Chiefs QB Patrick Mahomes’ endorsement portfolio has "exploded over the past couple of seasons," and he is "emblematic of a business trend of athletes taking ownership shares of a company instead of only a cash fee," according to Bill Shea of THE ATHLETIC. While athletes and celebrities "still mostly do traditional cash endorsements, for about 15 years an increasing number of them have opted to get a piece of ownership ... a long-range gamble that’s easier on the finances for startups and for companies without significant money." Mahomes' latest such deal is with Hyperice. He is part of a $48M investment round announced Thursday that includes ownership stakes for Seth Curry, Anthony Davis, Rickie Fowler, DeAndre Jordan, Jarvis Landry, Christian McCaffrey, Ja Morant, Naomi Osaka, Chris Paul, Doc Rivers, Ben Simmons, Kelly Slater, J.J. Watt, Russell Westbrook and Trae Young. The company’s roster of athletes has "millions of followers across social media, and Hyperice wants their posts about its equipment and technology to functionally be a marketing campaign built on authenticity -- the athletes actually using the technology." Equity deals are "common" among startups but also are used by "more mature companies like Hyperice because celebrities and athletes can target specific consumer blocs." 16W Marketing co-Founder Steve Rosner said that equity-based endorsements have "grown in popularity." But he added, “I would say 80-90 percent of endorsements are done the (traditional) way" (THEATHLETIC.com, 10/8).
