- Financial education is becoming more important as more money is being poured into college athletes ‘ bank accounts as a result of the regulations governing their name, picture, and image.
- College sports website On3 estimates that Caitlin Clark and Louisiana State University gymnast Olivia Dunne have NIL values of more than $3 million.
- “All of the problems that professional players have dealt with for years are now going away,” said former NFL player and CNBC Global Financial Wellness Advisory Board member Brandon Copeland.
A billion dollars is being poured into school players’ bank accounts by a billion dollars, three times after three small letters revolutionized undergraduate sports, and financial literacy has never been more critical.
College players in the NCAA had the opportunity to profit financially from their name, reputation, and image in the NIL regulations in 2021. They were also able to receive compensation for posting on social media as brand ambassadors and signing signatures, among other things.
According to college sports website On3, which combines an athlete’s projected value to their roster with their licensing and sponsorship prospects and estimates an overall annual value, athletes like Louisiana State University gymnast Olivia Dunne and University of Iowa women’s basketball star Caitlin Clark have NIL valuations of more than $3 million.
Due to the NIL regulations, athletes are younger than previously as a result of taking in and saving up, which makes them require financial education that is specifically tailored to them.
Chase Griffin, a quarterback at UCLA, has used his knowledge of securing NIL deals to gain significant money-related classes.
Griffin won the National NIL Male Athlete of the Year twice, and he has signed nearly 40 Negligible discounts, with prices ranging from four to nearly six, he said.
He claims that since receiving income income from the university in his freshman year, his understanding of money has improved.
“With my salary, that was the first day I had that much money in my bank account. What I found was that I wasn’t as good with financial literacy as I thought”, Griffin told CNBC. I was aware that I would receive another allowance the following month, so I was using up my entire allowance. As I get older, I see money only in terms of what it allows me to perform.
Griffin is then saving his NIL money to purchase a home after graduating. He’ll student from UCLA with a master’s degree in legal experiments in June.
College players can save for the coming and seek professional financial advice in a way that some 18 to 22-year-olds in the NIL era.
NCAA sports employ financial advisors and brokers to assist them in negotiating NIL deals, engendering new financial responsibilities.
Former NFL player and CNBC Global Financial Wellness Advisory Board part Brandon Copeland, commented, “Athletes are going pro earlier, which is great. All the problems that professional athletes have dealt with for years are now disappearing.”
Copeland is the CEO of Athletes. a group whose mission is to assist university athletes in entering this new world. Athletes. In order to provide free, on-demand support for crucial decisions in their lives, such as finding a lawyer to examine an NIL offer, org works with NCAA athletes all over the country. Additionally, it offers a forum where people can discuss topics ranging from bargaining strategies to emotional health.
According to Copeland, “Income are real, and that’s the first point athletes should be aware of.” That figure is not simply what you’re going to receive, as you may expect. Don’t try to spend everything all at once.
Financial counselors can also assist in filling in those who require advice on how to spend their money.
Morgan Stanley’s mind of Global Sports and Entertainment, Sandra Richards, and her team work with some NCAA players. Richards emphasized that she works with her advisors to assist their clients recognize their financial goals right away.
What do I need this money to do for me, Richards said,” It’s forcing these young persons to have the talk.” What do you want to do with this wealth, and why are you playing it? I’m positive about these young individuals. You have a ton of access to social media and data.
One of the best ways to get in-depth economic data about NCAA sports is through social media. Videos on Instagram, TikTok or YouTube, for instance, can provide suggestions or insight, although it’s important to animal the quality and resources of that guidance.
Carl Nassib, a retired NFL player, uses his own social media accounts to learn about personal finance, adding that he wished NIL had been there when he was a student. From 2011 to 2015, Nassb was a walk-on college football player at Penn State. He once had to sell his books to pay for a shattered pipe in his apartment.
Nassib is excited about what future college athletes will need to be financially literate.
Nassib told CNBC, “It would be nice if you got some athletes who are role models for financial wellness. I believe that will have a very positive impact on the environment.” I have been attempting to put a better path on behalf of so many NFL players. If we can move that learning curve back four years, that’ll just be so special and so impactful”.