How NFLPA Royalty Payments Work and What They Mean for Your Money
What NFLPA royalty payments are and who receives them
NFLPA royalty payments are money the National Football League Players Association distributes to current and former players from licensing deals and merchandise sales. When the NFL or third parties sell products using a player's name, image, or likeness—jerseys, video games, trading cards, autographed memorabilia—a portion of that revenue goes into a pool. The NFLPA collects these royalties and pays them out to the players whose likenesses generated the income.
Shedeur Sanders, as an NFL player, is may have access to to receive his share of these royalties based on how often his name and image appear in licensed products and media. The amount varies widely depending on how much merchandise featuring that player sells, which teams and players generate the most fan interest, and how the NFLPA's licensing agreements are structured in any given year.
These payments are separate from salary, signing bonuses, and performance incentives. They arrive through a different accounting channel and are reported separately on tax documents. For players, they represent additional income beyond their contract with their team.
Key Takeaways
- NFLPA royalty payments come from merchandise and licensing sales using a player's name or image, not from the team or the NFL directly.
- The amount each player receives depends on how much merchandise featuring them sells, which changes year to year.
- These payments are taxable income and will appear on a 1099 or W-2 form, depending on how the NFLPA classifies the distribution.
- Royalty payments are deposited into a bank account you designate with the NFLPA, usually via ACH transfer on a set schedule.
- If you do not receive an expected payment, contact the NFLPA directly—delays or errors in merchandise sales reporting can affect timing.
How the NFLPA collects and distributes royalty money
The NFLPA negotiates licensing agreements with companies that manufacture and sell NFL merchandise. These agreements specify what percentage of revenue goes to the players' pool. The NFLPA then tracks which players' likenesses are used in which products and calculates each player's share based on sales data reported by the licensees.
Distributions typically happen on a quarterly or annual schedule, though the exact timing depends on the NFLPA's contract terms with each licensee and how quickly sales data is reported. A player must have an active account with the NFLPA and a designated bank account on file to receive payments. Most distributions arrive via ACH transfer, the same electronic method used for payroll and bill payments.
The NFLPA sends each player a statement showing how much was distributed, which products generated the royalties, and the period covered. Keep these statements for your records and for tax purposes.
Tax reporting and what you owe on royalty income
Royalty payments from the NFLPA are taxable income. The NFLPA will report the total amount you received to the IRS on either a 1099-NEC (if you are treated as an independent contractor) or a W-2 (if you are classified as an employee for tax purposes). You will receive a copy by January 31 of the year following the payment year.
You must report this income on your federal tax return. The amount is subject to federal income tax and, depending on your state, state income tax as well. If you have a tax professional or accountant, provide them with the 1099 or W-2 you receive from the NFLPA so they can include it in your return.
Self-employment tax may also apply if the NFLPA reports the income on a 1099-NEC. Unlike W-2 income, where your employer withholds taxes, you may owe estimated quarterly taxes on 1099 income. A tax professional can advise you on whether you need to make quarterly payments based on the amount you expect to receive.
When royalty payments are delayed or missing
Delays in royalty payments usually stem from late reporting by the companies that sell the merchandise. If a licensee does not submit sales data on time, the NFLPA cannot calculate and distribute your share. Seasonal products—holiday merchandise, playoff gear, Super Bowl items—can create spikes in sales reporting that take longer to process.
If you do not receive a payment you expected, first check your NFLPA account online or contact the NFLPA directly. They can tell you whether the payment has been processed, whether it is pending, or whether there is a hold on your account. Provide them with the payment period you are asking about and the amount you expected.
If a payment was processed but did not arrive in your bank account, check with your bank to see if it is pending or if there is a problem with the account information on file. ACH transfers can take one to three business days to clear. If more than three business days have passed, contact the NFLPA again with your bank details so they can investigate.
How royalty payments affect your budget and financial planning
Because royalty amounts fluctuate and are not may provide, treat them as variable income rather than a fixed part of your budget. A player's popularity, team performance, playoff appearances, and media exposure all affect how much merchandise sells. A breakout season or a Super Bowl appearance can increase royalties significantly; a quiet year or a trade can reduce them.
When you receive a royalty payment, consider setting aside a portion for taxes if you have not already paid estimated quarterly taxes. The rest can go toward savings, debt repayment, or other financial goals. Because the timing and amount are unpredictable, do not commit these funds to recurring bills or obligations you cannot cover from your salary alone.
Track your royalty payments over time to understand the pattern. If you consistently receive payments in certain months or in certain amounts, you can plan around them. If they are highly variable, budget conservatively and treat larger payments as windfalls.
Updating your bank account and payment information with the NFLPA
If you change banks, move to a different state, or need to update any account information, notify the NFLPA in writing or through their player portal. Provide your full name, player ID, old account details, and new account details. The NFLPA will update their records, but allow time for the change to take effect before the next scheduled distribution.
If a payment is sent to an old or closed account, contact your bank first to see if they can redirect it. Then contact the NFLPA with proof of the failed transfer. They can reissue the payment to your correct account, though this may take additional time.
Keep your contact information current with the NFLPA as well. If they cannot reach you about a payment issue or a tax form, the problem may go unresolved. Update your phone number and email address whenever they change.
Frequently Asked Questions
Can I opt out of receiving NFLPA royalty payments?
No. As an NFLPA member, you are may have access to to your share of royalty income from licensed products using your name and image. You cannot decline the payments, but you can request that they be held or directed to a different account if you have a specific reason to do so. Contact the NFLPA directly to discuss your situation.
Do I have to pay state income tax on royalty payments?
Yes, in most states. Royalty income is subject to state income tax in the state where you reside. Some states have no income tax, so your tax obligation depends on where you live. Your tax professional can tell you what you owe based on your state of residence.
What happens to royalty payments if I am traded or released?
You continue to receive royalties for merchandise sold while you were on the roster and for your likeness in products already in circulation. You do not receive royalties for new merchandise created after you leave the team. The NFLPA will adjust your distributions accordingly as new sales data comes in.
How do I know how much merchandise featuring me is selling?
The NFLPA statement you receive shows which products generated your royalties and the period covered, but it does not always break down individual sales numbers. Contact the NFLPA if you want more detailed information about which products are selling and in what volume. They may be able to provide additional reporting depending on the licensing agreement.
Are royalty payments the same as endorsement deals?
No. Royalty payments come from the NFLPA's licensing pool and are based on merchandise sales. Endorsement deals are separate contracts you negotiate directly with companies for payment in exchange for promoting their products. Both are taxable income, but they are reported separately and come from different sources.