Young Women Athletes Are Making Real Money. Who's Teaching Them What to Do With It?

As we witness women's sports breaking records left and right, money has remained at the center of the conversation. People want to know what pay equity in sports really looks like (and why so many financial inequalities still exist). But in addition to debates about revenue shares and sponsorship dollars, there's another factor that must be considered: financial literacy.

Right now, there's more money available to young women athletes than ever before. Thanks to policy changes made in 2021, Name, Image, and Likeness (NIL) opportunities now allow NCAA players to monetize their personal brands while maintaining their amateur status. This might look like the Nike endorsement Caitlin Clark scored while playing for Iowa, or Angel Reese's deals with Reebok, Coach, and Amazon while at LSU.

"Since sophomore year I was able to profit off of my name and image," Los Angeles Sparks player Cameron Brink explains on a Feb. 18 episode of the Richer Lives podcast. "I just got started right away because I was like, 'Why not capitalize? Why not profit off of what I'm doing?'" Brink says, adding that she signed with an agent the day after the new NIL policies passed.

But when it comes to managing their personal finances, many athletes are left in the dark. Are we really setting our athletes up for long-term success if they don't even know how to do their taxes? (I know I didn't at 20 years old.) With the administration's latest directive on Title IX — including rolling back the requirements that require men and women athletes to be compensated equally for NIL deals — it's more important than ever that women athletes know how to manage their money. Here's what a sports entrepreneur wants you to know about the lack of financial support in women's sports — and what needs to change going forward.

Experts Featured in This Article:

Danny Cortenraede is a sports entrepreneur and founder of InStudio Ventures, a venture firm with a focus on emerging sports, technology, and media companies.

Sydney Carter is the director of player development for the University of Texas Women's Basketball team.

What Athletes Should Know About Money

Women athletes are already getting paid lower salaries than men, even at professional levels. That makes good financial decisions even more important. NIL opportunities can allow players to start earning money, but taking advantage requires real work and know-how.

Personal Branding

"Effective leveraging of NIL requires guidance in branding, marketing, and financial management — areas where mentorship and professional advice are crucial," says sports entrepreneur Danny Cortenraede. Because NIL deals are one of the main ways in which young women athletes make their money, marketing is huge. One increasingly important facet of financial security is social media, which has a powerful impact on players' NIL opportunities.

"As a college athlete, managing your social media might not seem like a huge priority, but these days, personal branding is crucial," Cortenraede says. "A strong social media presence significantly influences the deals you will attract, making it an essential aspect of maximizing NIL opportunities." Investing is another consideration, which can be difficult, and even risky, to navigate without any prior education or experience.

Taxes

In addition to learning how to leverage all the money-making opportunities at their disposal, athletes need guidance when it comes to how to manage their finances — down to how to pay taxes. This need for financial guidance is something Sydney Carter has personally witnessed as the director of player development for the University of Texas Women's Basketball team.

"There was a workshop on campus that talked about students filing their taxes because of how much money they were making, and none of my athletes wanted to go," Carter said in a discussion hosted by Marriott Bonvoy at the Women's Final Four. In the end, she decided to make the workshop mandatory for all her players so that their taxes would be done correctly. "As soon as I said it, [the athletes] were like, 'Why do I have to do that?'" Carter remembered. "I wish [the schools] would educate them more on the responsibilities of incoming money, because they just don't know."

Who Is Teaching Athletes About Money?

Brink credits her parents for much of the financial guidance she received early on in her career, but not everyone is as lucky. "It was very self-directed. A lot of my teammates weren't presented with the same opportunities, and so that made it really hard to talk about. It almost felt like something that I had to navigate on my own," Brink says. "At times it was tough, and I felt overwhelmed because I was doing a lot."

There are currently several different programs for financial education and mentorship, which Cortenraede says is important for inspiration and practical advice. These include the Financial Education Playbook for Athletes, the Players' Tribune for brand development, and the Professional Athlete Foundation for financial planning. "Still, there is ample room to grow and expand these resources to better meet the specific needs of female athletes," Cortenraede says — from helping players close deals, to guiding them through various aspects of entrepreneurship.

The Bottom Line

If all this sounds unrelated to athletes' main jobs, consider the fact that in 2009, Sports Illustrated estimated that 78 percent of former NFL players are bankrupt or under financial stress within two years of their retirement, and 60 percent of former NBA players are broke within five years of retirement. These are players who made millions over the course of their careers. But considering how short-term and unpredictable their playing careers can be, money know-how is essential for athletes.

Ultimately, financial literacy is an integral part of athletic development, giving athletes the tools they need to succeed both on and off the court. According to Cortenraede, workshops, mentorships, and increased guidance for branding and marketing are all good steps towards helping young female athletes establish long-lasting careers. "Athletes have the right mindset to perform at the highest level," he says. "They need a coach and guidance in the financial and investment world."

Chandler Plante (she/her) is an assistant health and fitness editor for PS. She has over four years of professional journalism experience, previously working as an editorial assistant for People magazine and contributing to Ladygunn, Millie, and Bustle Digital Group.