I wanted to do a two part series on the easy mistakes students athletes tend to make and what to look out for.
Mistake #1: Thinking NIL Is Only About Money – Too many athletes chase the check and ignore the contract, the taxes, the deliverables, and the long‑term impact. NIL is a business. Businesses require planning, documentation, and compliance. If you only focus on the money, you’ll lose more than you gain.
Mistake #2: Signing Contracts They Don’t Understand – If you don’t understand the contract, don’t sign the contract. Perpetual rights, auto‑renewals, exclusivity, IP ownership… these clauses can follow you long after college. Get it reviewed. Every time.
Mistake #3: Ignoring Taxes Until April – NIL income is self‑employment income. That means quarterly payments, recordkeeping, and planning. Waiting until April is how athletes end up with penalties, interest, and a tax bill they weren’t ready for.
Mistake #4: Treating Free Stuff Like It’s Free – Shoes, gear, hotel stays, meals, cars, all taxable. If you received something of value in exchange for a service, the IRS wants its cut.
“Free” is a marketing term, not a tax term.
Mistake #5: Not Tracking NIL Income and Expenses – If you can’t prove it, you can’t deduct it. If you can’t track it, you can’t manage it.
Athletes need systems, not screenshots and guesses.
