A sports career usually does not go on after you are 35 years old.. If you are smart about money it can last a lot longer than that. This is why a lot of people are wondering how athletes make money outside sports when they are not playing.
This guide will tell you how athletes make money when they are not playing sports. The famous athletes in the United States do not think of their sports career as the end. They use the time they’re famous to start something new that will keep making them money even after they stop playing sports. Some athletes invest in coffee shops. Some athletes make deals to sell kitchen things. Some athletes do not. They lose a lot of money.
It has examples and the rules for 2026. It also talks about the mistakes that have made some athletes lose all their money overnight.
Why Athletes Need Income Streams Beyond Their Sport: How Athletes Make Money Outside Sports
How Athletes Make Money Outside Sports by income streams.
The average career in the NFL, NBA or MLB is really short. Injuries can end a season quickly. Contracts run out. Trades can happen without any warning.. That does not stop a 30-year-old athlete from needing money for the next forty or fifty years.
This is a problem that pushes smart athletes to think about one thing: how to turn a short career into financial security that lasts a long time. The athletes who figure out how to make money from sports usually while they are still playing tend to have a lot more money when they retire.
There are three reasons why athletes are doing this:
- Short careers. Most athletes do their work before they are 30 years old.
- Being famous. When people know who you are it can help you start a business and make money in ways that other people cannot.
- Getting hurt. If you have an accident you can stop getting paid right away. This is why athletes need to think about the NFL, NBA or MLB as a small part of their financial plan. They need to think about how to make money outside of the NFL, NBA or MLB.
How Athletes Make Money Outside Sports Through Endorsements
How athletes make money outside sports in ways but endorsements are the way most people are familiar with. In the past it was really simple: athletes would put their name on a product, like a shoe or a cereal box. They would get paid. Now things are different. The new way of doing things is that athletes get paid if they own a part of the company or get a percentage of the money the product makes.
George Foreman is an example of this. He is a boxer. Before he sold the rights to his name he made 40 percent of the money from every grill that was sold. At one point he was making around $4.5 million every month from the grill. In 1999 the company that made the grill paid him a lot of money around $113 million to $127 million so they could keep using his name on their products. In total George Foreman made $250 million from the grill, which is a lot more than he made from boxing.
How athletes make money outside sports in ways but endorsements are the way most people are familiar with.
- Traditional endorsements pay athletes the amount of money no matter how well the product does.
- Equity partnerships pay athletes based on how the product does so they can make a lot more money if the product is successful.
This is why a lot of athletes today want to own a part of the company or just get paid to appear in an advertisement.
You can also read: Highest-Paid Athletes in America Right Now (2026)
How Athletes Make Money Outside Sports With Business Ventures
Endorsements can really help you get ahead. Owning a business is where people usually make a lot of money. Magic Johnson is an example of this.
Johnson made $40 million from playing in the NBA. When he stopped playing he used that money to start Magic Johnson Enterprises. This company bought Starbucks stores, Burger King restaurants and 24 Hour Fitness gyms in neighborhoods that other big companies were not paying attention to. He sold his part of Starbucks for $100 million and used that money to start new things, like an insurance company that now has billions of dollars.
Magic Johnson shows us how athletes make money outside sports by starting businesses.. The basic idea is this: use your fame and a little bit of money to start with find a market that needs something and build something that makes money on its own so you do not need to be, in person like you do on the court when you are playing sports and that is what Magic Johnson did with his business Magic Johnson Enterprises and that is how Magic Johnson made his money.
How Athletes Make Money Outside Sports From Playing Contracts to Ownership Stakes
The pattern repeats across sports. Athletes who outpace their peers financially usually share one habit: they trade single paychecks for ownership positions, whether that means a restaurant franchise, a stake in a sports franchise, or equity in a startup.Top athletes earn millions through sports sponsorship revenue.
How Athletes Make Money Outside Sports Through NIL Deals
For a time college athletes could not make money from being famous. This changed in 2021. Things have been changing ever since.
As of March 2026 a website called On3 said Texas quarterback Arch Manning is the college athlete who makes the money from his name with around $5.4 million. Most college athletes do not make that money but now they can make money from people paying them to say good things about their products from making videos and posts and from showing up at events.
The rules for college athletes got stricter in 2026. Athletes in Division I have to tell people about deals they make with companies that are worth $600 or more using a website called NIL Go and they have to do this within five days of making the deal. In 2025 there was an agreement that lets schools give some of their money directly to the athletes with a limit of $20.5 million per school for the year 2025-26. This is separate from any other money the athletes can make from their name.
So in 2026 a college athlete can make money in three ways at the time: they can get money from their school they can get money from companies that want them to say good things about their products and they can get money from fans who like them and want to support them on websites and social media platforms that are all, about the college athletes own brand the college athletes name and the college athletes image.
How Athletes Make Money Outside Sports Through Smart Investing
Business ownership isn’t the way to go. Many athletes build wealth through investing. They often work with advisors who know how to help athletes with short careers and high incomes.
Some ways they do it are:
- Real estate. Buying properties and commercial buildings can bring in money that isn’t tied to how well they play.
- Index. Stocks. These are less risky than owning a business. Can grow steadily over time.
- Venture capital. Some athletes invest in startups hoping they’ll grow in value.
- Annuities and insurance products. These can provide an income and protect against a sudden loss of earnings.
The athletes who don’t struggle with money after they retire often have one thing in common: they build a team of advisors on. They don’t wait until their big contract runs out.
How Athletes Make Money Outside Sports With Media and Personal Brand Income
Cameras do not disappear when a sports career ends. Lots of athletes use their voice and personality to make money for a time through things like podcasts and YouTube channels and broadcasting deals and partnerships with brands that are about who they are as a person, not just about their sports numbers.
The idea of doing this has become popular quickly because it does not cost a lot of money to get started. A retired athlete who people know and has a phone with a camera can make the following. Make money from it right away without having to wait for a big company to offer them a deal.
Good authority source about endorsements, appearances, and influencer income.
Common Mistakes That Derail Athlete Business Ventures
Not every plan for how athletes make money outside sports works out, and the mistakes below explain why.
Not every story has an ending like Magic Johnsons. George Foreman had a time too. He lost a lot of money between his two boxing careers. He made some investments and spent millions of dollars. By the 1980s he was broke. He even said that he almost lost his house before he made money from the grill deal.
The things that can go wrong are:
- Trusting the people. Sometimes family members or old friends are put in charge of money decisions. They do not know much about business.
- Chasing things that look good but are not investments. Restaurants, clothing lines and nightclubs look nice. A lot of them fail.
- Putting all your money in one thing. If you bet everything on one business or one endorsement deal and it fails you will be in trouble.
- Not thinking about taxes. When you get money from endorsements it does not always have taxes taken out. This can cause problems when you have to pay a lot of taxes at once. George Foreman and Magic Johnson are examples of people who made money from endorsements but you have to be careful with your money, like George Foreman was after he made money from the grill deal.
You can also visit: Richest athletes in America 2026
Final Takeaway: How Athletes Make Money Outside Sports
The athletes who win financially after sports do not rely on one paycheck. They have money coming in from places. This includes money from endorsements and ownership stakes. They also make investments and have a personal brand that brings in income. All of this works together like a system that keeps making money long after the athletes are done playing sports.
People who like sports often wonder how athletes make money outside sports.. Understanding how athletes make money is not just something that is interesting to know. It is actually a plan that can help anyone who has the time to build security that will last a long time. The athletes who win financially after sports are an example to follow. They show us that we do not have to rely on one paycheck. We can have money coming in from places, like the athletes do.
How Athletes Make Money Outside Sports: FAQ
How do athletes make money outside sports after retirement? When athletes stop playing sports they usually have different ways to make money. This can include owning a business getting paid for endorsing products, renting out property and making money from investments they made while they were still playing. The athletes who do the best with money are the ones who started planning and building these ways to make money before they stopped playing, not after they retired.
What is the most common way how athletes make money outside sports? Endorsement deals remain the most common entry point, but the most profitable arrangements now involve equity or royalty structures rather than flat fees, similar to the deal George Foreman struck with his grill manufacturer.
Can college athletes legally make money from NIL deals in 2026? Yes. Division I athletes can sign third-party NIL deals and, depending on their school, receive direct revenue-sharing payments. Deals worth $600 or more must be reported through the NIL Go platform within five business days.
Do all professional athletes become successful business owners? No. Many athletes lose money on business ventures, especially when they invest in restaurants, nightclubs, or ventures outside their expertise without proper guidance. Diversification and trusted financial advisors make a major difference in outcomes.
How much can top college athletes earn from NIL deals? Earnings vary widely. As of early 2026, the highest-valued college athletes were worth several million dollars annually according to industry valuation trackers, though most college athletes earn far smaller amounts.
What investment strategies do athletes use to build long-term wealth? Common strategies include real estate, index funds, venture capital, and insurance-based income products. These options provide income that doesn’t depend on athletic performance or media visibility.
Why do some retired athletes go broke despite earning millions? Short career windows, high spending habits, bad investment advice, and a lack of financial literacy are the most common causes. Tax surprises on endorsement and NIL income also catch many athletes off guard.
Is starting a business better than investing for athletes seeking income outside sports? Neither option is universally better. Business ownership offers higher potential returns but carries more risk and requires active involvement. Investing tends to be more passive and stable, making a mix of both the most common approach among financially secure athletes.
