Gabelli Sports Business Initiative
Focused on the Future of Sports
Sports business is evolving at an unprecedented pace. From the popularity of new recreational sports to advanced use of biometric data to aid in athletic success, the world of sports is becoming more complex and more controversial. As a result, sports business models, legal standards, and ethical questions are becoming more complex and fascinating. Players are asserting their rights, owners are profiting through new revenue streams such as gambling and streaming, and sports fans are coping with the intersection of sports and politics. Additionally, mental health concerns, sexual abuse, and gender identity of athletes have produced debate on all levels of the sports hierarchy.
The Gabelli School Sports Business Initiative is at the cutting edge of everything that is happening in sports business. It examines and analyzes current issues involving sports and provides a forum that brings together stakeholders across professional sports, amateur sports, collegiate sports and Olympic sports, for critical discussions on what matters most.
From sports podcasts to symposia to lectures, the content we produce and deliver provides the insights and thought leadership that will drive the future of sports.
Professor Mark Conrad

The Gabelli School Sports Initiative was founded and is directed by Professor Mark Conrad, JD, who teaches in the Gabelli School’s Law and Ethics Area, and who also directs the Sports Business concentration for Gabelli School undergraduates. He has taught sports law and business classes at Fordham University for over 25 years. Professor Conrad has served as a panelist discussing sports law and business topics at other institutions, including Harvard University, Duke University, The University of Pennsylvania, and Fordham Law School, and is frequently quoted in major media outlets. He has lectured at Columbia University and Northwestern University in Doha, Qatar.
NEW – Sports Business Podcast with Prof. C
Professor Mark Conrad interviews sports experts, authors, and athletes on the topics that are changing the industry. He also comments on the key issues of the day. His law background provides a ground-breaking approach to enlightened exchanges with guests who join him in tackling tough topics. Tune in to these stimulating discussions to gain diverse perspectives, learn about interesting trends, and delve into the depths of the controversies that often make headlines.
Season Two
Preventing College Athletes from Being Scammed: A Conversation with Supervisory Attorney Adviser Malinda Pileggi on the SEC's Efforts to Protect these Athletes
The growing professionalization of college sports has meant that many young athletes receive compensation for their name, image, and likeness (NIL). In the near future, they may also receive salaries and additional benefits; giving them access to considerable sums of money and, with it, the potential for being victimized by fraudsters and scammers who may target these athletes because of their financial situation, notoriety, and popularity.
In this episode of the Sports Business Podcast with Prof. C. we explore the outreach efforts of the Chicago Regional Office of the Securities and Exchange Commission to educate college athletes about the SEC, the specific roles and responsibilities of investment professionals, the scope of financial fraud, and tips to help avoid being a fraud victim. Malinda Pileggi, a Supervisory Attorney Adviser in the Division of Examinations at the SEC's Chicago Regional Office, joins the podcast to discuss these programs. Tune in for an informative and timely conversation on safeguarding the financial futures of college athletes.
Are you curious about other related topics covered in this episode? Listen to learn more:
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00;00;07;24 - 00;00;48;16
Mark Conrad
Hello and welcome to the Sports Business Podcast with Prof. C, the podcast that explores the world of professional, collegiate, amateur and Olympic sports. I'm Mark Conrad or Prof. C from Fordham University’s Gabelli School of Business, where I serve as Professor of Law and Ethics and the Director of the Sports Business Initiative. The growing professionalization of college sports has meant that many young athletes receive compensation from name, image and likeness agreements. In the near future00;00;48;17 - 00;01;29;25
Mark Conrad
college athletes may receive salaries and additional benefits. These athletes - and athletes who are drafted into professional leagues - may have access to considerable sums of money, and with that, the potential for being victimized by fraudsters and scammers. These athletes may be targeted by individuals and entities because of their newly found status, financial situation, notoriety and popularity. The Chicago Regional Office of the Federal Securities and Exchange Commission has engaged in outreach events centering on college athletes.00;01;29;27 - 00;02;06;16
Mark Conrad
Its staff holds events at various educational institutions to help all college athletes become more informed about the SEC, the specific roles and responsibilities of investment professionals, financial fraud, and tips to help avoid being a fraud victim. With me to discuss the SEC’s efforts to protect these athletes is Malinda Pileggi. Malinda is Supervisory Attorney Advisor within the Division of Examinations at the SEC Chicago Regional Office.00;02;06;19 - 00;02;37;01
Mark Conrad
She received her J.D., magna cum laude, from Chicago-Kent College of Law and her Bachelor of Business Administration from Loyola University Chicago. Malinda also has a Certified Fraud Examiner designation and Chartered Alternative Investment Analyst designation. While attending Loyola, Malinda was a Division 1 Track and Field student athlete. Malinda, welcome to the Sports Business Podcast.00;02;37;04 - 00;02;55;14
Malinda Pileggi
Thanks, Mark. Appreciate that introduction. Glad to be here today to talk with you. Also, before we begin, these responses are provided in my official capacity as a staff member of the Commission, but do not necessarily reflect the views of the Commission, the commissioners or members of the staff.00;02;55;17 - 00;03;00;15
Mark Conrad
So what was it like running Division 1 track and what distance did you run?00;03;00;17 - 00;03;14;06
Malinda Pileggi
It was a wonderful experience and a great opportunity. The - my event was the 400m. So I did try the 600m, but thought the 400m was a better fit.00;03;14;08 - 00;03;39;05
Mark Conrad
And the rest is history because then you went to law school and ended up at the SEC trying to help college athletes, many athletes like you were in and the position you were in to navigate the possible financial minefields that they may face. So with that, here's our first question. The SEC is primarily a regulatory body that covers the world of securities and other investments.00;03;39;07 - 00;03;45;13
Mark Conrad
Why did your office become interested in college athletes and their investments?00;03;45;15 - 00;04;23;29
Malinda Pileggi
Well, one aspect of the SEC’s mission is to protect investors. And when we look at protecting investors, that encompasses a wide range. And that range includes college athletes who are susceptible to fraud, similar to other groups or communities who are also at risk. For example, veterans, educators, elderly individuals, and various minority and affinity groups. So the SEC’s outreach events and our programs and providing educational information to the investing public -00;04;24;01 - 00;04;58;08
Malinda Pileggi
that's not new to the SEC, but this outreach program to college athletes is a more recently tailored effort. And so, with some of the recent changes and the NCAA rules and regulations, some of the recent adjudicated and pending matters that we've seen through the court systems, as well as some states, implementing name, image and likeness legislation, college athletes now can receive NIL offers as well as compensation in and from various avenues.00;04;58;11 - 00;05;31;17
Malinda Pileggi
And with that flow of income, that's typically followed by fraudsters and potential fraudulent investment schemes. And so our office deters misconduct. We hold wrongdoers accountable, but we also look to provide resources to help investors, such as college athletes, evaluate their investment choices, as well as make informed decisions about an investment professional that may approach them or an investment that may be pitched to them.00;05;31;19 - 00;05;47;20
Malinda Pileggi
We also want them to understand what are the warning signs of financial fraud and how to protect themselves against fraud. And so one of the many resources we provide is we provide educational and other information through our outreach programs.00;05;47;23 - 00;06;07;18
Mark Conrad
And your office offers presentations aiming to provide student athletes with that information so they can make informed decisions about investing and selecting investment professionals to assist in those decisions. In a nutshell, can you tell us three or four topics that you cover?00;06;07;20 - 00;06;38;24
Malinda Pileggi
A few topics that we cover in our presentation include, you know, discussion on different types or categories of investment professionals. Per example, “What's an investment advisor? or ”what's a broker?” We also discuss those investment professionals - what are their obligations to their investors? We talk about fees, costs and revenue sources of the investment professional and the products and services that they are offering or they're going to sell to that investor -00;06;39;01 - 00;07;06;26
Malinda Pileggi
how are they paid out? We also talk about how to research an investment or an offering, as well as the types of financial fraud, as well as what are some warning signs to be on the lookout for, for financial fraud or tactics that a fraudster may utilize? And what are some tips to help them avoid fraud or identifying fraudulent scenarios?00;07;07;01 - 00;07;32;02
Malinda Pileggi
And so that's not an exhaustive list of the topics that we offer for the outreach. There is more topics that are offered. But what we look to do is we look to work collaboratively with our contacts at the various schools so we can determine which topics to present to fit the school and the student athletes’ needs. So there is some level of customization to the presentations.00;07;32;05 - 00;08;09;07
Malinda Pileggi
And our goal with the outreach program is to work with the school and student athlete, maybe perhaps twice a year or three times a year, schedule permitting, on our side and on the school side, and the student athlete’s side as well. And so our program and our presentations, they're not meant to be one and done. We really look to work with the school not only on an initial basis, but to come back for follow on in additional presentations, because given the ever changing landscape of the financial industry, there is no shortage of information or material to address on our presentations.00;08;09;10 - 00;08;12;09
Mark Conrad
And how many schools have you worked with?00;08;12;12 - 00;08;37;02
Malinda Pileggi
We have reached out to a number of schools and we have conducted some presentations. So we do have more schools in the pipeline, and we're looking forward to the engagement with the schools and scheduling more presentations for the student athletes. I don't have an exact number to quote today, but for the presentations that we have done, the feedback from the schools and the student athletes has been positive.00;08;37;04 - 00;08;40;01
Mark Conrad
And how did this program evolve?00;08;40;03 - 00;09;10;15
Malinda Pileggi
Well, I have a personal interest in the development of this outreach program, being a former student athlete. Things have changed since my collegiate athletic days. And so with those changes that we touched on earlier within the NCAA, the rules and regulations and some of the recent court cases, these changes, there are various potential income streams to college athletes where I identified, as well as a few other individuals at the SEC.00;09;10;17 - 00;09;26;26
Malinda Pileggi
We identified a need to develop a particular outreach program that was geared towards providing additional support, information and education to student athletes on financial fraud as well as some of the other topics we talked about.00;09;26;29 - 00;09;37;24
Mark Conrad
And you discussed financial fraud and scams. What do you tell college students about warning signs to prevent them from getting trapped?00;09;37;26 - 00;10;06;09
Malinda Pileggi
The different warning signs and aspects of financial fraud and potential scams that we cover in our presentations can include, you know, the too good to be true. That promise or the guarantee of high returns with minimal or no risk, or that overtop language that it doesn't really explain what the terms of the investment are as well as it avoids discussing the risks associated with the investments.00;10;06;11 - 00;10;40;09
Malinda Pileggi
We also touch on high pressurized sales tactics that an individual or a sales person may utilize, that that urgency where they try to create, oh, it's a limited time offer. And if you don't get in today or tomorrow, by the end of the week, you're going to miss, you know, this opportunity for these large returns. Also, the aspect of dissuading somebody from doing their own research or due diligence and and giving them some time to think it over, whether or not this investment opportunities in their best interest.00;10;40;12 - 00;11;19;27
Malinda Pileggi
We touch on and cover affinity types for affinity type frauds, where the focus is on a common or shared background or experience or statements. And that [...] opportunity is it's only open to a very small number of people. We also talk about unlicensed or unregistered sales persons, where maybe they're approaching you on an unsolicited basis and they have an investment opportunity that you haven't really heard of before, or there is a lack of documentation on it, meaning there's no public filing, there's no statement or prospectus.00;11;19;29 - 00;11;45;01
Malinda Pileggi
We also discuss the aspect of an individual or a salesperson that is trying to sell you an investment opportunity, but want you to write the check directly to them for that investment opportunity. So again, just a few of the warning signs. We do cover some additional information in our presentations about warning signs and scams as well. So it's again today.00;11;45;01 - 00;11;49;18
Malinda Pileggi
It's not an exhaustive list, but just some of the aspects that we cover.00;11;49;20 - 00;12;13;12
Mark Conrad
And traditionally, student athletes were not compensated for their athletic activities under NCAA rules. But the breakdown of the NCAA system has resulted in a de facto professionalization of college athletes. And does that make these programs even more important? And if so, why?00;12;13;15 - 00;12;46;08
Malinda Pileggi
Whenever there's the potential for someone to receive significant payments, that makes them the target to fraudsters, and it brings about different financial schemes. So student athletes have varying levels of experience and knowledge with investments and investing. And over the years, there have been changes in not only how investment opportunities are pitched or presented, but who they're pitched to.00;12;46;11 - 00;13;13;11
Malinda Pileggi
So, because college athletes may now receive compensation from various avenues, they have the potential to become investors in the financial markets. And some of the opportunities that they're pitched or presented, they can come in various means, for example, social media. They can also download an investing app on their phone. So they now have the opportunity to engage and transact in these opportunities.00;13;13;12 - 00;13;57;18
Malinda Pileggi
So overall, there is an importance to the SEC’s outreach program to help protect investors, which includes college athletes and in some instances, high school athletes, and provide them with additional information and communicate the importance of utilizing the resources we have available so that the athletes can educate themselves, familiarize themselves with what's being offered and what is this investment opportunity and where they can find additional information to assist themselves to make an informed decision to determine does this investment opportunity or it does it fit the short term or long term goals that I have, and is it in my best interest?00;13;57;20 - 00;14;10;24
Mark Conrad
And you said high school. So, have you or does the SEC plan to reach out to high school athletes too, because some of them can get NIL deals in certain states?00;14;10;27 - 00;14;20;18
Malinda Pileggi
There's definitely an interest in reaching out to high school athletes as well. And our program is expansive and can include that.00;14;20;21 - 00;14;40;12
Mark Conrad
We are joined by Malinda Pileggi, a supervising attorney advisor within the Division of Examinations at the U.S. Securities and Exchange Commission's Chicago Regional Office. Do you think athletes are more susceptible today than they were in the past, and if so, why? [Pillegi: So athletes]00;14;40;12 - 00;15;11;21
Malinda Pileggi
they're susceptible today. They were susceptible last year and they were susceptible in years prior. However, what's occurred is there's been a transformation, as well as an increase in the ways, in the different ways, that individuals and companies communicate potential income and investment opportunities to athletes. For example, student athletes, they utilize social media platforms. They can utilize email, text message, instant message.00;15;11;23 - 00;15;53;05
Malinda Pileggi
So there's an increase in the number of ways to reach an individual, not only directly, but instantly. And you can reach somebody now at any hour on any day. And through these technological means, the interactions, they're not just for social aspects. They're offers for business deals, financial investments, contract negotiations, sponsorship, endorsement and other potential investment opportunities. And so because of the different technological aspects, there's a wider net of interaction and ways to communicate with student athletes versus when I was a student athlete.00;15;53;07 - 00;16;25;22
Malinda Pileggi
And so with that comes an increased responsibility of how to handle that aspect, because fraudsters, they follow the money. They recycle common schemes, but they update their pitch with new trends. Blockchain, green energy, AI, cannabis. And so the potential for a college athlete to receive significant payments, it makes them attractive to fraudsters, as well as different financial schemes that may be presented to them.00;16;25;25 - 00;16;35;10
Mark Conrad
Has your office been in contact with the Professional Sports Players Association to establish programs for professional sports athletes?00;16;35;13 - 00;16;53;05
Malinda Pileggi
Yes, we have been in contact with the different Professional Sports Players Association. We've also had some direct contact with some of the professional teams and leagues, and we do have a program and presentation for professional sports players as well.00;16;53;08 - 00;17;03;15
Mark Conrad
And what about the Olympic Movement? Has your office been in contact with the United States Olympic and Paralympic Committee and the Olympic governing bodies?00;17;03;17 - 00;17;26;19
Malinda Pileggi
So there has been initial contact with the Olympic Committee, and we do have additional follow up plan. So our program and outreach efforts, they're also designed for potential Olympic athletes. And what we've seen is some crossover, especially this past year with the Summer Olympics, where some of the Olympic athletes, they were also student athletes.00;17;26;21 - 00;17;31;25
Mark Conrad
And any other comments or thoughts that you may have?00;17;31;28 - 00;18;03;15
Malinda Pileggi
So some resources that an athlete can turn to when they want to evaluate or obtain more information about an investment professional or an investment is they can check out the SEC’s website sec.gov, where they can look up a company and some of their filings. They can also utilize another website that the SEC has called investor.gov, where they can obtain information about an investment professional.00;18;03;15 - 00;18;44;08
Malinda Pileggi
They can search the individual's name, they can search the firm. And what that provides is it provides information on if that person is registered, how they're registered, licenses they may have, as well as years of experience or the firm they work for, as well as any disclosable events. For example, a regulatory action. Also, if anyone or a school is interested in a presentation, they can have their athletic department or somebody in their career center reach out to me to discuss the possibility of conducting a presentation for their student athletes.00;18;44;10 - 00;19;20;21
Mark Conrad
It sounds really important and really fascinating, and it's a service that will be of great help to many in the college athletes space given all the changes that have happened and will continue to happen in the next couple of years. Unfortunately, our time has come and we have to close. On behalf of Fordham University, the Gabelli School of Business, and the Sports Business Initiative, thanks to Malinda Pileggi of the Chicago Office of the SEC for an engaging and informative discussion on a very important topic.00;19;20;24 - 00;19;37;26
Mark Conrad
And thanks to my producer, Victoria Ilano, for her great work. And thanks to all of you for listening in. For the Sports Business Podcast at Fordham's Gabelli School of Business. I'm Mark Conrad or Prof. C. Have a great day.
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- Welcome to the Sports Business Podcast
- Should USA Gymnastics Have Signed with Nike?
- Where is College Sports Headed? The Evolution of NCAA Amateurism to NIL Rights
- The Future of the Olympics: A Conversation with Olympics Expert Richard Perelman
- Do Transgender Women Have a Competitive Edge? A Study by the American Academy of Sports Medicine
- Athletes and Taxes, Part I: A Discussion with Tax Expert Robert Raiola
- Athletes and Taxes, Part II: The Ohtani Case with Tax Expert Robert Raiola
- Content Streaming and Social Engagement: A Conversation with Greg Butler, CEO of ZuCasa
- The Valieva Case is Finally Put to Rest (Well, Not Exactly)
- The NCAA at a Crossroads: A Death Knell or a New Beginning?
- Immersive Technology and Sports: A Conversation with James Giglio, Founder of MVP Interactive
- The NCAA Settlement is Not the End of the Fight for College Sports
- Doping in Sports - A Different Perspective: A Conversation with Alexander Hutchison, Ph.D.
- Contracting with FIFA: We Know Who Has the Leverage
For More Information
Please contact Professor Mark Conrad, Director, Sports Business Initiative: [email protected] or [email protected]