As a student-athlete, you have the opportunity to monetize your name, image, and likeness (NIL) through endorsements, sponsorships, and other opportunities. These NIL deals can provide a valuable source of income and help you reach your financial goals. Ostrich helps student-athletes just getting involved in NIL deals to become financially independent.
However, navigating the NIL market can be complex and confusing, especially with the recent changes to NIL legislation and NCAA rules. In this blog post, we will provide an overview of the process for getting started with NIL deals and offer tips for success.
Understanding NIL Regulations
One of the first steps in getting started with NIL deals is understanding the regulations that apply to you. NIL legislation varies by state, and the NCAA has its own set of rules and guidelines that you must follow in order to maintain your eligibility. It is important to familiarize yourself with these regulations and make sure you are in compliance before entering into any NIL agreements.
You should also be aware of the legal considerations involved in NIL deals. This may include contracts, intellectual property rights, and taxes. It is a good idea to seek the advice of an attorney, utilize a compliant NIL marketplace, or other professionals when negotiating NIL agreements to ensure that you are protected.
Who Can Get NIL Deals
Athletes in all sports and divisions are able to participate in NIL deals if your state has an NIL law. Your skill level does not restrict your ability to start getting NIL deals. There are also no limitations on how many NIL deals you can do. Instead, brands focus on student-athletes who can help promote the brand, sell products, or drive awareness of the brand.
Additionally, there are different NIL rules for high school and college athletes even within the same state.
Identifying Opportunities for NIL Deals
There are many different types of NIL opportunities available to student-athletes, including endorsements, sponsorships, and social media influencer opportunities. To find potential partners and brands that align with your interests and goals, you can research companies in your industry and reach out to them directly.
Alternatively, there are a growing number of free NIL marketplaces that connect brands and athletes together. There you can find NIL opportunities and typically these platforms handle all of the legal and compliance considerations.
Lastly, networking and building relationships with industry professionals can also help you identify NIL opportunities.
Negotiating NIL Deals
When negotiating NIL deals, set clear goals for what you want to achieve and have a clear understanding of the value you bring. You should also seek the advice of advisors or agents who can help you negotiate terms and contracts.
Things to consider when negotiating deals include the opportunity for ongoing NIL deals. Are you building a long-term relationship or doing a one-off promotion?
Brands will want to continue to work with student-athletes who bring value to the brand. This includes student-athletes who are easy to work with, are prompt with their deliverables, and drive value to the brand.
As you do more NIL deals and keep records of your past performance, you’ll be in a stronger negotiating position.
Managing NIL Deals
Once you have entered into NIL deals, it is important to manage your commitments in order to maintain your eligibility and comply with NCAA rules. This may include balancing your NIL commitments with your school and athletic responsibilities, as well as staying organized and managing your time effectively.
Additionally, it’s important to not overcommit and ensure you are able to execute on your outstanding NIL deal opportunities.
Utilizing the NIL marketplaces, you’ll be able to easily report the NIL deals you’ve done and stay compliant.
Allocating NIL Compensation
As you earn money, track your total compensation in free products and services, cash, or other forms. It’s important to set aside 40% of the value of your NIL deals for taxes. It’s unlikely you’ll pay the full 40% but without knowing your personal financial situation, it’s important to have that money set aside. This ensures you don’t owe the IRS money and get charged extra penalties and fees for not paying taxes.
Additionally, you should also take a portion of your income and set aside money for savings, investing, and debt paydown. If you want to get custom recommendations on how to achieve financial independence download Ostrich. Additionally, check out the student-athlete financial checkup challenge to jump-start your finances.
Wrap Up of Getting Started with NIL Deals
In conclusion, NIL deals can provide a valuable source of income for student-athletes. NIL income and business knowledge can help set them on a path to financial independence. By understanding the regulations, identifying opportunities, negotiating fair terms, and managing your commitments effectively, you can successfully get started with NIL deals and achieve your financial goals. Remember to seek the advice of advisors or agents when necessary. Lastly, take advantage of Ostrich’s free resources to maintain financial literacy in order to make informed decisions about your NIL deals.
