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It’s no secret that being an elite athlete in the US is a badge of honor. The brands all of us associate with the highest human determination and potential are now not just the Olympic and Paralympic rings; it’s the sports leagues, teams and franchises — like Nike and The North Face, the NFL and NWSL, the Denver Nuggets and Texas Longhorns — that capture our hearts, minds and, ultimately, our time.
However, most athletes do not achieve the fame and fortune that we as Americans assume. When the medals are tucked away in the front room closet and the highlight changes, an unforgiving reality awaits too many athletes: meager pay, little support and an uncertain financial future.
In fact, 58% athletes in 48 countries are not considered financially stable. And the average skilled athlete remuneration in the U.S. it’s about $50,000 a yr, but that number is greatly inflated for a handful of high-income earners. Many skilled athletes earn significantly less, especially in sports like swimming, gymnastics and track and field, which are generally not as lucrative as fan-favorite pastimes like football, basketball and motion sports. Take it down one other notch for lesser-known sports like handball, archery, fencing and cycling – or even worse for para-athletes.
This means athletes have less control over their financial mobility than most working professionals, which wreaks havoc on their sports, their bank accounts and their minds.
How athletes can thrive by considering like a startup
Professional and college athletes have long been trained to enhance their game, but in today’s ever-changing sports landscape, athletes who think beyond contracts and scholarships and start acting like startup founders – running and owning their very own sole proprietorship – thrive much higher in the long term.
In a sense, athletes already have the basic ingredients of a successful startup: a unique product (sports talent), an audience (fans, sponsors and social media followers), and market potential (endorsements, partnerships or post-career ventures). However, most athletes do not realize that they need to run their profession like a business.
As with any startup founder, the key is to think about long-term brand value, customer retention (fans and sponsors), and sustainability. By shifting to an entrepreneurial mindset, athletes can change this trajectory.
The power of a personal brand: from NIL to net price
The advent of NIL rights in college sports has given athletes the opportunity to monetize their name, image and likeness like never before. According to a report by Opendorsethe NIL market has reached over $1.2 billion and is expected to achieve $1.67 billion by 2024-2025. It’s not only about signing autographs or appearing in commercials – athletes can now create content, start firms and develop personal brands that can last long after their playing profession ends.
Take Olivia Dunne for example. At LSU, she became one of the highest-paid college athletes, with an estimated net price of NIL $3.5 million. Dunne didn’t get there by being a good gymnast – she built a huge social media following and used that to land partnerships with major brands like Vuori and American Eagle. Dunne embodies what it means to think like a startup founder, turning her sport into a platform for long-term financial success.
Building emotional and skilled security through entrepreneurship
Athletes often face a harsh reality: their careers are short, and the emotional impact of withdrawing from the sport to which they have dedicated their lives may be devastating. A study by the Journal of Applied Sport Psychology found that athletes who focus on entrepreneurial endeavors throughout their careers are 35% more prone to experience emotional success after retirement. This is mainly because they have modified their identity from being an athlete to being a business owner, someone who has control over their destiny.
Take Serena Williams. Sure, she’s one of the best tennis players of all time, but she’s also a startup founder, enterprise capitalist, and brand builder. Williams founded Serena Ventures, which focuses on investing in businesses that promote diversity. By building the foundations of entrepreneurship, she secured not only her financial future, but also her emotional future – giving up tennis didn’t mean the end of her identity, but moderately its evolution.
Making smart business decisions
In the world of entrepreneurship, smart founders surround themselves with advisors and experts who help them make key business decisions. Athletes must think similarly when treating themselves as the CEO of their one-man startup. Surrounding yourself with business managers, branding experts, financial advisors and legal counsel can make sure that their brand is protected and developed.
For lesser-known athletes, this strategy works just as well for A-list athletes. Paralympic athlete Blake Leeper has built a personal brand around inclusivity, activism, and his journey as a double amputee athlete. Leeper partnered with firms like Nike, though some of his peers weren’t as visible in the mainstream. His approach? Treating your personal story as a business with a unique value proposition.
Diversifying Revenue Sources: Why Athletes Need Multiple ‘Products’
In the world of startups, diversification is key. An organization that relies on only one product or revenue stream is often doomed to failure as market conditions change. The same goes for athletes. While sponsorship deals and prize money are great, athletes must diversify their sources of income – perhaps starting a podcast, launching a product line, or creating a YouTube channel.
The reality of the American athlete: train harder
Platforms like OpenDorse and IconSource have emerged to assist athletes land more sponsorship deals, but these opportunities still require ongoing effort. It is not unusual for athletes to enter into several small transactions simply to pay the bills, which adds a mental and logistical burden to already demanding training schedules.
Do you would like an agent who will mediate sponsorship transactions? Easier said than done. In theory, sponsorship and partnerships restore financial power to the athlete. But in reality, these opportunities go to athletes who have agents – just 14% of athletes – or those that attract attention or have a lucky moment in the media.
Add to that the physical and emotional toll of elite competition, and it’s no wonder so many athletes experience post-career depression. The excitement on the international stage is transient, but the financial pressures and media invisibility between events remain.
Blueprint for athlete entrepreneurs: the best way to start building You as a start-up
Sure, the system could also be stacked against them, but athletes who decide to take control of their personal brand and financial future have a huge advantage — a stable income that may withstand the ebbs and flows of the global competition media cycle.
If you are an athlete, here are five key steps you should take to take charge of your future:
1. Use social media:
Athletes are now undoubtedly the face of sports, teams, leagues, brands and organizations. Storytelling has change into the most significant skill that brand partners look for in any partnership with an athlete. Additionally, athletes have direct access to fans like never before. Providing fans with access to behind-the-scenes training, personal anecdotes and unique perspectives keeps fans engaged and sponsors invested.
For the tip! Offer exclusive content: Creating a paid membership model or exclusive fan content allows athletes to monetize their experiences and build more engaged fans.
2. Create a signature story:
Athletes who focus on storytelling and branding off the field throughout their careers are 4 times more prone to pursue roles in media or business after retirement (McKinsey & Company). That’s why authenticity is the buzzword. Creating a narrative that aligns with who they are – beyond sports – can attract brand partnerships that resonate with their personal journey.
For the tip! Sharing your journey in a long-form format helps athletes change into top leaders in their sport, opening doors to speaking engagements and more direct opportunities. Platforms like podcasts and public speaking are a great technique to tell the whole story, not only the one written by the media. Additionally, schools, corporations and conferences are at all times looking for powerful voices.
3. Collaborate with emerging brands and partners:
Working with big-name sponsors may be difficult, but smaller, area of interest brands are often willing to work with athletes to achieve recent audiences. Get this: 94% of the world’s highest-paid athletes attribute most of their income to endorsements, and storytelling is a key differentiator.
For the tip! Collaborate with Cause-Aligned Organizations: Collaborating with charitable causes or social impact initiatives can increase an athlete’s visibility while supporting causes they care deeply about.
4. Maximize platforms like OpenDorse and IconSource:
While such platforms could seem overwhelming, they can be used strategically to create lasting, meaningful partnerships each on and off the app.
The lines between athlete, entrepreneur and influencer are blurring greater than ever before. With the rise of NIL, social media and athlete empowerment, there has never been a higher time for athletes to run their very own business. Whether you are a famous star or a lesser-known athlete, considering like a startup founder can open the door to long-term financial stability, emotional success and profession longevity. After all, athletes are greater than just a sport – they are a brand, a company and, with the right attitude, a start-up waiting to be developed.