Merrill Lynch wealth management advisor Gordon Whittaker emphasizes that college athletes earning income from NIL and revenue sharing deals must act as prudent stewards of their funds and prioritize building robust financial habits.
As the college football season kicks off, many young athletes will experience an influx of income from name, image, and likeness (NIL) deals and revenue sharing, presenting new financial challenges in managing these sudden earnings.
NIL gained traction in college sports in 2021, and compensation has since expanded to include direct revenue sharing with their colleges. Some players, particularly those in the Power Four (P4) conferences—Big Ten, SEC, ACC, and Big 12—or competing in football and basketball, may earn six- or seven-figure incomes through these arrangements.
Gordon Whittaker, a managing director at Merrill Lynch, told FOX Business that regardless of whether student athletes pursue professional careers, their time in college offers a crucial opportunity to establish financial habits and a foundation for their future.
“The earlier you establish financial habits, the more likely they are to be effective and stick. Extending that period and providing young men and women the opportunity to earn money earlier in life expands the chance to build those habits,” he said.
Notre Dame QB CJ Carr is one of the top returning signal-callers in 2026. (Justin Casterline/Getty Images)
“The majority of our conversations with these young athletes focus on being good stewards of their funds and building positive financial habits,” Whittaker said.
He noted that while in school, “their budget ought to be minimal. Whether they are a star player on a P4 team or a backup at a smaller school, they have few ongoing expenses, so any income should be directed toward incremental savings.”
“We encourage them to live like college students, retain their assets, and start building ownership, allowing compound interest to take effect over the decades. Even small amounts turn into substantial sums over time,” Whittaker said.
Oregon QB Dante Moore returned to college for another season with the Ducks after making the CFP semifinals a season ago. (Alika Jenner/Getty Images)
Whittaker highlighted the importance of understanding that if they transition to professional sports, they must save to support themselves after their playing careers end.
“We discuss the idea of being an owner versus an employee and what wealth truly represents. We aim to shift the mindset from equating wealth solely with income to understanding that owning assets equals wealth,” he added.
“You won’t work until you’re 65 in this capacity, so every dollar earned—10 cents today, 90 cents to bridge the gap when you stop playing—requires careful planning,” Whittaker said.
“Delaying gratification is crucial,” he added, noting that athletes should study professional peers who practice good stewardship with an ownership mentality.
The Ohio State Buckeyes were one of the top teams in the country in preseason projections. (Scott W. Grau/Icon Sportswire via Getty Images)
Earning from NIL and revenue sharing also means athletes must pay taxes. Whittaker noted that a past stumbling block was the misunderstanding that 1099 income lacks the withholding of W-2 income, though many programs now help athletes split income to cover tax bills.
“That has become popularized enough that we rarely encounter athletes unaware of the need for tax planning, which is a positive development,” Whittaker explained.
The evolving landscape of student athlete compensation also raises a new question for those capable of going pro: weighing potential professional earnings against the opportunity to remain in college and earn more while retaining eligibility.
Whittaker explained that the previous question was whether improving draft status justified delaying income for a year. Now, current income streams are factored into the decision.
Indiana head coach Curt Cignetti and the Hoosiers celebrate winning last season’s national championship in January 2026. (Matias J. Ocner/Miami Herald/Tribune News Service via Getty Images)
Athletes seeking to boost their earning potential via NIL or revenue sharing must also be mindful of their brand and public presentation.
“You are your own brand, particularly regarding NIL. Off-field decisions directly impact compensation,” Whittaker said.
“There’s significant responsibility that comes with notoriety. Every action impacts your monetization,” he added.
