Before you sign anything, evaluate any deal, or ask anyone for advice — understand what NIL actually is and isn't.
NIL means Name, Image, and Likeness. It is NOT a scholarship. It is NOT automatic money. It is NOT equal across sports, schools, or athletes. Since July 2021, college athletes can be paid to use their name, image, or likeness commercially — but that payment requires a deal, a brand, and usually a team managing it. Most athletes receive nothing without initiating the process themselves.
NIL income is classified by the IRS as self-employment income — the same as a freelancer or independent contractor. That means you pay income tax AND self-employment tax (15.3%) on every dollar. Schools cannot manage this for you — they can educate, but they cannot act as your agent.
There are three separate systems you will interact with: NIL Brand Deals, NIL Collectives, and Revenue Share. Each works differently. Confusing them is the single most common and costly mistake.
Athletes assume NIL money flows automatically because of a policy change. It does not. They also assume collectives are the same as revenue share. They are not. And they sign deals without understanding the exclusivity clause — the part that can prevent them from working with competing brands for 12–24 months.