The National Basketball Players Association bucked tradition and decades of history in selecting a new subsidiary formed by Athletes First LLC in Laguna Hills to handle licensing and other partnerships for its star players rather than the league that helped make it the most powerful union in professional sports.
It’s about branding the players collectively: endorsements, sponsorships and licensing deals. Under the NBA, the focus was solely retail and video games, according to AFP and the union.
Under an agreement with Athletes First Partners, the New York-based marketing agency will also create content and events for THINK450, a subsidiary of the NBPA, which represents more than 450 players.
“For the first time since 1955, they decided to not sell those rights to the NBA,” said Athletes First co-founder and President Brian Murphy, who will lead the new unit, A1P.
The first seeds of expansion were planted three years ago when Athletes First sold a 33% stake in the business for a reported $16.5 million to Tokyo-based Dentsu Inc., one of the world’s largest advertising companies, with revenue over $8 billion.
Credit an assist to Joseph Ueberroth, the founder and president of Newport Beach-based Bellwether Financial Group who made the introduction, and his father and OC 50er, Peter Ueberroth, who has a long-standing relationship with Dentsu through his Contrarian Group Inc. and other business dealings.
Dentsu handles sponsorships for this year’s Fédération Internationale de Football Association World Cup in Russia and the 2020 Summer Olympics in Tokyo, among other sports federations throughout Asia and Europe.
A1P will partner with the company and its family of media and advertising agencies under Dentsu Aegis Network, which employs more than 40,000 in 139 countries.
A1P ran its first campaign during Mother’s Day on social and digital media, commercials airing during the Cleveland Cavaliers and Boston Celtics national broadcast. The activation, in partnership with Budweiser, featured the stories of several NBA players and their moms.
The firm is putting the final touches on sales packages and working with THINK450 to determine potential partners as it develops domestic and international strategies.
“We’re going to continue to move forward and focus on different countries around the world where basketball is very popular, such as China and the Philippines,” Murphy said. “We’re going to look for major corporations and major brands who want to partner with the NBPA.”
Recruitment
The firm landed some notable hires for its first 10 employees, including longtime sports marketer and former NFL and NASCAR executive Jim O’Connell, who will serve as president. Jene Elzie, former vice president of international marketing at the NBA, is chief growth officer; Sean Downes, former chief executive of Medallion Sports Properties, serves as vice president of sponsorship sales; and Matt Shulman, former vice president of property sales for Turner Sports, is vice president of platform sales and client services.
A1P will also look beyond traditional sponsorships into activism, a torch many of the league’s star athletes, such as LeBron James, Kevin Durant and Chris Paul, are proud to carry.
“Maybe tackle some social issues that are of concern to the NBA players and try to make a difference,” Murphy said. “Not just your normal, stereotypical sponsorship deals.”
The latest developments come during another strong NFL draft for Athletes First, which represented nine players, including first rounders Josh Rosen, Derwin James and Frank Ragnow.
Rosen, a standout quarterback at the University of California-Los Angeles, was drafted No. 10 by the Arizona Cardinals. James, a safety, was drafted No. 17 by the Los Angeles Chargers, and Ragnow, a center, was picked No. 20 by the Detroit Lions and is expected to start.
“We had a fantastic draft,” Murphy said.
The agency represents about 130 active NFL players, including Super Bowl MVP Nick Foles, Clay Matthews, Josh Norman and Earl Thomas, as well as Dallas Cowboys head coach Jason Garrett, NCAA football head coaches Urban Meyer and Brian Kelly, and ESPN personalities Steve Young and Matt Hasselbeck.
Its client roster also includes some free agents and retirees, including Santa Margarita Catholic High School alumnus Carson Palmer.
Last year Forbes ranked the company No. 19 among sports agencies, with commissions tallying $35.1 million through September.
Newport Beach-based Boras Corp. was No. 6 at $108.3 million, and Rep One Sports in Irvine was No. 37 at $15.8 million.
Athletes First, led by Chief Executive David Dunn, has nearly $1.2 billion in contracts under its management. Dunn, Murphy and UCLA Law grad Joby Branion founded the agency in 2001.
“That success has allowed us to create our own brand,” Murphy said.
The company debuted its first television show tied to the draft.
“Destination Dallas,” produced by its GOAT Farm Media unit, followed several clients through draft weekend last month. Client and former Super Bowl champion Aaron Rodgers was an executive producer.
“We’ll have other projects down the road,” Murphy said.
