Beginning in 2022 NIL (Name, image and likeness) deals have burst on to the scene since student athletes have been able to profit off of their name. I am now curious to understand how this has affected student athlete’s education on the topic, and on their finances in general. <\/p>\n\n\n\n
\nYes, many athletes hire agents and financial advisors to negotiate their NIL deals, but they may still struggle. Look to the NFL, where\u00a0more than 15 percent<\/a>\u00a0of players, long out of college, declare bankruptcy within a decade of retirement. NIL deals are happening before students receive a diploma.<\/p>\n\n\n\n
A 2019\u00a0survey<\/a>\u00a0of 30,000 college students from 440 schools found that just 53 percent believed they were prepared to manage their money. With little having changed over the intervening five years it\u2019s likely that poor financial decisions, jeopardizing the long-term financial stability of student athletes, will be as much the rule as the exception.<\/p>\n\n\n\n
The Role of Educational Institutions<\/strong><\/p>\n\n\n\n
When NIL deals were announced<\/a>, around 75 percent of student athletes surveyed wanted to learn about investment platforms and taxes, and 44 percent were concerned about student debt.<\/p>\n\n\n\n
Considering the $1.7 trillion<\/a> student loan debt that continues to grow, colleges and universities should be implementing financial literacy courses for all of their students. But at the very least, educational institutions need to bridge the financial literacy gap for student-athletes.<\/p>\n\n\n\n
The NCAA has started\u00a0emphasizing<\/a>\u00a0the need for financial literacy and some schools have been proactive. San Diego State, for instance, hired an NIL coordinator to assist student-athletes in navigating financial decisions related to NIL deals. However, many schools have failed to adequately invest in programs protecting their students.As many schools begin\u00a0creating NIL collectives<\/a>\u00a0and soliciting alumni donations to fund NIL deals, these schools must be held accountable and invest a portion of that funding into students\u2019 long-term futures.<\/p>\n\n\n\n
NIL deals are a long overdue but compensating student athletes is only half the battle. The NCAA needs to establish a financial education framework for colleges and universities to adopt that helps students avoid financial pitfalls. Financially literate student-athletes are better equipped to balance their academic and athletic responsibilities, better prepared to represent the NCAA, and better equipped to live financially independent lives after college.<\/p>\n\n\n\n