Rethinking Athlete Valuation: Creating a Fair and Sustainable Sponsorship Model

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Athletes in niche and emerging sports often find themselves at a disadvantage. Despite their skills and dedication, they struggle to secure sponsorship deals that allow them to compete and thrive. This post dives into the concept of athlete valuation, explaining why traditional models fall short and how a new approach, like NxtStride’s Sustainable Athlete Valuation System, can change the game.

The Problem with Traditional Athlete Valuation

In traditional sports sponsorship, the value of an athlete is often based on a single metric: the value of their previous sponsorship agreements. This creates a cycle where athletes who have already secured sponsorships continue to thrive, while others struggle to break through.

This model is not only outdated but also leads to an unequal distribution of sponsorship money. Agencies and managers, who take a cut based on the size of the agreement, have little motivation to change the system. For athletes in smaller sports, this creates a significant barrier to success.

A New Approach: The Sustainable Athlete Valuation System

At NxtStride, we’ve developed the Sustainable Athlete Valuation System to address these challenges. The goal is simple: provide athletes with a fair and sustainable income based on their achievements, regardless of whether they are competing at a local, regional, or international level.

Here’s how it works:

Geographically indexed baseline: The system starts with a sustainable baseline, adjusted geographically based on where the athlete lives. This ensures that the valuation reflects the cost of living in their area.
Performance premiums: Athletes earn additional premiums based on their athletic performance, media reach, and collaboration within our platform.

This means that athletes can earn anywhere from 1,000 to 10,000 euros per month, depending on their achievements and location, with most athletes falling somewhere in between. The goal is to create a system where fully sponsored athletes can support themselves and their families, just as if they had a full-time job.

Addressing Common Concerns

As with any new model, there are concerns and critiques, many of which we’ve anticipated. Here are some of the key issues we’ve addressed:

Isn’t this just another performance-based system?
While performance is a factor, our model goes much deeper. We recognize achievements at all levels – from local to international – and focus on incremental progress, not just top-tier success. Every step matters, and we want to ensure that athletes are rewarded for their growth and potential.
Are athletes just becoming social media influencers?
Social media is a tool, but it’s not our primary focus. We cap media reach at a relatively low level to ensure that athletes don’t spend all their time chasing followers. Instead, we prioritize authenticity and the unique connection athletes have with their audience. The focus is on their achievements and growth, not their follower count.
Is the system unfair to new or lesser-known athletes?
We understand this concern, but our system is designed to highlight potential. We recognize athletes who have authentic achievements at any level and look for those with a strong growth trajectory. Our model is built to help up-and-coming athletes secure sponsorships, not just reward those already at the top.
What about the real costs of being an athlete?
Our model starts with a sustainable living wage, but we acknowledge that it doesn’t cover all the costs for every sport. For example, athletes in motorsports or equestrian sports face significant equipment and travel expenses that go beyond what our system currently supports. While we’re working on sport-specific valuation mechanisms, our current focus is on the athlete’s personal needs.
Is this system focused too much on short-term wins?
Our system is designed for long-term sustainability. It’s not about short-term wins or sudden spikes in popularity. Instead, we focus on future potential and long-term growth, ensuring that athletes are valued based on their progress over time.
The Uber effect: Are athletes penalized for not being perfect?
We’re aware of the potential pitfalls of over-reliance on past performance ratings, as seen in systems like Uber’s driver ratings. To avoid this, we encourage realistic scoring and aim to balance all factors in our valuation. Athletes don’t need to be perfect to succeed on our platform.

A System for the Future

The Sustainable Athlete Valuation System is a work in progress, and we’re constantly evolving it based on feedback and results. Our mission is to create a fair and sustainable sponsorship model for athletes in emerging and niche sports. While we acknowledge the system’s limitations, we’re committed to refining it to better serve athletes and brands alike.

For example, while the current model is athlete-centric and doesn’t yet address team or equipment costs, we’re working on sport-specific solutions to cover these needs in the future. And while our model currently caps at around 10,000 euros per month, we believe this is an appropriate range for athletes in emerging sports. Athletes who break into the big leagues will naturally move beyond our platform and into traditional sponsorship models.

Join the Movement

The world of sports sponsorship is evolving, and it’s time for a new approach that values athletes for their achievements, growth, and potential. NxtStride’s Sustainable Athlete Valuation System is designed to create a fairer, more inclusive sponsorship landscape where athletes at all levels can thrive.

If you’re an athlete in an emerging sport, a sports federation looking to support your athletes, or a brand seeking authentic brand ambassadors, NxtStride can help.