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Today’s Case

Liquid hydration companies making moves in the NIL space

Hydration is important for athletes. Therefore, it makes sense that companies specializing in hydration products lean in to NIL.

In recent weeks, NIL deals in this category include:

• Shedeur Sanders markets Gatorade's Mystery Flavor with color-changing cleats

• Electrolit partners with four University of Houston athletes

• MOGL partners with Liquid I.V. to boost their influencer strategy

Sanders was the first college athlete to sign an NIL deal with Gatorade during his tenure at Jackson State University, along with being the first HBCU athlete to work with the brand.

Working with the cleat designer Mache, Gatorade created a pair of custom color-changing cleats as part of the announcement of its new flavor, Blackberry Raspberry. Sanders wore the cleats during last Saturday’s pregame warmups, which included the phrase “legendary” and the quarterback’s “$2” logo.

The Houston-focused NIL collective LinkingCoogs ushered Houston-based Electrolit into college sports. The company inked NIL deals with four Houston athletes, headlined by reigning American Athletic Conference Defensive Player of the Year Jamal Shead. Other Cougars athletes include point guard Laila Blair, outside hitter Kenna Sauer and goalkeeper Mikaela Gracia.

NIL operations software provider MOGL announced their partnership with Liquid I.V., a powdered electrolyte drink mix, enabling student-athletes to monetize their NIL. The multifaceted promotion will allow over 10,000 student-athletes across all sports and divisions the opportunity to promote the product and monetize.

The Verdict

• Tap In

  • This is a good way for these companies to plug into the college student/Gen Z demographic.

    • While a percentage of this population might already be consuming hydration products, leveraging athletes and their large, unique social media audiences (along with increased engagement rates compared to non student-athletes and other influencers) is beneficial for these organizations.

• Favorite (or custom) flavors

  • Letting athletes share their favorite flavors of products is good; letting athletes create their own flavor is great.

    • While this isn’t feasible for every company, organizations that let athletes be part of the research and development phase can be advantageous for both sides. (Athletes learn the business, company creates new flavors to sell.)

• Compliance is the science

  • Since these companies are working with college athletes, it’s safe to assume that these products are safe for consumption and will not trigger a positive drug test.

    • No matter how good of an NIL deal a supplement or hydration company is providing, it’s not worth the risk if supplements contain ingredients that are not NCAA compliant. (Consequences include suspensions and potential loss of scholarship, depending on the severity.)

Caitlin Clark x State Farm

The Iowa women’s basketball star continue to grow her NIL portfolio. Watch this video for more!

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