The Intersection Of Sports And Financial Planning

This article looks at the phenomenon of “name, image and likeness” (NIL) in sports and the wealth management and financial planning implications.

This news service has noted the crossover between
professional sports and wealth management: sportsmen and women
can become suddenly wealthy and need financial guidance; sports
sponsorship is an important field for certain banks and financial
institutions; and there is the investment case for sports as
a sector in its own right. For example, see this article from our
US correspondent Charles Paikert about
college basketball in the US and the wealth management
implications of changes to the sport. Another item is this

editorial covering different aspects of the
space. 

In the following article, Angie Ostendarp, senior managing
partner at Carnegie
Private Wealth, examines “name, image and likeness” (NIL)
deals, and how they should be approached. The editors are pleased
to share these ideas; the usual editorial disclaimers apply. To
comment and get involved in debate, email [email protected]
and [email protected]

Athletes, agents, and others on social media love to trumpet the
latest seven-figure NIL deal, but for financial advisors working
with student athletes, the real story begins where the headlines
end. As these young clients learn to deal with sudden wealth,
intense schedules, and complex team dynamics, advisors are facing
unprecedented challenges that require a fundamental shift in how
we serve this unique client base.

Time: The hidden competitor 

While traditional clients might struggle to make time for
financial planning, student athletes face an entirely different
magnitude of time pressure. A typical day for these clients often
starts before dawn with training, followed by classes, team
practices, media obligations, and study halls. Leaving little
room for financial planning discussions.

This compressed schedule creates unique challenges for advisors.
Traditional hour-long planning meetings often need to be
condensed into 15-minute video calls between classes or brief
sessions after practice. What might typically be covered in one
comprehensive meeting must be broken down into digestible
segments that can be addressed in these shorter windows.

Moreover, these time constraints are complicated by the seasonal
nature of college athletics. During active seasons, some clients
may be completely unavailable for days or weeks at a time due to
travel and competitions. This requires advisors to develop
innovative approaches to staying connected and make critical
decisions, often through secure messaging apps or brief virtual
check-ins.

The comparison trap presents another unique challenge. Unlike
traditional workplace environments, these athletes live,
practice, and compete alongside teammates who may have
drastically different NIL opportunities. When one player secures
a major deal while another struggles to attract sponsors, it
creates complex dynamics that advisors must manage sensitively.

Building foundation amid pressure

Creating space for essential financial education becomes critical
when clients face intense pressure to spend and invest. Basic,
but crucial elements of financial planning often get overlooked
in the excitement of newfound wealth. Establishing wills,
healthcare directives, and tax planning are likely not on the
front of athlete”s minds. 

Financial advisors working in this space understand a fundamental
truth: no amount of NIL earnings can compensate for a weak
financial foundation. Before entertaining investment
opportunities or business ventures, establishing basic
protections becomes paramount. The healthcare power of attorney
ensures medical decisions can be made if needed. A basic will
protects assets and clearly defines intentions.

Proper tax planning prevents unnecessary complications during
filing season.

The professional ecosystem

Today’s advisors need to coordinate seamlessly with a network of
professionals including attorneys, CPAs, and athletic department
staff. This coordination becomes especially crucial given the
time constraints these clients face.

Perhaps the most significant hurdle is helping these young
clients see beyond their current success. While some will go on
to professional sports careers, many will need to transition to
other paths. This reality requires advisors to master a delicate
balance: supporting current opportunities while preparing for
multiple future scenarios.

The transition planning process must begin early, even when
clients are at the height of their NIL success. This might
include:

— Establishing emergency funds that can support
post-collegiate transitions; 

— Exploring career interests outside of athletics and
connecting with alumni networks; 

— Creating flexible investment strategies that can adapt to
various future scenarios; and 

—  Building sustainable spending habits that don’t depend
on continued NIL income.

For example, when a client receives a significant NIL deal, the
planning conversation should immediately address both current
opportunities and future implications. What portion should be set
aside for long-term savings? How can these funds be used to
create future opportunities, whether in professional sports or
other careers? How do we balance enjoying current success while
building for an uncertain future?

These conversations can vary especially when dealing with varying
levels of NIL success. Some clients may secure substantial deals
that could provide long-term financial security if managed
properly, while others might receive smaller, one-time
opportunities. Advisors must be prepared to create scalable
strategies that work across this spectrum while maintaining
consistent planning principles.

The future of NIL advising

 As the NIL landscape continues to evolve, advisors who
understand these hidden challenges will be best positioned to
serve this growing client base effectively. The key isn’t just
managing the money – it’s understanding and adapting to the
unique pressures and dynamics these young clients face.