Texas high school athletes could face financial literacy challenges with new NIL opportunities

HOUSTON, Texas – Texas high school athletes could possibly have the chance to profit from their name, image, and likeness (NIL), but with this exciting opportunity comes a big concern: financial literacy.

Two House Bills, HB2211 and HB3224, are making their way through the Texas Legislature. If they pass, these bills will allow high school athletes to earn money from their NIL, similar to what’s happening at the college level.

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“I think you’re going to see hundreds of thousands of dollars go to some of these high school athletes,” said Matt Malatesta, co-founder and chief content officer at VYPE Media. “They’re going to already have their platform as high school students in Texas, and their brands will follow them to the next level. This will only increase how much they’re paid when they get to college from boosters or the infrastructure that’s built.”

Since NIL deals became available to college athletes in 2021, we’ve seen some jaw-dropping earnings.

Last year, the highest earners included Shedeur Sanders of Colorado at $5.1 million, Livvy Dunne of LSU at $4 million, Travis Hunter of Colorado at $3.1 million, and Arch Manning of Texas at $3.1 million.

But let’s be real: handing a hefty paycheck to a high school student could be risky.

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“I think it just needs to be managed by the families,” said Libra Thompson, the mother of a Texas athlete. “If you have the right financial resources and support to help you navigate through the NIL landscape, that’s definitely beneficial.”

To tackle financial literacy among young athletes, former college basketball player Angel Reese and basketball legend Magic Johnson have teamed up to launch a program called Wealth Playbook. Partnering with Pull Up Neighbor, a marketing and advertising firm, Wealth Playbook is a four-session program designed to teach students how to manage and grow their money over time.

The first session kicked off at Saint Frances Academy, Reese’s former high school, in collaboration with Merrill Lynch. Students were given hands-on experience learning about budgeting, credit, and essential money management skills.

According to the Business of College Sports, 40 states currently allow high school students to monetize their name, image, and likeness.

Malatesta is optimistic that Texas will eventually offer NIL deals to high school students, but he thinks it might take a bit longer. Texas is known for its strong high school sports culture, and there are still many details to iron out.

“The timing of it and how it’s built out will be the key,” Malatesta explained. “There are a lot of political pieces to this. You’ve got the UIL, the Texas High School Football Coaches Association, and the Greater Houston Foundation for High School Coaches. There are many components involved, but there’s also a lot of money at stake. It will happen because Texas could eventually lose some of its best players to other states that are currently allowing NIL.”

He added that Texas doesn’t have much choice; if the state doesn’t adapt, it risks losing top athletes to neighboring states like Louisiana, Arkansas, and Oklahoma, which already allow NIL deals.