A pair of University of Georgia legends have received their first venture capital raise as they grow in a nearly $1 billion market aimed at empowering student athletes to profit off themselves.
The Players' Lounge, a platform for college athletes to interact with fans through digital content, received a seed investment from Silicon Valley venture firm Draper Associates L.P. It also scored a partnership with Brinx.TV, a production and distribution platform founded by Emmy Award winner John Brenkus.
The Atlanta-based name, image and likeness (NIL) startup was founded in 2021 by CEO Keith Marshall, a former running back for the Bulldogs and Washington Commanders franchise, and president Aaron Murray, a record-breaking quarterback for UGA and fifth-round pick of the Kansas City Chiefs.
“We're selling fans a new and improved exclusive experience connecting directly with student athletes,” Marshall told Atlanta Inno Monday. “For athletes, the value proposition is, ‘You've been providing this information and experiences to fans for a millennia, we just want to do it in a way that allows you to get paid.’”
The company currently has around 30 contracted workers in areas such as public relations and software development. It looks to grow a full-time working staff following the investment. Funds from the raise will also go toward improving the platform and establishing partnerships with universities.
Financial details weren't disclosed. The company is still raising its seed round and looks to close in January.
Burgeoning NIL industry
The Players’ Lounge addresses a new market capitalizing on one of the biggest changes in NCAA history.
Beginning in July 2021, college athletes have been allowed to profit from marketing and endorsement opportunities, jersey sales and similar product sales. Since then, deals for student athletes have been signed nationwide, making the NIL industry worth almost $1 billion.
In recent months, organizations have emerged to support athletes at specific schools. Some include the 505 Sports Venture Foundation, which aims to support athletes at the University of New Mexico, and Cincy Reigns, which has the same goal for the University of Cincinnati.
As NIL gains traction among student athletes, Marshall believes The Players’ Lounge provides a sustainable solution. Universities often go to traditional donors for NIL purposes, which creates a zero-sum game and friction on allocating money. With a subscription service based around digital collectibles, Marshall says there are multiple opportunities to create revenue.
Marshall also says the name recognition of its co-founders should give the startup a competitive advantage as people still figure out the industry.
From the football field to the startup world
After a knee injury ended his NFL career, Marshall took inspiration to become an entrepreneur from his father who created a real estate firm after playing football.
Following the mantra that “you can’t fake it, you have to put the time in,” he enrolled at Emory University’s Goizueta School of Business for an MBA before working as a summer associate at McKinsey & Co.
Soon after, Marshall convinced Murray to leverage his fame to help Georgia Bulldog football players launch their own non-fungible token (NFT) projects. NFTs are unique assets in the digital world, which are bought and sold online and represent real-world objects like images, music and videos. The pair's project evolved into the current iteration of The Players’ Lounge.
This is also Murray's first go at founding and growing a business. Following his professional football career, Murray marketed multifamily real estate for the East Coast division of commercial real estate services company Colliers International in Atlanta. In addition to growing The Players' Lounge, he is also a college football commentator and SiriusXM radio host.
About the company
Fans subscribe to the platform for exclusive content from student athletes, access to in-person and virtual events to interact with them, and offers for digital collectibles such as an NFT.
The startup has signed deals with over 250 student athletes, according to Marshall. Some of which include athletes from UGA, Louisiana State University, Clemson University, University of Tennessee, University of Oklahoma and Auburn University. Prominent names include Georgia quarterback Stetson Bennett and tight end Brock Bowers.
Marshall views Web3 as an opportunity to cut the middle man in the student athlete media landscape. Whereas third parties would have access to interview coaches and athletes to then sell that content to subscribers, Marshall says Web3 can allow student athletes to get compensated directly for providing content they've always provided.
