NIL and Financial Literacy: A Necessity for Athletes

It was clear that many new and exciting opportunities would arise when college athletes were permitted to start profiting off of their name, image, and likeness. Athletes began by partnering with national and local businesses, while learning to build a personal brand that could flourish after their college days were over. NIL has now grown into a national phenomenon where athletes are making deals with many different brands, for many different reasons, and collectives are popping up all over the country.

Interesting deals such as Decoldest Crawford’s deal with SOS Heating and Cooling[1], Doug Edert’s deal with Buffalo Wild Wings[2], and Ga’Quincy ‘Kool-Aid’ McKinstry’s deal with Kool-Aid[3] took the NIL world by storm. As a result, athletes have seen a marked increase in individual wealth. This includes some athletes who have reported NIL valuations of $1 million or more. Former Texas running back Bijan Robinson, who is projected to go in the first round of the 2023 NFL Draft, has an estimated On3 NIL valuation of $1.8 million[4]

However, it is clear that not only first-round draft prospects are making money through NIL deals. Many athletes around the country are benefitting, and it's clear that there is a need for financial literacy as a result. This begs the question, what resources do athletes have at their disposal to ensure they are financially informed?

Cavinder Twins

Haley and Hanna Cavinder, who are both basketball players at the University of Miami, have a combined $1.6 million On3 NIL valuation. [5] Their NIL portfolio includes deals with the WWE, which has launched an NIL program, along with Champs Sports and Boost Mobile, among others. [6]

Their NIL value has led to a clear need for their financial training and literacy, to ensure that the Cavinder twins safely protect their assets and can continue to grow their already valuable brand.

What is even more impressive, is that the Cavinder twins have found a way to improve their financial literacy, and ensure their financials are in safe hands, all while securing another NIL deal.

The twins announced on January 27th, via their shared Tik Tok profile, that they have partnered with TurboTax.[7] This partnership will allow the twins to meet with a TurboTax representative so they can watch as the representative does their taxes live.

The link to the video is below.

Summary

As a result of the ever-growing world of NIL, athletes have individual wealth that was previously uncommon to any college athlete. This wealth could open up possibilities for the prototype of athlete turned content creator, which adds an immediate need and responsibility of financial literacy.

Many athletes would be smart to follow the path of the Cavinder twins, and get experts on board to promote and ensure their financial safety. In addition, there are programs around the country that are offering financial literacy services to athletes. This trend will continue as the world of NIL grows, and athletes would be best served by taking advantage of it.

Sources:

[1]Decoldest Crawford’s air conditioning commercial is the best use of NIL yet - SBNation.com [2]St. Peter's guard Doug Edert gets Buffalo Wild Wings NIL deal (nypost.com) [3]Alabama DB Ga'Quincy 'Kool-Aid' McKinstry lands the perfect NIL partnership with Kool-Aid brand - CBSSports.com [4]Bijan Robinson - NIL Profile (on3.com) [5]Haley, Hanna Cavinder start 'Twin Talk' podcast with NIL focus - On3 [6]Cavinder twins, now millionaires, have message for haters (nypost.com) [7]Twins taking on tax season with @TurboTax 🤝 Check out TurboTax Live F... | TikTok