NIL and Brand Deals: A New Era of College (and High School) Sports
How Some NIL Athletes Are Raking in Money While Providing Major Value for Brands
For nearly two years now, college athletes have been allowed to profit off their name, image, and likeness - otherwise known as NIL. This has proved to be quite valuable for both brands and athletes. Brands like Beats by Dre, Nike, ESPN, Vuori, and more are utilizing athletes like high school basketball player Bronny James and LSU gymnast Livvy Dunne with large followings (a combined 10M Instagram followers) to promote their products. According to First Point USA, Bronny James has a $7.6 million valuation and Livvy Dunne is on target to make around $3.2 million this year. Both of these athletes have multiple brand deals that they profit from. For example, one of Livvy Dunne's sponsored posts with Vuori had over 1M likes and a total value of $642K. Bronny James' sponsored post with PSD Underwear had 783K likes and a valuation of $472K.
When athletes sign these big-ticket NIL deals, they are expected to provide value to the brand in various ways. Here are some of the ways that athletes can help promote the brand's products and services:
Social media promotion: NIL athletes have a strong presence on social media platforms like Instagram, TikTok, and Twitter. They can use their platforms to promote brands they believe in or have used themselves, providing authentic endorsements that resonate with their followers. For Livvy Dunne's partnership with Vuori, she frequently posts pictures of her wearing Vuori and tags the company in her posts. One of her Vuori-sponsored posts has well over 1 million likes (pictured above).
Content creation: Many NIL athletes have started creating their own content, such as YouTube videos, podcasts, and blogs. Brands can collaborate with them to produce sponsored content that aligns with their brand message. The Cavinder Twins are two athletes who have taken advantage of the YouTube and TikTok space. Along with 72K subscribers on YouTube, they have almost 900K followers across their three Instagram accounts, and 4 million followers on TikTok. This reach presents a unique opportunity for them to promote products across a wide range of social platforms for the brands they partner with.
In-person events: While not as common as the typical social media post, NIL athletes can also make appearances at events, such as product launches, store openings, or fan meet-and-greets. By having a popular athlete attend an event, brands can attract more attendees and create a memorable experience for fans.
Livvy Dunne, Bronny James, and The Cavinder Twins are just a few of the athletes that are bringing in more than $1 million each year. While they are leading the charge, there are plenty of other athletes who are taking advantage of major NIL deals. These athletes are providing tremendous social value to the brands they work with and are able to effectively drive sales and awareness for brands.
Overall, NIL athletes are providing brands with a unique opportunity to tap into the college sports market and reach a highly engaged audience. It's a win-win situation for both parties, as athletes can now monetize their personal brand while brands can leverage their influence and popularity to increase their reach and sales.