If you’ve been keeping up with the headlines, you have heard about the recent NIL changes happening for student-athletes. The new bill, HB 7B, was passed unanimously in Florida and is now causing some major ripples for schools as well as their athletes.1
Several years ago, student-athletes weren't allowed to receive financial sponsorships from external businesses or organizations. However, NCAA rules and state laws have evolved, and now these athletes can earn money through sponsorship deals while competing in their respective sports.
This exciting development is referred to as NIL, which stands for name, image, and likeness.
This was passed in 2020, and it essentially allowed student-athletes to profit from their personal brand, and sign sponsorship deals that involve their name, image, or likeness.2
The new bill that was just passed is an addition to this, and it brings some changes that may cause some drastic ripple effects.
The Changes In Bill HB 7B
There are three major changes that this new bill is bringing into play, and it’s important to know them so you can understand how they will affect you and your students.
- Removes prohibitions: The new bill removes the prohibitions that restricted Florida schools from facilitating compensation to athletes, and it now allows them to compete with other states in this regard.
- Protects from civil liabilities: The bill includes a provision that protects Florida colleges and universities from any civil liabilities that may arise due to loss of NIL compensation. This protection will help ensure that schools are not discouraged from allowing their student-athletes to take advantage of the new NIL law.
- Financial literacy requirements: Lastly, and the most impactful change, is that the bill includes financial literacy requirements for college athletes, such as completing at least two workshops on financial literacy, life skills, and entrepreneurship.
These changes are certainly going to stir things up for schools and student-athletes alike, and we will explain why.
What This Means For Schools
The recent passage of the collegiate athlete bill in Florida is a significant development that will impact colleges and universities across the country.
While the bill primarily focuses on allowing student-athletes to profit from their name, image, and likeness (NIL), it also includes financial literacy requirements for college athletes.
This means that schools will need to take steps to ensure that their student-athletes are equipped with the necessary skills to manage their finances effectively and take advantage of endorsement deals.1
It's easy to assume that other states will introduce similar legislation. Schools that get ahead of these requirements and introduce financial literacy programs will be better positioned to attract top talent and stand out among their peers.
By offering financial literacy workshops and other resources, schools can not only prepare their student-athletes for endorsement deals but also help them develop important life skills that will benefit them beyond their athletic careers.
It’s also worth noting that financial literacy is not just essential for student-athletes. All students can benefit from financial education and should be provided with the resources necessary to manage their finances effectively.
By introducing financial literacy programs for all students, colleges and universities can help promote financial wellness and set their students up for long-term success.
What Should Schools Do To Prepare?
As higher education administrators, it's essential to take action to prepare for the changes brought on by the collegiate athlete bill in Florida. Here are some steps that schools can take:
Evaluate current financial literacy programs
Schools should evaluate their current financial literacy programs to determine if they meet the new requirements outlined in the bill.
Schools should update their programs, and implement a well-thought-out financial education program to ensure that they meet the new standards.
Offer financial literacy workshops
Schools should offer financial literacy workshops to their student-athletes to help them develop the necessary skills to manage their finances effectively and take advantage of endorsement deals.
These workshops could be in person or online and should cover a range of topics, including budgeting, saving, investing, and entrepreneurship.
Partner with financial literacy experts
Schools can also partner with financial literacy experts to provide high-quality resources and workshops to their students.
By partnering with experts in the field, schools can ensure that their programs are effective and provide real value to their students.
Create a clear policy for endorsement deals
With the new bill, student-athletes in Florida can now profit from their name, image, and likeness. However, it's important for schools to establish a clear policy on how these endorsement deals will work.
This policy should outline the process for obtaining and managing endorsement deals, the types of deals that are allowed, and any restrictions or guidelines that must be followed.
By creating a clear policy, schools can avoid any confusion or disputes down the line.
Work with alumni and local businesses
Schools can also work with alumni and local businesses to provide endorsement opportunities for their student-athletes.
This can be a win-win situation for everyone involved. Alumni and local businesses can support their alma mater or community by sponsoring student-athletes, while student-athletes can gain valuable endorsements and experience in building their personal brand.
The recent passage of the collegiate athlete bill in Florida is a significant change that will have an impact on schools across the country.
By taking steps to introduce financial literacy programs and resources, schools can prepare their students for success both on and off the field.
The Importance of Financial Literacy
The new collegiate athlete bill highlights the importance of financial literacy for student-athletes. While this bill currently only applies to Florida, other states are very likely to introduce similar requirements in the future.
Colleges and universities must get ahead of these requirements and introduce financial literacy programs now. By being proactive and getting ahead of the ball, you can help increase your students' financial wellness.
The comprehensive, customized, and interactive iGrad financial literacy platform will help speed up this process. iGrad is an award-winning, fully customizable financial education solution that can be tailored to your specific school needs.
Get on top of the changes now so your organization is prepared for the future.
Download iGrad's Best Practices for a Campus-Wide Financial Literacy Initiative
1 - https://flvoicenews.com/college-athlete-endorsements-bill-sails-through-florida-legislature/
2 - https://www.washingtonpost.com/sports/2021/06/15/nil-ncaa-paying-college-athletes/