Insurance agency owners looking for transformational growth typically think about acquiring another agency, recruiting producers or expanding into new markets. But there is another strategy that can potentially change an agency’s trajectory: partnering with the right retired professional athlete.
Done correctly, the impact on an agency’s visibility, credibility and business-development opportunities could rival that of making a significant agency acquisition—without purchasing an existing book of business.
Y.A. Tittle Insurance: A Model Worth Studying
One of the best examples of a professional athlete successfully transitioning into the insurance business is Y.A. Tittle Insurance Services.
Y.A. Tittle was one of the most recognizable quarterbacks of his era, playing for the San Francisco 49ers and New York Giants before being inducted into the Pro Football Hall of Fame. During his NFL career, Tittle also worked in insurance during the offseason.
After football, he built an insurance business and put one of his greatest assets directly into the company: the Y.A. Tittle name.
Y.A. Tittle Insurance Services has maintained a San Francisco Bay Area presence for decades and continues operating today. That longevity demonstrates an important point for insurance professionals considering this strategy: a former athlete’s name does not have to be used simply for an endorsement or advertising campaign.
The athlete’s name can become the agency’s brand.
There are other examples as well. Former NFL player Fuad Reveiz transitioned into the insurance business and founded Global Insurance Group in Tennessee. Former NBA player Eric Chenowith founded LEVERAGE, an insurance organization focused in part on the insurance needs of professional and elite college athletes.
The broader lesson is clear: professional athletics and insurance can be an excellent combination.
You Have What the Athlete Needs — and the Athlete Has What You Need
When an athlete’s playing career ends, that person may still be relatively young and looking for the next professional chapter.
A retired athlete can bring something extraordinarily difficult for an insurance agency to purchase through conventional advertising: name recognition.
The athlete may also have relationships with business owners, executives, other athletes, community organizations, charities and thousands of fans.
That can create opportunities an ordinary startup agency might spend years developing.
But name recognition alone does not build an insurance agency.
That is where the insurance professional becomes essential.
You understand carriers, underwriting, coverage, licensing, E&O exposures, agency management, technology, staffing and how to properly write and retain profitable insurance accounts.
You need the athlete’s name, relationships and visibility. The athlete needs your insurance expertise. That can make for a nearly perfect partnership.
Where Can You Connect With Retired Athletes?
One place to start is with the alumni organizations associated with the four major professional sports.
The NFL Alumni Association provides networking, career-transition and other resources for former NFL players and has regional chapters throughout the country.
Baseball has the Major League Baseball Players Alumni Association, which brings together former and current players, coaches, managers, umpires and others associated with professional baseball.
Basketball has the National Basketball Retired Players Association, representing former NBA, ABA, WNBA and Harlem Globetrotters players and helping members transition into life and careers after basketball.
Hockey has the NHL Alumni Association, which connects former NHL players and provides resources that include career-transition opportunities.
Agency owners can also connect with athletes through sports agents, alumni events, charitable foundations, golf tournaments, LinkedIn, local business organizations and personal introductions.
Expect the Athlete to Want Equity
Do not necessarily approach this as a celebrity endorsement arrangement.
The more powerful model may be a genuine business partnership with equity ownership. If a retired athlete is putting his or her name, reputation and relationships behind the agency, expect that person to want an ownership interest in the business.
That can be entirely reasonable if the partnership substantially increases the value of the organization. Both parties should retain their own attorneys experienced in business transactions. A strong partnership agreement should clearly address ownership percentages, responsibilities, compensation, decision-making authority, licensing requirements, buy-sell provisions, death or disability, use of the athlete’s name and what happens if either partner eventually wants to leave. These issues need to be addressed before the agency becomes successful rather than after.
Build the Brand Around the Partnership
This is also an area where professional marketing assistance is essential. You are not simply forming another insurance agency. You are building a brand around a recognizable individual.
A professional marketer should develop the agency name, logo, website, social-media strategy, advertising and public-relations campaign.
When appropriate, the retired athlete’s name should be incorporated directly into the agency’s name or brand, just as the Y.A. Tittle name became associated with an insurance organization that has lasted for generations. Of course, rights involving the athlete’s name, likeness and trademarks should be clearly documented in the partnership agreement.
An Ideal Startup Strategy
This strategy could be especially attractive to an insurance professional with substantial experience who wants to launch an independent agency.
Instead of starting with an unknown name and spending years developing brand recognition, you could launch with a business partner whom people already recognize. Established agency owners can pursue the same strategy.
An agency acquisition gives you an existing book of business, employees and revenue.
Partnering with the right retired professional athlete can give you something entirely different: an instantly recognizable brand, a network of relationships, a compelling marketing story and access to prospects you might never otherwise reach. For the right insurance professional and the right retired athlete, the impact could potentially be as significant as making a major agency acquisition.
