Credit unions and community banks are largely wary of signing marketing deals with college athletes, but a few are taking a shot on the nascent opportunity.
The National Collegiate Athletic Association changed its policy in July to allow students to contract out their name, image and likeness, or NIL. A few lenders have already struck NIL deals with college athletes, but most remain on the sidelines, concerned that there isn't enough synergy for such arrangements to pay off.
Michigan State University Federal Credit Union in East Lansing is taking a chance on the Michigan State University women’s basketball team, and said it
“The current contracts give us the opportunity to evaluate the success and impact, and to consider whether we will continue and/or expand our support to other athletes/sports in future years,” said Deidre Davis, chief marketing officer for the $6.5 billion-asset credit union.
College athletes will make in-person appearances at events and participate in marketing, promotions and social media posts. Additionally, they may be featured in print ads, billboards, videos, television commercials and on other platforms, and may appear at member-centric events hosted by the credit union.
The $1.2 billion-asset Neighbors Federal Credit Union in Baton Rouge, Louisiana, moved quickly to sign up Louisiana State University wide receiver Brian Thomas Jr.
The credit union also has a branch at Walker High School, where Thomas played, and Thomas and his family have been Neighbors members for years.
“It was just a perfect fit,” said Brett Reynolds, Neighbors' vice president of marketing. “It was an opportunity to put our brand in front of a very dedicated audience — the LSU fanbase — in a unique way.”
Reynolds said NIL deals are “tricky” for financial institutions because it is difficult to connect the dots between a young athlete and a financial institution, but the relationship makes it work.
Other institutions are not so sure.
The executive team at Arkansas Federal Credit Union in Little Rock discussed striking such a deal with athletes from the University of Arkansas, Arkansas State University and the University of Arkansas at Little Rock. But the credit union ultimately decided its marketing dollars would be better spent in other places.
“I expected to see a rush to get the best athletes signed to industry-exclusive deals, but I have not really seen that,” said Rodney Showmar, CEO of the $1.7 billion-asset credit union.
But a competitor, First Arkansas Bank & Trust in Jacksonville, signed a partnership with University of Arkansas basketball player Davonte “Devo” Davis.
Davis, a Jacksonville native, will partner with FAB&T in a series of print ads, social media content and billboards.
Showmar pointed out that Simmons Bank has been snatching up naming rights to football stadiums and event arenas in the state, and he likes that marketing approach much better.
“You can get a 10-plus-year deal, the venue acts as a billboard and the foot traffic and eyeball impressions are greater over the lifetime of the deal,” he said.
Bank of Hawaii recently entered into endorsement partnerships with eight of the University of Hawaii’s student-athletes. Exact terms of the agreements are confidential, but the bank said it is offering athletes financial education and preparedness; professional/career development and training, such as internships; and community service and engagement experiences.
“Local college athletes bring such positivity to our tight-knit community. Our SimpliFi athletes are role models in their own right. And we are honored to partner with them, and offer a variety of opportunities that could shape their futures,” Peter Ho, Bank of Hawaii's chairman, president and CEO, said in a press release.
Neighbors Federal Credit Union would consider adding more NIL deals if they were the right fit.
“I don’t want to force it and I don’t want to just do a simple endorsement. But if there was a way to form a partnership with more athletes that allows us to showcase our community outreach or other brand values, we would 100% consider it,” Reynolds said.
The credit union recently had former LSU quarterback Myles Brennan help out at some of Neighbors’ volunteer sites and do some social media promotions.
Ultimately, credit unions considering NIL deals must be clear upfront about what they expect from athletes. "It’s imperative that both sides understand that these are contracts for service, so having thoughtful meetings with the student-athletes to discuss the process and contract expectations will help ensure all parties’ expectations are aligned," Reynolds said.
