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The Hows and Whys of Your NIL: A Guide to Sports Wealth Management

The Hows and Whys of Your NIL: A Guide to Sports Wealth Management

January 31, 2024

Name, Image and Likeness (NIL) has been in the news since the late 2010s. Legal challenges encouraged the NCAA to loosen its mandates about payment to student-athletes.

But here’s a little-known fact: If you’re an NCAA coach, you can utilize NIL to generate income off the field. As an NCAA Coach, you can generate income by teaching camps, creating motivational speaking opportunities, participating in advertising campaigns and more. Strategic use of your NIL can generate extra income to help you benefit from tax deductions you might not have as an employee of your college or university.

Generating more income is just the beginning. It’s also important to properly handle the additional NIL money that comes your way. Partnering with a sports wealth management firm like ProWealth helps you create and maintain a strategy that protects and grows your financial position.

Reasons to Use an NIL

Extra funds are always welcome. This is especially true in the area of college coaching. Using your NIL can help generate opportunities to utilize IRS tax deductions for business expenses while helping you build your retirement portfolio.

In short, this extra income earned from your NIL can open a path to tax savings and deferrals.

Taking Advantage of NIL

An important issue is that NIL laws vary from state to state. To date, 34 states have passed NIL laws. If your school is in a state without an NIL law, check to see if your institution has an NIL policy.

Once you’re clear on the NIL legislation and/or policies, take the following steps:

Evaluate Opportunities

 You have a choice with whom you trust your financial and tax planning. Partnering with a knowledgeable company like ProWealth helps you clarify and meet your investment goals now and in the future.

Protect Income

As your NIL starts generating income, the next goal is to ensure you keep as much of it as possible. This is where ProWealth can help you with the following:

Formulate tax advantage strategies. Anything you earn from your NIL is subject to federal taxes – and state taxes, depending on where you live. ProWealth’s seasoned staff can help you develop a proven strategy to lower your tax burden. Our professionals can also work with your CPA or tax expert to help you with deductions and tax deferral strategies.

Grow your wealth. ProWealth experts consider the issues necessary to expand and maintain your wealth. These include outlining your goals and values and understanding your current and hoped-for financial picture. From that information, our experts can help you create a portfolio that makes sense for your present situation and future goals.

 Protect your assets. ProWealth offers products and advice to help shield your assets and protect you and your family when you can’t draw a full-time salary. Insurance coverage and other tools are available to maintain what you earn through your NIL.

Being Smart About Your NIL

Thanks to your NIL, you can benefit from untapped income potential. Finding the right financial partner is just as important when managing and growing your income. 

Working with ProWealth’s dedicated financial advisors gives you access to a team that understands the rules of the game and can help you win it. ProWealth stays on top of NIL’s changing environment, ensuring you’re “in the know” about tax advantage strategies and keeping more of your earnings. 

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.