The “New Money” Checklist for Student Athletes to Manage NIL Money

A Strategic Business Guide for NCAA Student-Athletes Building Their Brand and NIL Money

This guide outlines the foundational steps every athlete should take to manage their finances and taxes that come with NIL deals. Athletes and families can learn more about how to align NIL earnings with financial growth by visiting The Winston CPA Group's NIL Page.

Managing NIL money for student athletes including taxes and financial education.

Managing NIL Money Requires More Than Popularity

NIL has created generational opportunities for student-athletes. Whether you’re starting games or coming off the bench, your name, image, and likeness now hold measurable value. This new revenue stream is an introduction to entrepreneurship. NIL income comes with responsibilities that must be handled with intention: entity formation, taxes, compliance, cash flow, and brand management.

The Latest NIL Shift: Schools Can Now Pay Athletes Directly

Beginning in the 2025–2026 academic year, schools will be allowed to compensate athletes directly under a proposed revenue-sharing model. The current cap for NIL-related payments from schools is expected to exceed $20 million annually.

This development represents a dramatic shift in the college athletics landscape. NIL income is no longer limited to third-party endorsements or brand deals. Now, schools themselves are emerging as primary payers - effectively formalizing the business relationship between their student-athletes and athletic departments.

With school-funded NIL money, athletes must prepare for even more complexity:

• Structured contracts with institutional terms

• Multi-year payment schedules and reporting requirements

• Increased exposure to tax liability and regulatory oversight

• Impact on financial aid eligibility

These are business transactions with long-term financial consequences. The Winston CPA Group provides student-athletes and families with proactive tax strategy for NIL deals, business setup, and audit-ready documentation to protect both eligibility and financial security.

Coach’s Warning: NIL Money Can Complicate Team Culture

“Leave your Louis belts, financial statements, and car keys outside of this locker room.” — Coach Mike Locksley, on Golic & Golic

The ripple effects of NIL are felt beyond the money. On a recent episode of Golic & Golic, Maryland football head coach Mike Locksley spoke candidly about how NIL altered the dynamic in his locker room.

Locksley admitted he “lost the locker room” last season as personal earnings and visible displays of wealth disrupted team unity. The message was clear: NIL without structure can erode discipline and cohesion.

Student-athletes must learn how to manage their new visibility and income without losing focus on what got them there. At The Winston CPA Group, we help athletes put guardrails around NIL income so business doesn’t bleed into performance, and opportunity doesn’t outpace maturity.

NIL Guide for Student Athletes

Browse our NIL Guide for all you need to know about NIL, money, and taxes for student athletes.

Determine How You Will Operate as a Business with NIL Deals

You are officially a business, man. Most times this step happens too late in the startup process. Once you get your NIL deal, you've become a business - and you must treat this experience as such. Tracking your income and expenses, understanding your new tax bracket, and planning ahead so you don't blow through your money are key. Before anything else, be clear about what you need to know as a new business.

An LLC is the popular choice, yet many entrepreneurs haven’t evaluated corporations, partnerships, and other structures that may better align with their business goals.

Define Your Brand Objectives with NIL

Get the money, we know. But who are you? What do you want to be known for? Why would a brand want to work with you? Remember that NIL deals are not based on stats so there's reasons a brand may want to partner with you.

NIL deals sound exciting, but it's important to evaluate each deal. Get to know the brand and their reputation. The last thing you want is to be affiliated with a company whose ethics or way of working doesn’t align with yours.

Open a Business Bank Account to Manage your NIL Money

Your personal banking needs to be separate from your business transactions. Not only is this a nightmare for your CPA, but it can be problematic if you form an entity with multiple owners. Banks may appear to offer similar products, but it’s important to identify the features that support your long-term wealth strategy. Have your paperwork in order. While online account openings are convenient, sitting down with a banker who understands your goals can create a stronger financial partnership.

Athletes building NIL income streams benefit from a structured banking setup that protects their earnings and supports their business foundation. Learn more about how to position your NIL income for growth at The Winston CPA Group.

Retain an Attorney and CPA

Both an attorney and CPA are essential investments in your business. Even if your brand gains visibility and large companies start reaching out, that success can quickly unravel due to noncompliance with tax obligations or poorly written contracts. Signing NIL deals without these two advisors often leads to costly mistakes that could have been avoided. An attorney will protect your rights, negotiate favorable terms, and ensure the legal integrity of your partnerships.

A CPA will help you build a tax plan, manage cash flow, and prepare for multi-state filing requirements. The Winston CPA Group supports athletes and their families in managing NIL income, entity setup, compliance, and long-term financial strategy. Our advisory team works with collegiate and professional athletes across the country to create clarity, avoid costly mistakes, and build lasting wealth.

Our NIL page shows you how we support student-athletes, families, and athletic departments with NIL, financial literacy, and tax strategy.

Obtain Business Insurance, Licenses, and Permits

Understand NIL and Taxes and How to Tax Plan with NIL Money

There’s more to taxes than just income taxes. Depending on your industry, your business could be liable for sales and use tax, franchise tax, excise tax, and others.

The rise in e-commerce and digital income has led many states to pursue revenue from businesses that have either physical or economic nexus in the state. These rules are complex and vary state by state. Many athletes are unaware of tax obligations in the states where they sign deals, appear for events, or sell merchandise.

This is one of many reasons to retain a CPA and implement strong accounting processes from the beginning. Our team advises athletes and their families on how to minimize risk, stay in compliance, and create a sustainable structure. Explore NIL tax planning services at The Winston CPA Group.

Know the NIL Compliance Rules for Your School and State

As a student-athlete, you must understand and follow NIL guidelines established by your school. Ignorance of the rules does not protect your scholarship or eligibility.

In addition to university policy, each state may have its own reporting requirements for businesses and earners. Failing to comply can lead to penalties or legal issues that could impact your academic and athletic career.

Secure the NIL Money Bag, but Build the Business Too

NIL deals are changing lives, and rightfully so. Student-athletes contribute time, energy, and discipline to their sport, and now the market recognizes that value. But NIL is not a free check. It is a business opportunity.

The way you handle this moment will shape your financial future. Set the foundation early, surround yourself with professionals who understand tax law and business, and protect what you’re building.

If you need to talk through your questions about NIL, taxes, and money management, visit our NIL page or look at the FAQs below.

FAQs: Managing NIL Deals, Money, and Taxes the Right Way

What is NIL income? NIL income refers to earnings from the use of a student-athlete’s name, image, or likeness. This can include brand endorsements, social media promotions, merchandise sales, public appearances, and more.

Is an LLC required to receive NIL money? No, but forming an LLC can provide benefits including liability protection, tax planning flexibility, and separation between personal and business finances. It also presents a more professional structure when negotiating with brands.

Do I have to pay taxes on NIL income? Yes. Most NIL income is considered self-employment income and subject to federal, state, and possibly local taxes. You may also owe self-employment tax and should consider making estimated tax payments quarterly.

How should I manage NIL income and expenses? Separate business and personal finances by using a dedicated business bank account. Track all income and expenses, and retain records for tax filing and financial planning purposes.

What are the risks of not working with a CPA or attorney? Athletes who sign deals without professional review often face tax penalties, misclassification of income, unenforceable contracts, and long-term financial consequences. Professional support helps you make informed decisions from the start.

What tax rules apply if I sign deals in multiple states? You may be subject to income or sales tax in each state where you conduct business. States have different thresholds and definitions for economic presence, so multi-state compliance can become complex quickly.

Where can I get NIL-specific tax and financial support? The Winston CPA Group offers tailored tax, accounting, and advisory services for student-athletes, families, and professional sports organizations. Learn how to build a compliant, profitable NIL structure at www.winstoncpagroup.com.

The content of this blog is for informational purposes only and should not be taken as tax or accounting advice. The Winston CPA Group is not responsible for any losses or damages incurred by relying on the information provided here. Book a consultation with a member of our team for guidance on your specific business needs.