College athletes learn how to manage money from sponsorships

Sharon Epperson joins the ‘Halftime Report’ with news from collegiate athletes who are now seeking financial advice and information about how to manage their money amid new sponsorship and brand deals. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

As you see there now thanks to a new rule in college sports student athletes can now make money from their name image and likeness by entering potentially lucrative sponsorship deals and now they have to create their own financial playbook cnbc senior personal finance correspondent sharon epperson joins us with more on that story hey share hey scott you know at a

Special ncaa convention this week officials discuss making an interim policy permanent allowing college athletes to make money from the use of their name image and likeness and while companies are clamoring to sign them many athletes are trying to come up with their own financial game plan for what could be their biggest win yet college athletes like university

Of south carolina basketball forward aliyah boston are now able to profit from their name image and likeness sponsorships or nil deals are a new way for these students to earn income we put in a lot of work helping the school so i think it’s just really great that we can make something off of it now she hired an agent to negotiate her nil deals including one with

Fast food chain bojangles made a video an instagram reel posted on my instagram and my instagram story as more deals come into play nfl linebacker brandon copeland an adjunct professor at wharton business school says it’s time for college athletes to create a financial game plan i need all those college athletes who are about to make those checks and about to make

That money to understand how your money works and put a budget in place so that you don’t get caught without the right amount of money to be able to pay that tax bill university of georgia track and field star turned tick-tock influencer matthew bowling has over a million followers on social media grabbing the attention of a major brand taco bell it’s just fun to

Be a part of it and be able to eat some tacos his first deal he says has been a game changer this is the first couple months i’ve been able to make money in my whole life bowling says he’s working with a financial advisor and his dad to help manage this newfound wealth do you feel like you are already ceo of your business i’ve been really careful about my brand

I do feel like the ceo bowling is part of a new wave of collegiate ceos with greater access opportunity and responsibility to manage fame and finances and getting sound financial advice on sponsorship deals is key for many of these athletes sandra richards heads the global sports and entertainment business at morgan stanley and she joins me now sandra you know

The number one thing that everyone wants to know these students want to know is what is the financial game plan that they need to have in place they need to start with the fundamentals right certainly definitely needs to have start with the fundamentals and first of all sharon thank you so much for having me but yes fundamentals are definitely as you think about

Your sport you think about learning the fundamentals so in this kind of financial game plan if you will it is learning about the fundamentals budgeting investing saving and the like but it all starts with having a sound financial plan and understand why are you in this what are you in this for a lot of those students are very concerned about their brand and they

Really do need some guidance morgan stanley partnered with an advisory firm altea sports to offer financial resources to college athletes in light of these sponsorship deals and what kind of resources does your firm provide to them and and what is the cost to the students so there’s no cost to the students what we’re focused on is delivering financial education

Programs in partnership with lts and other schools that come out come to us directly it is important for us that as these students are thinking about navigating these new waters of having opportunity and access is that they have opportunity and access when it comes to their finances as well so our our goal is to ensure that they’re armed with the information as

They’re making decisions in terms of what deals what brands and what makes sense for them and tell me about the opportunity in terms of these nil deals on generational wealth for college athletes particularly for black athletes i mean you have an opportunity to start at a very early age to think about how do you build your wealth you don’t have to wait until you

Graduate get a job or start this new career or start a new business you have an opportunity to start right now at an age of 17 18 to think about what do you want your life to look like what do you want your legacy to be what do you want to leave for your family yes 17 year olds you’re probably not thinking about that but those are things that you need to think about

As this new nil ruling offers you the opportunity to build that kind of generation generational wealth and it’s the responsibility of us um as you know these people that are sitting in in the walls that we sit in to help these young people navigate these new waters and get them to a place where they are building this generational world absolutely and starting with

Women athletes too female athletes getting a lot greater opportunities with some of these deals as well as the focus turns to women’s sports and what they can bring to various brands sandra richards i thank you very much for joining us and scott i’ll turn it back to you really a game-changing rule uh sharon thank you so much for bringing that story in the interview

To us for more investing you go to cnbc.com forward slash invest in

Transcribed from video
College athletes learn how to manage money from sponsorships By CNBC Television