At a glance
- The NIL marketplace grew from about $918 million in its first year to an estimated $2.3 billion in 2024–25, according to Opendorse.
- In an NCAA survey, about half of surveyed athletes said they sought resources related to tax literacy and education.
- For advisors, the first job is separating gross compensation from after-tax cash flow before choosing how much to save, spend or invest.
NIL payments often arrive without income tax withholding, so a planning framework for advisors with student-athlete clients starts with cash management rather than investments, WealthManagement.com reported.
The NIL marketplace grew from about $918 million in its first year to an estimated $2.3 billion in 2024–25, according to Opendorse. It is projected to reach $5.1 billion by 2028–29. In an NCAA survey, about half of surveyed athletes said they sought resources related to tax literacy and education.
For advisors, the first job is separating gross compensation from after-tax cash flow before choosing how much to save, spend or invest. Noncash benefits such as a vehicle or housing create taxable income without the cash to pay the tax, and income can arrive at once from revenue sharing, endorsements and other NIL arrangements. Budgeting for estimated taxes from the first payment comes before saving, spending, liquidity and investing.
Reported by the Tax & estate planning desk from WealthManagement.com. Published . Corrections