Nico Signs $1.75 Million Deal with UCLA, But Faces Tax Hurdles and a Half-Million-Dollar Loss. Nico and His Family Push Back Hard Against Deal, Questioning Financial Choices and Long-Term Impact Read more

Nico Signs $1.75 Million Deal with UCLA, But Faces Tax Hurdles and a Half-Million-Dollar Loss. Nico and His Family Push Back Hard Against Deal, Questioning Financial Choices and Long-Term Impact
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Nico Signs $1.75 Million Deal with UCLA, But Faces Tax Hurdles and a Half-Million-Dollar Loss

In a groundbreaking move, high school basketball phenom Nico Johnson inked a $1.75 million Name, Image, and Likeness (NIL) deal upon committing to UCLA. But what initially seemed like a life-changing opportunity has taken a complicated turn, with Nico and his family now voicing strong concerns over the financial structure of the deal, looming tax burdens, and a projected loss of nearly half a million dollars.

The NIL agreement, brokered by UCLA-affiliated collectives and corporate sponsors, promised to secure Nico’s future, allowing him to profit from his athletic brand while still in college. However, once the fine print and tax implications came into focus, the Johnson family quickly realized the offer wasn’t as golden as it first appeared.

At the heart of the controversy is the tax classification of the deal. The $1.75 million is being treated as ordinary income, making it subject to federal, state, and possibly local taxes — a total that could reach up to 40-45% of the entire deal. This means Nico might owe as much as $787,500 in taxes, leaving him with less than $1 million before even considering agent fees, legal costs, and living expenses in Los Angeles.

After crunching the numbers, Nico’s financial advisors estimated that the real net from the deal could drop below $1.2 million — and potentially as low as $1.1 million — which is roughly $500,000 less than the family had anticipated based on headline figures.

Feeling blindsided, Nico and his family are now publicly pushing back. “This was supposed to secure Nico’s future, not put him under financial pressure before he’s even played a college game,” said Nico’s father, Marcus Johnson. “We were led to believe this was a generational opportunity, but no one explained the full cost of what we were signing up for.”

The Johnsons are also questioning whether this level of income, combined with NIL-related demands, will distract Nico from academics and performance on the court. “He’s 18, just trying to play ball and make his family proud,” his mother, Tasha, shared. “Now he’s tangled in legal meetings and tax briefings.”

Critics say the situation reflects broader problems in the fast-evolving NIL landscape. Many athletes and their families, often without prior financial literacy training, are entering million-dollar deals with limited understanding of long-term implications. Some experts are now calling for universities and athletic departments to provide more transparent education and advisory resources to help student-athletes navigate the complex world of taxes, legal compliance, and brand management.

Meanwhile, the Johnsons are reconsidering the terms of the agreement. There’s speculation that they may renegotiate or even walk away if a better-structured offer comes along. “We’re not against NIL,” Marcus clarified. “But we want fairness and honesty. Right now, that’s missing.”

As the story unfolds, it may set a precedent for how high-profile NIL deals are handled moving forward — not just at UCLA, but across the country.