Weekly Roundup: Business of Athletes, Sports, & NIL (December 11-17)
Athletes are becoming investors/owners at a record rate, first female NIL deal, and millions donated to HBCU's.
(0:25) - Feel good stories
Charles Barkley is donating $1 million to Jackson State and Bethune-Cookman. He has donated over $7M to HBCUs so far.
Kevin Durant is gifting Bowie State $500,000 to renovate their basketball gym. Chris Paul gifts Winston-Salem State graduates with $2,500.
Andy Murray wins Arthur Ashe Humanitarian Award after donating $630,000 in prize money to Ukraine.
(1:35) - Business of Athletes
International Cricketer Shikhar Dhawan announced a new $75 million global investment fund focused on sports, media, and web3.
Naomi Osaka, Patrick Mahomes, and Nick Kygrios are now MLP pickleball franchise owners.
Jordan Spieth invested in the largest golf hospitality group in the country, Invited.
The National Cycling League raised a $7.5M seed round that included investment from 6 NFL players and 1 NBA player.
Milwaukee Bucks guard Jrue Holiday invested in Strive, a muscle optimization company.
Joe Burrow has become an investor and founder partner in the Pro Volleyball Federation, an indoor women’s league set to launch in 2024.
(7:00) - Name, Image, and Likeness
Bella Rasmussen became the first female football player to sign a NIL deal, inking a partnership with the mental health app KeyWise Skye.
The Player’s Lounge, a web3 NIL platform, raised a seed round from Draper Associates and announced a partnership with Brinx TV.
Massachusetts Governor Charlie Baker, a former Harvard basketball player, will become the next NCAA president in March.
5-star football recruit chooses Georgia over Ohio State after being offered $1M more in NIL money.
(10:25) - Future of Sports
Sparrow, an AI-centric golf app, received $5.7 million from angel investors.
Cerebro Sports, a youth basketball data company, has partnered with event operator 3STEP Sports.
EEP Capital is the first group to purchase a franchise in the Pro Padel League, the racquet sport with 25 million players worldwide. Athlete investors in the deal include NHL hockey players Jacob Markström and Elias Lindholm.
SponsorUnited released its end-of-year report.
Here were some key findings:
1. MLB had the most sponsorship deals in professional sports.
MLB had 3,350 sponsorships at $1.2B in revenue with the NFL receiving slightly less at 3,000 deals but with $1.8B in revenue.
2. Women's sports saw a 20% increase in partnerships year-over-year.
NWSL's Alex Morgan and tennis star Serena Williams led the list with 27 deals each, while college softball superstar Lauren Burke came in second with 22 partnerships.
3. The top 5 most endorsed global athletes had 209 combined total deals.
Norfolk State's Rayquan Smith was the most sponsored athlete of 2022 with 58 deals, followed by cricket player Virat Kohli with 44.
4. NIL (name, image, likeness) saw major social sponsorship growth. Football led with 598 deals, including 12 players with social media-focused deals worth $1M+. Men's basketball followed with 328 deals, and women's basketball took third with 234 deals.
Short Passage of The Week
Here are 3 simple rules in life:
If you do not go after what you want, you’ll never have it.
If you do not ask, the answer will always be no.
If you do not step forward, you’ll always be in the same place.
Life does not begin when everything is perfect. It does not start when you think you're worthy. It's happening right now.
Passage by Brianna Wiest
Rayquan Smith was the MOST endorsed athlete of 2022 — he plays football and runs track at Norfolk State University.
With 58 deals, he signed over 1 per week!
Let’s take a look at how sports agents are compensated:
Sports agents generally receive between 3-10% of the athlete's playing contract, and 10-20% of the athlete's endorsement contract, although these figures vary.
If an athlete accepts an equity deal — meaning they own a piece of the business but don’t receive any cash — agents won’t make any money.
With athletes earning more money from contracts and endorsements, the model is shifting a bit.
It’s important to understand compensation structures across businesses because it helps you get a grasp on underlying motives (and why people do things a certain way).
Next roundup we’ll take a look at how venture capital firms make their money.
“You’ll always be too much for someone—too sensitive, too big, too loud… too edgy. And if you round out your edges to make them happy, you’ll lose your edge.
Apologize for your mistakes—for being perfectly human. But don’t apologize for being who you are.” - Angel Chernoff
Thanks for tuning in today!
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