NIL Policy Updates Create New Opportunities for Local Brands

Shortly after midnight on July 1, college athletes began sharing news of the first endorsement deals allowed under the NCAA's new Name, Image, Likeness rules (NIL). One prominent deal involved twin sisters Hanna and Haley Cavinder, who are members of Fresno State’s women's basketball team, signing on as spokeswomen for Boost Mobile. They announced the deal in the mecca of out-of-home advertising with a Times Square billboard. In addition to this major splash by a prominent company, other student-athletes have made moves by announcing deals with local companies, officially launching their own apparel lines and pursuing side hobbies for profit. The flurry of activity comes after the the Supreme Court ruled unanimously against the NCAA in NCAA v. Alston on June 21, meaning the NCAA cannot impose limits on education-related benefits (lower than $5,980) that athletes can receive for playing college athletics. On June 28, the Division I Council voted to recommend the Division I Board of Directors adopt an interim policy that would suspend amateurism rules related to name, image and likeness. The board met on June 30 and voted to pass the policy. Thus, beginning on July 1, student-athletes across the country have been able to capitalize on their on and off-field accomplishments. As Marketers Line up for NCAA Athlete Deals, Pitfalls Await So what does this mean for brands looking to get involved? First, brands need to look at their social media and influencer strategies. “Social media is the big driver within these deals,” said Jim Andrews, founder and CEO, A-Mark Partnership Strategies. “You look at athletes who just have these massive social media followings are able to attract that much attention to their posts, that’s where you would expect brands to invest. A no-brainer to reach the audience that these athletes are reaching themselves through their channels." Despite the kinetic frenzy of marketing activity, the reality is the advertising market is still adjusting to this newly available opportunity. “At the moment, larger more established brands will take a cautious wait-and-see approach,” said Will Ober, The Marketing Arm’s director, celebrity and influencer, sports. “They will want to wait for a better understanding of what the landscape will look like.” Why local partnerships might be better National brands that want to build large campaigns around collegiate athletes are going to hit roadblocks along the way. “It’s an educated guess on who this season’s breakout stars will be,” said Andrews. “A marketer will need to ask, 'Do I go all in now and hope these are the three to four athletes that people are talking about in December?' Keep in mind you may have to do that all again in 2022 as more and more collegiate athletes are going pro at an earlier rate.” With the interim policy in place and states allowed to enact laws at their discretion, the nuances within the new rulebook will force brands to proceed with caution so as best not to infringe upon potential NCAA violations. We may not see the big, splashy, 360-degree campaigns that are often the norm for professional athletes. “These new changes will see many athletes use their NIL to make modest sums of money through providing clinics and lessons,” said Ober. “These deals will happen more often than we know about.” One sector of the industry that should capitalize on these new rules rather quickly: local businesses. A hyperlocal business is deemed as less risky as there’s less to lose compared to a national brand getting involved. A larger brand may not want to risk running afoul. “Tuscaloosa generates roughly $20 million in activity on football Saturdays; if an Alabama football player makes an appearance at a local restaurant during the week leading up to a home game, that is an incredible asset for a business to utilize and an easy way for a player to capitalize on their talent,” said Ober. The key inflection point for brands is making the judgement call that what they’re getting out of a potential partnership or endorsement will outweigh any regulations or guidelines. Consider that the framework currently in place is murky regarding athletes that want to partner with brands that directly compete with their school’s athletic program. For example, if an athlete wants to partner with Adidas but they attend a Nike school, there aren’t any black and white answers for that. On the reverse side of things, it may be a great opportunity for brands to lean into certain athletes if they already have an existing partnership with that school.

Sports Marketing News

The NCAA's NIL Policy Updates Create New Opportunities for Local Brands

Student-athletes are most likely to cash-in on social media

Max Simpson

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Max Simpson