News August 30, 2021
Whole College Team to Benefit From ‘NIL’ Merch Initiative
It’s said to be a first in the new world of Name, Image and Likeness deals that empower college athletes to financially benefit from merch sales and more.
They’re calling it a first.
In what the partners say is a historic deal involving college sports and branded merchandise, the entire football team from the University of Tennessee stands to benefit financially from sales of a decorated T-shirt, thanks to a partnership between the Volunteers, Knoxville, TN-based marketing/creative agency Spyre Sports Group, and The DW Designs, an apparel design and decorating company also based in Knoxville.
Last college football season, athletes deriving proceeds from sales of branded merchandise would have constituted a violation of National Collegiate Athletic Association (NCAA) rules, but following a Supreme Court ruling and, subsequently, a change in NCAA policy college athletes can now make money off their “Name, Image and Likeness” (NIL).
College athletes can now endorse products and create merch - a move that will generate millions upon millions of $ in new merchandising opportunities. This in-depth report by @JCorr_ASI explores the vast potential, and the myriad questions that remain.https://t.co/uwJdf3m9LG
— C.J. Mittica (@CJ_ASIMedia) July 22, 2021
Many have been taking advantage. Still, Spyre Sports says the new merch initiative with the Tennessee Volunteers is the first time an entire team – rather than a single athlete or a select few – will benefit from an NIL deal.
“Most NIL deals across the country have been focused on skill player positions (quarterback, running back, receiver),” Hunter Baddour co-founder of Spyre Sports, told WVLT 8 in Knoxville. “We thought this was a great deal because it’s something the whole team can be a part of and benefit from, including players that aren’t on scholarship but still come to practice to help better the team.”
The promo campaign centers on a T-Shirt that The DW Designs created. It features the word “Attack” in Tennessee Vols orange – a reference to Vols coaching legend Johnny Majors and new head ball coach Josh Heupel’s up-tempo offensive attack, according to media reports. The DW Designs further explained that the messaging is inspired by the “team’s pursuit to always play fearless and ‘Attack’ whether on offense or defense.”
“A portion of the proceeds go directly to players from the UT football team,” noted The DW Designs, a husband-and-wife-run small business that creates original apparel and provides apparel decoration services for clients like businesses, schools, churches, fundraisers and more.
View this post on Instagram
The Spyre Sports/DW Designs/UT deal is another case study in how the new NIL rules stand to create significant sales opportunities for the promotional products industry. Still, there are potential pitfalls.
Steve Flaughers, owner of distributorship Proforma 3rd Degree Marketing (asi/300094) in Canton, OH, has targeted the college sports market for years. Although he sees the potential in college athletes selling their own branded T-shirts and bobbleheads, he’s concerned about licensing issues that can arise.
“Students don’t seem interested in wanting to learn the licensing aspect of the products,” Flaughers said. “I assume if allowed, they will sell anything and everything that they can. This could pose a serious problem for the universities. Would they fine their own student athletes the same as they would us licensed suppliers? If the university feels they’re losing a great deal of revenue, will this mean licensing fees skyrocket to make up for that loss of money they have made off the student athletes?”