The Long-Term Financial Impact of Early NIL Deals on High School Athletes
Muhammad Hashir | NILvana Sports
In the changing world of youth sports, Name, Image, and Likeness (NIL) rights have opened new opportunities for high school athletes. These rights allow student-athletes to earn money from endorsements, sponsorships, and personal branding, which was previously mainly available at the college and professional levels. The possible rewards are great, but experts emphasize that these early financial gains must be managed carefully to ensure long-term benefits.
Sale of the Century at 17
According to The Times of India, high school offensive tackle Felix Ojo (Mansfield Lake Ridge) became the first high school recruit to sign a fully guaranteed three-year NIL contract, committing to and signing with Texas Tech in July 2025 and reaching a deal valued at up to $5.1 million. It’s evident how quickly the NIL market has developed, making even young talent a significant business.
An Emerging Market
Since its introduction in 2021, the NIL industry has experienced rapid growth. The market, valued at $917 million in 2021-22, is projected to reach $1.67 billion by 2024-25. A steady increase in figures was reported based on the National Disk.
- $0.4B in 2021
- $0.9B in 2022
- $1.2B in 2023
- $1.4B in 2024
- $1.7B projected for 2025
Though college athletes have largely made this expansion possible, high school athletes are also benefiting as brands rush to invest in young talent they believe could become future sports stars.
Life-Changing Opportunities
NIL offers life-changing opportunities to young athletes, as they have
- Early Financial Independence
There is a large amount of money available to cover training programs, recruiting camps, travel expenses, and even college tuition fees. This decreases the pressure to take on part-time jobs.
2. Business and Branding Skills
Throughout this training, athletes will learn how to negotiate contracts, market themselves, manage their finances, and interact with key stakeholders—skills that can be applied both during and after their sporting careers.
3. New Career Avenue
NIL contracts have included internships or mentorships that connect amateur and professional roles. Even small agreements, like $50 to $100 per social media post, provide helpful income and flexibility.
The Cautionary Side
While NIL offers significant opportunities for student-athletes, it also presents both initial and ongoing challenges that require careful attention.
Tax Obligations
Earnings from NIL activities must be accurately reported and taxes paid in compliance with applicable laws. Failure to properly declare income can lead to substantial penalties and unexpected financial burdens.
Financial Literacy
Without effective budgeting, savings, and investment strategies, NIL earnings can be depleted quickly. A lack of financial planning increases the risk of mismanaging short-term income and missing opportunities for long-term stability.
Career Uncertainty
NIL income is often tied to athletic performance and public visibility. Injuries, performance declines, or changes in marketability can lead to reduced or lost opportunities, making sustained income a challenge.
In short, NIL may become either a valuable opportunity or an expensive distraction, depending on how it is managed. The addition of NIL represents a shift in how we show appreciation to young athletes. Furthermore, NIL plays a significant role in offering the luxury of success for these athletes. Those who make wise decisions and manage their finances carefully can benefit greatly. As NIL expands, athletes are increasingly adept at balancing the excitement of these opportunities with the discipline required for long-term planning.
