How FAB&T partners with student athletes for marketing, financial empowerment and giving back

As one of the first community banks to jump into the NIL space, Arkansas-based FAB&T immediately explored how it could support student athletes and provide a way to give back to its communities in a meaningful way.  

In June 2021, a significant legislative shift occurred in college sports – allowing student athletes to monetize their name, image and likeness (NIL) for brand representation.  

For many financial institutions, this signaled both a challenge and an opportunity. FAB&T embraced this change with open arms, becoming one of the pioneering institutions to venture into the NIL space. 

Understanding NIL 

Historically, college athletes were not allowed to receive compensation for the use of their NIL as doing so would compromise their amateur status and eligibility to compete in collegiate sports. 

However, in recent years, there has been a significant shift in attitudes and regulations surrounding NIL. Several U.S. states have passed legislation allowing college athletes to profit from their NIL, and in 2021, the NCAA (National Collegiate Athletic Association) announced new rules permitting athletes to earn money from endorsements, sponsorships and other opportunities. 

This change opened up opportunities for college athletes to monetize their fame and popularity, whether through social media endorsements, appearances, autograph signings, or other ventures. It has also provided an opportunity to promote important community initiatives for the betterment of people.  

Our latest alliance: Brady’s Bunch Striking Out Hunger 

In one example, University of Arkansas baseball player Brady Tygart’s alliance with FAB&T highlighted the bank’s commitment to addressing food insecurities. Through initiatives like “Brady’s Bunch Striking Out Hunger” and volunteering at the Arkansas Food Bank, FAB&T and Brady are making tangible contributions to their communities. 

With every strikeout Brady achieves, FAB&T pledges donations to the Arkansas Food Bank, demonstrating a commitment to addressing food insecurity in the community.  

Moreover, Brady’s personal involvement transcends the game, as he actively participates in volunteer efforts alongside FAB&T employees, exemplified by their joint effort in packing 7,000 pounds of sweet potatoes for those in need. Brady’s passion for tackling food insecurities stems from his experiences and education, with roots in programs offered at his high school.  

Looking ahead, FAB&T plans to expand its charitable endeavors to Brady’s hometown in 2024, furthering its commitment to combating hunger. Additionally, the upcoming Brady’s Second Annual Pitching Camp promises to not only hone pitching skills but also foster community engagement and support.  

And for the bank? FAB&T intends to leverage Brady’s NIL in promotional materials for its Prime Checking account and a baseball-themed debit card, amplifying the impact of Brady’s advocacy both on and off the field. 

Community bank expands NIL partnerships 

Among the first student athletes FAB&T partnered with was Devo Davis, a basketball standout from Jacksonville, Ark. Within days of the legislation passing, discussions with Devo’s representatives commenced. By August 2021, an agreement was reached, marking the beginning of an impactful partnership.  

FAB&T wasted no time in leveraging Devo’s brand, with the creation of “Devoville,” a community initiative accompanied by a striking billboard reminiscent of the iconic 1980s Michael Jordan wings ad. 

The impact of Devo’s partnership with FAB&T extended beyond mere branding. The inception of “DEVOted Readers,” aimed at promoting literacy in local elementary schools, exemplifies the bank’s commitment to community development. Over the course of two school years, the program saw significant growth, engaging an increasing number of schools and students. 

Following Devo’s success, FAB&T continued its foray into NIL partnerships, notably with Kiley Dulaney, a women’s soccer player at the University of Arkansas. Kiley’s partnership saw the convergence of sports and philanthropy, with initiatives like the Kiley Dulaney Soccer Camp and promotion of the Plinqit savings app, demonstrating FAB&T’s dedication to social impact alongside brand promotion.  

Featured on billboards and numerous print ads and local school publications, this initiative saw a strong appeal from a younger demographic, including college students, and helped support financial literacy.  

Additionally, Kiley has a passion for shelter animals and wanted to make a difference there. The proceeds from the first soccer camp, held as the FAB&T soccer complex, were all donated back to local shelters. 

Banks must approach NIL responsibly  

Yet, amid these endeavors, FAB&T remains cognizant of the responsibilities inherent in NIL partnerships. For instance, it is critical to remember that these are still college students who will sometimes do “college-student things.” NIL, however, provides a unique opportunity to teach these students the responsibility of partnering with other brands. It is a lesson in thinking longer term and thinking about their specific situations.  

For banks considering NIL, there are also some risks to consider. First and foremost, banks must assess the regulatory landscape surrounding NIL. With the recent changes allowing college athletes to profit from their NIL, there may be evolving regulations at the state and federal levels that banks need to adhere to. Failure to comply with these regulations could result in legal consequences and reputational damage. 

Moreover, banks need to carefully evaluate the reputational risks associated with NIL partnerships. Not all athletes may align with the values and image of the bank, and associations with controversial or unethical behavior could tarnish the bank’s reputation. Conducting thorough due diligence on potential partners and ensuring alignment with the bank’s brand values is essential to mitigate these risks. 

Financial risks also abound when leveraging NIL. Banks must consider the financial implications of sponsorship deals and endorsements, including the potential for returns on investment and the possibility of overextending resources.  

Finally, there are operational risks to consider, such as managing contractual agreements, tracking performance metrics, and ensuring compliance with marketing and advertising standards. Banks must have robust systems and processes in place to effectively manage these operational challenges and mitigate associated risks. 

Mark Wilson is President and Chief Operating Officer at FAB&T.