Before signing any contract, it’s important to think long-term. A deal that looks good now could have unintended consequences down the road. Consider this quote from the Gil’s Arena Podcast from Gilbert Arenas in talking about his sons’ long-term decision making in playing ball: “…the conversation we were having is… right now he’s projected top 4, right? That’s what we’re looking at. I don’t give a f*ck about your money, because there is not enough money that you can give us, for him to be ‘4’ today, and coming here (this school) he’s ’10’ tomorrow. Your money is meaningless to the bigger picture. Between ‘4’ and ’10’, that’s damn near $20 million.” Here are some key factors to consider before taking an NIL deal, along with real-life scenarios that illustrate why thinking ahead matters.
How NIL Deals Can Shape Your Future
1. Exclusive contracts: are you locking yourself in?. Many brands will ask athletes to sign exclusivity agreements, meaning you can’t work with competing brands for a certain period. While that might not seem like a big deal, it could limit future opportunities.
Example: Imagine a college basketball player signing an exclusive deal with a local sports apparel store. A year later, a national brand like Nike or Adidas wants to work with them—but their contract prevents them from signing a new deal. What looked like easy money upfront could cost them a much bigger opportunity. Read the fine print. If exclusivity is required, ask how long it lasts and whether there’s room for negotiation.
2. Choosing a school based on NIL promises. Some schools are offering huge NIL incentives to recruit athletes, but money shouldn’t be the only factor when choosing where to play. Academic fit, athletic development, coaching staff, and long-term career goals should all be considered.
Example: A high school football star commits to a university offering a six-figure NIL package. However, the team has a weak program, and the athlete doesn’t get the development needed to reach the next level. The NIL money helped in the short term, but the decision hurt their long-term career. Look beyond NIL money. Consider if the school is the right fit for your education, development, and career aspirations.
3. Partnering with businesses that align with your brand. An NIL deals are not just a paycheck—it’s a reflection of your personal brand. Partnering with the wrong business can affect your reputation and limit future deals.
Example: A college soccer player gets an NIL offer from a local nightclub. It’s their first deal, and they’re eager to start making money. But later, a major fitness brand they admire hesitates to work with them because of the association with alcohol and nightlife. Ask yourself: does this brand align with my values? How will this deal be perceived by future sponsors, coaches, and fans?
4. Understanding the tax and financial impact. NIL income is taxable, and many athletes don’t realize they need to set aside money for taxes. Without proper planning, a big payday could turn into a financial headache.
Example: A track athlete earns $50,000 in NIL deals but doesn’t save for taxes. When tax season comes, they owe thousands to the IRS with no money set aside to pay it. Set aside at least 30% of NIL earnings for taxes and consider working with a financial advisor.
5. Thinking beyond short-term money. Some deals may pay well in the short term but limit bigger opportunities later. Your NIL strategy should be about building your personal brand for the long haul.
Example: A college athlete takes multiple small NIL deals, promoting random products. Later, a major brand wants to work with them but is concerned about their scattered brand image. The goal isn’t just making money—it’s building credibility for long-term success.
NIL deals can be exciting, but every contract should be carefully considered. Think beyond just the paycheck—look at how the deal aligns with your long-term goals, financial health, and personal brand.