By Kate Ragusa
The Sports Lawyers Association’s Fall Symposium: Tech and Sports: Data, Deals, and Decisions included a panel titled, “Sports Marketing: Influencers and Online Promotion.” The discussion was moderated by Jeff Kotalik, Senior Vice President and Global Sports and Entertainment Director at Morgan Stanley, and the featured panelists were Kelly Jones, Sports & Entertainment Senior Counsel for Marketing at Under Armour; Alex Kelham, Partner at Lewis Silkin LLP; Kap Misir, Vice President of Business & Legal Affairs and Deputy General Counsel at Roc Nation Sports; and Jordan Thompson, Legal Counsel for TikTok.
The panel explored the new realities of the sports landscape with the expansion of social media and online partnerships, and each panelist was able to give a personal insight on how these developments have impacted their areas of work specifically. Discussing the importance of marketability of athletes at all levels, the discussion primarily covered topics relating to the increased online presence of athletes and the shift to building a personal brand alongside athletic performance. The panelists were presented with three guiding questions:
Is being an athlete enough? Or do you also need to be an influencer?
All four panelists noted, from experience in their specific niches of the industry, that while on the field, performance matters, it matters less than it used to. While a great game or match can drive fans to an athlete’s social media account, consistent engagement and interaction with followers online is what fuels support for the athlete and makes them the most money. The real value of marketing is communication with the fanbase. If athletes aren’t posting, they are not being active, and without being active, there will be a lack of engagement on the platforms. Nowadays, as good athletes are competing with good marketers for the same media attention and deals, talent on the field alone will not land and maintain the steady engagement on their socials required to be successful. It was recommended by the panelists that athletes become content creators outside the scope of their profession. Everyone is their own personal brand and it is just as important as daily training. If an athlete wishes to increase their revenue through brand deals, they must be aware of the time and dedication that being active online requires, as well as the maintenance and upkeep necessary to keep engagement rates high.
Specifically touching on NIL, what are companies looking for in brand deals with athletes? How are you instructing clients on how to market themselves to these companies?
When signing athletes for deals, companies are looking to those who would have a positive association with the brand. While talent on the field or court establishes an athlete’s name, companies nowadays are looking to the social media presence of athletes as a way to engage how adequately that athlete will represent its brand and products. By far, the most important quality mentioned by the panelists was the need for authenticity. Athletes’ online conduct through filming videos and responding to comments establishes more of a connection between them and their fanbase, showing their followers their true personality and values off the court or field. Athletes are being instructed to choose their content and deals wisely, looking to companies that aligns with their true values and goals, as engagement and positive interaction is proven to be higher when followers feel as if the athletes are promoting products authentically.
The discussion turned then to the growing presence of collectives in the NIL sphere. All of the panelists believed there was a growing necessity for education on collectives for all student-athletes, as deals are extremely lucrative but can be problematic if not handled correctly. Universities are now becoming more like professional sports firm offices, as roles similar to general managers and recruiting staff are becoming more common. As the collectives become the marketing agencies themselves, the education for student-athletes is in higher demand in order to protect unseasoned athletes from the complexity of these deals. One panelist even recalled receiving a call from a university that was substantively similar to a call normally received from the NFL or an agency. As the shift to compensation in college athletics approaches, all four panelists discussed the need for proper education in order to protect student-athletes.
How are new technology and the spread of platforms affecting the modernization of athletes’ ability to make money?
Affiliate marketing has opened the doors to a plethora of ways to make money across a number of online platforms. Discount codes and commissions for influencers are the most prominent ways that athletes are earning money outside of their athletic performance, and athletes can easily link products to their posts, requiring little time or effort. On the other side of the deals, affiliate marketing was also said to be more cost-effective for companies in competitive industries, as online sales and commissions create a “win-win situation” for both parties. Rather than increasing spending on extravagant campaigns, companies are now preferring to contract with athletes directly, giving them the creative freedom to promote the product in their own manner. Companies are gaining more traction on their sites and athletes are simultaneously building their brand and increasing interaction with followers.
Subscriptions and tips on streaming services are ways that athletes can make money while showing more of their personalities to their subscribers using casual, conversation-style communication. These options are far less risky than other investments that athletes pursue and create yet another opportunity for athletes to show fans and followers more of their personalities.
In conclusion, the “Sports Marketing: Influencers and Online Promotion” discussion focused heavily on the routes and opportunities that are available to athletes outside of their primary roles in sports, as well as strategies for athletes to monetize on their personal brand. The panelists each touched on their experiences to highlight the important aspects of staying ahead in the social game, as well as the proper education needed as the rise of athlete influencers persists. This discussion is especially important as the athletic sphere continues to develop in unprecedented ways, and the insights of each distinguished panelist will continue to hold value in this new realm of sports and entertainment.
Events, Fall Symposium: Tech and Sports: Data, Deals and Decisions, SLA, (November 7, 2024), https://www.sportslaw.org/events/2024fallsymposium.cfm.
Kate Ragusa is a 1L at Tulane University Law School. She is a current staff writer for the Sports Lawyer Monthly and hopes to obtain a certificate in Sports Law.
