Accounting Considerations for Athletes who Monetize their NIL
With March Madness upon us, collegiate athletics and basketball will be the topic of many conversations until your bracket is busted or your favorite team makes it into the Final Four. For some players, not only is the game on their mind, but also financial and accounting considerations for their Name, Image, and Likeness (NIL).
What is NIL?
NIL is an acronym for a person’s Name, Image, and Likeness. Within the parameters of NIL, voice, signature, and other personal identifiers are included1. The legal landscape for NIL rights differs from state to state, and all student-athletes—regardless of sport—must understand these differences.
Transitioning to earning income as a college athlete means more than just playing the game. Planning for your financial future, including tax strategies and retirement, becomes essential.
Why Hire a CPA?
When an athlete monetizes their name, image, and likeness, it is necessary to protect their personal assets and to hire a trusted advisor who will help them understand risks and opportunities, develop tax strategies, and plan for their future. To do this, you should find a CPA familiar with NIL laws as well as tax law to help with:
- Entity Structuring (LLC, S Corp)
- Where Are You Taxed (Jock Tax)
- Residency (In-season taxes vs. Endorsements, number of days in the state)
- Deductions (Ordinary & Necessary)
- Recordkeeping / Bank Accounts (Separate personal and business accounts)
Building Positive Financial Habits
In addition, an accountant should be able to do more than just prepare income tax returns. Beyond that, you will need someone to ensure payroll departments handle state issues correctly, understand Federal Tax on bonuses vs. regular paychecks, and provide an extra set of eyes to evaluate net wages across different contracts.
Wouch Maloney CPAs & Business Advisors can assist you as you navigate monetizing NIL, providing guidance tailored to your personal circumstances. If you have questions or need further assistance, please call 215.675.8364 or email us to connect with a team member today.
To view a portion of Eric Seidman’s presentation at Penn State University, click here.
DISCLAIMER: All communications by Wouch, Maloney & Co., LLP intend to provide general information, as of the date of the communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. Please be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
1NIL basics: What every student-athlete should know, Retrieved March 11, 2026, from https://www.uspto.gov/sites/default/files/documents/NIL-basics-flyer.pdf
