Shannon Terry, Jim Cavale discuss future of NIL on LeverUp NIL Show

On3 imageby:Andy Wittry10/05/22

AndyWittry

On the latest episode of the LeverUp NIL Show, On3 founder and CEO Shannon Terry and INFLCR founder and CEO Jim Cavale discussed and debated numerous NIL-related topics, including projections about the future of the industry and the role major brands could play.

Previous episodes featured guests including former NFL quarterback Trent Dilfer, Craig Young, who’s the father of Alabama quarterback and Heisman Trophy winner Bryce Young, and Kentucky quarterback Will Levis.

On Tuesday’s episode of the LeverUp NIL Show, Terry asked Cavale if he believes projections that college athletes will earn roughly $1 billion from NIL in 2023.

“Those same studies are saying that over the course of the next three to four years, it’s going to grow somewhere between $3.5 to $4 billion,” Terry said. “I’ve got two questions. The first one is kind of a yes or no [question]. Do you believe in those numbers or do you think those numbers are high?”

“I think those numbers are a little high,” Cavale said.

He later noted that a total marketing spend of $1 billion would translate to an average of roughly $10,000 per Division I athlete.

“OK, here’s what I think,” Terry said. “It’s still very difficult to know how dead-on those numbers are, but I do think the overwhelming amount of growth that’s gonna come is going to be from national sponsorships and agents. The very traditional sales model that we’ve seen.”

“Yes it will,” Cavale said.

High-profile athletes, such as Young, have multiple partnerships with national brands. Since August, the Alabama quarterback has announced NIL deals with Dollar Shave Club, Dr. Pepper, Nissan and Beats by Dre.

LeverUp NIL Show discusses comfort of brands

While many brands prioritized potential first-mover advantages from signing athletes to NIL deals in July 2021, many national brands waited to evaluate the NIL landscape. One key factor is comfort, Cavale said, citing the example of South Carolina‘s agreement with Everett Sports Marketing, which has experience working with professional athletes.

“That’s going to make brands feel more comfortable about spending money with these athletes, who quite frankly don’t have the support to really fulfill what a lot of brands would want them to fulfill in doing a deal,” Cavale said on the LeverUp NIL Show.

“Well here’s the deal,” Terry responded. “The difference between the local advertiser and then the national brand are completely different because the national brands — Gillette comes into this and they select 10 players. They’re going to want those 10 players to perform. They’re going to want them to honor their agreements. They’re going to want them to fulfill whatever obligations they’ve signed up for and they’re going to want performance and return on investment for those dollars. That’s a big boy, big girl world.”

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