Earning NIL money is exciting, but it also makes you a target for bad advice, scams, and poor financial decisions. Many athletes lose money not because they don’t make enough, but because they miss the warning signs. Here are the key financial red flags every NIL athlete and parent should watch for.
1. Advisors Who Won’t Explain Clearly
Red Flag: If a financial advisor, CPA, or agent can’t (or won’t) explain what they’re doing in plain language.
Why It Matters: You should always understand where your money is going. Confusing jargon is often used to hide fees or poor advice.
2. Guaranteed Returns
Red Flag: Someone promises you a guaranteed high return with no risk.
Why It Matters: All investments carry some risk. “Risk-free” or “guaranteed” deals are almost always scams.
3. Pressure to Sign Quickly
Red Flag: Being told you must sign a contract, endorsement, or investment immediately.
Why It Matters: Real opportunities don’t disappear overnight. Pressure is a tactic to stop you from asking questions.
4. Hidden or High Fees
Red Flag: Advisors who won’t clearly share how they get paid, or who charge high commissions.
Why It Matters: Over time, fees eat away at your earnings and investments. Transparency is essential.
5. Mixing Business and Personal Money
Red Flag: Not separating NIL income from personal accounts.
Why It Matters: This makes it harder to track taxes, expenses, and savings—and increases your risk of overspending.
6. Overextending on Lifestyle
Red Flag: Buying cars, clothes, or trips on credit to “look successful.”
Why It Matters: Lifestyle debt can wipe out NIL earnings and hurt your financial future.
7. Advisors Without Credentials
Red Flag: Agents or advisors who don’t have licenses, certifications, or references.
Why It Matters: Anyone can call themselves a “money manager.” Verify qualifications before trusting them with your income.
8. Contracts With Vague Terms
Red Flag: Contracts that don’t clearly state payment amounts, timelines, or obligations.
Why It Matters: Ambiguous contracts can trap you in long-term deals or leave you unpaid.
9. Not Planning for Taxes
Red Flag: Ignoring self-employment tax or failing to set aside savings.
Why It Matters: The IRS doesn’t care if you spent the money—you’ll still owe it.
10. Going It Alone
Red Flag: Thinking you can handle NIL contracts, taxes, and investments without any guidance.
Why It Matters: Even small mistakes can cost thousands. Having a CPA, financial advisor, or attorney on your side reduces risk.
Final Takeaway
Financial red flags are often easy to spot—if you know what to look for. Don’t ignore your gut. If something sounds too good to be true, feels rushed, or isn’t clear, it’s worth pausing. Protecting your NIL money today helps build the foundation for wealth and freedom tomorrow.