Michael Jordan Changed Athlete Pay in 1984. These 4 Deals Show Ownership Is Spreading
Indiana Fever center Aliyah Boston’s equity stake in Sequel signals a new playbook for athlete-brand deals.
Michael Jordan. Illustration: Inc; Photo: Adobe Stock
Michael Jordan’s equity stake in the Air Jordan sneaker in 1984 sparked a shift that opened the door to diversified revenue streams for elite athletes—expanding their earning potential from paycheck to equity ownership.
Four decades later, the athlete ownership train is picking up steam—and adding more passengers.
Indiana Fever center Aliyah Boston reportedly had
Indiana Fever center Aliyah Boston reportedly had her management team reach out to Sequel—a spiral tampon brand in the Fever’s existing sponsor portfolio—to inquire about partnership. Rather than write her a check and make her a spokesperson, they gave her equity in the company and an active role within it. The deal, quietly struck in February, became public in August when Forbes reported it.
WINS LIST is tracking similar deals where elite athletes have taken an equity stake in a startup or growing business. These are deals where equity replaced or supplemented a traditional endorsement fee. Some involve individual athletes; others are built around athlete groups.
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Four recent athlete ownership deals favoring equity over endorsement
NORTH Performance, an all-in-one supplement brand, launched in August with 30 athletes as founding co-owners — including surfers Torah Bright and Julia Mancuso, freeride mountain bikers Brandon Semenuk and Casey Brown, and BMX rider Ryan Williams — a roster that collectively reaches over 100 million followers. The brand spent zero dollars on traditional sponsorship to get there. Instead of paying one athlete a fee for reach, North gave 30 athletes equity for the same thing, at a fraction of the cash cost and with the built-in credibility of ownership rather than endorsement.
ALUM, a luxury hospitality company built around collegiate
ALUM, a luxury hospitality company built around collegiate residential clubhouses, didn’t just want Derek Jeter’s name alongside their brand; they wanted his judgment. With an equity stake and board seat, Jeter is sitting in on the decisions about how the business scales into a category where his network and credibility carry a lot of weight.
Jams, a protein-infused spin on the popular grab-and-go peanut butter and jelly sandwich trend, announced the addition of former Olympic gold medalist, USWNT World Cup champion and NWSL player Alex Morgan to its cap table at Series C — well past the stage where athlete equity usually shows up. In their Series C raise, Jams already had customers and revenue. By adding Morgan to their cap table, they now have reach into an audience that puts their snack brand into a busy household’s daily routine.
Source: www.inc.com
