“What if my name wasn’t in lights? What if my face wasn’t on TV every other second? What if there wasn’t a crowd around every corner? What if I was just a basketball player?” Michael Jordan asked. “Can you imagine? I can.”
This iconic 1993 Nike commercial captures exactly how Michael Jordan changed the professional sports endorsement market. In just one move, Jordan was able to completely shift the business model in favor of the player. Today we are still seeing the ramifications of that move, from record breaking brand deals in professional sports to the advent of the NIL—name, image and likeness—in college sports.
Like anything though, as the endorsement markets have evolved, so have the complexities around navigating it for the players. Last Thursday at the USC Next Level Sports Conference, four-time NBA champion Andre Iguodala talked about how players are now capitalizing on off-the-court business ventures.
When it comes to navigating the business world, Iguodala explained that it’s the lessons learned on the basketball court that translate best.
One of those lessons? Understanding personalities.
No one knows this better than athletes. They constantly have to deal with different personalities on their teams. Sometimes those personalities can mesh really well, while at other times it can be historically bad.
For Iguodala, navigating personalities in the NBA helps him better identify those he wants to do business with.
“As an athlete, you have to know personalities—especially if you want to win,” Iguodala said. “Especially in group play where you have multiple teammates, you’re dealing with multiple personalities. You’re dealing with a lot of egos. It’s really hard to be a coach in any professional sport where it’s a team game. All the characteristics of a great leader are the same. Whether it’s sport or whether it’s in business, a leader is a leader. So you’re looking for some of those same characteristics; Somebody who has passion, somebody who has drive.”
Iguodala may have retired from the NBA ahead of the 2023 regular season, but his drive for the game is still there—it’s simply refocused towards advising the next generation of athletes. As the Executive Director of the Player’s Association, Iguodala said he tries to assist the younger players in navigating the complexities of the NBA. Understanding the business side of sports is a big part of that, especially with the ever-evolving NIL in college sports.
“You’re starting to see equity deals,” Iguodala said. “And so now we got NIL, so based on the early days is kind of the wild wild west. How do we navigate through this landscape? And so there are times for the transaction, there are times for the equity side of things in your deals. And you just have to weigh the pros and cons and try to come out with a smart outcome that will benefit you.”
Luckily for the younger players, Iguodala is no stranger to evolving endorsement markets. Iguodala played college basketball at the University of Arizona from 2002-2004. At the time, the NIL didn’t exist yet and there were no other endorsement opportunities for college athletes. However, the NBA’s endorsement market was at a unique inflection point coming out of the decade that Michael Jordan revolutionized it. As Iguodala explains, it was the veteran players who helped guide him through it, and so he tries to do the same now that he’s assumed the veteran role.
“Well, when I came in, it was a little bit more orderly,” Iguodala said. “And so when you were young, you had no choice but to listen to the elder statesman or else there was real punishment coming from behind it. It would make your life difficult. But at the same time, they were only there to help you. So it was easy to lean in on it. And so for me, it’s a different world. So I had to every day try to figure out, how do I best communicate with this new millennium? Like, you kids are crazy, but you’re getting smarter and smarter.”
There is some truth to what Iguodala’s saying: top-level young athletes are acting smarter in using their brands to secure big-dollar endorsements.
The NCAA used to have strict rules against endorsements, but it’s since changed in favor of the player. Was it for the better?
Take Duke freshman phenom Cooper Flagg, for example. Flagg has yet to play in a real basketball game for the Blue Devils, but his NIL valuation is already estimated at $2.6 million, according to On3.com. This sounds great to anyone, especially an 18 year old with a promising NBA career ahead like Flagg.
However, Iguodala believes that access to this much endorsement money at a young age could be cause for concern with young athletes.
“For me, I always try to stress: delay instant gratification,” Iguodala said. “Let’s be mindful of where you want to be at your peak, and your college days aren’t your peak. So let’s not do things that are detrimental to your growth or your development. I think there are some ill effects to the N-I-L with the development. Whether it’s their mind, their body, their spirit, how they feel about the sport.”
Like the players, the NIL is still young. As it develops over time, the hope is that the players will learn ways to better navigate it and utilize it more safely to their advantage. Perhaps the only way to get to that point though will be with the help of former players who have been there before, like Iguodala.