← Back to all episodes Episode 15 · August 19, 2026 · 25 min

NIL Money: 5 Things Every Student-Athlete and Parent Needs to Know

Your kid just got paid to post on Instagram. Now what? Tracy breaks down what every student-athlete and parent needs to know about NIL deals.

What we covered

5 takeaways from the conversation.

01

NIL income is real income — and the IRS knows it. The moment your student-athlete gets paid, set aside at least 25 to 30 percent for taxes. This is self-employment income, which means it is taxed differently than a regular paycheck. Get an accountant before you file, not after.
02

Never sign anything alone. Before any NIL deal is done, you need a sports attorney who understands the contracts, a financial advisor who can help you plan for the money, and someone who knows your school’s compliance rules. The paperwork matters as much as the paycheck.
03

Your social media is your business. Brands are paying for your reach and your reputation. One post can open doors — or close them permanently. Treat every platform like a professional resume and think twice before you type.
04

Know your school’s NIL rules before you say yes. Every school has different compliance requirements, and some categories — gambling, alcohol, certain endorsements — can put your eligibility at risk. A deal is not worth losing your scholarship or your season.
05

The NIL window is short. Open a Roth IRA with your first check. Build an emergency fund. Start investing now. Most athletes earn the most in their twenties, and the NIL money can stop as fast as it started. A financial plan today is the best deal you can sign.