What happens when college athletes suddenly start earning six- and seven-figure NIL deals?

In this episode of Two Accountants Talking Sh*t, Mike and Gary break down the rapidly evolving world of Name, Image, and Likeness (NIL) agreements and the tax implications many student-athletes never see coming.

The conversation explores how NIL income can effectively turn college athletes into business owners overnight, often without proper tax planning, withholding, or financial education. Mike and Gary explain why NIL earnings are often subject to self-employment tax, how athletes may be able to deduct legitimate business expenses such as training, coaching, travel, and marketing, and why forming an LLC or other business entity may help support long-term financial goals.

They also discuss the growing complexity of multi-state taxation as athletes travel for appearances, endorsements, camps, and promotional events. Many athletes may owe taxes in multiple states, creating additional filing requirements and potential surprises at tax time.

Beyond taxes, the hosts examine the broader economics of college sports, including whether state income tax rates could influence recruiting decisions and how schools in no-income-tax states may gain a competitive advantage in the NIL era.

Topics covered include:

• NIL tax basics for college athletes
• Self-employment tax explained
• LLCs and business entities for athletes
• Tax deductions for NIL income
• Multi-state tax filing issues
• Royalty income vs. earned income
• NCAA and NIL financial planning
• How taxes could impact recruiting
• The future of NIL legislation and tax law

This episode is essential listening for student-athletes, parents, sports agents, college recruiters, coaches, and anyone trying to understand the business side of modern college athletics.

Whether you're a college athlete, parent, coach, creator, or entrepreneur, this episode explains the business side of NIL in plain English.

Because that NIL check might feel exciting... until tax season shows up.