Case Study

  • Financial Modeling

Sports Agency

Financial Modeling for Sports Agency’s emerging Name, Image, Likeness (NIL)Business.

Challenge

Our client was a newly launched sports agency based in Orange County, California looking to capitalize on the emerging market for Name, Image and Likeness (NIL) deals with college athletes. With NIL rights just recently granted, the Orange County agency saw an opportunity to be an early mover in representing athletes and securing corporate endorsement deals.

As a startup agency, they needed to secure funding to build out their NIL business operations. However, potential investors wanted to see a comprehensive financial model projecting the revenue potential and costs associated with signing and representing athletes for NIL deals. The Orange County agency lacked in-house financial modeling capabilities.

Solution

The agency engaged our financial modeling consulting team to build a robust forecast model for their NIL business line. We worked closely with the agency’s leadership in Orange County to understand their athlete recruitment plans, deal structuring approaches, compensation structures and overhead costs.

Using industry data and the agency’s assumptions, we built a multi-year model projecting:

  • Number of athletes signed by year, sport, school tier
  • Average annual endorsement fees by sport/school tier
  • Agency’s commission rates
  • Sales & marketing expenses for athlete recruitment
  • Overhead costs for agent compensation, operations, etc.

The model enabled robust scenario testing and sensitivity analysis around key drivers like commission rates, endorsement fees and number of athletes signed.

Quote

Duis orci augue, placerat sed lacinia at, vestibulum in nunc. Praesent ornare sodales elit in auctor. Maecenas quis feugiat nunc, vitae laoreet mauris.

Bill Billerson

CEO, Haystax

Results

Investor Confidence
Armed with our comprehensive NIL financial model, the Orange County agency was able to clearly demonstrate their revenue potential and path to profitability. This gave investors confidence in the viability of their business plan.

Data Driven Operational Planning

The agency successfully secured their initial funding round from a major sports marketing firm. They have since used the model to guide their operational budgeting and strategic decision-making.

Scaling Business

Today, just one year after launching, the Orange County agency represents over 50 athletes across multiple sports and has secured NIL deals totaling over $10 million in endorsement fees. The model continues to be a critical tool as they manage this rapidly growing business line.

Let’s explore how HLX can help.
Please enable JavaScript in your browser to complete this form.