EP Wealth's Adam Fein and Joseph Palumbo are wealth advisors for pro athletes. They share what an NIL financial advisor does and when pay-for-play college athletes should seek guidance on managing income, taxes, and long-term planning. 

What Is an NIL Financial Advisor — and Do You Need One?

College athletes today have an opportunity that didn’t exist just a few years ago: the ability to earn income from their name, image, and likeness (NIL). These earnings can come from endorsement deals, social media promotions, appearances, and other partnerships with businesses and brands. In many cases, NIL income is in addition to compensation athletes may receive from school-related arrangements such as “pay for play” agreements through collectives or revenue-sharing programs.

An NIL financial advisor helps athletes and their families understand what to do with this money: how to save, invest, and plan for taxes while balancing short-term needs with long-term goals. Managing NIL income often means starting with the fundamentals, since some of our clients are still in high school and may not yet have a bank account or any experience handling finances.

As long-time wealth advisors for professional athletes in the NFL, NBA, and other sports, we serve our NIL clients by partnering with attorneys, CPAs, and agents to create financial plans that are practical, easy to follow, and fit within the unique realities of a student-athlete’s demanding schedule.

Key Services NIL Advisors Provide

• Basic financial education and guidance for athletes, focusing on simple core principles without overwhelming them.
• Budgeting and cash flow planning so athletes can cover living expenses, set aside funds for taxes, and potentially still set something aside for the future.
• Tax planning in collaboration with a CPA, including setting aside the right amount of income as it comes in and deciding where to hold those funds until tax time.
• Investment and retirement planning where appropriate, such as introducing retirement accounts like a SEP IRA or 401(k) for higher earners once foundational savings goals are met.
• Helping to assemble and coordinate a trusted team of professionals in the NIL space, including agents, attorneys, and accountants, and facilitating communication among them.
• Providing an independent perspective on proposed deals and flagging potential issues for the athlete or their family.
• Creating a flexible savings structure that reflects the uncertainty of NIL income. Because earnings are often based on one-year deals and future athletic opportunities are unpredictable, we focus on savings strategies intended to avoid tying up money in ways that limit access if circumstances change.
• Serving as a year-round resource and accountability partner, helping clients follow their plan and adjust it as their career and income evolve.

Bucket Strategy

How NIL Compensation for College Athletes Works

For most athletes, NIL income is a strong financial head start. A very small number will earn life-changing wealth during their college years, but for the majority, the bulk of their lifetime net worth will be built during a professional sports career—if they make it to that level—rather than through college athletics.

College athletes now have three potential income streams:

1. Pay-for-play compensation through the school
   This is typically facilitated by collectives, which are funded by boosters, fans, and alumni to compensate athletes for their athletic participation and commitment to the program. While these arrangements may also include expectations such as appearances or community engagement, their primary function is to provide income tied to being part of the team. These agreements may be pre-negotiated or set annually, and for most players, this is the largest share of their college income. Recent estimates show nearly 80% of the $1.7 billion NIL market in 2024–25 flowed through these collectives.
2. Traditional NIL deals
   These are endorsement-style agreements with brands, companies, or organizations that are separate from school compensation. They can range from small local partnerships, such as a restaurant sponsorship, to high-profile national campaigns for star athletes. The athlete is paid for use of their name, image, and likeness in marketing, which can include social media posts, commercial appearances, or promotional events.
3. Revenue Sharing
   As of July 1, 2025, Division I schools can now directly share institutional athletic revenue with their athletes under the terms of the House v. NCAA settlement. Each school may distribute up to approximately $20.5 million per year, with that cap scheduled to increase over time.

The settlement also provides about $2.8 billion in retroactive compensation to athletes for the period dating back to 2016. It includes the creation of a national clearinghouse to review and approve third-party NIL deals valued over $600. This clearinghouse is intended to confirm that deals meet fair-market value standards and comply with NCAA and legal guidelines, reducing the risk of sham agreements.

While revenue-sharing is technically optional, all Power Five programs are expected to participate. Some schools—such as those in the Ivy League—have chosen not to opt in.

Planning for the Unknown

What makes financial planning for college athletes so different from working with established professionals is the level of uncertainty. We rarely know what lies beyond the next season or two. Many NIL agreements are one-year deals, and an athlete’s earnings can change dramatically—potentially jumping from $50,000 to $500,000 or even $1 million within a few years, but just as easily moving in the opposite direction.

Because so much is unknown about both short-term NIL earnings and long-term professional prospects, we take a year-by-year approach. That means saving and investing in ways that preserve access to funds, rather than locking large amounts into illiquid investments or retirement accounts they cannot touch for many years. By keeping a portion of savings easily available, we give athletes the flexibility to adapt if income drops, expenses rise, or their career path changes unexpectedly.

How to Decide: Do You Need an NIL Financial Advisor?

If you’re unsure whether working with an advisor makes sense, start by asking questions like:

• Am I setting aside enough of my NIL or “pay for play” income for taxes, or am I guessing and hoping it’s enough?
• If I set up an LLC for my NIL income, do I know how to keep it in good standing and follow the rules so it continues to protect me legally?
• Do I have a budget that covers my living expenses while still allowing me to save for the future?
• Do I have a plan for what to do if my NIL income drops significantly from one year to the next?
• Am I relying on advice from people who actually understand NIL or mostly from friends, teammates, or what I’ve seen on social media?
• If I had a contract in front of me tomorrow, do I know who I’d call to make sure the terms and fees are fair?

If any of these make you hesitate, it’s a good signal that you could benefit from working with someone who understands NIL-specific challenges and can help you plan for both the current season and the years ahead.

Is It Ever Too Early for NIL Athletes to Get a Financial Advisor?

In our view, no. Working with an advisor early on gives you the chance to establish an effective budget from the start and build strong financial habits. It can also help you to be aware of common mistakes that can lead to big headaches down the road, such as not setting aside enough for taxes, overspending, choosing investment vehicles with heavy fees that will tie up your funds, or not setting up your LLC in the most advantageous way.

Having an advisor also adds an element of accountability. When you know that someone who is focused only on your best interests is watching the big picture, that can help curb impulse spending and help you stick to your plan.

Our Approach to NIL Financial Planning

Putting the Athlete First, Always

At EP Wealth, our focus is to show our clients that we are here to take care of them at every turn, and that we are acting in their best interests. We are not selling products or pushing investments that tie up their money in high-fee, illiquid vehicles just to earn a commission. We are one of the few people in an athlete’s circle who are not asking for favors or perks like tickets or jerseys. We are here to look out for your best interests— both for right now and with an eye on your future.

We are focused on the long term because we want this to be the beginning of a successful relationship that lasts not only for the next year or two but well beyond that.

Our commitment has helped us build strong, lasting relationships with our athlete clients—relationships we value deeply and never use for self-promotion on social media.

Building a True Support Team

From the very first conversations we have with our clients about managing NIL income, there is almost always a parent or mentor involved. We welcome and encourage that. We recommend that college athletes keep a strong team around them, especially when financial decisions are new territory. In many of our meetings, we invite parents, siblings, or trusted mentors, along with attorneys and CPAs, so everyone hears the same information. This way, our recommendations are not made in isolation — they’re validated by other professionals who know the athlete and understand their goals.

Being Available When You Need Us

We strive to be responsive to our NIL clients as questions come up. Student athletes do not have predictable 9-to-5 schedules, and we understand the importance of flexibility. Our clients are balancing class, studying, practice, traveling for games, so they may need to reach out to us outside of standard business hours. When that happens, we make every effort to be there for them.

Keeping It Simple

We do not overwhelm our student-athlete clients with stacks of documents or complicated investment jargon. A seasoned investor might expect detailed quarterly reports and pages of performance data, but for a college athlete, that can sometimes be more confusing than helpful. We focus on the essentials:

• Develop a plan for managing taxes, including strategies that may help reduce the overall tax burden.
• Keep investment decisions straightforward, with early priorities centered on saving and meeting tax obligations.
• Build a realistic budget so athletes can cover living expenses and still have flexibility for unexpected needs.
• For certain athletes, forming an LLC can be a way to help manage income and streamline business-related finances.

Following a “Bucket” Strategy

When it comes to actually depositing funds, we start with three simple buckets:

1. Money set aside for taxes
2. Money set aside for living expenses
3. Excess savings placed in a money market fund

Our goal is to keep fees low to nonexistent in the early stages. If savings build over time and the athlete has shown consistent financial discipline, we may suggest adding more advanced strategies, such as retirement accounts like a SEP IRA or 401(k) for higher earners, or longer-term investments like equity ETFs. These options are always considered in consultation with their CPA and only when it makes sense for their goals and cash flow.

Strategies are designed to adapt as the athlete’s career evolves. Income can change quickly, and the plan has to be adaptable so it still works no matter how the next season unfolds.

7 Common Financial Mistakes College Athletes Make with NIL Income

Earning money through NIL and “pay for play” arrangements can open incredible opportunities, but it also brings challenges that many young athletes have never faced before. Without the right guidance, it’s easy to make decisions that cause long-term financial setbacks. These are some of the most common pitfalls we see when working with student-athletes:

1. Not saving enough for taxes and spending too much upfront. It’s easy to underestimate how much should be set aside for taxes, especially when income comes in large lump sums.
2. Investing too soon and then needing the money for basic expenses. Locking funds into long-term investments before covering short-term needs can create cash flow problems.
3. Setting up entities incorrectly — or not at all — without a professional team. An improperly formed LLC or lack of one altogether can cause avoidable tax issues and reduce legal protections.
4. Buying high-cost purchases—like cars, jewelry, designer items, or luxury gifts— with expensive financing due to limited credit history. Without established credit, interest rates can be steep, making the purchase far more costly over time.
5. Giving away too much money to family early on. Generosity is admirable, but it can quickly deplete resources needed for the athlete’s own future.
6. Taking financial advice from unqualified sources like teammates, coaches, or social media. Well-meaning advice isn’t always accurate, and misinformation can lead to costly missteps.
7. Overpaying agents on NIL deals — sometimes double what is reasonable. Without oversight, commissions can far exceed industry norms, reducing the athlete’s take-home pay.

What to Look for in an NIL Financial Advisor

NIL income comes with complexities that most athletes have never faced before. You want an advisor who understands these dynamics and can guide you with a clear focus on your best interests. Look for:

• A fiduciary is required to put your interests first. They are committed to acting in the client’s best interests, without pushing high-commission products or investments that benefit them more than you.
• Planning capabilities to evaluate multiple scenarios. An experienced advisor can walk you through different options and trade-offs so you understand the impact of each choice — both now and in the future.
• A measured approach that builds a strong foundation first. Before recommending aggressive investments, they should make sure you have covered essentials like taxes, living expenses, and basic savings.
• Experience working with athletes and their unique challenges. An advisor who understands the demands of your schedule, the realities of short-term contracts, and the uncertainty of a sports career can make a big difference.
• A strong network of professionals who understand NIL. This includes agents, attorneys, and CPAs who know the rules, risks, and opportunities in this fast-changing space, and can work together as a coordinated team.

The right NIL financial advisor can help you make informed decisions, bring awareness of costly mistakes, and keep your financial plan flexible enough to adapt as your career evolves. Whether you’re signing your first deal or building on a growing list of partnerships, having a trusted guide in your corner can make all the difference in protecting what you’ve earned and positioning you for what comes next.

Ready to connect with a financial advisor that specializes in NIL strategy? Start the conversation here.

DISCLOSURES

• EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
• Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
• Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
• The need for an advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
• Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.      
• EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice.
• All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be suitable or profitable for a client’s portfolio. The risk of loss can never be eliminated even if working with a professional.
• Laws vary by state. The information presented herein is intended to be general in nature and may not apply to your state of domicile. Please consult local legal counsel to determine the best practices for your state.
• Please consult with a CPA, tax professional, and/or attorney regarding your specific situation before implementing any of the strategies referenced directly or indirectly herein.