Carl Nassib has talked about the need for player financial literacy as it relates to planning their future. This may be even more important now.
I attended a evening reception at a small local college where my wife has be
en a volunteer for years. At the dinner we sat with a man who works for a sports management firm. They handle athletes from all sports and cover their contracts, financial planning, taxes and major investments. He has been in the business over 25 years and is a lawyer and has an accounting degree. he said that financial literacy has been a problem for years, but has been getting better - and commented about the work that Carl has been doing for NFL players. However, he said they are now seeing a new problem with players coming out of the larger college revenue sports. A couple points he made:
I attended a evening reception at a small local college where my wife has be
en a volunteer for years. At the dinner we sat with a man who works for a sports management firm. They handle athletes from all sports and cover their contracts, financial planning, taxes and major investments. He has been in the business over 25 years and is a lawyer and has an accounting degree. he said that financial literacy has been a problem for years, but has been getting better - and commented about the work that Carl has been doing for NFL players. However, he said they are now seeing a new problem with players coming out of the larger college revenue sports. A couple points he made:
- Most players do not realize how short the career is and the amount of money they can save will not last the rest of their life - so they will need to make a living in the real world. Only a small number pack that kind of money away. Many are not prepared to have a real profession/job.
- Players coming out college now are asking about NIL. He says they have to tell players that less than 5% of all players make any significant money from NIL. No advertiser is paying a backup or special teams player for their services unless they have some other cache. He said players ask aren't there other sources of NIL $$$ where it is just for being on the team. He has to explain to them that is called their player compensation which the NFL tracks very closely as there is a salary cap. The players think NIL is comp for playing as opposed to off the field income.
- Many are shocked at how little they are making after tax and the difference between the top players and the bottom. Also the NIL$$$ are going more toward the top income players. State Farm is not signing up the backup center.
- He said some say they thought now that they have made it they were set for life.
- He did say the players who last longer in the league > 10 years tend to be better grounded as they have earned more but also understand the realities. Many often expand their education while playing to prepare for life.
- He said one big miss is health care as many players will suffer late in life and need medical treatment. If they have not prepared, this can be a financial killer..
- He said that players from some schools seem to be better prepared - they have a lot of NW athletes and he said they are much better prepared. Also players who have had real NIL deals seem better prepared.
