Understanding Financial Literacy for College Athletes in the NIL Era

Financial literacy has become a crucial aspect of college athletes’ lives in the era of Name, Image, and Likeness (NIL) regulations. With the opportunity to earn money from their personal brand, athletes like Olivia Dunne and Caitlin Clark are seeing their NIL valuations surpass $3 million. However, as these young athletes start cashing in and saving up, they are realizing the importance of understanding finances.

UCLA quarterback Chase Griffin has learned valuable money lessons through his experience securing NIL deals. From receiving stipend money in his freshman year to now signing nearly 40 NIL deals, Griffin acknowledges that his financial literacy has come a long way. He has shifted his perspective on money and now sees it as a means to achieve his goals. Griffin is currently saving his NIL earnings to buy a house after graduation, showing how these opportunities have allowed athletes to plan for their future.

The NIL era has also created a need for professional financial advice tailored to college athletes. NCAA athletes are now hiring agents and financial advisors to navigate the complexities of NIL deals and manage their newfound financial responsibilities. Former NFL player Brandon Copeland, who is also the CEO of Athletes.org, emphasizes the importance of financial education for athletes. Athletes.org provides free support for NCAA athletes and helps them make key decisions regarding their finances. Copeland advises athletes to be aware of taxes and not spend all their earnings at once.

Financial advisors like Sandra Richards, head of Global Sports and Entertainment at Morgan Stanley, work with NCAA athletes to help them identify their financial goals from the start. Richards believes that the NIL era is forcing young athletes to think about what they want their money to do for them. By providing access to information and utilizing social media platforms, athletes can make informed decisions about their finances.

Social media plays a significant role in reaching NCAA athletes with critical financial information. Videos on platforms like Instagram, TikTok, and YouTube can offer helpful tips and insights. However, it is crucial to vet the quality and sources of advice found on these platforms. Retired NFL player Carl Nassib, who experienced financial struggles as a college athlete, appreciates the impact higher levels of financial literacy can have on the present and future generation of college athletes. He believes that having financially literate role models in the sports industry can create positive ripple effects.

Overall, the NIL era has transformed collegiate sports and opened up new avenues for athletes to earn money. However, with this financial opportunity comes the responsibility of understanding how to manage and make the most of their earnings. College athletes are now seeking professional financial advice, utilizing social media for information, and learning valuable money lessons to secure their financial future. The focus on financial literacy for college athletes is essential in ensuring their long-term success both on and off the field.