Mastering the good fortune that can come from being a successful athlete today calls for help from a specialized team
The lowest-paid college athlete on a list of the top 25 is estimated to earn $2 million per year.1
Athletes today, even college and high school athletes, have more and better opportunities to make money from their sport than ever before. “The growth of name, image and likeness (NIL) opportunities and the way that social and influencer marketing has become such a key part of the media landscape has revolutionized the endorsement marketplace,” says Greg McGauley, head of Merrill’s Sports & Entertainment Group, which has specialized expertise in financial planning for amateur and professional athletes, entertainers, creators and artists. “This, in turn, has vastly expanded the potential for substantial earnings and blurred the line between professional and amateur athletics.” But with these opportunities has come greater complexity that can distract athletes from their core passion, he adds.
Obviously, a majority of athletes aren’t receiving the outsized earnings those at the top enjoy. But even so, according to a recent survey of young athletes by Merrill, 74% of athletes between the ages of 18 and 24 did expect to earn more than $25,000 from NIL deals in 2025.2 At the same time, 61% report that they have trouble with the complexities of NIL agreements, and 88% report an interest in working with a professional financial advisor.3 (Read the full study: The financial reality of today’s young athletes)
The athlete at the 2026 Winter Games with the highest earnings in 2025 is said to have made $100,000 from winnings in her sport — and $23 million from endorsements.4
The fact is, athletes today face unique financial planning challenges, as the possible earning streams have diversified and blossomed. “There is potential for great wealth generation, but earnings can be uneven, sources can be numerous, and careers and earnings can be interrupted or cut short,” McGauley says. “This complexity increases the value of specialized advice.” Among the key challenges athletes often face, according to McGauley, are:
Potentially short career spans. For many professional athletes, peak earning years may last only a few seasons. Even collegiate athletes with lucrative NIL deals could see income dry up for a time if they are injured or pause to focus on studies, or their performance suffers. Athletes who don’t have a financial plan that takes this into account run the risk of seeing their future security undermined by events they can’t control.
Tax complexity. Competing in multiple states or even countries can trigger filing requirements across numerous jurisdictions. Endorsement income, appearance fees and social media partnerships may be structured in ways that require careful documentation and reporting. Without coordinated planning, athletes risk overpaying or underpaying and facing costly penalties.
Cash flow management. Large signing bonuses or endorsement payments can create the illusion of long-term financial security. Yet ongoing expenses, such as training, travel, housing, family support and professional services, can quickly erode income or even a windfall if not managed thoughtfully. Establishing disciplined budgeting and savings strategies early can help convert short-term earnings into long-term stability.
Depending on the particulars of local tax laws, professional basketball, football and baseball players could end up owing taxes in a dozen or more different jurisdictions.7
A financial advisor can work with athletes to address these issues holistically. That includes guidance on investment strategies aligned with career timelines and risk tolerance and capacity, and philanthropic planning for those who want to build a legacy beyond competition. Financial education is central, particularly for younger athletes navigating contracts, budgeting and investing for the first time.
As opportunities expand, so do the stakes. Today’s athletes are not only competitors but also brands and business owners. Talk to someone in Merrill’s Sports & Entertainment Group to find out how they might offer specialized guidance to help you realize your goals. Having professionals in your corner who can provide the insights and advice you need to plan for your financial well-being, now and in the future, can, in turn, help you focus on training, competing and winning.
Ready to work with a dedicated advisor in your area? Fill out the form below.
Answer a couple of questions about yourself to see advisors who match your preferences.
Then, choose who you’d like to connect with.
Are you trying to connect to your advisor?
Look up their contact information here. Or try our Contact us page.
If you’re interested in building your own portfolio with a wide range of investment choices, Merrill Edge® Self Directed may work for you.
1 https://www.foxsports.com/stories/college-football/top-25-college-athletes-highest-nil-valuations
2 The financial realities of today’s young athletes, Merrill, 2025
3 The financial realities of today’s young athletes, Merrill, 2025
4 https://www.forbes.com/sites/brettknight/2026/02/06/the-highest-paid-athletes-at-the-2026-winter-olympics/
5 https://www.hollywoodreporter.com/business/business-news/money-ball-how-college-athletes-influencers-1236068538/#:~:text=Talk%20Is%20Cheap%2C%20Talk%20Shows,$5%2C000%20to%20$10%2C000%20per%20post
6 https://www.forbes.com/sites/brettknight/2026/02/06/the-highest-paid-athletes-at-the-2026-winter-olympics/
7 https://pbigaem.fs.ml.com/content/dam/pbig/pdfs/SELifecycleWP_062222.pdf
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC and other affiliated banks.
Banking products are provided by Bank of America, N.A. Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation. Bank of America and the Bank of America logo are registered trademarks of the Bank of America Corporation. All rights reserved. All other logos and company names mentioned herein are the property of their respective owners and are used pursuant to license.
