Basepath Founder and CEO Thomas Thomas Jr. hosted a conversation with Wilmington Trust Senior VP and Wealth Advisor Greg Sullivan, Certified Financial Planner (CFP), Chartered Alternative Investment Analyst (CAIA) and Certified Digital Asset Advisor (CDAA) on how to teach your student-athletes to invest their name, image and likeness (NIL) earnings.
Sullivan discussed the importance of managing finances as a college athlete, giving practical advice tailored specifically for universities and collectives who need guidance on the best ways to speak to athletes about growing their net worth.
12:36- Budgeting
Sullivan emphasized the need to understand personal finances before jumping into investments. Student athletes can create a budget by evaluating their income and expenses. Different financial situations and lifestyle choices can alter a budget, such as a student-athlete with a financially secure family that they can depend on vs. an under-resourced student-athlete who must support themselves and their family financially.
10:25- Saving
Sullivan recommended having an emergency fund at all times, which would be enough money in accessible savings to cover 3 to 6 months of living expenses. He also pointed out that this varies depending on individual circumstances and risk tolerance.
24:31- Asset Allocation
Sullivan reviewed asset allocation, or spreading your investments out across different types of assets to manage risk and boost returns. Diversification is a key strategy to balance out the ups and downs of the market and make the most of growth opportunities.
20:50- Investing
When it comes to investing, Sullivan stressed the importance of saving before diving into riskier ventures. He encouraged viewers to recommend athletes use educational resources and seek advice from professionals to make smart investment choices that match their goals and comfort levels with risk.
32:52- How to Provide Financial Advice
There is a responsibility that universities and collectives have to provide financial guidance to student athletes. Sullivan said that while offering advice is important, it’s crucial to know the difference between guidance and formal financial advice to avoid any legal issues. He also talked about the importance of vetting financial professionals and doing your homework before getting recommendations.
35:28- Athlete Office Hours
Finally, Sullivan offered his free athlete “office hour” services where he provides one-on-one consultations with customized support tailored to each athletes’ needs. Athletes can make an appointment for a session by emailing him at gsullivan1@wilmingtontrust.com.
How Basepath Can Help – Basepath Wallet
Basepath Wallet offers comprehensive income tracking and tax estimation services. With Basepath Wallet, athletes can monitor all sources of income, including NIL deals facilitated through Basepath or other platforms, as well as income derived from scholarships or grants. By centralizing income tracking, Basepath Wallet allows athletes to manage their finances more effectively. Additionally, the platform’s tax estimation feature enables athletes to plan ahead and anticipate their tax obligations. Whether it’s managing NIL deals or scholarship income, Basepath Wallet simplifies the financial management process for athletes, allowing them to focus more on their athletic pursuits.
Upcoming Webinars
All Basepath webinars are on Thursdays at 1 pm ET.
- April 4 – “How to Help Your Athletes Start their own Business” with Cougar Collective Co-Chair, Money Vehicle Founder and former NFL Player Jed Collins, CFP.
- April 18 – “The Latest Legal Cases in NIL” with Business of College Sports Founder, Forbes and former ESPN writer Kristi Dosh.