Invesco QQQ's Ryan McCormack Discusses Rethinking College Athletics

Ryan McCormack, Senior Director at Invesco, discusses rethinking college athletics at Bloomberg Power Players. He joins Christine Cook to discuss possibilities in college athletics.

At Bloomberg Power Players in New York, Ryan McCormack, Senior Director, Factor & QQQ Equity Product Strategy at Invesco, joined Christine Cook to discuss the evolving landscape of college athletics. McCormack highlighted the potential for new sponsorship models and the impact of Name, Image, and Likeness (NIL) deals on the industry.

One of the key points McCormack emphasized was the growing importance of NIL deals, which allow college athletes to monetize their personal brand and image. He noted that the recent surge in NIL deals has been driven by a shift in consumer behavior and the increasing influence of Gen Z athletes. According to a survey by Her Campus Media, nearly nine in 10 Gen Z women are sports fans, and 45% are more likely to purchase from brands that invest in college sports [1].

McCormack also touched on the financial implications of these deals. He mentioned that universities are now distributing millions in payments to student-athletes under new revenue-sharing rules. For instance, the University of California, Los Angeles (UCLA) has already paid out $4.8 million to players since mid-June, as part of a new economic model brought by a court settlement earlier this year [3].

The discussion also delved into the challenges universities face in balancing their budgets while complying with these new rules. Nina King, Director of Athletics at Duke University, shared her struggle with cutting sports budgets while distributing millions to players. Similarly, Ross Bjork, Ohio State athletic director, questioned whether the current cap of $20.5 million was sufficient to meet the needs of all athletes [3].

McCormack concluded by emphasizing the need for a more strategic approach to college athletics sponsorships. He suggested that brands should focus on authentic partnerships that align with their values and the interests of Gen Z athletes. This approach, he believes, can help brands build stronger connections with consumers and drive long-term growth.

References:
[1] https://www.prnewswire.com/news-releases/oofos-teams-up-with-her-campus-media-in-a-groundbreaking-initiative-for-college-athletes-302545680.html
[2] https://finance.yahoo.com/video/invesco-qqq-sponsor-spotlight-205902822.html
[3] https://www.livemint.com/sports/news/ucla-has-already-paid-its-college-athletes-nearly-5-million-11757004478354.html