Athlete Valuations in a New Social Era

How do we measure the monetary value of an athlete's brand?

Do we focus on the matter at hand and lean on performance?

• Winning percentage, points per game, number of championships, accolades, etc.

Or in the age of athlete empowerment, do we care more about metrics beyond the game?

• Social media following, number of endorsements, off-court earnings, business portfolio success, etc.

And how can we forget to remove sports from the equation for a second so that we can take into account the multifaceted factors that go into composing the identity of an individual?

• The influence of race, gender, class, and other socioeconomic realities on our outcomes.

I don't think we have a definite answer just yet. Two years into the rule changes, NIL valuations are brand new territory.

But as industry-leading platforms explain, it's important we work towards a form of guidance:

One of the early leaders for NIL valuations is On3.

What stands out from On3's Index is the weight of social media in how we present and discuss the earning potential of an athlete.

I think there are two simple reasons for this:

• Narrative: We're in the age of the 'athlete-creator.' Whether it's amplifying the massive followings of women's basketball players every March Madness or the next college athlete TikTok star, social media is at the forefront of all NIL discussions.
• Societal Habit: Social media audience sizes provide us with something tangible to wrap our heads around. We can all go to an athlete's profile and see whether they have 10K, 50K, or a 100K+ following. A person's following on social media is already a way we subconsciously judge status and influence on a daily basis.

Read more about On3's Brand Value Index and Roster Value Index here here.

A New Era of Social Influence

For the past two decades, the digital influence of an athlete has been consolidated into a core rotation of major platforms: YouTube, Instagram, TikTok, LinkedIn, Twitter, Snapchat, Twitch.

Over this time period, social media has become less about connection and more about entertainment and audience building.

The priorities of the platforms have shaped the athlete's dynamic with social: they view social as a tool to build their audience and grow their overall influence.

This set dynamic between legacy platforms and users has made it straightforward to measure an athlete's aggregate audience size, reach, or engagement to determine their overall influence.

But what happens when we get new social media platforms and the creation/consumption habits of athletes take a turn?

How will we measure social influence?

And what impact will this have on the monetary value of an athlete's brand?

As we've seen, social media has been going through a change.

Some interesting summaries below…

• “Users have started seeking community oriented sites and apps devoted to specific hobbies and issues. For users, this means that instead of spending all their time on one or a few big social networks, some are gravitating toward smaller, more focused sites. People's identities will become increasingly fragmented amongst multiple sites” - The Future of Social Media
• “Today we sit?in between?the old social media and the next. I suspect the next wave will be found in smaller, more intimate social groups, built around the trust and familiarity of friends and family, more purposeful communities assembled around passion points and professional interests. The next media manifestation will emerge around the magnetic power of people brands, not institutions. - People vs. Algorithms.
• In the social-networking era, the connections were essential, driving both content creation and consumption. But the social-media era seeks the thinnest, most soluble connections possible, just enough to allow the content to flow. Social media showed that everyone has the?potential?to reach a massive audience at low cost and high gain—and that potential gave many people the impression that they?deserve?such an audience. - The Age of Social Media is Ending

Today's athletes are a part of a generation that are quick to test, and enjoy a new digital experiences.

While it may be some time before another one?sticks, overtime I think we'll see the digital identity of an athlete take a new form as a result of a few shifts in habits:

• New Footprint: Athletes will combine a presence on legacy platforms with niche platforms that are specific to their interests or passions.
• New Priorities: Athletes will care less about audience size, and more about community and a sense of connection through their content.
• New Means of Creation: Athletes will explore and equally value new forms of creation, such as curation and contribution within existing communities as a medium for personal branding.

So how do we determine the?monetary value an athletes brand?

The answer to this question will become more complex overtime, but creates space for new social experiences that cater to new social habits amongst athletes.