College athletes earning money from name, image and likeness deals should treat each payment as a financial head start, not a spending invitation, Merrill Lynch wealth management advisor Gordon Whittaker says.
Whittaker urges athletes to manage income from NIL contracts and revenue-sharing agreements carefully. His advice comes as college sports moves deeper into an era of direct athlete compensation.
The central challenge is simple: Young athletes may receive meaningful income before they have experience with taxes, contracts, investing, or long-term planning. Building sound habits early could determine whether that money creates lasting security or disappears after a few seasons.
New Income Brings New Responsibilities
NIL rules allow college athletes to earn money from endorsements, appearances, social media promotions, and other uses of their public identity. Revenue sharing can add another source of compensation through athletic programs.
Those payments can vary widely. A high-profile player may secure major sponsorships, while another athlete may receive smaller local deals. In either case, the basic financial questions remain the same.
College athletes earning income from NIL and revenue-sharing deals should be good stewards of those funds and focus on building good financial habits, Whittaker said.
That guidance places discipline ahead of flashy purchases. It also recognizes that athletic careers can be short and uncertain. Injuries, roster changes, and shifting public interest can quickly reduce an athlete’s earning ability.
Income may also arrive in irregular amounts rather than through a steady paycheck. That makes budgeting harder. A large payment can look permanent even when the next contract is months away, or never comes.
Financial Habits Can Outlast Playing Careers
Good stewardship begins with knowing how much money is actually available after taxes and other obligations. Athletes may need to set aside funds for taxes before making major purchases.
A practical plan may include several basic steps:
- Create a budget for regular living and education costs.
- Set aside money for federal, state, and local taxes.
- Build an emergency fund for unexpected expenses.
- Review contracts and fees before signing agreements.
- Save or invest part of each payment for later years.
These steps may sound ordinary, but ordinary can be useful. A budget will not generate highlight reels, yet it can prevent financial trouble after the cameras leave.
Professional advice may help athletes understand contract terms and tax duties. However, athletes also need to know who is being paid, how advisers are compensated, and whether recommendations match their own goals.
Schools Face a Wider Education Challenge
Whittaker’s message also raises questions for colleges and athletic departments. Paying athletes changes the support they may need from their institutions.
Financial education can help athletes compare deals, spot unrealistic promises, and plan for life after sports. Such training is most useful before money arrives, not after a costly mistake.
Athletes also need to strike a balance. Compensation gives athletes more control over the value their talent and public profiles create. Yet added opportunity brings risks that students in other campus jobs may rarely encounter.
NIL and revenue-sharing income could help athletes pay for school, support relatives or begin building wealth. The same funds can create tax bills, pressure from others and spending patterns that are hard to sustain.
Whittaker’s advice offers a clear takeaway: The size of a deal matters less than the habits it creates. As athlete compensation grows, schools, families, and advisers will need to help students turn short-term earnings into long-term stability.
