The NIL (Name, Image, Likeness) landscape has opened incredible opportunities for high school athletes, but it's also created a minefield of potential mistakes that can derail careers before they even begin. With money, contracts, and college eligibility on the line, one wrong move can cost you everything you've worked for.
As someone who's seen countless young athletes navigate this new world, I've witnessed the same costly errors repeated over and over. The good news? Every single one of these mistakes is completely avoidable if you know what to look for.
Let's dive into the seven biggest NIL mistakes high school athletes make – and exactly how to fix them before you step foot on a college campus.
Mistake #1: Falling for Fake Offers and Scam Artists
Here's the harsh reality: high school athletes are prime targets for scammers and fake NIL opportunities. Athletic directors across the country report that their students are bombarded with suspicious text messages, emails, and social media requests offering deals that seem too good to be true.
The Problem: These fake offers often reference your school's name, colors, or uniform to appear legitimate. Athletes get excited about potential earnings and respond without doing any background research on the company or individual making the offer.
The Fix: Before engaging with any NIL opportunity, verify the company's legitimacy. Check their website, look up their business registration, and search for reviews or news articles about them. Most importantly, never respond to offers that mention your school without first getting approval from your athletic director. Real companies understand the compliance process – fake ones don't.
Mistake #2: Ignoring State and School Compliance Requirements
This might be the most dangerous mistake on our list. Unlike college athletes who gained NCAA approval for NIL activities, high school NIL policies vary dramatically by state and athletic association. Some states have detailed NIL laws, others have none, and some prohibit high school NIL deals entirely.
The Problem: Athletes assume they can operate under the same rules they see college players following. They don't realize that their state might have specific restrictions, disclosure requirements, or outright bans on certain types of deals.
The Fix: Before even considering any NIL opportunity, research your state's specific NIL regulations and your school's athletic association policies. Contact your school's athletic compliance director for guidance. In states like Texas, there are detailed requirements you must follow. Don't assume – verify every rule that applies to you.
Mistake #3: Signing Contracts Without Legal Review
The excitement of your first NIL deal can cloud your judgment. Athletes and their parents often see dollar signs and sign contracts without understanding what they're actually agreeing to.
The Problem: Many contracts created by small businesses contain vague or unfavorable terms. I've seen compensation clauses that state "the company will compensate the athlete in an amount determined at the company's sole discretion" – which could mean getting paid $5 for three hours of work.
The Fix: Always have a qualified lawyer review any NIL contract before signing. Ensure that compensation amounts, specific deliverables, timelines, and usage rights are explicitly defined in writing. If a company won't let you have legal review, that's a massive red flag.
Mistake #4: Surrendering Too Much Control Over Your Brand
One of the most devastating long-term mistakes is giving away too much control over your image and personal brand. Some athletes unknowingly agree to exclusive deals that prevent them from working with other companies, or grant unlimited usage rights for years.
The Problem: I've seen real cases where athletes granted beverage companies unlimited use of their image on any product worldwide for five years, only to discover their photo being used on international merchandise without additional compensation.
The Fix: When reviewing contracts, negotiate clear limitations on geographic restrictions, media types, duration, and specific use cases. Never agree to unlimited usage rights without significant compensation. Your brand will grow in value – don't sell it cheap early on.
Mistake #5: Failing to Disclose Deals to Your School
Many athletes don't realize they must disclose NIL agreements to their school before entering into them. This isn't just a suggestion – it's often a legal requirement that can affect your eligibility.
The Problem: Some students have lost their eligibility to continue high school sports because they failed to properly disclose NIL deals. In some states, failing to disclose can void contracts under state law.
The Fix: Always inform your school's athletic compliance office about any NIL opportunity before signing, even if the deal doesn't seem to involve the school directly. This transparency protects both you and your school from potential violations.
Mistake #6: Mismanaging NIL Income and Taxes
NIL money feels like free cash, but it comes with real financial responsibilities that many young athletes aren't prepared for.
The Problem: Athletes receive NIL payments without understanding tax obligations, often spending all their earnings only to face unexpected tax bills later. NIL income is taxable, and without proper planning, it can create serious financial problems.
The Fix: Work with a financial advisor or accountant who understands athlete income from day one. Budget conservatively, set aside 25-30% of all NIL earnings for taxes, and avoid major purchases until you understand your full tax liability. Consider forming a proper legal entity to handle your NIL income professionally.
Mistake #7: Chasing Quick Money Instead of Building Your Brand
The biggest long-term mistake is focusing only on immediate payouts without developing a sustainable personal brand strategy.
The Problem: Athletes accept random deals without considering how they align with their image, values, or future goals. This shortsighted approach limits future opportunities and can damage your reputation if you endorse conflicting products or services.
The Fix: Build your brand intentionally. Establish a consistent social media presence, define your personal values and message, and be selective about which companies and deals align with your long-term image. Focus on building sustainable value rather than chasing every quick dollar.
Your NIL Success Checklist
Before signing any NIL deal, run through this checklist:
- ✅ Is the offer from a legitimate, verified company?
- ✅ Does it comply with my state and school NIL rules?
- ✅ Have I disclosed it to my school's athletic department?
- ✅ Has a qualified lawyer reviewed the contract?
- ✅ Are all terms clearly defined in writing?
- ✅ Have I consulted with a financial advisor about taxes?
- ✅ Does this deal align with my long-term brand strategy?
The NIL opportunity is incredible, but only if you approach it strategically. By avoiding these seven critical mistakes, you'll protect your eligibility, maximize your earning potential, and build a foundation for long-term success.
Remember: the goal isn't just to make money in high school – it's to position yourself for even bigger opportunities in college and beyond.
Ready to maximize your NIL potential while staying compliant? Contact Dan Kost, CEO at Sports Media Inc., for expert guidance on navigating the NIL landscape safely and profitably.
📧 info@MySportsMedia.com
🌐 MySportsMedia.com/NIL
📞 +1 (970) 517-4962
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