College Athletes Are Earning Big—But Are They Ready for the Risks?
As college athletes gain access to lucrative Name, Image, and Likeness (NIL) deals and direct payments, financial advisors are stepping in to help them manage their newfound wealth and protect against potential financial fraud. Mitchell Smith, president of life, high-net-worth, and executive benefits at EPIC, recently spoke candidly with WealthManagement.com about the financial minefield that college athletes now face as NIL deals and direct payments surge past $1.6 billion annually.
The article highlights the urgent need for financial education and reliable guidance in today’s rapidly evolving sports landscape. With recent changes to NCAA regulations and federal legislation, college athletes—especially those in high-revenue sports—are now able to earn substantial income through NIL deals and direct payments from universities. While this financial shift presents exciting opportunities, it also introduces significant risks, including fraud and exploitation.
Key Developments Include
- A new executive order signed by President Donald Trump aimed at addressing chaotic third-party payment schemes.
- A $2.8 billion legal settlement that now permits schools to pay athletes directly, including revenue sharing.
Although some athletes are making millions, many receive only modest sums, and overall financial literacy remains low. Advisors caution that young athletes are susceptible to poor financial advice and scams. The article emphasizes the importance of financial education and trusted advisory support in protecting the futures of these athletes.
