Overtime starting the basketball league that pays the youth over $ 100,000

Is Overtime CEO Dan Porter losing his mind?

The co-founder of the sports company recalled that reaction of the former commissioner of the National Basketball Association David Stern when he launched the establishment of another league of hoops.

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

The Elite Overtime League will allow players to bypass traditional high school and college levels as they build their brand before becoming eligible for the NBA. It will start in September with 30 players and will be based in a single location, which is still under discussion.

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

“It’s a pretty exciting opportunity,” Porter said of the launch of OTE.

Overtime distributes original sports content on social networks, including Snapchat, YouTube owned by Google and Instagram owned by Facebook, and sells clothing with its logos and brand. Most of the content revolves around high school or other amateur players, but does not license important materials from major sports leagues.

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

Since then, the company has built a massive Generation Z, followed by high school basketball players. The company has over 40 million followers on its social media channels and has built its credibility among NBA stars such as Zion Williamson and Atlanta Hawks goalkeeper Trae Young.

The company says its content is broadcast more than 1.7 billion times a month on all social platforms – especially by Gen Z. Surveys have suggested that this group of 13- to 24-year-olds prefer fast-paced sports content. and sports content faster than traditional formats it favors basketball instead of other sports.

Overtime income comes from two sources. One is indirect alignment with brands, integrating them into its content and making money from video ads. The other is direct e-commerce revenue, where Porter says the company earns “millions of dollars” in clothing.

“Just like a sports team when you buy a hat or a T-shirt,” Porter said, “people feel part of that community and buy clothes to represent it. basketball for young people and create a clothing brand. “

Overtime refused to disclose the financial situation.

With OTE, Porter expects the revenue model to change slightly “from e-commerce and media to e-commerce, media, rights and licensing, just like a league.” He said that OTE finally wants to sell its press rights.

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

Overtime is also engaged in active discussions for brand and distribution partners for the league.

Porter said he spent two years talking to the families of top athletes to find information about OTE. He said families have expressed disapproval of the current path to professionals, in which prominent colleges produce millions of talent in exchange for a free education.

OTE says it will provide state-of-the-art education, residencies and training and provide advanced player performance analysis to help them improve. But the big advantage is that OTE will give players the right to capitalize on their brands while they are paid to participate.

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

As part of its collective agreement, the NBA prohibits players under the age of 19 from entering the league. Some players attend at least one year of college while waiting for eligibility; hence the popular term “one and done”.

Porter referred to players such as former NBA goalie Brandon Jennings and Charlotte Hornets on LaMelo Ball guard, who both bypassed the college.

“We do it based on observing how these young athletes are trying to change the system and make it work for them,” Porter said.

“We’re a great platform and that makes us a good place to go out and find talent,” Porter said. “We start a league from scratch. We have no legacy. We can build a model that feels like a 21st century model, both in terms of how start-ups are created and how digital companies are created. “

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

If OTE players do not pursue a professional career, it will provide an additional $ 100,000 for college tuition. But if young people participate in the league, players lose their NCAA eligibility because they get paid.

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

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

“We need to do a better job of empowering the next generation of players and setting them up for success,” he said. “OTE is a leader on this front by offering players a comprehensive path that fully develops the athlete – not just basketball skills, but education, economic empowerment and building their own brand. Having this type of guidance for high school players is essential for a successful career. , both on and off the field. “

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

In addition to Anthony, investors include Brooklyn Nets star Kevin Durant and Silicon Valley venture capital firm Andreessen Horowitz. The commissioner is former NBA executive Aaron Ryan, and former Sacramento Kings assistant general manager Brandon Williams will oversee the league’s operations.

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

But Stern was the most influential. He was the first investor in Overtime, helping him raise $ 2.5 million in 2017, three years before his death.

Porter remembered Stern telling him to avoid starting a league. “I’ve spent 30 years doing this. You don’t want to do that,” Porter reminded him.

“But we are annoyingly persistent,” he added.

As Stern sought to extend overtime among GenZ, he became convinced that OTE was a good idea and approved it, Porter said.

He said, “I think not only can you do that, but you have to do it,” Porter recalled. “I was like wow. It’s like a 180. Then I felt we could do it. When you build a company in this world, you can’t count on people giving you opportunities,” Porter added. “You have to go your own way.”