College athletes in NIL era explore new frontiers of financial literacy | Wilnesh News

Three years after three little letters revolutionized college sports, a multi-billion dollar industry is pouring more money into college athletes’ bank accounts and financial literacy has never been more important.

In 2021, NCAA college athletes have the opportunity to benefit financially from their name, image and likeness, known as NIL regulations. This means they can get paid for things like signing or posting on social media as brand ambassadors.

Athletes such as Louisiana State University gymnast Olivia Dunn and University of Iowa women’s basketball star Kaitlyn Clark are estimated to be worth between zero and more than $3 million, according to the count. College Sports Website On3which combines an athlete’s expected value to their roster with their licensing and sponsorship prospects to estimate overall annual value.

NIL regulations have resulted in athletes earning and saving at a younger age than ever before, creating a need for financial literacy tailored specifically for them.

UCLA quarterback Chase Griffin used the experience of getting an NIL deal to learn valuable lessons about money.

Griffin, a two-time National NIL Male Athlete of the Year award, has signed nearly 40 NIL deals, each ranging from four figures to nearly six figures, he said.

He said his money frame has come a long way since he started receiving a stipend from the university during his freshman year.

“With my allowance, this was the first time I had saved that much money in a bank account,” Griffin told CNBC. “I found out that my financial knowledge wasn’t as good as I thought.” “I knew it. I would get another allowance every month, so I spent the whole allowance. As I get older, I look at money through the things it allows me to do.”

Griffin is now saving his change to buy a house after graduation. He will graduate from UCLA in June with a master’s degree in legal studies.

The NIL era allows college athletes to save for the future and seek professional financial advice, something many 18- to 22-year-olds are unable to do.

National Collegiate Athletic Association Athletes hire agents and financial advisors to help them negotiate nil deals, bringing with them new financial responsibilities.

“It’s great that athletes can turn pro earlier,” said Brandon Copeland, a former NFL player and a member of CNBC’s Global Financial Wellness Advisory Council. “All the issues that professional athletes have dealt with over the years are now coming together. Flow down.”

Copeland is the CEO of Athletes.org, an organization dedicated to helping college athletes navigate this new world. Athletes.org partners with NCAA athletes across the country to provide them with free, on-demand support for critical decisions in their lives, such as finding an attorney to review an NIL transaction. It also provides a forum to discuss issues ranging from negotiation strategies to mental health.

“The first thing athletes should know is that taxes are real,” Copeland told CNBC. “The numbers you see are not exactly the numbers you’re going to get. Don’t spend all your money in one place at once.”

Financial advisors also help people who need advice on how to use their money.

Sandra Richards, Morgan Stanley’s global head of sports and entertainment, and her team work with several NCAA athletes. Richards said she works hard to ensure her advisors help clients determine their financial goals from the beginning.

“It forces these young men to start talking about, what do I want this money to do for me,” Richards said. “What are we playing for, why are you involved in this, what do you want to do with this money? Young people are optimistic. You have so much access to information and social media.”

Social media is one of the largest ways to provide important financial information to NCAA athletes. For example, videos on Instagram, TikTok, or YouTube can provide tips or insights, but it’s important to review the quality and source of these suggestions.

Retired NFL player Carl Nassib uses his social network to gain knowledge about personal finance, adding that he wishes NIL had been around when he was in college. Nasib, a walk-on college football player at Penn State from 2011 to 2015, once had to sell his books to pay for a broken water pipe in his apartment.

Nassib is excited about what a higher level of financial literacy will mean for current and future college athletes.

“It would be great if you could find some athletes who are role models in terms of financial fitness,” Nassib told CNBC. “I think it’s going to have a very positive ripple effect. I’ve been working with a lot of players in the NFL, Trying to get them on a better path. It would be great if we could push the learning curve back four years. “So special, so impactful. “