NIL Playbook: How to Keep, Grow, and Protect your Personal Brand

You've signed the deal. You're finally getting paid for what you bring to the game.

You might have $500,000 coming in. Maybe $750,000. Maybe even a $1,000,000 NIL deal with incentives. But here's the part that gets lost in all those zeros: It's not what you make. It's what you keep. And more importantly - what you build with it.

NIL Isn't a Scholarship. It's a Business.

Believe it or not, you are a CEO now.

Whether you're a quarterback, point guard, starting pitcher, NIL has turned you into a business owner overnight.

That means new rules - financial, legal, tax, and investment rules - that weren't part of the playbook in the locker room. In this article, I am going to break down a clear roadmap built for athletes like you who are serious about building wealth.

Where Most NIL Athletes Go Wrong

Let's start here:

You grew up in the state of California and are the starting quarterback for your high school.

You sign a $1,000,000 NIL deal heading to a top 10 program. After agent fees (say 3% - 5%), taxes, expenses, and not knowing how to handle it...

You might walk away with less than $515,000. - if you're lucky.

Here's how (keep in mind, this is a complex example and other factors are involved):

Item	Amount
Agent Fee (5%)	$50,000
S Corp Salary	$200,000
Distributions	$750,000
Payroll Taxes on Salary (15.3%)	~$30,600
Federal Income Tax (blended)	~$285,000
CA State Tax (blended)	~$90,000
Legal/Business Setup	$10,000–$20,000
Total Taxes & Fees	~$465,600
Take-Home (After Tax & Fees)	~$514,400

You can see where this is going. NIL athletes are cashing massive checks - but without a plan, that $1,000,000 can become $0 really quickly.

The 5 Pillars of NIL Wealth

There's a smarter way. One that protects your money, your brand, and your future. Here are the 5 Pillars we recommend building for every high-earning NIL athlete at Moment Private Wealth:

Cash Flow Planning: Tell Your Money Where to Go

You have earned that $1,000,000 NIL paycheck. But to keep it, you have to do some planning. Without a cash flow plan, your money will disappear - to taxes, spending, or just lifestyle creep. Here's how to stay in control:

Use the 50/30/20 Rule (or better):

• 50% Needs (housing, food, taxes)

• 30% Investing/Saving

• 20% Wants (travel, fun, clothes)

Create automatic transfers to your savings and investment accounts each month - PAY YOURSELF FIRST!

Track your spending weekly or monthly - if you don't know where your cash is going, you are setting yourself up for failure.

The key is to build your lifestyle around budget - not your NIL deal.

Tax Planning: The Silent Killer

Uncle Sam wants his share in your success - and trust me, he is not patient.

Most NIL athletes don't know:

• NIL income is considered self-employment income

• That means you're responsible for federal, state, AND self-employment taxes

• The IRS doesn't care that you're 20 years old with a marketing major

Here is what you should do:

• Pay quarterly estimated taxes

• Maximize deductions - business expenses, travel, legal, meals (within IRS rules)

• Hire a CPA who understands athlete tax law

• Use retirement accounts (Roth IRA, Solo 401(k)) to reduce taxable income

  
  

Let me give you an example:

You contribute $70,000 to a Solo 401(k) in 2025 (employee + employer match).

That money grows tax deferred - and you save $70,000 off your taxable income.

So on that $1,000,000 NIL contract, you are now only paying taxes on $930,000.

That makes a difference.

Entity Formation: Get Your LLC Right

If you are earning six or seven figures through NIL, you shouldn't be taking checks in your personal name. You need an LLC.

Here's why:

• Liability Protection - separates your business from your personal life

• Brand Control - gives you a structure to license your name/image

• Tax Benefits - allows for business deductions and S-Corp treatment

Here's another example:

You run all NIL income through Brendan Enterprises, LLC.

You elect S-Corp status and pay yourself a reasonable salary of $200,000.

The rest is taken as distributions - not subject to self-employment tax - saving you $30,000 to $50,000+ per year.

So taking the $930,000 (after the Solo 401(k) contribution) and now electing an S-Corp, you are now paying taxes on $900,000. You see, this is where a financial team that specializes in helping athletes is a difference maker. At Moment Private Wealth we are specialists in athlete wealth management ensuring you maximize your benefits.

Investment Strategy: NIL Doesn't Last Forever Let's be real for a second. NIL income is temporary.

Let me say that one more time - NIL income is TEMPORARY.

But if you play it right, the wealth can be permanent. Your game plan should include:

• Automatic investing into diversified portfolios.

• Setting up a Roth IRA or Solo 401(k) for long-term, tax-free growth

• Using a portion of NIL to build passive income - so your money works when you're not

Check out this projection:

If you put this money to work for you, earn ~6% in the market (which is very conservative by-the-way), by the time you are 70, your $1,000,000 NIL contract would be worth almost $12,000,000 without adding any other investments.

Protection: You Are the Asset

You are your business.

If you can't play, promote, or post...you probably don't get paid. Here's what that means:

• You need to look at disability insurance in case injury cuts your earning power

• You need umbrella liability insurance to protect against lawsuits

• You need smart contracts and legal review for all deals

• You need estate planning (yes, even while you are young) to protect your family and your assets

Why it matters: If you get injured during your junior season and lose a $1,000,000 NIL endorsement - disability insurance could replace a portion of that lost income.

Real NIL Strategy in Action

Let's walk through a real scenario:

Athlete: Starting QB at a top-10 program

NIL Income: $1,000,000

Goals: Play in the NFL, save for post-college life, invest, minimize taxes, protect brand

Step-by-Step Plan:

1. Hire a wealth management team that specializes in helping athletes - this may not seem important, but I am telling you right now...it is!

   
   

2. Work with your wealth management team to form an LLC and elect S-Corp status. The right financial team will provide an attorney that specializes in helping athletes

   
   

3. Pay yourself a W-2 salary and take the remaining as a distribution - this is a conversation to discuss with your wealth management team and CPA

   
   

4. Set aside funds to pay your taxes immediately - no one likes doing this, but you need to stay out in front of this

   
   

5. Max out your Solo 401(k) - in 2025, that is $70,000

   
   

6. Build 3 investment accounts:

   1. Short-Term Savings (cash, high-yield savings)

   2. Individual Brokerage Account

   3. Long-Term Growth (Roth IRA)

      
      

7. Have risk management measures in place

   1. Umbrella Policy - work with your wealth management team to get you the proper coverage

   2. Disability Income Insurance

   3. Review Endorsement Contracts

   
   

It may not seem important now, but by the end of the year, you will walk away with:

• Tax-compliant business income

• Money invested for the future

• Legal protection

• Peace of mind

Final Word: NIL is a Window, Not a Lifetime

Your average NIL career might last 3-4 years

But, your wealth can last three decades - if you plan it right.

At Moment Private Wealth, we specialize in turning short-term NIL income into long-term financial freedom.

Your future starts now.

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If you are an NIL athlete and want to better understand how to manage your wealth, schedule a call with a Moment Founder.

Not sure what questions to ask, check out this video on 10 questions you should ask when interviewing a financial advisor.

Get in Touch With An Advisor

SCHEDULE A CALL WITH MOMENT

Frequently Asked Questions

Here are some answers to questions I received frequently about this topic.

1. Do I really need an LLC if I'm under 21?  Yes. Your age doesn't matter - your income does. An LLC gives you protection and structure.

   
   

2. How much should I set aside for taxes?  Plan for 35-40% of your NIL income to cover federal, state, and self-employment taxes.

   
   

3. Can I invest my NIL income?  Absolutely! NIL income is earned income - you can use it to open a Roth IRA, Solo 401(k), or a brokerage account.

   
   

4. What is the first step I should take?  Set up a call with a financial advisor at Moment Private Wealth who understands NIL, taxes, and business structuring. Don't wait until tax season.

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*Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.