College athletes getting much-needed financial education as they navigate NIL

In the last few years, the world of college sports has been shaken to its core by three letters: NIL.

Name, Image and Likeness became one of the most important issues in college athletics after a US Supreme Court decision in 2021 determined that the NCAA could not prevent college athletes from earning money using their name, image and likeness. The decision transformed the nature of college sports and allowed athletes to finally capitalize on their fame and their personal brand, but it also led to more questions than answers.

Navigating an uncertain world

With so much uncertainty regarding the nature of NIL, one of Alabama’s biggest names in finance has decided to step in and help provide some answers and guidance to college athletes and their families. At the Regions Game Change event hosted by Regions Bank this week in Birmingham, financial experts joined some key power players in college sports to discuss how both groups can do a better job of educating college athletes and their families on how to manage the financial implications of NIL.

NIL is such a great opportunity for student-athletes and their families but it also brings complexities with it.

We want these families to have confidence that there are resources out there, guidance and education available for them.

– John Jordan, Head of Retail, Regions Bank

In addition to financial education programs offered by banks such as Regions, schools and athletic conferences are also beginning to take a more active role in helping position families for success when it comes to their NIL opportunities. American Athletics Conference commissioner Tim Pernetti, who was one of the speakers at the Regions Game Change event, noted that for many student-athletes, the world of NIL is changing so quickly, it can be hard to keep up with.

Someone was asking me “do you understand all this stuff?” I understand it today but the problem is that it changes every other day. 

Young people have an opportunity to build their brand more than ever before but with that comes a lot of responsibility including managing the finances of that.

Financial literacy has never been more important for a college athlete. This is not just a one-time opportunity to get paid. This is a chance to create something lasting and build your brand in a way that could create more opportunities for you down the line.

– Tim Pernetti, Commissioner, American Athletic Conference

Future issues in the NIL world

In addition to financial literacy for athletes and their families, the Regions Next Step event also provided an opportunity to take a look at some of the issues surrounding NIL that could make an impact in the future. Rich McGlynn, one of the key figures in Auburn’s athletic department when it comes to dealing with finances, said that while donors who contribute to college athletics, known in college sports as boosters, are excited about NIL because it gives them a way to make a more direct impact on their school’s recruiting efforts. But that may come with limitations.

We do worry about donor fatigue. We worry about people who continue to invest in our program. We’re asking our donors to do a lot and we want to make sure that our student-athletes are maximizing all their opportunities to earn money not just from our donors but from other avenues.

– Rich McGlynn, Executive Deputy Athletics Director, Auburn

Pernetti also mentioned making information about NIL deals across college sports more easily accessible could be a great additional resource for student-athletes.

Every school does it differently and every student-athlete does it differently. There needs to at least be a central reporting system where these deals are reported and everyone can go in and assess the market. Without that, it’s going to be hard for anyone to assess what a fair deal looks like.

– Tim Pernetti, Commissioner, American Athletics Conference

For more information on Regions’ free financial education program, visit Regions Next Step.