Create Brands, Skip Sponsors

A strategy of creating and owning brands rather than accepting traditional sponsorship deals, based on examples from successful athletes like Floyd Mayweather and LeBron James.

Key Points:

• Core Strategy:

  • Instead of promoting other brands for sponsorship fees, create and own your own brands
  • Vertical integration - own multiple parts of the revenue stream
  • Focus on equity ownership rather than endorsement fees

• Examples of Implementation:

  • Floyd Mayweather:
    • Created "The Money Team" clothing line instead of promoting other clothing brands
    • Started Mayweather Promotions to control fight revenue streams
    • Owns revenue from multiple sources: pay-per-view, live gate, merchandise, concessions
  • LeBron James:
    • Invested in Blaze Pizza instead of promoting McDonald's
    • Took equity positions rather than straight endorsement deals

• Results:

  • Significantly higher earnings potential
  • Floyd Mayweather increased fight earnings from tens of millions to $250-400M per fight
  • Complete control over brand and revenue streams
  • Multiple revenue sources instead of just endorsement fees

• Key Success Factor:

  • Understanding where money flows in the industry
  • Taking control of revenue streams typically owned by others (promoters, sponsors, etc.)
  • Building complementary businesses around core brand/talent