Endorsement Opportunities for Athletes

The lower economy over the past few years has had an interesting effect on endorsement opportunities for athletes. There are actually more endorsement deals and sponsorship activation taking place. While the economy has lowered the price on larger endorsement deals, the type a Peyton Manning might receive, the change in demand price has created extra funds for companies to supply more endorsements at a lower cost. Overall, more athletes are receiving endorsements.

In a recent issue of The Sports Business Journal John Slusher, Vice President of Nike Sports Marketing says, “Our strategy hasn’t changed [due the the economy]. We are buying as many athletes, if not more, but at a better price.” While this might mean less endorsement dollars for an individual athlete, it also means more athletes have endorsement opportunities. Although there was a slight decline from 2009 to 2010, Nike shows over a 100% increase in endorsements commitments over the last five years (1.6 billion in 2006 to 3.8 billion in 2010).

This brings me to my point that it is important to have an agent who takes a pro-active approach to securing endorsements. This begins with a solid marketing and public relations strategy. You will hear me say this more than once, but many times endorsements get lumped together with marketing and PR, but they are different. The marketing department of a business doesn’t sell the product, rather marketing efforts promote the product. If an agent is pro-active in developing the image and brand of the athlete, then the athlete will be that much more appealing to a companies offering endorsement opportunities.

So, it is both a pro-active approach in marketing/PR and securing endorsements that makes a good agent. Any agent can sit around the phone and wait for endorsement deals to come, and maybe they will, but you want an agent who is going to work for you.

The statistics show that it is no longer only the high tier athletes and superstars who are receiving endorsements. Some deals have to be found. Keep in mind, every backup quarterback is a hero in his hometown.

Nike Source: Lefton, T. (2010). Endorsements remain buyers market. Street & Smith’s Sports Business Journal, 13(21), 25-32.