NIL Deals Aren’t Just for Athletes
NIL deals have been a hot topic in the world of college sports ever since the NCAA announced that it would allow college athletes to profit from their name, image, and likeness. This groundbreaking decision has given athletes the opportunity to cash in on their talents and build their personal brands while still pursuing academic careers. These deals, in many cases, are simply licensing deals. Licensing deals are agreements between a business or individual (the licensor) and another business or individual (the licensee) for using a certain trademark. The licensor holds the rights to the trademark, which allows them to grant permission for its use in exchange for compensation from the licensee.
For instance, if a company wants to create merchandise with a popular athlete, they would need to enter into a licensing deal with the owner of that athlete’s trademark. In return for allowing them to use it, they would pay royalties on each item sold as well as other related expenses.
These professional endorsement deals have been a huge part of professional athletes' careers for most of our lifetimes. The endorsement deals not only provide additional income but also help to further establish a player's (or product’s) name, image, likeness, and overall brand. The most successful athletes are able to secure lucrative endorsement deals with top brands, making them household names. Alternatively, the athlete could launch a smaller brand into mainstream commerce. Are the Wheaties boxes and “The Breakfast of Champions”, still a thing? Anyway...
One of professional sports history's most famous endorsement deals is Michael Jordan's partnership with Nike. This deal helped launch the Air Jordan shoe line, solidified Nike as a brand, and turned Jordan into a global icon. Other major sports endorsement deals include LeBron James' deal with Nike, which is reportedly worth over $1 billion, and Serena Williams' partnerships with Nike and Gatorade.
But, NIL deals aren’t just for athletes. I’ve said before, the bag is in licensing. If you are partnering with other brands and don’t have a licensing agreement of some sort in place, you’re hustling backwards. Give us a call at 1-888-752-2629 or schedule a consultation on our website and take your brand to the next level.