As student-athletes navigate the world of Name, Image, and Likeness (NIL) opportunities, it’s natural to turn to trusted family members and friends for advice. After all, they know you best and have your best interests at heart. But when it comes to the complex financial, legal, and branding decisions involved in NIL, relying solely on their advice can sometimes lead to unintended consequences.
While family and friends can offer support, it’s essential to take their advice with a grain of salt. Here’s why it’s important to balance their guidance with the expertise of professionals.
Why Family and Friends May Not Have the Full Picture
No one is doubting the care and concern of your inner circle, but when it comes to managing NIL deals, their knowledge may fall short in key areas:
1. They Might Not Understand the Legal Complexities
NIL contracts can be full of legal language that even the most well-meaning family member might overlook. Signing a contract without a full understanding of its terms can lead to limitations on your future deals or unexpected obligations. A legal professional can provide the in-depth analysis needed to protect your interests and ensure you’re getting a fair deal.
2. Financial Advice May Be Outdated or Incomplete
When it comes to money, everyone has an opinion. But managing substantial NIL earnings requires more than common-sense budgeting or saving tips. Tax implications, investment strategies, and long-term planning require a deep understanding of finances. Even if a family member has financial experience, they may not be familiar with the unique aspects of NIL income, such as tax laws or regulations that apply specifically to student-athletes.
3. Branding in the NIL World is a Specialized Skill
Your personal brand is one of your most valuable assets in the NIL world. Friends may offer well-intentioned advice on how to market yourself, but unless they have experience in brand management or sports marketing, they may miss key opportunities for growth. Professionals who understand the nuances of branding in the NIL space can help you develop a strategy that maximizes your exposure while staying authentic to who you are.
The Risks of Taking Advice at Face Value
Even the most loving advice can lead to pitfalls if it’s not grounded in expertise. Here are a few common risks of relying solely on advice from family and friends:
1. Overestimating Opportunities
Loved ones might encourage you to pursue every NIL opportunity, without fully understanding the implications. While their excitement is encouraging, chasing too many deals can dilute your brand or lead to burnout. A professional can help you evaluate which deals align with your long-term goals.
2. Underestimating Tax Liabilities
Friends and family may suggest putting all your NIL earnings in savings or spending it on immediate wants. What they may not realize is that a large portion of those earnings will need to be set aside for taxes. Failing to prepare for taxes can lead to major financial headaches down the line.
3. Missing Out on Long-Term Planning
Family members might tell you to enjoy the moment and not worry about what comes next. But as any seasoned athlete knows, sports careers can be unpredictable. Professional advisors can help you think beyond today’s earnings and plan for a future where NIL is a stepping stone to even greater financial security.
Finding the Right Balance
While it’s important to appreciate the love and support of those closest to you, it’s equally important to understand that NIL is a business—one that comes with serious legal, financial, and branding implications. A well-meaning family member might be great for moral support, but when it comes to the specifics of contracts, taxes, and personal branding, seeking professional help is essential.
You can honor your family and friends’ advice while still making sure your decisions are backed by expert guidance. Here’s how to strike that balance:
1. Acknowledge Their Support
Thank your family and friends for their input, and let them know how much you value their advice. Their perspectives can offer useful insights, but make it clear that you also need to seek the guidance of professionals who understand the unique challenges of NIL deals.
2. Get Professional Insights
Before making any big decisions, consult with professionals who have experience working with student-athletes and NIL contracts. Financial advisors, lawyers, and brand managers can offer advice that ensures you’re making informed choices that protect your interests.
3. Use Both Perspectives
By combining the love and support of family with the expertise of professionals, you’ll be in a stronger position to succeed in the world of NIL. Family members can help you stay grounded and keep your values front and center, while professionals can provide the technical knowledge you need to maximize your NIL potential.
The Bottom Line
Navigating NIL is a new and exciting journey, but it’s also filled with challenges that require more than just common sense or friendly advice. While your family and friends are an invaluable part of your support system, don’t be afraid to take their advice with a grain of salt. Surround yourself with professionals who can offer the expertise you need to succeed both now and in the future.
Written by Pat Brown, MBA, Former D1 Player