By Ray Birch
LAKE JACKSON, Texas—One credit union that has struck a name, image and likeness (NIL) deal with a local university believes the agreement is not only different, but more effective in the long run than some other NIL deals being closed among cooperatives.
As CUToday.info reported, TDECU said it has entered into a new type of NIL deal with University of Houston’s Linking Coogs, an NIL collective.
Following a significant change that now allows college athletes to be paid, NIL collectives are independent organizations that fundraise money for various universities and give it to attending college athletes in the form of NIL agreement payouts.
NIL deals allow college athletes to earn income from promoting company’s products and services.
TDECU in 2023 announced a $20 million deal to maintain naming rights to TDECU Stadium, the school’s home football stadium, through at least 2034.
How TDECU Deal Works
According to TDECU, the new multi-year partnership will allow all of UH’s 600+ student athletes across 17 sports teams the opportunity to opt-in to a “fee-free payment infrastructure, powered by TDECU.”
In addition to celebrating their athletic achievements, the $4.6-billion TDECU said it will also offer guidance on establishing credit, budgeting effectively, and understanding tax obligations, to “ensure they are well-prepared for the financial responsibilities that come with these newfound opportunities.”
What makes the agreement most “effective,” according to Sheiludis Moyett, TDECU chief digital and marketing officer, is the fact the agreement could potentially involve all UH athletes, and those who participate become members, better managers of their finances, and great spokespersons for TDECU.
Sheiludis Moyett
“The difference is this is not a deal with one individual. Everybody has the opportunity to be part of this,” Moyett said. “So, we're not focusing on the basketball team, for example. We're trying to bring up every single athlete within the TCU space.”
The Fin Ed Difference
The other aspect of the agreement that sets it apart from many other NIL deals, according to Moyett, is the agreement includes a strong financial education component.
“One of the big things that this does for the University of Houston is provide financial wellness education for athletes, especially those that have opportunities at the next level,” she said. “You get some additional income from their sports from this, and the athletes, in general, need to start understanding how to manage their money.”
Avoiding Bankruptcy
Moyett cited the numerous, well-documented incidences of very successful professional athletes who earn millions of dollars and then end up broke and filing for bankruptcy after their playing days are over due to financial mismanagement.
“We want to provide them with strong, basic financial skills,” she said. “This is a prime opportunity for them to get that basic foundational education. For many of the athletes, this is, essentially, their first money contract. What better time to reach out to them with education?”
Moyett said a significant piece of its ongoing relationship with UH has been providing financial education and “building community.” She reiterated TDECU has access to all of the athletes.
“This is a three-year deal. We're going to use some of the athletes to educate our members on financial wellness,” she added.
How Deal is Structured
The deal is structured so that the athletes who participate become members of TDECU.
“These athletes are not just spokespeople for the credit union but are actual members. We think that makes them even more credible as spokespersons for TDECU, and is a good way to convince people to join TDECU,” Moyett said.
Moyett added the credit union hopes that by providing financial education to athletes, and promoting the fact TDECU cares about the young athletes, when the college players talk to consumers and members via the CU’s advertising the message will “resonate.”
“These are athletes that people follow and respect. Having them talk about financial wellness, we think, is a much more meaningful approach,” she said.
How Players are Scoring
Moyett declined to share the costs of the agreement or what athletes get paid. A survey from 247Sports stated the NIL deals in their study ranged from a few thousand dollars a month to annual payments nearing $1 million.
Moyett said TDECU will begin creating advertising content soon and will spread those messages throughout the coming years.
She noted that TDECU signed a small NIL deal last year, but it was it was very specific around the NCAA basketball tournament.