Advisor Urges College Athletes to Build Good Financial Habits with NIL Income

Last updated Sep 5, 2026

Understanding Financial Management for College Athletes

With the start of the college football season, many young athletes across the country are seeing an increase in income from name, image, and likeness (NIL) and revenue sharing deals. However, this sudden influx of funds can pose financial challenges if not properly managed.

The Evolution of Student-Athlete Compensation

The concept of NIL took root in college sports in 2021 and has now evolved to include direct revenue sharing with the colleges the athletes compete for. Student-athletes, particularly those who are part of the Power Four (P4) conferences – the Big Ten, SEC, ACC, and Big 12 – or those competing in college football and basketball, could earn six or seven figures in income from these deals.

The Importance of Building Good Financial Habits

Regardless of whether these student-athletes continue their careers professionally after college, their current earnings provide an opportunity to build good financial habits and a strong foundation for their future. Merrill Lynch wealth management advisor, Gordon Whittaker, encourages young athletes to be good stewards of their funds.

The Power of Compound Interest

Whittaker stresses the importance of compound interest. He advises the athletes to live like college students and save their earnings. Even small dollar amounts can grow into significant amounts if they are invested and allowed to grow over several decades.

Planning for Life After Sports

Understanding that their sports careers will not last forever, the athletes are encouraged to start planning for life after sports. Whittaker emphasizes the importance of wealth creation through owning assets as opposed to being employees.

The Implications of Tax Planning

It’s also crucial for the athletes to understand their tax obligations. The income they earn from NIL and revenue sharing is subject to taxes. Whittaker points out that many collegiate programs now assist their athletes in splitting their income to accommodate for tax bills.

Building a Strong Personal Brand

Lastly, student-athletes looking to increase their earning potential via NIL or revenue sharing deals need to be mindful of their personal brand. Whittaker advises athletes to understand that their off-field actions can directly impact their earning potential.