The NCAA recently released the NCAA Data Dashboard, and while it might shock some, I’m not surprised at all. Since NIL was signed into law there’s been so much negative talk about college athletes making money, such as:
- “Athletes shouldn’t be paid!” They should focus on school and sports.
- “It’s too much pressure!” Earning money from NIL could add extra pressure on athletes to perform on and off the field, potentially leading to burnout.
- “You’ll mess with team dynamics!” NIL deals could create jealousy or tension among teammates if some players receive more lucrative deals than others.
The report shared that this past year, 56.4% of deals per disclosure valued were $100 or less. This means a majority of the athletes at the collegiate level are not making bank, like the haters like to think. So while many like to talk about the few top-earning athletes that make millions of dollars… there are hundreds of thousands of talented athletes who aren’t raking in tons of cash from NIL. The good news is that all athletes, not matter what level, have the ability to get creative and start their wealth journey earlier than athletes before them. Here’s how student-athletes can start building their net worth, even with modest NIL revenue.
How Athletes Can Build Wealth from The Ground Up
1. Launch a Side Hustle. One of the most effective ways to capitalize on small NIL earnings is by reinvesting that money into a side hustle. Whether it’s selling branded merchandise, offering training sessions, or creating content on platforms like YouTube or TikTok, a side hustle can generate additional income and build a personal brand. The key is to identify what you’re passionate about and how that aligns with your skills as an athlete.
For example, if you’re a basketball player, consider starting a YouTube channel where you share tips and drills for young athletes. Or, if you’re into fashion, create a clothing line that reflects your personal style. The initial NIL earnings can help fund the startup costs, and over time, the side hustle could grow into a substantial income stream.
2. Start a Business. Starting a business in college may sound daunting, but it’s an excellent way to use NIL earnings for long-term financial gain. With the right idea and a solid business plan, even a small NIL check can be the seed money for something much larger.
Consider what gaps exist in the market or what needs aren’t being met. Maybe there’s a demand for healthy snacks among athletes, or perhaps there’s a lack of affordable athletic gear. Use your NIL earnings to create a prototype or launch a small-scale version of your product or service. You might also consider teaming up with other student-athletes who share your vision, pooling resources to increase your chances of success.
3. Work a Part-Time Job and Save. If you’re not ready to dive into entrepreneurship, another option is to work a part-time job and use your NIL earnings to kickstart a savings plan. Working a job, even if it’s just a few hours a week, can provide steady income that, when combined with NIL money, can be saved or invested.
Consider opening a high-yield savings account or exploring low-risk investment options like a Roth IRA. Starting these financial habits early in your college career can set you up for long-term success. By the time you graduate, you’ll have a financial cushion that can help you transition into your post-college life with confidence.
4. Build Your Network. Leveraging your NIL doesn’t always have to be about making more money immediately. Sometimes, it’s about building relationships that will pay off later. Use your NIL status to connect with local business owners, alumni, and professionals in your field of interest. Attend networking events, engage with your community, and don’t be afraid to ask for advice or mentorship.
These connections can lead to future job opportunities, partnerships, or even investments in your business ideas. The network you build in college can be one of your most valuable assets as you move forward in your career.
5. Get an Early Start. Perhaps the biggest advantage of earning NIL money in college, even if it’s just $100, is that it gives you an early start on building wealth. The earlier you begin to think strategically about your finances, the more time your investments and savings have to grow. This head start can put you miles ahead of other athletes who only start thinking about their financial future after graduation.
While $100 may not seem like much, it’s enough to start laying the foundation for a financially secure future. Whether you choose to launch a side hustle, start a business, work a job and save, or build your network, the key is to take action now. By doing so, you can turn those modest NIL earnings into a powerful tool for long-term wealth building.