WHY ATHLETES ARE STARTING MEDIA COMPANIES
Written by Tristen Ross | Content Creator, ATG | LinkedIn
The average consumer around the world spends over 7.5 hours a day consuming media and it feels like if you’re not producing your own content, you’re being left behind in this new world of digital social currency.
The global value of sports media rights was $44.6bn in 2020 and unfortunately athletes themselves, the ones who are driving the desire for sports consumption, are seeing very little of this cash flow. The two biggest sports media rights holders are the NFL and the NBA with deals valued at $39.6 B and $24 B respectively (PledgeSports). Athletes are often salary capped and forced to see only a small percentage of their leagues revenue due to terms agreed upon in their collective bargaining agreement.
The good news is that technology and social media has leveled the playing field for the athletes and offers opportunities to take control of the ownership. Traditionally there were many barriers that prevented just anyone from producing content. You needed the technological infrastructure and often a TV deal in order to get in front of the consumer at home. But social media has changed that. Athletes now have the ability to give their fans greater access to their lives off the court which can be the catalyst to greater personal brand and influence.
Athletes are beginning to notice this increasing demand for original content and a few are going beyond posting on instagram and twitter.
Among a few athletes that have started their own media companies are LeBron James who formed SpringHill Entertainment, Stephen Curry who started Unanimous Media and Kevin Durant with Thirty Five Ventures. Each of these companies are opportunities for the athletes to take back ownership and creative control from corporate powerhouses like ESPN and Turner Sports.
Athletes have long been deprived of a seat at the table when it comes to making decisions and these athletes haven’t just made a seat for themselves; they’ve quite literally formed their own boardrooms.
For LeBron and his team, it’s about pushing the narratives that have long been suppressed. SpringHill’s chief operating officer, Devin Johnson revealed to Bloomberg that The SpringHill Company employees are made up of 64% people of color and 40% female. According to UCLA’s latest Hollywood Diversity Report for 2020, 91% of C-level positions at Hollywood’s top studios are held by white people, 82% of that chunk is held by men.
Sue Bird and Alex Morgan are following suit by creating a space for women in the industry. They’ve just teamed up with Chloe Kim and Simone Manuel to create TOGETHXR, a sports and lifestyle media company created for women to amplify their voice with a strong focus on representation and equality.
As we continue to move forward towards a fully digitized world, the ability to connect with the consumer directly will be the key differentiator for companies and brands. Athletes carry with them an unparalleled amount of social capital and influence that has been seen to dictate pop culture and drive social change. It’s been our mission since starting the Athlete Tech Group to begin educating and empowering athletes to leverage this influence to help bring back ownership to the players and share the narratives that they want to tell.
