This article looks at the phenomenon of "name, image and likeness" (NIL) in sports and the wealth management and financial planning implications.

This news service has noted the crossover between professional sports and wealth management: sportsmen and women can become suddenly wealthy and need financial guidance; sports sponsorship is an important field for certain banks and financial institutions; and there is the investment case for sports as a sector in its own right. For example, see this article from our US correspondent Charles Paikert about college basketball in the US and the wealth management implications of changes to the sport. Another item is this editorial covering different aspects of the space. 

In the following article, Angie Ostendarp, senior managing partner at Carnegie Private Wealth, examines “name, image and likeness” (NIL) deals, and how they should be approached. The editors are pleased to share these ideas; the usual editorial disclaimers apply. To comment and get involved in debate, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Athletes, agents, and others on social media love to trumpet the latest seven-figure NIL deal, but for financial advisors working with student athletes, the real story begins where the headlines end. As these young clients learn to deal with sudden wealth, intense schedules, and complex team dynamics, advisors are facing unprecedented challenges that require a fundamental shift in how we serve this unique client base.

Time: The hidden competitor 
While traditional clients might struggle to make time for financial planning, student athletes face an entirely different magnitude of time pressure. A typical day for these clients often starts before dawn with training, followed by classes, team practices, media obligations, and study halls. Leaving little room for financial planning discussions.

This compressed schedule creates unique challenges for advisors. Traditional hour-long planning meetings often need to be condensed into 15-minute video calls between classes or brief sessions after practice. What might typically be covered in one comprehensive meeting must be broken down into digestible segments that can be addressed in these shorter windows.

Moreover, these time constraints are complicated by the seasonal nature of college athletics. During active seasons, some clients may be completely unavailable for days or weeks at a time due to travel and competitions. This requires advisors to develop innovative approaches to staying connected and make critical decisions, often through secure messaging apps or brief virtual check-ins.

The comparison trap presents another unique challenge. Unlike traditional workplace environments, these athletes live, practice, and compete alongside teammates who may have drastically different NIL opportunities. When one player secures a major deal while another struggles to attract sponsors, it creates complex dynamics that advisors must manage sensitively.

Building foundation amid pressure
Creating space for essential financial education becomes critical when clients face intense pressure to spend and invest. Basic, but crucial elements of financial planning often get overlooked in the excitement of newfound wealth. Establishing wills, healthcare directives, and tax planning are likely not on the front of athlete's minds. 

Financial advisors working in this space understand a fundamental truth: no amount of NIL earnings can compensate for a weak financial foundation. Before entertaining investment opportunities or business ventures, establishing basic protections becomes paramount. The healthcare power of attorney ensures medical decisions can be made if needed. A basic will protects assets and clearly defines intentions.

Proper tax planning prevents unnecessary complications during filing season.

The professional ecosystem
Today's advisors need to coordinate seamlessly with a network of professionals including attorneys, CPAs, and athletic department staff. This coordination becomes especially crucial given the time constraints these clients face.

Perhaps the most significant hurdle is helping these young clients see beyond their current success. While some will go on to professional sports careers, many will need to transition to other paths. This reality requires advisors to master a delicate balance: supporting current opportunities while preparing for multiple future scenarios.

The transition planning process must begin early, even when clients are at the height of their NIL success. This might include:

-- Establishing emergency funds that can support post-collegiate transitions; 
-- Exploring career interests outside of athletics and connecting with alumni networks; 
-- Creating flexible investment strategies that can adapt to various future scenarios; and 
--  Building sustainable spending habits that don't depend on continued NIL income.

For example, when a client receives a significant NIL deal, the planning conversation should immediately address both current opportunities and future implications. What portion should be set aside for long-term savings? How can these funds be used to create future opportunities, whether in professional sports or other careers? How do we balance enjoying current success while building for an uncertain future?

These conversations can vary especially when dealing with varying levels of NIL success. Some clients may secure substantial deals that could provide long-term financial security if managed properly, while others might receive smaller, one-time opportunities. Advisors must be prepared to create scalable strategies that work across this spectrum while maintaining consistent planning principles.

The future of NIL advising
 As the NIL landscape continues to evolve, advisors who understand these hidden challenges will be best positioned to serve this growing client base effectively. The key isn't just managing the money – it's understanding and adapting to the unique pressures and dynamics these young clients face.