“What if my name wasn’t in the lights? What if my face wasn’t on the TV every second? What if there wasn’t a person on every corner? What if my name wasn’t in the lights? “What if you were a basketball player?” asked Michael Jordan. “Can you imagine? Yes, you can.”
This iconic 1993 Nike commercial captures exactly how Michael Jordan changed the professional sports endorsement market. In one move, Jordan was able to completely shift the business model in his favor. We are still seeing the effects of that movement today, from record-breaking brand deals in professional sports to the emergence of NIL (name, image, likeness) in college sports.
However, like anything else, as the endorsement market has evolved, it has also become more complex for players to navigate. At the USC Next Level Sports Conference last Thursday, four-time NBA champion Andre Iguodala spoke about how players are capitalizing on their off-court business ventures.
Iguodala explained that the lessons he learned on the basketball court are the most useful in navigating the business world.
One of those lessons? Understand individuality.
No one knows this better than athletes. They constantly have to deal with different personalities within their team. Sometimes those personalities mesh very well, and other times it’s historically bad.
For Iguodala, navigating the who’s who of the NBA will help him better identify the people he wants to do business with.
“As an athlete, you have to know your personality, 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 a professional sport where it’s a team game. All the characteristics of a good leader are the same: whether it’s in sports or business, you’re looking for some of these same traits. Someone who is there.”
Iguodala may have retired from the NBA ahead of the 2023 regular season, but his drive for the game is still there, and he’s simply refocused on advising the next generation of athletes. As executive director of the players’ association, Iguodala said he tries to help young players navigate the complexities of the NBA. Understanding the business side of sports is a big part of it, especially when it comes to the ever-evolving NIL in college sports.
“We’re starting to see some stock trading,” Iguodala said. “And now that we’ve got NIL, it’s kind of a wild west to build on those early days. How do we navigate through this landscape? There’s also a time for a trade. There are times when the capital side of a deal is important, and you just weigh the pros and cons and try to come up with a sensible outcome that benefits you.”
Fortunately for young players, Iguodala is no stranger to an evolving support market. Iguodala played college basketball at the University of Arizona from 2002 to 2004. At the time, the NIL did not yet exist and there were no other opportunities to support college athletes. But the NBA’s endorsement market was at a unique inflection point after a decade that was revolutionized by Michael Jordan. As Iguodala explains, it was the veteran players that guided him, and he’s trying to do the same now that he’s taken over the veteran role.
“Well, when I came in, there was a little bit more order,” Iguodala said. “So when you were young, you had no choice but to listen to the elder statesmen, or the real punishment would come from behind. It would make your life difficult. But at the same time, They were just there to help you. So it was easy to lean into that. And for me, it’s a different world. So how do I best communicate in this new millennium? I had to think every day about what to do. It’s like, you kids are crazy, but you’re getting smarter.”
There is some truth in Iguodala’s words. Top-level young athletes are making the smart move to use their brands to garner expensive endorsements.
The NCAA previously had strict rules regarding nominations, but the rules have since been changed to favor athletes. Was that a good direction?
Take for example Cooper Flagg, a talented freshman at Duke. Flagg has yet to play an actual basketball game with the Blue Devils, but his NIL valuation is already estimated at $2.6 million, according to On3.com. This sounds great for anyone, but especially for an 18-year-old with a promising NBA career like Flagg.
However, Iguodala believes having such a large amount of backing money available at such a young age could be a cause for concern for young athletes.
“For me, what I always emphasize is delaying instant gratification,” Iguodala said. “Be aware of where you want to peak. Your college years are not your peak, so don’t do anything that will negatively impact your growth and development. I think there are a few things. It’s how they feel about their mind, body, spirit and sport.”
Like the players, the NIL is still young. As it develops over time, it is hoped that players will learn how to better navigate it and use it more safely to their advantage. But perhaps the only way to get to that point is with the help of former players like Iguodala who have been there before.
