Opportunity in Chaos: Why Collegiate Athletic Departments Should Choose to Accelerate amid Change (NACDA 2024 Report)

As I met with athletic department leaders and software providers at this week's NACDA conference, a recurring theme emerged—collegiate athletics is again caught in a season of uncertainty. Much of this is driven by the ongoing fluidity in revenue distribution and the looming specter of athlete benefits reform. The prevailing sentiment seemed to be a cautious "wait-and-see" approach, with many programs hesitant to make bold moves until the dust settles. But here’s the thing: this is precisely the wrong approach.

"The concept of self-reliance is a cornerstone of SEAL training. Candidates are repeatedly reminded that nobody is coming to save them in the midst of their toughest challenges."

"Extreme Ownership: How U.S. Navy SEALs Lead and Win" by Jocko Willink and Leif Babin

While some decisions rightly await further guidance, now is not the time for athletic departments to shrink back. Instead, they should be seizing this moment to innovate and expand. Let me explain why.

The Unique Expertise of College Athletics

Few sectors boast as much institutional knowledge and empathy toward their primary stakeholders as college athletics. Athletic department leaders often bring a wealth of experience, not just as administrators but also as former student-athletes. Many of them have held roles in nearly every area of the department and have insights that far exceed their current title. This perspective equips them to understand their Student-Athletes' needs and aspirations profoundly. Yet, despite this deep well of expertise, many departments are falling into a defensive crouch, waiting for external forces to shape their future.

Slow Change: A Misleading Comfort

The slow churn of litigation and structural change in college sports is both a blessing and a curse. It offers time to adapt, but it also lulls programs into complacency. Unlike traditional market sectors where rapid shifts can force quick adaptation, college athletics operates in a space where the regulatory and legal landscapes evolve at a snail's pace. However, this slow pace should not be mistaken for stability. The underlying forces of change are building momentum, and those who wait too long to act may find themselves scrambling to catch up.

The unprecedented competition for fans' attention and investment adds to this complexity. Today, college sports are vying for eyeballs and dollars in an entertainment landscape flooded with options. From professional leagues and global sports events to a dizzying array of digital content and on-demand access, the battle for fan engagement has never been fiercer. Streaming services deliver a smorgasbord of sports content directly to viewers' screens, while esports and niche sports continue to carve out significant followings. With the rise of social media and interactive platforms, fans have more ways than ever to consume sports content, creating a fragmented and highly competitive market.

The Revenue Conundrum

The crux of the uncertainty lies in revenue distribution, particularly regarding how athlete benefits will be reformed. This makes it almost certain that athletic departments will need to find new ways to drive cash flow in the future. Unfortunately, most programs are still clinging to traditional revenue streams—ticket sales, donor campaigns, and basic sponsorships. While these methods have been reliable, they are insufficient to navigate the complex landscape ahead.

Despite having teams of seasoned industry veterans, many departments lack the visibility and skills necessary to leverage their assets and brand in scalable, innovative ways. It's akin to having a powerhouse engine with no GPS—plenty of potential, but no clear direction.

Time for an Entrepreneurial Mindset

Enter the entrepreneurial mindset. The current chaos, from legal battles to calls for systemic overhaul, is a unique window of opportunity. Schools should capitalize on this moment to take ownership of their data and invest in their brand experience. Personalization and asset monetization should be at the forefront of their strategies.

“Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice and discipline.”

"Good to Great" by Jim Collins

Imagine this: instead of passively waiting, schools build a strategy to expand their revenue base through new, scalable ventures. This could involve leveraging data analytics to enhance fan engagement, developing innovative sponsorship deals, or creating new digital content platforms. The goal is to transform potential threats into growth opportunities.

Leading the Charge for the Future

Schools that decide to focus on their existing assets, honing in on personalization and monetization, will be far ahead when the new structures and regulations finally take shape. This is true for powerhouse P4 conference members and smaller programs worried about their future in this evolving industry. Those who act now will be better positioned to adapt and thrive.

Moreover, having a confident, forward-thinking strategy will be crucial for attracting prospective student-athletes. In these turbulent times, the ability to communicate and market benefits packages will be a game-changer. Schools that articulate a clear and compelling vision will stand out to recruits and their families, who crave clarity amid the chaos.

Conclusion: Embrace the Suck

In the Marine Corps, the phrase "embrace the suck" is a rallying call to face challenges head-on and find strength in adversity. This mindset is precisely what collegiate athletics need right now. Adopting this resilient approach is crucial as athletic programs navigate the slow churn of regulatory changes and intense competition for fan engagement.

By embracing the discomfort and uncertainty of these times, athletic departments can transform challenges into opportunities. This is not a time to retreat but to innovate beyond traditional methods, leverage their expertise, and harness the collective grit needed to thrive. Whether it's by exploring new revenue strategies, enhancing fan engagement, or boldly redefining their brand, now is the time for collegiate sports programs to push forward.

The landscape of collegiate athletics is in flux, but in taking ownership of what is already within their control, schools can turn this period of uncertainty into their greatest opportunity. By leading with vision and adaptability, they can survive and set new standards of success in the evolving world of college sports.

The views expressed in this article are solely my own and do not reflect those of any organizations with which I am associated. If you enjoyed this newsletter, please subscribe, like, share, or comment. Your feedback and engagement are greatly appreciated!