For many athletes, especially those benefiting from Name, Image, and Likeness (NIL) deals, sudden financial success can quickly turn into financial failure if not carefully planned for. Studies show that nearly 80% of professional athletes go broke within a few years of retiring. NIL athletes—often young and new to managing wealth—are particularly vulnerable to falling into the same trap. Here’s how working with a Certified Public Accountant (CPA) can help you protect your earnings and secure a solid financial future.
Why Do So Many Athletes Go Broke?
Athletes often face:
- Overspending: A high-income lifestyle with little thought for long-term planning.
- Poor Tax Planning: Unexpected tax liabilities can eat away at earnings.
- Lack of Financial Advice: Without expert guidance, it’s easy to make costly mistakes.
- Short Career Windows: The earning period for athletes is often brief, making planning essential.
How a CPA Can Help NIL Athletes
1. Tax Planning and Compliance
With NIL income, athletes need to understand complex tax rules, including self-employment taxes, multi-state filings, and deductions. A CPA ensures compliance while helping you minimize your tax burden.
2. Budgeting and Cash Flow Management
A CPA can create a budget that balances immediate needs and long-term goals, helping you avoid overspending and save for the future.
3. Wealth Preservation Strategies
Through smart investment planning and retirement savings (e.g., funding an IRA or Roth IRA), a CPA helps you build assets that last beyond your athletic career.
4. Risk Management
CPAs identify potential risks and provide a safety net through proper insurance, diversified investments, and emergency fund planning.
Why Start Early?
The earlier you put a plan in place, the better. A CPA specializing in athletes and NIL income can set you on the right path to build, protect, and grow your wealth.
Don’t Be a Statistic—Secure Your Financial Future
Success on the field is hard-earned. Don’t let poor financial decisions derail your future. At our accounting firm, we specialize in helping athletes navigate the complexities of wealth management. Contact us today to get started on building your financial game plan!
Need a trusted CPA for your NIL earnings? Reach out for a free consultation and protect your financial legacy!
