Olympic success catapults athletes' brand value by 6-10 times; endorsement deals pour in

New Delhi: Trying to capitalise on the athletes' success at the recently concluded Paris Olympics, brand managers are racing to sign these athletes as quickly as possible.

For instance, following the surge in demand from brands, Neeraj Chopra's commercial value skyrocketed by 40–50% after the Paris Olympics, surpassing Hardik Pandya and closing the gap with Rohit Sharma (JSW Sports).

As per news reports, Chopra was valued at $ 29.6 million (Rs 248 crore) before the Paris Olympics. The Golden Boy added $10 million (Rs 83 crore) to his brand value within ten days after the Olympics ended.

Similarly, Neerav Tomar, Managing Director of IOS Sports and Entertainment, shared with BestMediaInfo.com that following the Paris Olympics, over 50 brands have shown interest in endorsing Manu Bhaker, and they are already nearing the finalisation of 5-6 deals simultaneously.

According to Dhruv Jha, Co-Head, of Mediabrands Content Studio, “The price points for these deals have gone up, reflecting the increased demand and value of these athletes. Contract renewals are being negotiated at higher quotes, which emphasises the premium status of these Olympic medallists.”

Providing an insight into the ticket size of these brand deals, Piali Dasgupta Surendran, a senior marketing leader, said, “The commercials involved have seen a jump of anywhere between 6 times for someone like Manu Bhaker (from Rs 25 lakhs to Rs 1.5 crore an annum per deal) to 10 times for Neeraj Chopra. Even Vinesh Phogat's endorsement fees have seen a steep 4x rise after the Paris Olympics because of her soaring popularity despite the loss.”

Offering more detail on the subject, Vishal Jaison, co-founder of Baseline Ventures, the firm representing Lakshya Sen and Vinesh Phogat, said, “Brands are showing interest in athletes who excelled at the Olympics, such as PR Sreejesh, Vinesh Phogat, and Arjun Babuta. We have seen a 40% increase in brand queries related to signing our athletes. The deals we’re securing include brand endorsements, speaking appearances, and digital partnerships for brands ranging from men’s grooming to jewellery.”

Diving deeper, Tomar attested to the fact that top brands from almost every sector have showcased interest in partnering with Manu, Harmanpreet Singh, Manpreet Singh, and Swapnil Kusale. “Their success in Paris has caught the eyes of the sporting world and the majority of brands from the sports sector are keen on having them for sponsorship deals. But their success goes beyond the sports circles; hence, they have garnered attention from brands from all sectors—there is a great buzz all over,” Tomar added.

Supporting Tomar’s argument, Surendran said, “Fitness, health, lifestyle, insurance, education, nutrition, and even fast food and beverage are some of the off-beat categories that are showing and will continue to show greater interest in athletes given that their product offering and brand proposition are seamlessly aligned to an athlete's overall persona.”

While the deals are being signed, marketers are sketching out strategies to effectively utilise the popularity of these athletes, and unlike in old times, TV ads are not the sole focus of brands. 

Explaining this further, Jha said, “The overall awareness around these athletes is at an all-time high, and with social media being the dominant platform, this is a prime moment for both brands and athletes to collaborate and maximise their presence.”

Advising brands to carefully map out their social media strategy, Tomar said, “While social media collaborations for athletes yield impressive reach, brands and athletes must tread carefully to avoid unintended messaging due to intense audience scrutiny around what athletes should promote. A case in point is Dhoni, who was trolled for drinking beer at an event.”

Speaking of noticeable shifts in the contractual clauses, Surendran said, “Most brands now look at long-term associations with athletes instead of signing them on for a few months or specific activations. What has changed over the last few years is that emerging athletes now want to work with smaller brands and start-ups where they will have a greater say on the product being endorsed (particularly in categories such as sports gear, shoes, etc.). Athletes today are also favouring a narrower exclusivity clause.

What that means is that an athlete may be signed on by a sportswear brand to endorse specific product types within the brand and will still have the freedom to work with other sportswear brands for different product types. Earlier, one would see very tight exclusivity contracts where an athlete would be restricted from working with competing brands as well as competing product types.”

Commenting on the nature of brand deals, Jaison said, “Endorsement days typically span eight hours, depending on brand requirements (one or two days per year or more). Speaking appearances usually last one to two hours. Digital deals involve varying numbers of posts—two, three, or more.”

It’s all hunkey dory for athletes who won big in Paris but several athletes missed a medal by a whisker. Badminton, table tennis, archery, weightlifting, boxing, and steeplechase are some of the categories where Indian athletes find themselves unlucky. 

Offering a perspective on how brand deals will fare for such athletes, Surendran said, “Brands have become ROI-focused today and every dollar spent on sponsorship or otherwise is being measured. One cannot predict wins and losses in sports, but brand owners will place their bets carefully on athletes who haven't performed. Brands bet on an athlete's potential and not just on his/her track record or winning streak.”

Walking on the same line as Surendran, Dr. Kushal Sanghvi, a senior brand consultant, said, “It’s a great opportunity for brands not to be skeptical." All these players nearly clinched victory—they secured fourth place, competing against over 200 countries, which is a remarkable accomplishment.

Their popularity on social platforms, even in smaller towns, makes them appealing to new-age and regional brands, in particular, who should consider them over the more traditional Bollywood and cricket figures.”

Jha highlighted that these athletes will still have brand support but the ticket size of their deals may remain stagnant until they achieve more significant success. 

To wrap it up, how brands use an athlete depends entirely on their creative sensibilities to bring out a narrative that has been constructed to align with the life events and personality of the athlete concerned.