Weekly Column: The New College Sports Agency

In this week’s column, California Sports Lawyer® CEO, Founder, and Managing Attorney Jeremy M. Evans writes about the new era of NIL and college sports where universities are seeking agency-type representation and partnerships with revenue growth and marketing as the goal.

University-Led Fan Activation Meets NIL and Agent Representation.

You can read the full column below. (Past columns can be found, here).

Universities are becoming active players in name, image, and likeness (NIL), partnering with agencies, marketing, and management businesses to build fan engagement, brand, and new revenue streams. Direct student-athlete and roster management geared towards financial planning. In a recent podcast with Rob Sine, CEO of Blueprint Sports, the discussion centered around the next era of NIL where universities are buying into full professionalism as sports franchises. In fact, universities have to manage, if they want money, roster talent, students, and game planning, in the revenue sharing model brought on by the House settlement.

Post-House, universities are leading roster and coaching funding and activation efforts. The work is being handled internally by staff and general managers or through contracting with outside agency and marketing businesses. In fact, many universities already use outside companies like Legends and Elevate and more to sell tickets and suites to games at their home stadiums. Legends is owned the Yankees (MLB), Cowboys (NFL), and Sixth Street Partners. Elevate Sports Ventures is owned by the 49ers (NFL), Harris Blitzer Sports & Entertainment 76ers (NBA), Devils (NHL), and Crystal Palace F.C. (Premier League), and Oak View Group.

Oregon State University recently hired Blueprint Sports to handle its NIL management. However, Blueprint is more than a collective-type raising funding from donors and alumni. Blueprint is even different from Altius Sports Partners in that Altius is focused on educating universities and players in compliance and financial literacy. Altius is not securing money, suggesting or managing branding, or presenting fan engagement opportunities. Companies like Blueprint are seeking to handle all the above for the university as a client.

Universities are now creating institutional partnerships with companies like Blueprint. Either by outsourcing or co-developing NIL operations, fan engagement, and sponsorship sales. That is a remarkable change from the NCAA’s prohibition on student-athletes making money going back to late-June 2021 to partnering with companies to bring in more money to create stronger rosters from recent high school graduates to transfer students.

It is a new agency model not driven by traditional agents and agencies. Agencies are still representing the athletes, not the universities. The new model is one of monetization across the board.

A part of the new strategy for monetizing university athletic programs is through fan activation programs. Fan activation will blend athlete storytelling (e.g., television series, shorts, and social media partnerships), exclusive alumni and donor engagement opportunities for a price, and merchandising. Imagine video games, television, commercials, merchandise, and fan meet opportunities all above board and with incentive. Universities can now use NIL to monetize fan loyalty, not just athlete popularity. Universities will now share above-baseline revenue with such agency-type companies handling their revenue representation.

The new partnerships between universities and marketing, sales, and management companies are not without a need for oversight. Federal NIL is almost certain to not happen based on our beautiful Constitution and a states-rights model with checks and balances in the three branches of government. However, state laws, conferences, colleges, and the House settlement do create a system that does not allow pay-for-play. There are also laws on Title IX, collectives, market value, and donor influence. Contracts and audits already include safeguards, approval processes and requirements, revenue-share caps, and more. The law will indeed have a say and play in this version of the NIL era.

The implications of these partnerships are that athletic departments and their institutional partners need data, marketing, and tech capabilities to compete and maintain success. Agencies must deliver measurable return on investment and compliance. Student-athletes will explore deeper integration and institutional strategy to promote each other’s brands. There is risk of over-commercialization especially with NCAA rules on gambling loosening, but viewership in college sports specifically men’s football and basketball continue to rise in general and through March Madness and the expanded College Football Playoff.

The shift is one from unregulated collectives to third-party agency partnerships. Without stifling innovation, regulation will continue to intensify. Universities will be wise to vet their partners as much if not more than scouting players and coaches before signing on the dotted line.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.