CEileb Williams stands out as name, image and likeness compensation was in its infancy. The Heisman Trophy-winning quarterback from the University of Southern California and potential No. 1 pick in the upcoming NFL Draft has amassed an off-field marketing portfolio that most professional athletes would envy. It has the following sponsors: AT&T, beats by dre, neutrogena, playstation and united airlines.
still Perhaps the most interesting off-field play for Williams wasn't the one he made when he was paid, but rather the opposite. In July, Williams invested in a women's sports venture. Monarch Collective's debut capital was $100 million.
Caleb Williams, projected to be a top NFL draft pick, was part of Monarch Collective's $100 million debut fund.Getty Images
the Although one of the first alternative investment deals to emerge from the early NIL environment, industry players have begun to explore creative ways for high-income college athletes to leverage their newfound wealth. We see a growing trend already in place. While these deals tend to be risky and illiquid and may be suitable only for a select few high-income earners, officials say they present new opportunities for both athletes and the companies in their portfolios. We believe that there is.
monarch Co-founder and Managing Partner jasmine robinson Williams said they got in touch through mutual contacts – one of his advisors knew Monarch's co-founders. carla nortman — and said her team is looking forward to his participation because of his genuine interest in women's sports. It also helped that he provided a high-profile name that would only drive further interest and potential future investment in the rapidly growing sector.
“for For us, it was about bringing visibility to the women's sport sector in general,” Robinson said. “The more people with that profile who speak with credibility about women's sports as an investment opportunity, the more family offices, institutional investors and others will start to look at this space.”
that Despite the fact that even the highest-paid college athletes and their seven-figure incomes don't even come close to the salaries of top major league pros, the increased demand for capital from NIL athletes suggests some kind of strategic Good material explains. And Williams isn't the only one taking advantage of this opportunity.
in Alabama linebacker in November dallas turnerlikely to be another first-round NFL draft pick this April, are investing together. Mark Lasry's avenue sports fund and a long list of professional athletes and boxers. deontay wilderNFL wideout deandre hopkins and soccer player Jozy AltidoreSailGP's US team to name a few. mike buckleyThe team's CEO expects the group as a whole, and Turner in particular, to play a key role in introducing sailing to new audiences.
“the Huge, right? “Just juxtapose the current Alabama linebacker and the sport of sailing and these two worlds are about as far apart as you can get,” Buckley said. He said SailGP's $10 million annual spending cap will minimize deficits as far as investing in niche teams is concerned, as teams won't have to immediately look for additional funds that would dilute existing owners' profits. , added that the deal is fairly secure. 'The stakes.
patricof Ko is a New York-based investment firm that pools athletes' funds to fund larger private equity deals. Currently, he has over 200 athlete customers. Joe Burrow, travis kelsey and dwayne wadeand opened the door to NIL athletes. bryce young, a former Alabama quarterback who currently plays for the Carolina Panthers. The company has five of his active college athletes, including LSU's gymnasts. Livvy Dunn North Carolina women's basketball standout players deja kelly.
“a lots of [NIL clients] It's not like a check that Trae Young or someone on a max contract is writing, but it's important. Especially for those who don't have a very high net worth.” matt siegel, leads Patricof's athlete advisory practice. “And it's not a blind check on the fund. They're investing directly in companies, and whatever that amount is, if you think about the impact it has on the trade, you're looking at 100,000, 200,000 growing exponentially. I know.”
siegel Mr. Dunn and Mr. Kelly said they would participate in Patricoff's next investment, although they did not provide details. They also noted that today's NIL investors are paving the way for future athletes while gaining valuable first-hand financial experience before entering the ranks of professional sports.
aaron ryanas president of north rock x The firm, which oversees $1.2 billion in assets and has more than 100 financial advisory clients in the sports and entertainment industry, believes its alternative investment offerings are based on unique learnings in conversations with NIL-earning athletes and their families. He pointed out that it can provide opportunities for
“we If you differentiate between this concept of net worth and something like a path to desired liquidity, and you're operating within a budget, you've established a good foundation, you're locking in value, and now you're really having fun. “Ryan said. “Now, let's get you involved in the due diligence.'' Start by asking, “Who are the leaders in this opportunity?'' What are their track records? It's a great opportunity.”
that Ryan and other wealth advisors are quick to note that while alternative investing is only a sensible strategy for a handful of high-income NIL athletes, basic financial education remains paramount. Heather McPhee WatanabeFirst Vice President and Global Sports & Entertainment Director Parcel Watanabe Group in morgan stanleyHe said the advisory process for university-level assets typically focuses on fundamentals.
“you First, let's start by getting you to understand the seemingly basics. In other words, what are your cash-equivalent investment options? What is your budget? What is the cash flow? '' McPhee Watanabe, himself a former elite athlete who competed in moguls at the 2010 Vancouver Games and the 2014 Sochi Games, emphasized this. “And then, ideally, we unpack that and start talking about the basics of investing and taxes.”
Fellow wealth advisors at Morgan Stanley echoed similar sentiments. Jeffrey KotalikSenior Vice President and Director of Global Sports and Entertainment titan groupHe also noted that despite all the attention NIL alternative investments may receive, their overall importance ultimately pales in comparison to the scale of new financial opportunities.
“There There are no barriers to entry to start a business for the rest of your life,” Kotalik said. “This is a big NIL versus a minor win. 'Okay, this guy got $4 million, and he's going to triple it.' The big thing about the NIL is that everyone now It's about having the chance to start your business life right away. It's new and it's real.”
Chris Smith writes a monthly column on financial news and trends.he Contact crsmith@sportsbusinessjournal.com.
