Collegiate Sports: The Changing Collegiate Sports Marketing Atmosphere
As many of us know, the marketing world is a volatile industry with different trends and forms of promotion that can change everyday. With the advent of brands utilizing influencers on social media and with the ever-growing number of people making content individually, there has been one industry sector that has fallen behind others until recently: college sports. Yes, we see professional athletes promoting different brands in commercials, on social media, and other forms of media. I’m sure you’ve seen Steph Curry or Jimmy Garoppolo promoting their sandwiches for Subway. You can see Aaron Judge’s post on Instagram promoting A Shoc Energy, a young energy drink manufacturer. Seemingly, if a new product or company is good enough for our favorite professional athlete, it should be good enough for us. This type of influencer marketing has not been available for college athletes until recently in the wake of the NCAA’s Name, Image, and Likeness (NIL) policy on June 30th, 2021.
Some of sports’ most prominent rising stars had been stifled from using their identity with different brands and companies prior to this policy. The NCAA has a strong stance on the distinction between amateurism and professionalism. Prior to the NIL deal, the NCAA’s stance prohibited athletes from making money based on their Name, Image, and Likeness due to the fact that collegiate athletes are not paid annually for their activities. Additionally, the NCAA felt like the scholarships available and awarded to these athletes to play their sport should be enough compensation (Fitzgerald). The NCAA’s priorities of education and the collegiate experience would conflict with the ability of athletes to profit off of themselves, as the NCAA felt like this is reserved for those at the professional level. The argument arises that if athletes are already being compensated in this way, why change the rules so that athletes can profit off of their Name, Image, and Likeness? Many collegiate athletes do not have full scholarships throughout all three divisions of the NCAA. Division Three athletic programs are not able to provide full or partial scholarships at all. The NIL deal can help to bridge the gap between these athletes, giving potential for athletes without full scholarships to help support their college education at their current school. The NCAA’s change of stance with regard to the NIL deal came from the idea of “modernization for the future,” intended to improve support for collegiate athletes including full cost of attendance and guaranteed scholarships. Modernization should occur under these guidelines (NCAA):
Assure student-athletes are treated similarly to non-athlete students unless a compelling reason exists to differentiate.
Maintain the priorities of education and the collegiate experience to provide opportunities for student-athlete success.
Ensure rules are transparent, focused and enforceable and facilitate fair and balanced competition.
Make clear the distinction between collegiate and professional opportunities.
Make clear that compensation for athletics performance or participation is impermissible.
Reaffirm that student-athletes are students first and not employees of the university.
Enhance principles of diversity, inclusion and gender equity.
Protect the recruiting environment and prohibit inducements to select, remain at, or transfer to a specific institution.
Using these guidelines, the NCAA voted to allow collegiate athletes to profit off of their Name, Image, and Likeness to provide the “best possible experience for college athletes” (NCAA).
As these athletes now have the ability to partner with a brand to promote a product or the brand itself, companies can utilize this priorly unavailable atmosphere to bring even more attention to themselves. Large brand deals with star athletes can lead to continued partnerships even after their college career if these athletes make it to professional leagues. Having the association with a star athlete and a brand is something that is not built overnight. Being able to start a collaboration with an athlete before they rise to professional stardom opens up more avenues for immediate brand association. This association will attract those who follow a certain team or player to consider the brand’s services or purchase the brand’s product when they require its services.
This is all about brand visibility. For a smaller brand, endorsing a promising young athlete could potentially yield in more knowledge of the services or product being sold, especially if such an athlete makes a name for themselves in their respective sport. Being able to get eyes on the brand is the major benefit for companies interested in collaborating with athletes as an influencer or any other capacity. Currently, many programs do not allow for athletes to wear brands other than the current major brand sponsor for a team or school. There can be some exceptions to this. The University of Michigan baseball team uses different brands of baseball mitts for different players, such as Rawlings and Wilson, even though the major sponsor for the University of Michigan is Nike. If brands other than the team’s major sponsor are able for players to utilize within the team, different athletes could use their brand of preference. Currently, the NCAA does not allow for athletes to sign NIL deals with a brand of equipment or accessories during competition, but what if this were to change? (Frieser). A small baseball and softball glove manufacturer such as Vinci that has trouble competing with the likes of Rawlings and Wilson can benefit from an influencer or brand deal with a college baseball athlete. Vinci may not have the funding to reach a professional athlete for a brand deal, but college athletes are much more accessible. Sponsoring multiple college baseball or softball players will cause more visibility of the Vinci brand within the baseball and softball community, potentially increasing sales and allowing Vinci to compete in a space with large competitors. If these collegiate baseball athletes are promoting Vinci’s gloves on social media, using them during games, and giving high praise to the quality Vinci provides, Vinci will potentially be turned to as a choice of glove for players of all kinds. Currently, the only way for a brand to gain access to the collegiate space in this fashion would be to make a deal through the team and school. If such a deal was made with a smaller brand through the team itself, then the company could still benefit without the need for individual sponsorships which are not allowed. College athletes benefit from these brand and influencer deals because it brings more attention to themselves, their colleges, their level of play, and the colleges they represent. With more and more attention on specific players, colleges themselves receive more attention towards their sports programs which can potentially bring in viewership, revenue, and more. Athletes who are building their personal brand now can do so in a way that supports their values and generates support.
In addition to collegiate athletes being able to promote both brands and themselves, the advertising space of the big four American sports leagues have begun to change. As we have seen from soccer since the 1970s, teams have showcased sponsors on their jerseys alongside their own logos. Until recently, the big four American leagues have escaped from the sponsorship logo craze that has invaded other leagues in the past. The NBA first started allowing advertising space on their jerseys during the 2017-2018 season. The NHL has just recently approved sponsorship logos on their jerseys for the 2022-2023 season, as the MLB has done for their jerseys beginning in the 2023 season. The NFL remains as the only one of the big four that do not have advertising space on their jerseys, which may be subject to change in the near future. The additional revenue that this advertising space generates has finally started to appeal to American leagues. In addition to players representing these brands as they play, there is even more space to advertise when selling jerseys to fans. As fans purchase more and more jerseys with brand advertising on it, the visibility of the brand increases when fans are wearing their jerseys.
This raises the question: What about college sports jerseys and athletic wear? Surely, having sponsors on college jerseys alongside the name of the college on the jersey will generate visibility for these sponsors. With the NIL deal only allowing for endorsements outside of the court or field, there is untapped potential for advertising space on the jerseys of college sports. While the NCAA regulations do not allow for advertising space for branding other than the school itself and the jersey manufacturer, there is still potential in this space for sponsorships. With the advent of the NIL deal, there is potential for lobbying the NCAA to allow sponsorships on jerseys to generate revenue for colleges. Colleges with a smaller budget for their athletic programs could benefit from this additional revenue, allowing for more space to offer additional sports programs to support young male and female athletes in their endeavors including receiving an education. A small college such as St. Peter’s, whose basketball team made a stunning Cinderella run to the Elite 8 during March Madness in 2022, has an athletic budget of $7.5 Million dollars. In comparison, Kentucky’s head men’s basketball coach earns $8.5 Million dollars per season, which is saying something (Edelson). Small colleges such as St. Peter’s could earn more revenue through sponsorship deals allowing for advertising on their jerseys to support collegiate athletes and open up more opportunities for these athletic programs who do not have the capability to have a large athletic budget.
The advent of the NIL deal has allowed athletes to both build their personal brand and allow companies to maintain or build visibility. Since there are benefits to these athletes and companies, there can be a symbiotic relationship between the two parties to continue to build both of their brands. Both the attention that the company and athletes receive will support the future endeavors of both parties, especially if an athlete goes to a professional league. Building off of the NIL deal, colleges as a whole should have the opportunity to have sponsorship advertising space with jerseys and athletic wear worn in-game. This advertising space can generate revenue for smaller colleges whose athletic budget is not as high as many of the schools in Power Five conferences. Increasing revenue and offering more sporting opportunities to young men and women at the collegiate level will only support these athletes in both receiving an education and growing in their respective sport. This unused advertising space can only support collegiate athletes, something that the NCAA has the capability to do.
References:
Edelson, Stephen. “What to Know about Saint Peter's next March Madness Opponent, Murray State.” Asbury Park Press, Asbury Park Press, 18 Mar. 2022, https://www.app.com/story/sports/college/2022/03/18/saint-peters-nj-basketball-3-things-know-murray-state/7087734001/.
Fitzgerald, Matt. “Why College Athletes Can't Make Money (and Why That's Soon to Change).” Sportsnaut, 30 Sept. 2021, https://sportsnaut.com/why-college-athletes-cant-make-money/.
Frieser, Joshua. “Why NCAA Athletes Are Not Allowed to Wear Sponsored Apparel in-Game but Professional Athletes (Sometimes) Can – Frieser Legal: Sports Law: Nil.” Frieser Legal | Sports Law | NIL, 7 Dec. 2021, https://frieserlegal.com/why-ncaa-athletes-are-not-allowed-to-wear-sponsored-apparel-in-game-but-professional-athletes-sometimes-can/.
NCAA. “Board of Governors Starts Process to Enhance Name, Image and Likeness Opportunities.” NCAA.org, NCAA.org, 27 Dec. 2021, https://www.ncaa.org/news/2019/10/29/board-of-governors-starts-process-to-enhance-name-image-and-likeness-opportunities.aspx.
Ramsay, George. “Steph Curry Explodes for 50 Points but Golden State Warriors Still Beaten 130-119 by Phoenix Suns.” CNN, Cable News Network, 17 Nov. 2022, https://www.cnn.com/2022/11/17/sport/steph-curry-golden-state-warriors-phoenix-suns-spt-intl/index.html.