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One year into the NIL era, brands have found an opportunity to tap local college athletes to connect with regional consumers.
As students return to campus for the fall, marketers are seizing the opportunity to align themselves with up-and-coming sports phenoms a year after the name, image and likeness rules allowed college athletes to profit off of themselves through deals with brands or jersey sales, for example.
“Our first layer for finding an athlete is geographical,” said Casey Terrell, chief marketing officer of the restaurant chain Krystal. “We do look at follower count, that has to be part of the question. But a lot of athletes are not full-time influencers, so we look more at the fit between the athlete and our brand.”
Krystal is hoping to use its deals with former and pro athletes to help round out their college NIL strategy. Late last year, the brand partnered with former New York Giants wide receiver Victor Cruz ahead of a franchise expansion into the Northeast. For now, it’s using its current geographic footprint in the Southeast to target college athletes and their fans.
The Southeastern fast-food chain signed a few deals last year but has found its footing this year, signing 30 athletes across sports and colleges, anchored by University of Alabama linebackers Will Anderson and Henry To’oTo’o.
“This is a way to engage with fans that we might not have found in traditional brand channels,” Terrell said.
While brand strategies vary, the goal for many NIL deals is to authentically connect with diverse sports fans and find new customers. But there are speed bumps—on top of navigating different state and university NIL laws, student-athletes may get injured or transfer to another school, and some may not have media training. But like traditional influencers, student-athletes are becoming tentpoles in brand marketing strategies, especially in local markets.
A post shared by Henry To’oto’o (@h_tootoo11xi)
Chipotle is staying local as well. Last year, the restaurant chain signed University of Connecticut basketball player Azzi Fudd and University of Georgia softball player Jaiden Fields. This year’s NIL deal is focusing on the Ohio State football team. Columbus is a “priority local market” because of the restaurant support center located there, according to Chipotle Chief Marketing Officer Chris Brandt.
In April, Hooters signed a deal with golfer John Daly and his son John Daly II, who plays on the University of Arkansas golf team. Last month, Hooters expanded its NIL deals, signing 51 offensive linemen from universities across the Southeast, including LSU, Georgia Tech, University of Miami, and Auburn.
Many of the athletes the restaurant chose live near popular Hooters’ locations and generally matched or resonated with its core demographic, said Hooters’ CMO Bruce Skala. Hooters also partnered with groups to help keep the deal intact even if a player gets injured.
A post shared by TreVeyon Henderson (@trey.h.4)
When Name, Image, Likeness laws were signed in July of last year, some brands moved to secure small local deals, while others waited to let the rules settle and avoid making legal mistakes. But now the floodgates have opened, and athletes across sports have been tapped by brands. The first year of the NIL era reached a total of $917 million according to data from Opendorse, an NIL platform. It is forecasted to reach $1.14 billion this year.
As brands look to reach broader audiences, female athletes from sports like gymnastics, soccer and golf have become more attractive. Of athletes who disclosed deals on the Opendorse platform, men completed 62.7% of the deals, but taking football deals out of the equation, women accounted for 52.8% of deals. An added bonus is that women can have some of the highest engagement rates, according to a survey by Captiv8 Collegiate, an NIL platform. That reach has led brands to branch out and have a more diverse roster of athletes.
Degree made a point to tap an array of athletes, both by sport and ability. Last year, the deodorant brand signed 14 athletes for its inaugural Breaking Limits NIL class. The brand has added 18 new athletes this year, and says that diversity was once again a driving factor.
“This is a key tent pole for us,” said Desi Okeke, director of Degree. “When we were choosing our athletes, we didn’t necessarily want the MVP or the two million followers, it was ultimately about their story and brand fit.” Okeke adds that part of that story can be handling tougher moments in life, and that even if an athlete is injured, that can be fodder for content.
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Several brands said that it has become easier to reach out to athletes, sometimes even in a direct message on Instagram. But with each state and university handling NIL differently, brands have had to be nimble.
“Some schools wanted us to just reach out to the individual athlete, some have a university office handle it, and some have a third-party helping them,” said Hooters’ Skala.
A post shared by Hooters (@hooters)
“The NIL strategy used to be the NFL draft night—a big name college player waiting to be drafted, sitting with a branded food partner or clothing brand,” Skala said. “It used to only be about being a big name in the future.”
There is a short-term and long-term view when it comes to athlete deals. For the next few months, it can be a way to drive local foot traffic and sales. Great Clips, which is the official hair salon of the NCAA, focuses on short-term collaborations around key games, like March Madness.
In the event that an athlete does go pro, a brand would already have a long-standing relationship with them, and potentially the first crack at a national deal. For those who don’t go pro, a brand deal could result in students being interested in working for a brand post-college.
“There’s a conversation to be had for athletes who don’t go pro, but still want to be financially stable, becoming franchisees,” said Krystal’s Terrell.
In this article:
Erika Wheless is a technology reporter covering social media platforms, influencers, and esports. She was previously the e-commerce reporter for Digiday, and is a graduate of the Craig Newmark Graduate School of Journalism.
