Some small-business owners are already making a profit in this second day of the new business landscape in college towns across America.A series of NCAA rule modifications, plus new laws in over a dozen states, allow collegiate athletes to begin making money from their names, images and likenesses as of Thursday. While there are still restrictions depending on the state laws and school policies, many of the nation's more than 400,000 student-athletes can now sign endorsement deals, sell autographs and pursue other opportunities that were previously prohibited by the NCAA's long-standing policy against amateurism.Leigh Steinberg (a long-standing sports agent and founder the Steinberg Sports & Entertainment Agency) says, "This is going open up opportunities for small businesses." For example, on Thursday, Jordan Bohannon, an Iowa basketball player, made a paid appearance in Boomin Iowa Fireworks (a fireworks store located in Windsor Heights, Iowa). D'Eriq King, Miami's football quarterback, has signed endorsement deals with three local businesses: a junk hauling business, a car dealership and an outdoor bar.It's not surprising that such rapid movements are common: Many businesses and athletes have been planning since September 2019, when the Fair Pay to Play Act was signed into law by California Governor Gavin Newsom. The law gave college athletes the right to use their names, images and likenesses beginning January 1, 2023. This set a deadline for NCAA to develop its own policy.Steinberg offers two tips for small-business owners who want to jump in on the action. The first is to look for athletes who have not yet signed partnerships with other businesses. Your advertising power can be diluted if your spokesperson represents other brands. Second, find the right athlete or athletes for your business rather than just buying the most accessible player.Steinberg states that there are tools that will tell you which names have the greatest marketing power if you're visiting Athens, Georgia. Look at the data and analyze the athletes to understand the value they bring to your brand. Next, create your marketing campaign.It is easier to do this in certain college towns than others. Steinberg points out that any of the 85 scholarship football players at the school could boost your brand in places like Tuscaloosa (Alabama), which is home to the University of Alabama and its passionate football fans. The competition may be tougher elsewhere for athletes with star power, from the quarterback of the football team to newly minted Olympians. This is especially important as the summer Olympic Games begin later in the month in Tokyo.Steinberg believes that the market for college athletes is still in its infancy. He predicts that it will take at most a few weeks to develop fully, as more universities and states allow athletes to join. He believes it will eventually rival the size and revenue of North American pro-sport sponsorship, which is estimated at $19.7 billion by Brandessence.
