NIL Income
As Name, Image, and Likeness (NIL) continues to grow, student-athletes now have the opportunity to earn real income while still in school.
For many, this is the first time they are making meaningful money, often with very few expenses or financial understanding. While that creates opportunity, it also comes with important financial decisions that can impact the future.
At Buffalo Wealth Partners, we work with individuals and families to help bring more clarity and structure to their financial lives. As NIL continues to evolve, that guidance is becoming increasingly important for student-athletes as well.
What NIL Means Today
NIL is no longer just one type of income.
Most student-athletes today are seeing two main types of opportunities:
Traditional NIL Income
This includes:
• Social media promotions
• Brand partnerships
• Appearances and events
These deals are typically tied to marketing value; brands pay athletes for exposure and content.
Revenue Sharing & Collective-Based Income
At many programs, athletes may also receive compensation through:
• Revenue-sharing models tied to athletic department revenue
• NIL collectives (funded by donors and supporters)
This type of income is often less about marketing and more about a program’s overall financial structure and can feel much more like a salary.
The Reality of NIL Income
While NIL can be exciting, there are a few important realities:
• Income is often inconsistent
• Opportunities can change quickly
• For most athletes, earnings are short-term
At the same time, many living expenses, like housing and food, are already covered.
This creates a unique situation where athletes may have income, but not a long-term plan for it.
Common Financial Challenges
As we’ve seen, student-athletes often face a few key challenges when it comes to NIL income:
Taxes
Taxes are typically not withheld from NIL income, which means athletes may need to set aside a portion of their earnings.
Spending Habits
With fewer expenses and new income, it can be easy to overspend without realizing it.
Irregular Cash Flow
Income may come in waves, making it harder to plan month-to-month.
Short Time Horizon
For many, NIL income may only last during their college career.
A Better Way to Think About NIL Money
NIL Income is more than a short-term paycheck; it is an opportunity to build a strong financial foundation.
Even small, consistent decisions can make a meaningful difference over time in building a successful financial future.
How We Help
We provide financial guidance designed to help student-athletes make informed decisions with their NIL income and beyond.
Our approach focuses on helping athletes:
Build a Financial Plan
Create structure around income, spending, and saving.
Prepare for Taxes
Understand obligations and avoid surprises.
Manage Irregular Income
Plan for income that may change over time.
Think Long-Term
Use today’s opportunities to support future goals.
We can also work alongside other professionals; to help ensure athletes are supported from all angles.
Final Thoughts
NIL has created a new opportunity for student-athletes, but also new responsibility.
With the right approach, NIL income can be more than short-term earnings. It can be the starting point for long-term wealth.
If you are a student-athlete, parent, or advisor and would like to learn more, we would be happy to connect and help you navigate NIL with more confidence.
Together, we can work to keep you on-track toward your financial goals.
Request a consultation to learn more.
Read more articles by Rohan Iyer