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Why NIL Partnerships with Local Athletes Are Good for Business

Writer's picture: rodrigocarucorodrigocaruco

Updated: Oct 30, 2024

In today’s rapidly evolving marketing landscape, local businesses are constantly seeking new ways to connect with their community and expand their reach. One of the most powerful opportunities that has emerged in recent years is the ability to partner with athletes through Name, Image, and Likeness (NIL) deals. These agreements allow athletes, even those still in college or high school, to earn money by endorsing products and promoting businesses.



An image of NIL partnerships with local business



For local businesses in Florida, NIL partnerships offer a unique way to engage with customers, boost brand awareness, and build loyalty within the community. By collaborating with athletes who are well-known in their area, businesses can tap into an audience that is not only large but also highly engaged and motivated to support local ventures.


Increased Community Engagement


One of the most significant benefits of NIL partnerships is the opportunity to engage with the local community. Athletes, especially those from high schools and colleges, are often viewed as hometown heroes. When a business partners with a local athlete, it strengthens its connection with the community by supporting individuals who are already beloved and admired.


For example, a small business in Orlando might partner with a University of Central Florida (UCF) athlete to promote their products or services. Since the athlete has a strong local following, the business can naturally extend its reach within the community by leveraging the athlete’s fan base.


But a Florida business is not limited to athletes attending local schools. In fact, there is a higher return on investment (ROI) in partnering with a local athlete, regardless of where he or she plays. A local athlete recruited to play at a Ohio State or Springfield College is likely to strengthen an even stronger engagement with the local community.


These partnerships often feel more personal and relatable than traditional advertising campaigns. When local athletes endorse a product, it resonates with the community because the endorsement is coming from someone they know, trust, and support.


Targeted Marketing to the Right Audience


NIL partnerships provide a level of targeted marketing that is hard to achieve with other forms of advertising. By selecting athletes whose personal brands align with your business’s target audience, you can ensure that your message reaches the right people.

For example, a gym that caters to young athletes could partner with a local high school or college athlete who shares their passion for fitness. The athlete can promote the gym’s services to their followers, many of whom are likely to be in the gym’s target demographic. This kind of partnership not only increases exposure but also improves the likelihood that the campaign will convert viewers into customers.


Compared to traditional marketing campaigns, NIL deals are often more cost-effective because they allow businesses to focus their efforts on a specific, engaged audience rather than casting a wide net with less targeted ads. The direct connection between the athlete and their followers enhances the effectiveness of the promotion.


Fostering Customer Loyalty


Loyalty is a crucial aspect of business success, and NIL partnerships can help foster that loyalty in powerful ways. When a customer sees a local athlete promoting a business, they are more likely to view that business as supportive of the community. This positive perception leads to stronger loyalty and trust from customers.


Consider a local restaurant that partners with a well-known athlete from the community. By featuring the athlete in their marketing efforts, the restaurant not only attracts new customers but also reinforces their commitment to the community. Fans of the athlete are more likely to become repeat customers because they feel a personal connection to the business.


Furthermore, when businesses support local athletes, they demonstrate their dedication to the success and well-being of the community. This can inspire customers to return the favor by supporting the business in return.


Building Authenticity and Trust


In today’s marketplace, consumers are increasingly looking for authenticity. They want to support businesses that are transparent, genuine, and invested in their local community. NIL partnerships can help businesses build that authenticity by associating with athletes who have a positive reputation.


Athletes often serve as role models in their communities, and their endorsement carries weight. If an athlete promotes a local business, their followers are more likely to trust that business because they trust the athlete. This trust translates into a higher likelihood that customers will try the product or service being promoted.


For example, a health food store might partner with a local runner to promote their products. The athlete’s endorsement adds credibility because they are perceived as knowledgeable about health and fitness. This trust is difficult to achieve with traditional advertising but comes naturally with NIL partnerships.


Legal Considerations


NIL partnerships must comply with Florida law (Fla. Stat. § 1006.74). They must comply with NCAA Bylaws and, if a high school athlete, FHSAA Bylaws. They must comply with the ever-evolving federal case law figuring this out piecemeal in the absence of Congressional action.


In chaos, there is opportunity. Mega NIL deals get the media. Local deals get the market. But, throughout, the athlete must be protected.


Next Steps


The absence of clear, specific guidance is an opportunity. We will cover some of the general rudimentary guidance available so far in subsequent posts, but the time is now to partner with a legal professional to navigate this opportunity.

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