Name, Image and Likeness (NIL) deals have transformed college athletics, ushering in a new era where student athletes are managing real income, often with little to no experience of significant wealth. With that comes a steep learning curve in financial literacy, tax planning, and wealth protection. That’s where seasoned financial advisors like Jeffrey Fratarcangeli see both a challenge and an opportunity.
“College athletes are now essentially running small businesses, whether they realize it or not,” said Fratarcangeli, founder and CEO of Fratarcangeli Wealth Management, a wealth management firm with decades of experience advising professional athletes, entertainers, and high-net-worth executives. “They’re getting paid. They’re getting taxed. They’re potentially exposed to legal and financial risk. That means they need a full-service team behind them to help guide their financial decisions, not just someone picking their investments.”
Here are four insights from Jeffrey Fratarcangeli on the NIL landscape, and how college athletes can make the most of their deals while gaining long-term financial literacy.
NIL Income Makes Managing Money Part of the Game
For decades, debates swirled over whether student athletes should be compensated. Now that they can be, their financial conversations have changed drastically.
“Even half a decade ago, schools and apparel companies were making a major profit off student athletes, despite the kids not seeing any of that money,” Fratarcangeli explained. “That system wasn’t fair to the student athletes who put in so much of their time and energy. NIL deals are a step forward in making sure that they are compensated for their hard work. But, earning money is one thing, managing it is something else entirely.”
The new reality for student athletes involves financial choices they’ve never faced before: Should they set up an LLC? How should they plan for taxes? What percentage of income should go to savings or retirement? And all of these decisions need to be made while the students are managing relentless pressure to perform – on and off the field.
“These kids are training harder, competing under more national scrutiny and are still expected to perform in the classroom, too,” Fratarcangeli added. “Without someone in their corner who understands their financial goals, it’s easy to make a wrong turn.”
Education Needs to Come Before the Money Hits Accounts
Fratarcangeli didn’t wait for NIL deals to become a headline to start supporting student athletes. Over a decade ago, he was already speaking to sports management students at the University of Michigan and recruiting student athletes to his firm’s internship program.
“I wasn’t doing all this outreach and mentorship because they were earning money,” he said. “I was doing it because these kids needed to learn financial literacy. The rise of NIL deals just made that education even more urgent.”
To date, more than 150 student athletes have interned with Fratarcangeli Wealth Management, many of whom now return to mentor incoming athletes.
“When they teach younger athletes, they retain more knowledge themselves,” Fratarcangeli said. “And when mentees start seeing real-life examples of what it takes to build and maintain wealth, it helps reshape how they think about money.”
Common NIL Pitfalls Are Avoidable with the Right Guidance
Fratarcangeli is blunt about the most common mistakes he sees among young earners with NIL deals.
“Living above your means is the number one wealth killer,” he said. “Some of these students make more than entry-level executives, but their earning window is four years, not forty. You have to save like your future depends on it – because it does.”
He encourages his clients to adopt a disciplined mindset from the outset.
“Take the Shaq approach. Split your paycheck in half and save it immediately. Then split it again. What’s left is what you can safely spend.”
Fratarcangeli has even seen athletes take out loans against future earnings, just to afford high-end jewelry to wear for the draft.
“That’s the kind of decision that can haunt you,” he explains. “On the flip side, if you build the right habits now, you can walk away from college with a strong financial base that most people don’t see until their 40s, and maybe even a few million in savings that you can leverage in your portfolio.”
Student Athletes and Their Families Need Advisors Who Take a Holistic View
For parents and guardians helping student athletes navigate this new NIL landscape, Fratarcangeli’s advice for finding the right financial advisor is simple: look for a firm with the right experience and a team approach.
“When it comes to helping students manage their NIL deals, it’s not just about investing the earnings. You need to consider tax planning, contract reviews and risk management, and you need a professional who understands the athlete’s full life picture,” he said. “NIL-specific experience also makes a big difference. Fratarcangeli Wealth Management was already doing this well before NIL deals started becoming popular.”
Fratarcangeli also points to the importance of long-term planning.
“I know from personal experience that most college athletes will not go pro. That means that NIL deals could be their peak earning window. That money can be the kickstart to the next chapter in their careers and lives post-college, if managed right.”
Student Athletes Need Forward-Thinking Support to Get Them To Their Financial “Endzone”
NIL deals are here to stay, and will only grow in popularity and payout size. Done right, NIL deals aren’t just short-term windfalls; they’re a chance for student athletes to build lifelong habits that set them up for decades of financial clarity and stability.
For financial advisors, NIL deals present an opportunity to educate, protect, and prepare a new generation of earners. Fratarcangeli sees it as a responsibility to a younger generation as much as a service.
“These student-athletes are tackling the beginning of their financial lives, and they’re getting a massive head start that most people their age typically don’t get,” he said. “If we do our job right, we’ll help them build smart, forward-thinking habits that will last long after the lights go out on their athletic careers.”
For more insight from Jeffrey Fratarcangeli, visit www.fratarcangeliwealth.com.