Is Kanye West Building A Sports Agency?!

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Hey Friends,

When Kanye West announced that he was launching Donda Sports in January and that NFL wide receiver Antonio Brown would be named President of the organization, many people in the sports business community didn’t take them all that seriously.

But now you have to, as Donda Sports has announced back-to-back signings of Aaron Donald (LA Rams) and Jaylen Brown (Boston Celtics) within the last 72 hours alone.

"It was an opportunity that came to us, me and (my wife), and it made sense," Donald said on the I Am Athlete podcast. "Hearing the whole spectrum of what they were going to be bringing, the whole family atmosphere that they got in Donda Sports. Not just me, but my wife being a part of that. For me, it was a no-brainer."

Aaron Donald and Jaylen Brown are the first NFL & NBA players signed by the brand.

First off, I think it’s important to clarify exactly what is happening here. Because while many people on the internet have jumped to conclusions and said that these athletes will “get ripped off” on their next contracts, that’s pretty far out of context.

Donda Sports is a sports marketing agency. Sure, they sell some merchandise on their website right now—socks, shorts, and hoodies range from $60 to $200 and ship in 8-12 weeks—but the contract that Aaron Donald and Jaylen Brown have signed with Donda Sports is reportedly strictly for off-field/court marketing representation.

That means that their current agents will still negotiate their player contracts.

But the more interesting part to me is why Kanye West is doing this. And in return, why Aaron Donald and Jaylen Brown have trusted him with their marketing representation — these are top-tier athletes that could go to any marketing agency!

One example that I’ve seen floated around is what Jay-Z has accomplished with Roc Nation Sports. He started the sports agency as a partnership with CAA in 2013—his first client was MLB’s Robinson Cano—and then split it out to be an independent firm in 2015. The agency has since signed more than 150 athletes, including LaMelo Ball, Saquon Barkley, and Romelu Lukaku, and they brought in nearly $30 million in commission on $1.1 billion worth of contracts under management in 2020 alone.

Notable Roc Nation Sports Clients

• LaMelo Ball

• Robinson Cano

• Skylar Diggins-Smith

• Kevin De Bruyne

• Romelu Lukaku

• Saquon Barkley

• Jaire Alexander

• Jalen Rose

• Sugar Ray Leonard

• Leonard Fournette

But the part that many people don’t talk about is that Jay-Z actually spent a considerable amount of time becoming a certified and licensed NBA and MLB agent — that means he can negotiate player contracts directly with individual teams.

So while it doesn’t look like Kanye West wants to go the full agent representation route, at least not right now. Of course, he could always hire the right people and use his connections to build a similar business to Roc Nation Sports. But that doesn’t mean it is easy, and there is no indication that is even what he wants to do.

Instead, it looks like Kanye West is focused on helping professional athletes maximize their value off the field or court. And whether people want to admit it or not, that could be incredibly valuable for people like Aaron Donald and Jaylen Brown.

Kanye West has a polarizing personality, and many people don’t like him. But he has objectively been highly successful within multiple industries—music, art, clothing, culture, etc.—and athletes, especially defensive football players, tend to have short(er) careers that typically offer little to no marketing value once they decide to retire.

Now that doesn’t mean it’s a good idea. Kanye West is an extremely powerful force to have on your side, but the success of every single business ultimately comes down to operational excellence. And that’s something we will just have to wait and see on.

I hope everyone has a great day. I’ll talk to you tomorrow.

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The Joe Pomp Show: A new episode with Collectable CEO Ezra Levine is live!

Ezra Levine is the CEO of Collectable, an online marketplace for buying and selling fractional shares of high-value sports memorabilia. We talk about the modern financial portfolio, the future of investing, and he even announces some breaking news about a special hire at Collectable. So listen, subscribe, share, and enjoy!