With the introduction of Name, Image, and Likeness (NIL) opportunities, student-athletes now have the chance to monetize their personal brand while still in school. While NIL offers tremendous financial opportunities, it also brings new challenges and responsibilities that can be overwhelming for young athletes. As a parent, your role in guiding your child through this process is more important than ever.
Here’s how you, as a parent, can help your student-athlete navigate the world of NIL earnings—ensuring they make smart decisions, maintain a balance between academics and sports, and protect their long-term financial well-being.
1. Educate Your Child About NIL and Its Potential
The first step in helping your child succeed with NIL is to understand what it is and how it works. Although NIL offers exciting financial prospects, many student-athletes don’t fully grasp how these opportunities fit into their overall career goals. As a parent, you can provide the necessary education to ensure they approach NIL responsibly.
Key Areas to Focus on:
- The Basics of NIL: Teach them that NIL income comes from various sources, including endorsements, sponsorships, social media deals, merchandise sales, and more.
- Legal and Compliance Issues: Explain that NIL deals must align with NCAA guidelines and school-specific rules to maintain eligibility.
- Financial Implications: Help them understand the tax responsibilities associated with earning money from NIL, including setting aside money for taxes.
💡 Pro Tip: Be sure to stay up-to-date on NIL rules, as these regulations can evolve quickly and vary by state or institution.
2. Help Them Evaluate NIL Opportunities
While NIL presents an exciting chance to earn, not all opportunities are worth pursuing. Some deals may seem lucrative but could ultimately be misaligned with your child’s values, goals, or long-term career aspirations. As a parent, it’s crucial that you help your child evaluate deals and avoid making hasty decisions based on the allure of quick money.
Questions to Ask When Evaluating NIL Deals:
- Does this deal align with your personal brand?
- Is the company reputable and a good fit for your image?
- Are the terms of the deal clear and fair?
- What is required of you? (Social media posts, appearances, etc.)
- Does this deal interfere with your academic or athletic commitments?
💡 Pro Tip: Encourage your child to seek deals that align with their values and long-term career goals—whether in sports or beyond.
3. Help Them Protect Their Brand
Student-athletes are now responsible for their personal brand, and their actions on and off the field (or court) can impact their earning potential. It’s important for parents to teach their child how to protect their brand by making thoughtful decisions and staying professional in all NIL-related matters.
How Parents Can Help Protect Their Athlete’s Brand:
- Social Media Presence: Teach them the importance of curating a positive and professional online presence. Encourage them to be mindful of what they post on social media and how it reflects on their image.
- Reputation Management: Help them understand that every decision, including who they partner with or the products they endorse, can impact their reputation.
- Legal Protections: Work with an attorney to ensure that their NIL contracts are clear, fair, and legally sound, and that they’re not signing away any intellectual property rights that could affect their future earnings.
💡 Pro Tip: Help your child prioritize integrity and authenticity when selecting partners or creating content. Maintaining a positive image will lead to more lasting opportunities.
4. Guide Them on Financial Management
One of the most important aspects of NIL earnings is learning to manage money effectively. With income comes responsibility, and many student-athletes may not be prepared for the sudden influx of cash. As a parent, helping them develop good financial habits will set them up for long-term success.
Key Financial Management Tips for NIL-Earning Athletes:
- Set Aside Money for Taxes: NIL income is taxable, so help them set aside 25-30% of their earnings for tax purposes.
- Create a Budget: Teach them to create a monthly budget for saving, spending, and investing.
- Establish an Emergency Fund: Encourage them to set aside money for unexpected expenses.
- Invest for the Future: Introduce them to long-term investing options like a Roth IRA or 529 College Savings Plan to build wealth over time.
💡 Pro Tip: Work with a financial advisor who specializes in NIL earnings to help them navigate the complexities of saving, investing, and planning for taxes.
5. Help Them Maintain Balance Between School, Sports, and NIL
While NIL offers incredible financial potential, it’s essential that student-athletes maintain balance between their academic responsibilities, athletic commitments, and newfound business ventures.
How Parents Can Help With Time Management:
- Prioritize Education and Sports: Remind your athlete that their education and athletic performance should always come first. NIL opportunities should complement, not detract from, their goals.
- Set Boundaries for NIL Work: Help your child set limits on how much time they dedicate to NIL activities, ensuring it doesn’t interfere with practice, games, or study time.
- Encourage Rest and Mental Health: Remind them of the importance of taking breaks and avoiding burnout. Encourage activities that promote relaxation and mental well-being.
💡 Pro Tip: Use tools like calendars, planners, or time-blocking apps to help your athlete stay organized and keep track of their commitments.
6. Teach Responsibility in Negotiating Contracts
Many NIL opportunities require contract negotiations. While some student-athletes may be eager to sign their first deal, it’s crucial that parents help them understand the terms and implications of any contract before agreeing to anything.
How to Guide Your Child in Contract Negotiations:
- Don’t Rush: Encourage your athlete to take their time and review contracts carefully.
- Involve a Lawyer: If needed, work with a sports agent or attorney who specializes in NIL contracts to ensure they’re getting a fair deal.
- Understand the Terms: Help them comprehend exclusivity clauses, payment terms, performance requirements, and other key details.
- Negotiate: Teach them that negotiation is a skill—they can always ask for better terms, especially if they’re a valuable influencer or athlete.
💡 Pro Tip: Never sign a contract without fully understanding the implications. Have a legal expert review any documents before moving forward.
Final Thoughts: Your Role as a Supportive Parent
Navigating the world of NIL earnings can be overwhelming, but with the right guidance, your child can take advantage of these opportunities while protecting their future. By educating them about NIL, helping them protect their brand, teaching financial responsibility, and ensuring they maintain balance, you can set them up for long-term success, both as an athlete and as a young adult entering the world of business.
