Rutgers Athletics has a new partner on the bench: Prudential Financial

Rhea-AI Summary

Prudential Financial, Inc. signs a partnership with Rutgers University's men’s and women’s basketball teams, providing access to financial education and funded investment accounts for student-athletes. Prudential advisors will offer consultations and seminars, aiming to improve financial literacy and long-term wealth management for young athletes.

Insights

Financial Analyst

When evaluating the partnership between Prudential Financial, Inc. and Rutgers basketball, it's crucial to consider the broader implications for Prudential's brand positioning and market strategy. By engaging with student-athletes, Prudential not only diversifies its brand presence but also taps into a unique demographic that may benefit from financial literacy and investment services. This could potentially open up a new customer base and foster long-term brand loyalty.

Moreover, the educational component of the partnership aligns with Prudential's corporate social responsibility initiatives, potentially enhancing its corporate image and attractiveness to socially conscious investors. However, the direct financial impact of such sponsorships is often hard to quantify in the short term and should be monitored over time for indications of increased brand equity or revenue streams stemming from this targeted demographic.

Market Research Analyst

The strategic move by Prudential to provide financial education and investment accounts to Rutgers student-athletes represents a significant investment in market education. By educating this niche segment, Prudential is essentially grooming future clients who are likely to have a higher-than-average earning potential, especially if they become professional athletes. This early investment in financial literacy could pay dividends in terms of customer acquisition and retention.

It's important to note that the sports marketing and sponsorship industry is highly competitive. Prudential's involvement with collegiate sports could set a precedent for other financial institutions, potentially reshaping the landscape of sports sponsorships. The long-term impact on Prudential's market share and brand recognition could be substantial, assuming the program's successful implementation and positive reception among the target audience.

Economist

The partnership between Prudential Financial and Rutgers basketball highlights an interesting economic trend: the growing recognition of the financial vulnerabilities of student-athletes and the need for financial education. This initiative may contribute to a reduction in long-term economic disparities, especially among athletes who do not turn professional and may otherwise lack financial security.

From an economic standpoint, providing young individuals with financial tools and knowledge can have a ripple effect, promoting better financial decision-making and potentially reducing the risk of future economic crises caused by personal debt and financial mismanagement. The long-term economic benefits of such educational programs, while not immediately reflected in stock prices, could contribute to a more financially literate and stable consumer base.

New Jersey-based financial services company signs on as presenting sponsor for men’s and women’s basketball teams; will also provide access to financial education and funded investment accounts for Rutgers student-athletes.

NEWARK, N.J.--(BUSINESS WIRE)-- Rutgers basketball has a new partner on the bench this season: Prudential Financial, Inc. (NYSE: PRU). The global financial services company has signed on as the men’s and women’s basketball program’s presenting sponsor and will also provide access to financial education and funded investment accounts for domestic Rutgers student-athletes in a variety of sports.

“Thanks to the power of compound interest, investing money in your 20s can provide millions by retirement age, particularly for young athletes who may be on track to play as professionals,” said Richard Parkinson, chief brand officer, Prudential Financial. “By planning now, these young athletes can face their financial future with the same confidence they bring to the court or the field, no matter what happens in college and beyond.”

As part of the deal, Prudential financial advisors Lisa Lovell and John Benton will be on hand for consultations with Rutgers student-athletes throughout the season. Prudential Financial advisors also will facilitate financial education seminars for student-athletes and their families. The family session will be remotely accessible for those who are unable to travel to campus. Lastly, Prudential will provide investment accounts for select U.S. men and women student-athletes (international student-athletes are not eligible due to visa restrictions).

“We are thrilled to enter into this transformative partnership with Prudential,” said Rutgers Athletic Director Pat Hobbs. “This is a one-of-a-kind opportunity to not only impact the lives of our student-athletes, but their families and hopefully generations to come. I look forward to collaborating with Prudential to help our Scarlet Knights build strengths in the principles of financial literacy.”

Access to financial education is more important than ever, according to the Organization for Economic Cooperation and Development, with children growing up in an increasingly complex world where they will likely be required to take charge of their own financial future at a younger age than their parents or grandparents. Student-athletes, in particular, face some of the highest risk of money problems, says the Council for Economic Education. Yet in 2022, only 23 states required a personal finance course for high school graduation, and very few colleges required it for student-athletes.

“College athletes can be valued at more than $1 million, but they (and their families) frequently live below the poverty line,” said Delvin Joyce, Prudential Certified Financial Planner and Certified Financial Advisor and a former professional athlete. “That’s why it’s more important than ever for them to invest their income early. By setting aside a small portion of their earnings each year, they can ensure better financial security when their sports careers come to an end.”

Becoming a collegiate athlete (and having the opportunity to turn pro) is what Prudential refers to as a ‘Now What?’ moment. When you seize ‘Now What?’ moments — the moments you realize your life has changed for the better — you can take your financial future to the next level. ‘Now What?’ moments are the ideal time to start investing, particularly for those college athletes who want to play professionally.

“Only 2% of collegiate athletes make it to the pros,” said Lovell. “Those who do make it are typically well compensated but are not taught how to manage their wealth. Black athletes are particularly susceptible to financial troubles — a startling 15.7% of NFL players (the majority of whom are Black) have filed for bankruptcy within 12 years of retiring.”

Prudential is committed to curbing this trend. The company has a long-standing commitment to create opportunities for those who have been historically excluded from the financial system — including student and professional athletes — and helping them create a blueprint for building personal and generational wealth.

This is the third in a series of athletic sponsorship deals for Prudential that highlight the importance of planning for retirement at an early age. Last year, Prudential featured New Jersey Devils players Jack and Luke Hughes (22 and 19, respectively) in a social media brand campaign highlighting the importance of financial planning early in a professional sports career. Prudential also partnered with 19-year-old Ethan Quinn as he made his professional tennis debut. Quinn utilized Prudential Stages for Retirement and Prudential’s team of advisors to invest a portion of his earnings and let his money work for him as he builds his tennis career.

“It’s more important than ever for young people to invest their income early — particularly those who are considering a pro sports career,” said Benton. “Traditional defined benefit plans, which provide retirees income for life, are disappearing fast — 70% of people had one in 1975 versus only 12% of people today — and Social Security benefits are projected to face a 20% cut across the board by 2033.”

“If you don’t see it, you won’t spend it — and you can still have a great lifestyle with just a fraction of what you earn in a season,” Joyce added.

Ethan Quinn is a customer and paid promoter of Prudential. Jack Hughes and Luke Hughes are non-customer paid promoters of Prudential. For more information about their partnerships, go to prudential.com/nowwhat.

Lisa Lovell, John Benton, and Delvin Joyce offer financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement.

Prudential Stages is an umbrella marketing name for Pruco. Insurance and securities products and services are offered through a registered representative of Pruco, and an agent of issuing insurance companies.

ABOUT PRUDENTIAL

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of Sept. 30, 2023, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for nearly 150 years. For more information, please visit news.prudential.com.

ABOUT RUTGERS ATHLETICS

The Rutgers Department of Intercollegiate Athletics (Rutgers Athletics), comprised of 24 men's and women's varsity sports serving more than 730 student-athletes, is a member of the Big Ten Conference and governed by the National Collegiate Athletic Association (NCAA). Rutgers is the Birthplace of College Football, hosting the first-ever collegiate matchup on Nov. 6, 1869, a 6-4 victory over Princeton. Rutgers Athletics is uniquely positioned in the nation's largest media market with over seven million television households, along with access to Big Ten Network and its nearly 60 million homes across the U.S. and Canada. Established in 1766, Rutgers University is the State University of New Jersey and eighth-oldest higher education institution in the country. As a premier academic institution, Rutgers is a member of the prestigious Association of American Universities. Follow Rutgers Athletics on Facebook, Twitter (X) and Instagram for all of the latest news and updates. Also visit ScarletKnights.com for additional information on Rutgers Athletics.

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MEDIA CONTACTS

Stacey DiNuzzo

Prudential Financial

stacey.dinuzzo@prudential.com

425-590-7622

Hasim Phillips

Rutgers Athletics

hphillips@scarletknights.com

732-470-9457

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Source: Prudential Financial, Inc.

FAQ

What is the partnership between Prudential Financial, Inc. and Rutgers University about?

Prudential Financial, Inc. has signed a partnership with Rutgers University's men’s and women’s basketball teams, offering financial education and funded investment accounts for student-athletes.

What services will Prudential Financial, Inc. provide to Rutgers student-athletes?

Prudential advisors will offer consultations, financial education seminars, and investment accounts for select U.S. men and women student-athletes.

What are the benefits of the partnership for the student-athletes?

The partnership aims to improve the financial literacy and long-term wealth management of young athletes, providing them with the opportunity to invest early and secure better financial security for their future.

Why is financial education important for student-athletes?

Financial education is crucial for student-athletes, as they face high risks of money problems and need to take charge of their financial future at a younger age.

What is Prudential Financial, Inc.'s commitment to student and professional athletes?

Prudential is committed to creating opportunities for student and professional athletes, helping them build personal and generational wealth through early investment and financial planning.