At the DealBook Summit, experts from the sports world, many of them star athletes, discussed how making money outside of competition has changed. We’re recapping the highlights of their discussion in this special afternoon edition of the DealBook newsletter. Watch the full conversation here. (Was this newsletter forwarded to you? Sign up here.)
The new business of being an athleteOnce upon a time, athletes hoping to become superstars had to worry about doing one thing: dominate their sport, and it would attract brands bearing hugely lucrative sponsorship deals. That may have worked for Michael Jordan, but things have changed significantly since he retired in 2003. TikTok and Instagram have become primary routes to fame, making social media much more important, and college athletes can now make endorsement deals, putting pressure on some to start thinking earlier about branding. Those changes are cascading through other aspects of the sports complex, including pro team ownership and college leagues. In a discussion at the DealBook summit moderated by Jess Sims, a host for The Athletic, seven experts, most of them current or former star athletes, weighed in on the challenge. Money in college athleticsPerhaps the most transformative development in the business of athlete branding in decades has been the rise of name, image and likeness deals — or N.I.L., in industry parlance — in college sports. When the rules changed to permit such deals in 2021, college athletes who for decades hadn’t been able to personally profit from their on-field exploits suddenly could. Top deal-getters, such as the college gymnast and influencer Olivia Dunne, have made millions. N.I.L. deals were meant to redress what critics said was a longtime shortchanging of student-athletes. “I love that players can get paid,” said Jesse Palmer, the former N.F.L. quarterback turned TV host. That sentiment was quickly endorsed by Sims; Renee Montgomery, the former W.N.B.A. player turned Atlanta Dream co-owner; and Napheesa Collier, the Minnesota Lynx forward. It has led to an important economic advancement for female athletes, many of whom lack the kind of post-collegiate pro-athlete options that male football or basketball players have. “There’s the idea that you can get some real bread in this moment,” said Bomani Jones, the sports journalist and podcaster. “For so many women, they are most marketable as college players.” But N.I.L. has changed the business of college sports in other ways as well:
Being a personalityJordan remains a gold standard for how an athlete transcends sports to become a cultural icon. But the basketball Hall of Famer has long been accused of attaining that status by steering clear of anything even remotely controversial. Consider that one of the most famous quotes attributed to him is the line “Republicans buy shoes, too.” Jordan has defended that comment, saying in the ESPN documentary “The Last Dance”: “I never thought of myself as an activist. I thought of myself as a basketball player.” But Jones argued that approach won’t succeed for most people: The safe play is what people think is the Michael Jordan play, which is to not really say anything interesting. That only worked because Michael Jordan is the coolest dude in the world. He didn’t have to say anything, right? What’s more likely to succeed, Jones added, is being outspoken and perhaps polarizing, like the N.B.A. star and TNT host Charles Barkley. “I think giving people something to hold onto, something to differentiate yourself, something that creates a feeling rather than simply an alignment,” Jones said. That said, there’s a risk in going too far, according to Collier. “If you’re really controversial,” she said, only “certain brands that are aligned with what your controversy is will align with you.
Social mediaOn balance, most of the panelists agreed that stars have to do more than be excellent athletes to stand out and get the attention of sponsors. A chief way of doing that now is by being active on social media, which has helped turn some athletes — like Dunne, the gymnast, who has eight million followers on TikTok and is sponsored by brands including Vuori and Nautica — into multimillionaires outside of competition. For some of the stars at the panel, playing the social media game is a challenge. Solo recalled how social platforms started becoming popular during her career. “We looked at it as toxic,” she said. “It was a distraction.” But becoming a social media star is more important than ever, even if it’s essentially another job. “I’m not naturally a social media person,” Collier said, calling it “really exhausting.” But she added, “You have to be a brand presence to make money.” Jordan Chiles, the Olympic gold-medal-winning gymnast, said that she didn’t like social media either, especially because it forces many athletes and others to adopt a persona that may differ from their true selves. “Why are you putting on a face on social media when, in reality, you’re totally opposite?” she said. There’s also the sheer work, and strangeness, of having to share a lot for the ‘gram and forming increasingly important parasocial relationships with fans. Speaking of watching other athletes’ social media feeds, Chiles said, “I’m like, Yo, why am I seeing your day and your life?” Thanks for reading! We’ll see you tomorrow. We’d like your feedback. Please email thoughts and suggestions to dealbook@nytimes.com.
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