The game has changed. Since the NCAA's 2021 ruling, college athletes can now earn money from their Name, Image, and Likeness (NIL). And in many states — including California — high school athletes can too.
But here's what nobody's telling young athletes: getting an NIL deal is the easy part. Keeping the money, managing taxes, and building a brand that outlasts your playing days? That takes financial literacy most kids never receive.
What Is an NIL Deal?
NIL stands for Name, Image, and Likeness. It means athletes can earn money from:
- Social media endorsements — getting paid to post about a brand
- Autograph signings and appearances — showing up at events for a fee
- Merchandise — selling branded gear with your name
- Local business partnerships — a restaurant, barbershop, or car dealer sponsors you
- Content creation — YouTube, TikTok, or podcast deals
In California, the Fair Pay to Play Act (SB 206) was the first law in the nation to protect student-athlete NIL rights. CA high school athletes can participate in NIL deals as long as they don't conflict with school contracts.
The Numbers Are Real
- The average Division I athlete earns $500–$2,000/year from NIL (not millions — that's the top 1%)
- Female athletes in volleyball, gymnastics, and softball are outearning many male athletes in NIL
- Social media following matters more than stats — a 10K Instagram following can land local deals
- High school athletes in California are now signing deals as young as 14
Why Most Young Athletes Aren't Ready
Here's the problem: a 16-year-old signs a $5,000 deal and thinks they're rich. Six months later, they owe $1,500 in taxes they didn't know about. Or they sign an exclusive contract that locks them out of better deals later.
This is exactly why FSL teaches financial literacy as one of our Four Pillars.
What Every Young Athlete Needs to Know Before Signing
- Taxes are real. NIL income is taxable. Set aside 25–30% of every check.
- Read the contract. Exclusivity clauses can lock you in. Always have an adult review.
- Build your brand now. Start a clean social media presence before the deals come.
- Don't spend the check. Open a savings account. Learn to invest.
- Your value isn't just stats. Community involvement, personality, and storytelling matter.
How FSL Prepares Athletes for NIL
At Fundamental Sports Labs, our financial literacy pillar covers:
- Budgeting workshops — how to manage money when it comes in waves
- Understanding taxes — what self-employment tax means for athletes
- Savings goals — building an emergency fund before buying sneakers
- Brand building — how to present yourself professionally online
- Contract basics — what to look for (and what to avoid) in sponsorship agreements
We don't wait until college to teach this. Our athletes learn money management starting at age 8 — so when the NIL opportunities come, they're ready.
California NIL Rules for High School Athletes
- You CAN earn NIL money as a CA high school athlete
- You CANNOT use your school's name, logo, or uniform in NIL deals
- You CANNOT miss class or practice for NIL activities
- Your school CANNOT punish you for having NIL deals
- You SHOULD keep records of all income for tax purposes
The Bottom Line
NIL is the biggest opportunity in youth sports history. But opportunity without preparation is just another way to lose. The athletes who win long-term won't be the ones with the biggest deals — they'll be the ones who understood money, contracts, and branding before the first check arrived.
That's what FSL is building. Not just athletes. Leaders who are financially literate, mentally resilient, and ready for whatever comes next.
Want your child prepared for the NIL era? Enroll free at Fundamental Sports Labs — all programs are free for youth ages 8–17 in Los Angeles.