For Parents — NIL Matters™

Revenue Share is NOT NIL$20.5M cap per school per year54 schools opted out of revenue shareHouse v. NCAA settlement: $2.8BSelf-employment tax: 15.3% on NIL incomeRead every contract before signingYour sport and conference determine your ceilingNIL Collectives are not Revenue ShareRevenue Share is NOT NIL$20.5M cap per school per year54 schools opted out of revenue shareHouse v. NCAA settlement: $2.8BSelf-employment tax: 15.3% on NIL incomeRead every contract before signingYour sport and conference determine your ceilingNIL Collectives are not Revenue ShareRevenue Share is NOT NIL$20.5M cap per school per year54 schools opted out of revenue shareHouse v. NCAA settlement: $2.8BSelf-employment tax: 15.3% on NIL incomeRead every contract before signingYour sport and conference determine your ceilingNIL Collectives are not Revenue ShareRevenue Share is NOT NIL$20.5M cap per school per year54 schools opted out of revenue shareHouse v. NCAA settlement: $2.8BSelf-employment tax: 15.3% on NIL incomeRead every contract before signingYour sport and conference determine your ceilingNIL Collectives are not Revenue Share

Reality Break›

NIL income earned by your athlete is self-employment income regardless of who manages it, negotiates it, or deposits it. If you co-sign a deal, receive payments, or negotiate on behalf of your athlete, there may be tax implications for you as well. In some states, parents who act as agents for their athlete can trigger compliance issues. This page is the brief every parent needs before a money conversation starts.

What Parents Need to Understand›

Your athlete's NIL income is theirs. But the financial infrastructure (LLC, bank account, CPA, quarterly taxes) requires adult engagement to set up correctly, especially if your athlete is a minor or in their first year of college. The most helpful role for a parent is infrastructure support, not deal negotiation.

If your athlete is in high school: NIL rules for minors vary significantly by state. Do not rely on college rules. Check your specific state's high school athletics association policy before any commercial activity begins.

Helpful

Help set up LLC, bank account, and tax reserve. Identify a CPA. Help build the media kit. Review deals together before signing.

Risky

Negotiating deals on your athlete's behalf without compliance awareness. Acting as an agent in states that require licensure.

Common Mistake

Encouraging athletes to sign quickly without reading. Treating NIL income as family income before taxes are reserved.

Best Role

Infrastructure support + tax compliance support + deal review partner. The athlete leads the brand relationship. You support the business side.

What Most Parents Get Wrong›

The two most common mistakes from parent involvement: spending NIL income without reserving for taxes, and encouraging athletes to sign deals quickly without reading every clause. A parent who introduces urgency into a signing process often causes more damage than one who encourages patience.

What You Should Do Next›

Read the NIL Taxes page together with your athlete. Both of you should understand the quarterly payment obligation before money arrives.

Help your athlete set up their business infrastructure: LLC, separate bank account, business email, and a dedicated tax reserve account.

Understand your state's high school NIL rules if your athlete is a minor. Rules vary significantly and are still evolving.

Ask questions about any deal before encouraging your athlete to sign. The most protective thing a parent can do is slow the process down.

If You Do Nothing

Parents who are not engaged in the financial infrastructure end up managing a tax crisis instead of a business opportunity. The setup takes a few weeks. The tax penalty lasts years.