more likely to make decisions without the full picture, and those decisions can be difficult to unwind, and may even result in absolute financial loss.
Departments should ensure athletes have access to financial education resources and, where possible, connect them with qualified advisors who can help them avoid common missteps.
2, Tax planning. NIL income carries tax obligations that many students haven’t faced before. Student-athletes may owe self-employment taxes, state income taxes in multiple jurisdictions if they compete or make appearances across state lines, and quarterly estimated payments if their income is significant.
Eligible business expenses such as travel, marketing costs and home office use can offset taxable income, but only if athletes are tracking them. Athletes who aren’t prepared often face surprise tax bills, underpayment penalties or multi-state filing complications that compound quickly.
Departments that provide access to tax professionals or incorporate tax literacy into their programming give athletes a meaningful head start.
3. Insurance coverage. Student-athletes entering NIL deals should understand that their existing coverage, or lack thereof, may not adequately protect their growing personal and professional assets. Athletic departments can help by connecting athletes with advisors who understand the specific coverage needs of student-athletes in the NIL era.
Key policies to consider include:
- Business liability coverage: Protects against lawsuits or contractual disputes arising from endorsement deals, sponsored content or public appearances.
- Auto and property insurance: Protects personal assets that may be tied to business use as NIL income and activity grow.
- Life and disability insurance: Provides financial stability for dependents and protects against loss of earning potential in the event of injury or illness—an important consideration for athletes whose NIL value is tied to their physical performance. It is important that athletes find a trusted advisor outside of what the school provides simply because with the freedom of athlete movement, if an athlete were to transfer schools they might lose all of their insurance and benefits that were set up at their previous institution. We are seeing more and more athletes and agents take on this responsibility on their own.
4. Legal and compliance awareness. NIL deals must comply with NCAA rules, institutional policies and applicable state and federal law. The House settlement adds new layers—including reporting requirements and restrictions on how compensation is structured.
Student-athletes who sign contracts without legal review risk eligibility issues, financial disputes or obligations they don’t fully understand. Departments should encourage athletes to seek legal guidance before signing any agreements.
5. Brand and reputation management. A student-athlete’s NIL value is inseparable from their public reputation. Social media activity, public statements, the brands they associate with and how they conduct themselves off the field all affect their marketability.
Departments should help athletes understand that brand management is an ongoing responsibility by providing guidance on sponsor relationships, public relations and deal selection.
6. Mental health support. Student-athletes already face significant mental health pressures from the demands of competition. Nearly half of women’s sports participants and nearly one in five men’s sports participants report feeling overwhelmed on a near-constant basis, according to NCAA data.
Adding the weight of entrepreneurial responsibilities to an already demanding schedule can intensify those challenges. Athletic departments should ensure student-athletes have access to licensed mental health professionals who understand the unique pressures of high-performance athletic environments, and should actively work to reduce the stigma around seeking support.
