Analysis on Roc Nation Sports: Branding Athletes

Abstract

The mainstream pop culture was first introduced to the term ‘Sports Agent’ when the Hollywood movie, ‘Jerry McGuire’, starring Tom Cruise, came out in 1996. The movie produced a popular phrase, ‘show me the money’, where the agent’s purpose was to ‘show money’ to the representing client. Since then, the sports agents have been a household name in a sports world, especially in sports news. When discussing a trade, contract extension or a free agency signing, the media pays much attention to the actions of the agents as much as the presence of the athlete. After a decade since the release of the movie, the same talent agency that represents Tom Cruise, Creative Artist Agency (CAA), has extended its business into sports. Signing superstars such as Derek Jeter, Peyton Manning, David Beckham, and Cristiano Ronaldo have help the company become the industry’s most valuable agency. Realizing potential growth of the sports industry, sports agent became one of the most sought after jobs. Jay-Z, one of the most successful recording artists of all-time, being one of them. In 2013, Jay-Z created Roc Nation Sports, a division of his record label, Roc Nation. In hopes of creating an immediate impact in the industry, the company secured a partnership with CAA Sports. The company announced signing of Robinson Cano as the first client and negotiated a deal that would make him the third highest paid baseball player in history. Jay-Z and the team went ahead and signed more superstars such as, Kevin Durant, C.C. Sabathia, Ndamukong Suh, and Dez Bryant in following year. The company’s strategy in creating leverage over its negotiating counterpart is its ability in branding its athletes. With Jay-Z’s experience as a chief operator in record label, he was able to create a system that would help the athletes become a brand off the field, which would have a direct impact on the revenue stream of the team the player belongs to. In Korea, where the sports agent industry is still at its developing stage, the business model of Roc Nation offers an alternative in creating a successful business.