Overtime hours begin with basketball league that pays youngsters more than $ 100,000

Is Overtime CEO Dan Porter Losing His Mind?

The sports company’s co-founder recalled that reaction from former National Basketball Association commissioner David Stern when he pitched to set up a new basketball league.

Overtime announced on Thursday that it plans to start a basketball league for 16- to 18-year-olds, which could help them earn at least $ 100,000 a year.

The Overtime Elite competition allows players to bypass traditional high school and collegiate levels while building their brand before qualifying for the NBA. It starts in September with 30 players and will be in one location, which is still under discussion.

In an interview Wednesday, Porter confirmed that Overtime would pay for all health insurance and allow players to earn bonuses and equity in Overtime. He also recalled the Stern’s skepticism.

“It’s a pretty interesting opportunity,” Porter said of starting OTE.

Overtime distributes original sports content on social media, including Snapchat, YouTube from Google and Instagram from Facebook, and sells clothing with its logos and branding. Most of the content revolves around high school students or other amateur players, but it does not license highlights or material from major sports leagues.

Porter and Zachary Weiner, both former executives of William Morris Endeavor, founded Overtime in 2016 with investments from Stern and others.

Since then, the company has built a massive Generation Z following from high school basketball players. The company has more than 40 million followers on its social media channels and has built credibility among NBA stars like Zion Williamson and Atlanta Hawks point guard Trae Young.

The company says its content is streamed over 1.7 billion times a month across all social platforms – mostly by Gen Z. Polls show that this group of 13 to 24 year olds prefer highlights and fast-paced sports content over traditional formats, and they prefer basketball over other sports.

Overtime earnings come from two sources. One of them is indirectly connecting with brands by integrating them into the content and monetizing video ads. The other is direct revenue through e-commerce, where Porter says the company makes “millions of dollars” from clothing.

“Just like with a sports team when you buy a hat or jersey,” says Porter, “people feel like part of that community and buy clothes to represent that. We think there is a great opportunity to get into that. is at the heart of youth basketball and create a clothing brand. “

Overtime refused to disclose his financial details.

With OTE, Porter expects the revenue model to change a bit “from e-commerce and media to e-commerce, media, rights and licensing like a competition”. He said OTE wants to eventually sell its media rights.

‘Not early. We’ll take our time, ”Porter said.

Overtime also has active conversations for brand partners and distribution for the competition.

Porter said he has spoken with families of elite athletes for two years to seek input on OTE. He said the families expressed their disapproval of the current path to the pros, where leading colleges make millions in talent in exchange for free education.

OTE says it will provide top-notch education, housing and training and provide advanced analytics of players’ performance to help them improve. But the big advantage is that OTE gives players the right to take advantage of their brands while getting paid to participate.

“We are the only country in the world that forces you to go to high school and then college to become a professional athlete, at least in basketball and football,” said Porter.

As part of the collective bargaining agreement, the NBA prohibits players under the age of 19 from participating in the league. Some players attend college for at least a year pending eligibility; hence the popular term “one and done”.

Porter referred to players like former NBA security guard Brandon Jennings and Charlotte Hornets security guard LaMelo Ball, who both bypassed college.

“We’re doing it based on the observation of how these young athletes are trying to change the system and make it work for them,” said Porter.

“We’re a great platform, and that makes us a good place to get out and find talent,” said Porter. “We are starting a competition all over again. We have no overhang from the past. We can build a model that feels like a 21st century model, both in the way start-ups and how digital businesses are created.”

Porter said OTE could serve as a new avenue for the NBA. The NBA already has a non-college route with the NBA G League Ignite program, with top high school prospects Jalen Green and Isaiah Todd. This route allows younger players to train in the program until they become eligible.

If OTE players are not pursuing a professional career, it will earn you an additional $ 100,000 in tuition. However, if youngsters do enter the competition, players will lose their NCAA eligibility because they receive a payment.

“It’s a professional road,” said Porter. “But unlike a purely agricultural system, this is competition. We expect tens of millions of people to tune in and watch. And why do we expect that? Because they are already looking at our platforms today.”

Carmelo Anthony, an OTE investor and board member of Portland Trail Blazers, said many athletes are not well prepared for the life of a professional athlete.

“We need to empower the next generation of players and prepare them for success,” he said. “OTE is at the forefront of that front by offering players a comprehensive route that fully develops the athlete – not just basketball skills, but also education, economic empowerment and building their own brand. as out there. “

Porter said the early reaction around the league is positive and it is built with NBA names that can help OTE run efficiently.

In addition to Anthony, investors include Kevin Durant, a Brooklyn Nets star, and Silicon Valley venture capital firm Andreessen Horowitz. The commissioner is former NBA director Aaron Ryan, and ex-Sacramento Kings assistant general manager Brandon Williams will oversee divisional operations.

“There’s a lot of NBA DNA in it,” said Porter.

But Stern was the most influential. He was the first investor in Overtime, helping it raise $ 2.5 million three years before his death.

Porter remembered Stern telling him not to start a competition. “I’ve been working on this for 30 years. You don’t want to do something like that,” Porter remembers saying.

“But we’re annoyingly persistent,” he added.

As Stern watched Overtime take off at GenZ, he became convinced that OTE was a good idea and approved it, Porter said.

“He said, ‘I think you not only can do this, but you should do this,” Porter recalled. “We were like wow. That’s like a 180. Then we thought we could do this. When you build a business in this world, you can’t count on people giving you opportunities,” added Porter. “You have to find your own way.”