Athletes Are Content Creators Now: What NIL Means for the Business Behind Your Brand

Being an athlete has always come with a personal brand. Fans know the players they follow, wear their jerseys and pay attention to what they do away from the game.

What has changed is an athlete’s ability to make money from that attention.

Since college athletes gained the ability to profit from their name, image and likeness (NIL) in 2021, the line between athlete, influencer, spokesperson and business owner has become much less clear. A college basketball player might have a sponsorship with a local restaurant, earn money from TikTok, receive products from a national brand and appear at a youth camp, all while receiving payments through their university.

And this is no longer a small side of college sports. NIL marketplace Opendorse recently estimated that the overall NIL market could reach $4.5 billion in 2026-27, driven by a combination of school revenue sharing, commercial partnerships and other opportunities for athletes.

For athletes, that growth brings a new reality. You may become a business owner and content creator long before your playing career is over—sometimes before you have ever filed a tax return on your own.

The opportunities can be significant, and so can the financial responsibilities that come with them.

College sports have changed. The money has, too.

NIL has been evolving quickly since NCAA athletes were first permitted to profit from their name, image and likeness. Then came another major change. In June 2025, a federal judge approved the House settlement, which created a framework that allows participating Division I schools to share revenue directly with student-athletes.

Today, an athlete could receive money directly from a school, get paid by a sneaker company for an Instagram post and earn commissions through an affiliate link at the same time.

From an accounting perspective, those payments do not necessarily work the same way. An athlete might receive a W-2 for certain income and a 1099 for other work. Taxes might already be withheld from one payment while another arrives with nothing taken out.

Understanding the difference becomes especially important as the number of income streams grows.

Where is the money actually coming from?

Athlete income today might include:

• Sponsored social media posts
• Brand endorsements
• Affiliate commissions
• Revenue from YouTube, TikTok or another platform
• Appearance and autograph fees
• Camps, clinics or speaking engagements
• Merchandise or licensing royalties
• Free merchandise or services received in exchange for promotion
• University revenue-sharing or other school payments
• Longer-term partnerships with local or national businesses

And an athlete does not necessarily have to be the biggest star on the team to find opportunities. A 2026 ESPN explainer on NIL highlights deals ranging from major national endorsements to partnerships with local businesses, along with creative collaborations built around athletes’ personalities, interests and social followings.

That is part of what makes NIL different from the traditional endorsement world. Athletic performance can help build an audience, but a brand may also be interested in an athlete’s personality, story, location or ability to reach a particular group of consumers.

The creator side of the business is growing, too

For some athletes, social media is no longer simply a place to post highlights or photos with teammates. It is part of the business.

That trend is especially apparent in women’s sports. In 2026, the Associated Press reported that Learfield–a college sports marketing company–saw a 123% increase in female athlete participation in NIL compensation over the previous fiscal year. The company pointed in part to athletes’ strength in storytelling, social media and authentic content creation as brands looked for partnerships.

Knowing how to build an audience, create good content and communicate with brands can have financial value during a playing career and potentially long after it ends.

Not every payment looks like money

One of the easiest NIL tax issues to overlook is compensation that never hits your bank account.

Say a company gives an athlete $2,000 worth of clothing in exchange for several social media posts. Or a local business provides free services as part of a partnership.

It may feel different from receiving a check, but the IRS generally treats the fair market value of merchandise, gift cards and services received through NIL activity as taxable income.

That is why good records should include more than bank deposits. Save contracts, emails, invoices and information about products or services received through partnerships.

And don’t wait for a 1099 to decide whether income counts

For 2026, businesses generally use Form 1099-NEC to report payments totaling at least $2,000 for services provided by an independent contractor. But receiving a tax form is not what makes income taxable.

Athletes are still required to report taxable NIL income even when the person or company paying them does not issue a W-2 or 1099.

If you earned $1,000 from one company, $800 from another and received products from a third, the tax forms that arrive in the mail may not tell the whole story.

Your own records need to.

A $10,000 deal isn’t always $10,000 to spend

This can be one of the biggest adjustments for an athlete earning money as an independent contractor.

In a traditional job, an employer generally takes taxes out of each paycheck. With many sponsorships and creator deals, the full payment arrives in the athlete’s account.

That $10,000 brand deal can suddenly look very spendable.

Self-employed athletes may owe federal income tax along with self-employment tax. Depending on their overall tax situation, they may also need to make estimated tax payments during the year. The IRS generally requires estimated payments when someone expects to owe at least $1,000 after withholding and credits, although the exact calculation depends on the taxpayer.

This one small habit can help: Set aside part of the money for taxes as it comes in rather than waiting until tax season to figure out what is left.

Keep an eye on what’s going out, too

Creating content and building a brand can cost money. Photography, video editing, equipment, website hosting, professional services and travel for a paid appearance are just a few examples.

Some legitimate business expenses may be deductible when they are ordinary and necessary for the business. But personal spending does not automatically become a business expense because it appears somewhere on social media. New clothes are not necessarily deductible because you wore them in a post, and a gym membership does not automatically become a business expense because you are an athlete.

This is one area where documentation and a quick question to your accountant can go a long way.

A separate bank account and credit card can help, too. Once NIL or creator income becomes consistent, separating business activity makes it much easier to see what came in, what went out and which expenses actually belong to the business.

It also keeps your accountant from sorting through restaurant charges, Target runs and personal Venmo payments trying to find the five transactions related to your sponsorship deal.

Don’t overlook retirement just because it feels far away

Retirement probably is not top of mind when you are 18, 19 or 20 years old and just starting to earn real money. But those early years can be some of the most valuable time to start saving.

Money contributed during college has decades to grow, which means even relatively modest contributions can have an outsized impact later. Depending on your income and overall tax situation, it may be worth talking with your accountant or financial advisor about options such as an IRA and how much makes sense to contribute.

NIL income can create opportunities right now. Setting aside even a portion of it for the future can help make sure some of that opportunity lasts well beyond your playing career

Playing in one state and earning in another?

Travel adds another wrinkle.

An athlete might live in one state, attend school in another and travel elsewhere for sponsored appearances, camps or content work. Depending on the circumstances, that can create state tax filing responsibilities.

The IRS specifically recommends keeping track of where NIL contract services are performed because an athlete may owe state tax where the income was earned.

You do not need to become an expert in multistate taxation. You do need to keep track of where you worked so your accountant has something to work with.

Do NIL athletes need an LLC?

Maybe.

Landing your first sponsorship does not automatically mean you need to create an LLC or elect S corporation status.

The right structure depends on how much you are earning, where the income comes from, your expenses, liability considerations and what you expect the business to become. An athlete earning occasional sponsorship income may need something very different from an athlete generating substantial revenue across endorsements, merchandise, appearances and content.

As the business grows, bring an accountant and attorney into the decision rather than choosing a structure because another athlete said it worked for them.

Your following may last longer than your playing career

There is another reason to think about content creation as a business: The audience an athlete builds can become valuable well beyond game day.

ESPN’s profile of former LSU gymnast Olivia Dunne, for example, describes how her social media presence developed into national advertising campaigns, major brand partnerships and opportunities in media.

Most athletes will not build an audience of that size, and they do not have to.

Someone may initially attract followers because of what they do on the field or court, then discover that those followers are also interested in their training, fashion, food, travel or another part of their life and expertise.

The playing career may have a timeline, but the audience can continue on with you. That can eventually lead to new businesses, media opportunities, products, partnerships and income streams that have very little to do with eligibility.

Build the business team before you really need it

Athletes hear a lot about having the right people around them on the sports side, and the same idea applies when NIL and content income start growing.

Depending on the opportunities, that team might include an agent or manager, attorney, financial advisor and accountant.

And the accountant should not simply be the person who gets a folder of tax forms once a year. They can help you understand what you are actually earning, prepare for taxes, organize the business and evaluate financial decisions as new opportunities come in.

Athletes have more ways to make money from their personal brands than ever before, whether they have millions of followers or a smaller audience that a local or niche brand wants to reach.

As your brand grows, having the financial side organized makes it much easier to take advantage of what comes next. 

The CJBS Sports & Entertainment team works with athletes, creators and other professionals navigating income from multiple sources. If your NIL or content business is growing, we can help you understand the financial side and build a plan around where it is headed.

NIL + Content Creator Financial Checklist

A few things to stay on top of as your income and opportunities grow:

☐ Track income from every source
☐ Keep records of free products, services and other non-cash compensation
☐ Don’t assume “no 1099” means “no taxes”
☐ Set aside money for taxes as you get paid
☐ Start retirement contributions early
☐ Save receipts and document business expenses
☐ Separate business and personal spending
☐ Keep track of where you earn income when traveling
☐ Revisit your business structure as income grows
☐ Bring in an accountant, attorney or other advisor as things get more complex