Black-Owned Org works to close financial literacy gap for Black college athletes

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The introduction of NIL (Name, Image, Likeness) contracts has allowed college athletes access to life-changing funds and opportunities, but financial literacy gaps remain.

The availability of these new resources can be exhilarating, but it also calls for a crucial strategy to provide the proper knowledge and mindset. 

Advancement of Blacks in Sports (ABIS) has partnered with JP Morgan Chase to offer free financial courses tailored for Black college athletes and students to bridge this gap. The courses provide essential knowledge on money management, sustainability, and wealth-building during their undergraduate years.

Promoting financial literacy for Black college athletes

Gary Charles founded ABIS to offer Black collegiate athletes the skills needed for responsible financial management and long-term wealth generation.

The board of ABIS boasts notable figures in the sport, including legends such as Nikki Fargas, Ulice Payne Jr., Dawn Staley, Robin Roberts, and Julius Erving, to name a few.

Since its launch, the program has enrolled students from North Carolina A&T, Delaware State, Yale University and more. 

In preparation for the spring semester of the ABIS Financial Coaching Program, The Black Wall Street Times spoke with Charles about his dedication to advancing equity for Black students and athletes.

Pros and Cons of NIL deals

The Black Wall Street Times: The availability of NIL contracts was monumental for college/high school athletes. What were some of the pros/cons of the contracts when they became regulated by the NCAA? 

Gary Charles: 

The most significant pro is that these athletes can finally receive financial compensation. Over the past 20 years, I have questioned why it is okay for college coaches to receive millions while the players aren’t getting anything. 

Especially since all of the money is made off their backs, they have a right to share.

Another positive thing about working for NILs is that the contracts offer an incentive to stay in college longer because there isn’t a rush to leave since they’re already making money.

Some of the major cons are misinformation behind NIL’s. Several of these athletes don’t understand you have to pay taxes on this money and any other fees associated with financial gain.

Also, only some athletes receive NIL money. Similar to professional sports, the more visible players usually get the contracts, so now we need help figuring out how to ensure everyone on the team gets paid.

BWST: So, are the financial advantages and possible disadvantages thoroughly explained to athletes when they sign these contracts? 

Gary Charles:

No, unfortunately, they’re not. It’s been proven that 75% of these athletes go broke less than four and a half years after retirement.

So that tells you that someone did not take the time to explain the advantages and disadvantages to them during their college years. 

Unfortunately, Black families and athletes are often not afforded the opportunities to learn the ins and outs of these contracts. 

The financial advantages and possible disadvantages should be explained to them, and classes should be provided to the athletes while they are in school. 

There should be a class about financial responsibility – how do you budget, what is credit all about, etc.? These athletes aren’t taught money management skills for daily life, let alone for life after signing these contracts. 

Young athletes don’t know what to do when they get that money. They only know how to spend. They don’t know the span of their career, so understanding saving and investing for the future is vital. 

BWST: Is that the mission of the ABIS and its courses?

Gary Charles:

Yes. I always say, “You don’t know what you don’t know.” My purpose for launching the Financial Coaching Program was to teach students what they don’t know about money. When I was younger, I wanted to buy a house but always hesitated because I didn’t know anything about the process until a colleague walked me through it. Because of that experience, I realized that many athletes end up broke shortly after their retirement because they only know how to spend money, not save it or make it work for them. 

Many of these athletes didn’t grow up with access to the knowledge of how to save and invest or even how to budget for everyday expenses. So now that they have access to more money, those skills are imperative.

BWST: What do you think is the cause of the disparity between Black athletes and finances versus their counterparts? 

Gary Charles:

Throughout history, minorities have been left to learn things independently. At the same time, others had information passed on from generation to generation. In this case, financial literacy and resources were withheld from our ancestors. 

Again, people can’t pass down what they don’t know and never had the chance to learn.

That has trickled down to today and created a disparity for these young Black students and athletes. I can say that when I look at influential people in my life, many of the ones in the financial realm were white because of the information they were privy to. I want to change that.

BWST: What can a student look forward to learning in the Financial Coaching Program? How can they apply this information to any current NIL contracts or ones they may obtain? 

Gary Charles:

Each of the four sections will teach students how to manage their money and set them up for success. 

The ‘NIL workshop’ informs them precisely what NIL is and clearly explains these contracts’ impact and pros and cons before they sign anything. 

The ‘budget and savings’ workshop provides the students with helpful money management skills vital for their careers and everyday life. We teach them the importance of budgeting their funds for basic life needs such as housing, food, utility bills, etc. We also teach them the importance of creating and growing a savings account. The ‘credit and money’ workshop focuses on the full scope of credit and how it can be helpful if managed correctly or a hindrance if not. 

And the ‘investment workshop’ goes into the basics of investing. Participants will learn about the stock markets, how to comprehend stocks and different ways to invest their money so that it grows.

BWST: Are the ABIS courses available to students who aren’t eligible for NIL contracts and students who aren’t athletes? 

Gary Charles:

Yes. This year, the Financial Coaching Program is virtual, so all students, regardless of their school or whether they are athletes, are eligible to participate in the courses. While the program is geared towards minorities, we happily accept anyone who thinks they can benefit from our programs. 

BWST: Are the courses family-inclusive? 

Gary Charles:

The financial coaching program is limited to enrolled college students; however, we encourage them to share the information they learn with their families.

BWST: How did the partnership with JP Morgan Chase begin?  

Gary Charles:

Our Chief Creative Officer, Tricia Messeroux, initiated the contact with someone within her network. They were very impressed with our board and the work that we intended to do. 

Our mission aligned with their goals of expanding their financial coaching efforts. They aimed to reach athletes; we could lead that charge with what we already had in the works. Having them back us as financial support for this program is fantastic. 

ABIS preparing for spring semester

Financial literacy is a need at any stage within the Black community, whether you’re a first-time entrepreneur, a single parent finding balance, or a college athlete with a life-changing contract. 

As large corporations and organizations increase their investments in HBCU sports and Black athletes, the partnership between ABIS and JP Morgan Chase is vital in making information and resources available to a generation capable of making an impact within their families and communities. 

The ABIS is preparing for the spring semester of the Financial Coaching Program. For more information on how to enroll or support, visit WeAreABIS.org.