Arizona’s recent creation of a Name, Image, and Likeness (NIL) law has transformed opportunities for student-athletes. For the first time, state universities can directly compensate athletes for the use of their NIL and collaborate with approved partners to create new revenue streams. While these changes open exciting doors, they also introduce legal and long-term planning challenges. This is where estate planning plays a critical role.
Protecting NIL Contracts and Rights
Without clear legal protections, contracts signed early in an athlete’s career could limit future opportunities. A well-structured estate plan can:
- Establish who manages NIL rights in the event of incapacity.
- Prevent unauthorized use of an athlete’s name or image.
- Provide legal instructions for licensing, renewal, or transfer of rights.
Integrating NIL assets into an estate plan helps ensure an athlete’s personal brand remains secure for years to come.
Planning for the Unexpected
Estate planning isn’t just for older individuals or high-net-worth families. Accidents, illnesses, or other unforeseen events can affect athletes at any age. Without proper documents, NIL income and related rights could become tied up in probate, creating delays and uncertainty.
Key estate planning tools for athletes include:
- Powers of attorney to designate someone to manage contracts and obligations.
- Health care directives to ensure medical decisions reflect personal wishes.
- Trusts to control the distribution of NIL payments and future royalties.
Coordinating NIL Assets with Long-Term Goals
Student athletes are building a legacy early in the sports careers. NIL-related assets—contracts, royalties, content rights—should align with broader personal and family plans. This may involve:
- Naming beneficiaries for ongoing NIL income streams.
- Including NIL assets in charitable or philanthropic initiatives.
- Ensuring business entities connected to NIL are accounted for in estate documents.
By approaching NIL opportunities with the same preparation used for traditional assets, young athletes can protect their rights, preserve their brand, and safeguard their legacy under Arizona’s new law.
