The uncertainty and lack of clear guidelines surrounding contracts with student-athletes under Name, Image, and Likeness policies in high school and college sports underscores the urgent need for financial literacy and business education, according to a sports management expert at Florida Atlantic University.

The uncertainty and lack of clear guidelines surrounding contracts with student-athletes under Name, Image, and Likeness policies in high school and college sports underscores the urgent need for financial literacy and business education, according to a sports management expert at Florida Atlantic University.

Now that student-athletes can profit off NIL deals, there are growing questions as to the terms of the agreements, the agents involved, and if students have the proper knowledge to sign these deals, according to Daniel Cornely, director of the MBA in Sport Management program in the Executive Education Programs in Florida Atlantic University’s College of Business.

“Right now, we have non-certified agents working with student-athletes, giving advice that may or may not be helpful or correct,” Cornely said. “NCAA athletes need to be educated properly on what the terms mean when finalizing a deal with a university.”

In June 2021, the NCAA approved a policy that allows college athletes to receive compensation for their name, image and likeness, a major victory for athletes and others who had long pushed for payments to college players. Florida was one of the first states to call for NIL laws in 2019.

High school athletes are also allowed to earn money through NIL deals without risking their athletic ability through a deal with the Florida High School Athletic Association.

Previous guidelines prevented students from earning money while using their school’s uniform, logo, or other intellectual property, or promoting content about politics, weapons, or smoking.

Although considered a positive development, student-athletes are now being thrown into uncharted territory with new potential agreements and colleges back paying them for previous years when their name, image, or likeness was used, Cornely said.

“The student-athletes need to be protected by way of business education and a curriculum that provides financial literacy, marketing awareness, and an entrepreneurial mindset,” Cornely said. “This will help them in the long run, whether they make it the pros or not. They will be in an educated position about the money they received, which should allow them to flourish long term.”

The MBA - Sport Management degree program at FAU produces top-notch managers and executives who are practitioner-oriented and are educationally, professionally, and ethically sound. The degree program combines a rigorous graduate business curriculum with a specialization module that emphasizes the business of sport.          

The value of financial literacy and business education for student-athletes is evident in the success of the program’s alumni. For example, Branden Birch, who graduated from FAU’s MBA in Sport Management program in 2016, transitioned from playing professionally in the East Coast Hockey League to becoming the Director of Hockey Operations and Salary Cap Management for the Florida Panthers. In this role, Birch ensures the team remains compliant with the NHL’s salary cap—an area where his coursework, including Financial Aspects of Sport Management, gave him a critical edge. His journey underscores how a strong academic foundation can empower athletes to thrive in the business side of sports, long after their playing days are over.

“This will also help fend off NIL agents who are not supporting students’ best interests as they negotiate deals with the general managers of teams and will need to make sure students are aware of the financial aspects of their deals,” Cornely said.

-FAU-