Full Story: Nico Iamaleava is projected to only make 900K on NIL after signing with UCLA because of taxes.

**Nico Iamaleava’s NIL Deal: A Closer Look at His Projected Earnings and Tax Impact**

Nico Iamaleava, one of the most highly-touted high school quarterbacks in recent years, made waves when he committed to UCLA, but a new twist has emerged regarding his NIL (Name, Image, and Likeness) earnings. Despite his considerable talent and the massive attention surrounding him, Iamaleava’s projected NIL earnings—estimated at $900,000—will be significantly impacted by taxes, leaving him with far less than the figure suggests. This has raised questions about the realities of NIL deals for student-athletes, especially when taxes come into play.

Iamaeava, who had options to go to top programs across the nation, ultimately signed with UCLA, reportedly securing a lucrative NIL deal as part of his commitment. The excitement surrounding his signing reflects the growing importance of NIL deals in college sports, as student-athletes are now able to profit from their fame and social media presence. However, the glamour of these deals can often obscure the financial challenges that come with them, particularly when taxes are factored in.

For context, a $900,000 NIL deal sounds impressive at first glance. But after federal, state, and local taxes are deducted, the reality is much less glamorous. Depending on where Iamaleava lives and plays, he will likely face a combination of federal tax rates, which can range up to 37% for high-income earners, along with California’s state tax, which could further reduce his take-home pay. UCLA is located in California, where the state income tax rate is among the highest in the nation, potentially pushing the total tax burden even higher.

Additionally, the nature of NIL deals means that athletes like Iamaleava are considered self-employed contractors. As such, they are also responsible for paying self-employment taxes, which cover Social Security and Medicare contributions. These additional costs further chip away at what initially appears to be a substantial income.

A common misstep for young athletes new to managing such sizable sums is not understanding how much of their earnings are going toward taxes. In Iamaleava’s case, the combination of federal and state taxes, along with self-employment obligations, could end up taking away more than half of his projected NIL income. After all deductions, his net earnings could fall closer to $400,000 or less—still significant, but a far cry from the $900,000 figure that fans and analysts often discuss.

This situation highlights a larger issue in the world of NIL deals for college athletes. While these agreements can provide opportunities for financial independence, they also come with a level of complexity that many young athletes may not fully anticipate. Without proper financial guidance, athletes may find themselves unprepared for the realities of taxation and other associated costs.

It’s crucial for athletes like Iamaleava to seek advice from financial professionals who can help them navigate these complexities. From understanding tax liabilities to managing long-term savings and investments, proper financial planning is key to ensuring that the money they make through NIL deals is used wisely.

As for Iamaleava, his situation serves as a reminder that while NIL deals can provide significant earnings, the amount athletes actually take home is often far less than what they initially anticipate. With the right support, however, Iamaleava can still make the most of his opportunities both on and off the field, setting him up for future financial success—both during and after his college career.