Even before attending a single class, many college athletes need a crash course in money management. That’s because player payments for NIL (Name, Image, and Likeness) have turned college sports into a whole new ball game.
NIL is providing welcome compensation for the hard work and performance of athletes. At the same time, it brings an entirely new set of challenges. Greg Knox, Director of Career & Professional Development, Mississippi State Football, explained the urgent need for financial education.
“We have athletes getting NIL money. To take care of them, it’s important we educate them on their financial situations – investing, saving, and how taxes operate. This helps them think about the future, not just spending their money as fast as they get it.”
You have two full-time jobs, one academic and one athletic, and you must be able to focus on both. So, NIL has a definite impact on them if it’s done right.
Greg Knox, Mississippi State Football Director of Career & Professional Development
Knox is a veteran in the coaching world, with years as a position coach and even serving two separate stints as interim head coach at Mississippi State. With that deep background in helping players balance studies and play, he pointed out the difference NIL payments have made.
“You have two full-time jobs, one academic and one athletic, and you must be able to focus on both. So, NIL has a definite impact on them if it’s done right.”
Financial Coaching
Stephen Young, Vice President and Branch Manager, Starkville, Mississippi, recently addressed the MSU Bulldogs football squad, underscoring the importance of sound fiscal management. And Stephen wasn’t alone. His Regions teammates from the area included Andrew George, Private Wealth Advisor, and John Rollings, Financial Advisor.
Together, they covered an entire range of topics for today’s student athlete: How to manage money, how to save for the future, how to invest, and, perhaps most important of all, how to be aware of future taxes.
As one example, NIL funds are 1099 income, which means no taxes are withheld from the payments athletes receive. Without a solid savings plan, student athletes could face a real dilemma come tax time.
“Greg Knox has already laid the foundation with the players,” Young pointed out, “Always stressing the need for budgeting. We built on that with strategies to save and how to make their money work for them until those taxes come due.”
They discussed how to think about investing, both in the long- and near-term. If handled the right way, those NIL payments offer a lasting advantage in life.
Stephen Young, Regions Bank Branch Manager in Starkville, Mississippi
But beyond tax day, other topics spark player interest. With limited playing days ahead – and with few among them going on to the pros – most recognize how important it is to make the most of NIL money while it lasts.
“Andrew and John gave the team all kinds of insights on wealth building, the kind you get with a Regions Greenprint® plan,” Young added. “They discussed how to think about investing, both in the long- and near-term. If handled the right way, those NIL payments offer a lasting advantage in life.
“As one example, some athletes already are parents,” Young continues. “So when we addressed how to set up a 529 plan for their own children, those players really tuned in.”
Winning Trust Above All
One key point? The Regions team wasn’t at MSU to sell products or find new customers. Instead, to Young, giving insight was the order of the day.
“Our primary mission is always to build confidence in Regions as a reliable source of information. Of course, we want students to open accounts with us, then stay with us once they graduate and start households of their own. But we’d rather encourage the student athlete to come to our branch and ask questions without feeling any kind of pressure.”
Knox agreed that the personal touch makes all the difference.
“Relationships matter, not just in finance but in life. Stephen and his team did a great job,” Knox offered. “They really captured the audience. As a result, a lot of our student athletes stuck around afterwards to introduce themselves. There’s no substitute for interaction between people, and those student athletes need that.”
Helping Athletes Succeed In Life
The visit to Mississippi State was part of Region’s ongoing initiative to help student athletes navigate a unique set of challenges.
Mark Senter, Vice President, Experiential and Sponsorship Marketing, has helped create an NIL program consistent with the bank’s priority of financial education.
“We saw a need at the very onset of the NIL era,” Senter offered. “When you’re 17 or 20 or 23, NIL money might seem like a lot – whether it’s a few thousand dollars a year or $20,000 a month. But that money is not unlimited.”
Yet, many athletes don’t know their money essentials.
“Athletes come from all kinds of backgrounds,” Senter added. “Some haven’t been exposed to good money habits. Or, sad to say, many of them sign contracts they don’t fully understand.”
Some haven’t been exposed to good money habits. Or, sad to say, many of them sign contracts they don’t fully understand.
Mark Senter, Regions Experiential and Sponsorship Marketing Vice President
Regions’ solution? An elite team of 22 handpicked wealth advisors and another 21 financial advisors, designated individuals building relationships with institutions within a particular state – without distinction between elite athletic universities and smaller institutions.
“When I was putting this program together, I also talked to HBCU schools or other smaller schools,” Senter continued. “I reassured them that not all their student athletes are going to make NIL money, let alone big paydays. But those players are leaders, too. We want to make sure they have the financial confidence needed to make wise decisions.”
The result? Regions has become a trusted name in athletic circles. After all, when your first priority is to give sound financial advice, everybody comes out on top.
At Regions Bank, financial education is a key priority. When it comes to the unique financial needs of student athletes, we have a wealth of resources and advice. To learn more visit https://www.regions.com/promo/ncaa-student-athletes today.