20 FOR (the) 20's [Part 1]
Twenty Trends to Watch For During the 2020's in the Sports & Entertainment Industry
What if I told you that this decade could become the most transformative, impactful ten years we have ever seen in the sports and entertainment industry?
I love ESPN's 30 for 30 documentaries. They combine great storytelling with emotional depth to give their audiences a closer look at stories that have defined sports over time.
In honor of 30 for 30, I thought that I would begin the new decade by writing about twenty trends that I've observed in the sports and entertainment industry that could define how we look back and remember the 2020’s.
It is my sincere belief that this decade has the potential to transform the industry for the better. Even amidst all of the conflict and turmoil that the world faces as we begin the decade, I am optimistic that sports and entertainment can be a shining light and a unifying force around the world.
So as not to overwhelm my readers with too much content in one sitting, today we'll breakdown the first ten trends that I expect to flourish in the 2020’s. The final ten will be broken down next Thursday. Let's begin!
1. Athlete and Artist Activism Continues to Grow
LeBron James was voted USA TODAY's "Athlete of the Decade" for the 2010s, and with good reason. James won multiple NBA Championships, MVPs, and an Olympic Gold Medal, but it was his charitable work and business endeavors which set a new standard for pro athlete activism and philanthropy.
LeBron's investment in under-served youth and families in his hometown of Akron is remarkable. The I Promise School works daily to improve the lives of children and set them up for success in life. It appears that James will continue to leverage his lifetime Nike endorsement deal to further his mission. A December Nike commercial featuring James sets the tone for the NBA star's current and future impact initiatives.
The side-effect of James's good deeds will be that an entire generation of athletes, who grew up admiring James the player, will follow his lead and look to emulate James the philanthropist in the coming years. It is hard to not be optimistic when thinking about the potential good that these young men and women could do through their activism and philanthropy in the coming years.
2. Sustainable Business Operations Ramp Up
When, in November, the alternative rock band Coldplay announced that it would press pause on touring its new album, Everyday Life, the music industry did a double take. Why would one of the world's most popular bands refuse an opportunity to fill stadiums across the planet and rake in millions of dollars? Front man Chris Martin cited concerns over the "environmental impact of concerts.”
The climate crisis has taken center stage in the hearts and minds of millions of people, and addressing climate change through more sustainable business practices will be critical to preventing additional warming of the Earth.
If Coldplay can design and implement a "net positive" tour, touching dozens of countries, and five continents (the way they did in a 2016/2017 tour), expect other sports and entertainment properties to follow suit.
From music, to film, to professional sports, each individual and business can have a role in combating the climate crisis. Many organizations are already building coalitions to improve the sustainability of our industry, such as the Green Sports Alliance, but more urgency is needed.
3. Mental Health Goes Mainstream
What started with NBA players Kevin Love and Demar Derozan speaking out about their personal struggles with mental health, has turned into a larger movement of athletes from several sports and from multiple generations sharing their stories as well.
We are starting to see cracks in the stigma surrounding mental health and mental illness in this country, and not a moment too soon. Loneliness, anxiety, and depression has increased among teenagers and young adults in recent years.
Projects such as the Headstrong: Mental Health and Sports documentary by NBC Sports continue to add fuel to the movement. Expect to see larger investments into both athletes's and performers's mental well-being, but also into youth and families across the country.
4. Diversity & Inclusion Takes the Next Step
The Institute for Diversity and Equity in Sports at UCF releases an annual report card on racial and gender hiring practices in professional and collegiate sports. While the WNBA and NBA received top marks for 2018 (A+ and A respectively), MLB, the NFL, MLS, and Collegiate Sports have room for improvement. Gender hiring, in particular, remains a category for the industry to improve on as a whole.
However, there are signs that the industry will take the right steps to improve. Just this week, AEG, the world’s leading sports and live entertainment company, announced that its CEO, Dan Beckerman, has signed the CEO Action for Diversity and Inclusion pledge. This pledge outlines "a specific set of actions that participating organizations will take to cultivate diversity," according to a press release about the commitment.
"We are committed to growing a best-in-class approach to diversity, equity and inclusion because it is not only the ‘right thing to do,’ but because employees are more engaged and productive when they feel respected, valued and truly belong,” said Beckerman.
The evidence shows that more diverse teams and companies make better decisions and produce better outcomes. It would behoove leaders from across the sports and entertainment industry to join AEG in making a commitment to increased diversity and inclusion. Their businesses will benefit and our society will benefit even more.
5. The Line Blurs Between Cause Marketing and Marketing
I spent the better part of 2019 studying, reading, and writing about the next generation of sports and entertainment marketing. What I've come to believe is that successful marketing in this decade will be centered around campaigns that show how companies care for people and for the planet.
We've dubbed this type of marketing as "cause marketing," but I anticipate that this type of marketing will become so prevalent that we will no longer need the "cause" qualifier to describe it.
A recent study by Porter Novelli/Cone on Generation Z showed that 83% of this generation consider a company's purpose when deciding where to work, and 72% consider purpose when deciding what to buy. Furthermore, 94% of Gen Z believes that we need to come together to make progress on important issues.
In this decade, we will see more and more brands taking stands on issues that are important to their employees and customers. Chief Marketing Officers will need to work hand in glove with Chief Sustainability Officers and Community Relations leaders to ensure they understand what causes their companies should get involved in, and how to communicate those commitments through their marketing channels.
6. Growth of Talent-Owned Venture Capital Firms
Venture capital has been largely dominated by white males located in Silicon Valley for a long time. In the 2020’s, I expect to see this dynamic change. The next wave of venture capitalists (VCs) emerging in the business world will be professional athletes and talent from around the industry.
Andre Igoudala, a three-time NBA champion with the Golden State Warriors, has already laid the foundation to transition into a career as an investor once he decides to retire from pro basketball. Igoudala and business partner Rudy Cline-Thomas are investors in several early-stage companies, including trendy footwear company Allbirds.
In addition to his own investments, Igoudala helped launch The Players Technology Summit to convene elite pro athletes with top investors, entrepreneurs, and business leaders.
We've seen Stephen Curry, Kobe Bryant, Serena Williams and several other high-profile athletes cut their teeth in the venture capital world over the past few years. I expect that we'll see several talent-owned venture capital firms materialize in the 2020’s which will help athletes and artists put their wealth to good use and build a legacy above and beyond what they've accomplished in their primary career.
7. Women's Sports Makes the Leap
One of the most creative sponsorship deals that I saw this past year was Budweiser's partnership with the National Women's Soccer League (NWSL).
Budweiser not only made a large, long-term commitment to the league, but it also launched a campaign to recruit other companies to become sponsors of the NWSL. With the help of US Soccer star, Megan Rapinoe, Future Official calls on restaurants, deodorant brands, gum companies, and other brands to join Budweiser as official sponsors of women's soccer in the U.S.
More sponsorship revenue combined with increased ticket and merchandise sales will finally propel the NWSL into a more prominent position in the pro sports landscape in North America. Carrying the momentum from the 2019 Women's World Cup, I see women's soccer leading the charge in a massive growth of professional women's sports this decade.
8. "Amateurism," As We Know It, Goes Extinct
There's no way getting around it. The NCAA, and its amateurism rules, are going to change in the 2020’s.
After California Governor Gavin Newsom signed California Senate Bill 206 into law (on LeBron James' show, The Shop) the wheels were put into motion for a complete overhaul of how collegiate athletics in the U.S. are operated. Soon, college athletes will have the right to profit off of their name, image, and likeness through things like endorsement deals with companies, big and small.
However, I don't think the NIL law will be the only thing that transforms how the NCAA operates. In college basketball, we are already starting to see a shift. This season, two top high school players, LaMelo Ball and RJ Hampton, decided to forgo playing NCAA Basketball in favor of playing professionally in Australia's NBL. Just this past week it was reported that Ball has been offered a $100 million endorsement deal by a top apparel company. How can top basketball players leave that kind of money on the table going forward by committing to at least one year of college basketball?
In 2020, we will also see the launch of the Professional Collegiate League (formerly known as the Historical Basketball League). The PCL will provide an alternative to the NCAA for talented college-age basketball players to receive compensation and an education, getting paid to play games in the summer months, and enabling players to go to college during the fall and spring.
The made-up idea of "amateurism" in the U.S. is slowly but surely starting to fade away. With challenger leagues and changing laws, expect to see a radical change in collegiate athletics in the 2020’s.
9. A Resurgence in Youth Sports Participation
Data from the Aspen Institute's State of Play 2019 report paint an unfortunate picture with respect to youth sports participation in the U.S.
The Sports Fitness Industry Association puts out an annual household survey to get a sense of how active children ages 6 to 12 are, and how much they are participating in individual or team sports. Only 31.3% of America's youth were "active to a healthy level" by regularly participating in high-calorie burning sports in 2018. The survey also showed that 17.1% of kids are physically inactive, with a correlation between low household income and lack of physical activity.
Why am I optimistic that youth sports participation will grow in the 20's? Two factors influence my thinking.
First, innovative companies such as LeagueSide, are building businesses that address the problem of the affordability of youth sports. LeagueSide provides an online platform for youth sports leagues in the U.S. to receive sponsorship funding from national, regional, and local companies in order to cover the costs of kids' access to playing organized sports.
Second, as younger, more health-conscious generations begin having families, I would anticipate that Millennial and Gen Z parents will put an emphasis on their children's physical and mental fitness.
To build momentum for the increase in youth sports participation, Aspen Institute has put resources into a recent campaign called "Don't Retire, Kid," featuring a ten-to-twelve year-old kid at a press conference announcing his retirement from sports (much like pro athletes hold at the end of their careers). Retired NBA legend, Kobe Bryant, is a spokesperson for the movement.
10. Star-Studded Coalitions and Alliances Form on Big Social Issues
In the 2020's you can bet that we will see more and more people of influence team up to drive change in cause areas that are important to society.
One alliance that will figure prominently in this decade is REFORM. Founded by rapper Meek Mill and entrepreneur, Michael Rubin, REFORM's mission is to "dramatically reduce the number of people who are unjustly under the control of the criminal justice system – starting with probation and parole." Supporters include Jay-Z and New England Patriots owner Robert Kraft, while CNN contributor Van Jones has been tapped to lead the organization as CEO.
Expect to also hear a lot from World War Zero over the next ten years. Former Secretary of State John Kerry organized World War Zero to help address the climate crisis. Their goal is to rebuild the global economy towards net zero carbon emissions. Secretary Kerry has enlisted the help of dozens of celebrities, politicians, military figures, and religious leaders to build the largest coalition of people in the world to combat climate change.
You can imagine that additional alliances will form around other social issues like income inequality, gun safety, and others. The collective power of these coalitions should play a big role in whether our society addresses these problems, or if we'll fail to make significant progress.
Win-Win-Win is a community for purpose-driven leaders in the sports and entertainment industry. Once a week, on Thursdays, I’ll send you a thoughtful essay/blog post about how we might leverage the influence of our industry for good. Please reach out to me on Twitter or LinkedIn if you’d like to connect and discuss my work or find ways that we might collaborate.