How & Why We Should Support Half a Million Student-Athletes
NIL FOR ALL
Despite the media narrative, I don’t consider endorsements the real opportunity for student-athletes and according to the 1,800 student-athletes I surveyed last week, they don’t either. The title image above summarizes the percent who plan to pursue each type of NIL opportunity.
84% of DI athletes and 74% of all student-athletes (all Divisions) are planning to pursue NIL. That’s an important stat as it demonstrates a “mass market” desire to participate in the new marketplace.
STUDENT-ATHLETE STARTUPS & BECOMING AN ENTREPRENEUR
In studies I’ve conducted over the last year prior to NIL legislation, 70% of student-athletes say they have an interest in entrepreneurship and starting their own businesses. Teaching student-athletes how to become entrepreneurs and how to launch their startup business will help them capitalize on Name, Image, Likeness. Based on teaching Sports Entrepreneurship at the University of Vermont’s Business School, I think the most urgent learnings for student-athletes are these:
STUDENT-ATHLETE STARTUPS
There is an urgency to NIL: Institutions don’t want their student-athletes making mistakes. Student-Athletes want to be “first-movers.”
Once a student-athlete gets a decent handle on the NIL rules and their brand, they’ll need to consider what they want their business to be.
Will they do camps, clinics, or private lessons? Will they dedicate themselves to becoming a social media personality or “influencer?” Or will they - as I suspect many will - create a business venture we can’t even guess at today? Whatever direction they decide to go, they’ll need to learn how to:
Understand the lay of the land in the sports industry made up of fans, media, events, sponsors, and athletes
Identify a frequent, growing yet unsolved problem in their sport that they can solve
Develop their solution, their “MVP” (minimum viable product) and do so in a way that’s repeatable, scaleable, and predictable
Identify and learn as much about their potential customers or users as possible
Build a business model
Understand how to market themselves and their business
And learn how to test, fail, iterate, and keep going
This type of student-athlete entrepreneurship will be an incredible learning experience and this “entrepreneur’s journey” will have a lasting positive impact on their lives.
NIL 101
NIL is not only new, but unlike anything student-athletes have experienced. With no frame of reference, we shouldn’t underestimate the likelihood of mistakes they may make regarding what’s allowed and what’s not.
My surveys last week indicate a large percentage of student-athletes know what NIL is and understand it as an opportunity, but fewer than 20% knew the NCAA rules or their institution’s own NIL related policies.
They need a “101” on what kinds of business engagements are allowed, how they need to report their endeavors, and a description about fair market value and contracts.
PERSONAL BRANDING AND “GUILT BY ASSOCIATION”
In just a short time, “personal branding” has already become almost a cliche associated with NIL, but it’s still an imperative. Student-Athletes should follow the best practices of pro athletes and the sports industry’s corporate sponsors to identify the personal attributes student-athletes most want to put forward. Any process they follow should include a heavy dose of differentiation - identifying their unique characteristics.
One mistake I already see student-athletes making is a kind of “guilt by association.” That may be a little harsh, but some SA’s are already doing things that are impacting their personal brand and risking future opportunities.*
*Believe me, I’m not judging. I represented a leading carbonated soft-drink brand and snack food brand for over 20 years. But my point is that if you do a deal with say Barstool Sports, it’s a strong statement about your personal brand. It becomes part of who you are…and other brands are either going to join in because of it, or steer clear of you.
Back to tennis player Emma for a moment and in the branding context. Today she may be the only option in her town and her brand is “college athlete,” but soon there will be many Emmas. She’ll need a personal brand that she can bring to life even if the only marketing she continues to do is that same poster and social media. Social Media, Camps, Private Instruction - every NIL opportunity will soon be competitive because the market will be flooded with a half million student-athletes.