Auburn Tigers Local Business Owner Capitalizes on NIL Space and Licensing

Scarlet and Gold CEO Megan Smalley details how NIL has changed the game for local businesses and why platforms like Shopify are crucial.

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The Auburn Tigers are the No. 1 overall seed in the NCAA men’s basketball tournament, and that comes with unparalleled exposure for the team through NIL deals.

Tigers forward Johni Broome and center Dylan Cardwell have a creative name, image, and likeness deal with local female-founded shop Scarlet and Gold that will allow fans to support the team and players as they enter the March Madness tournament.

Scarlet and Gold Founder and CEO Megan Smalley has been navigating the college basketball and sports world for a while as an officially licensed shop with Auburn.

She utilizes Shopify for their business platform, the leading global commerce company powering millions of independent brands, just like Scarlet & Gold.

Smalley spoke exclusively with NIL Daily on SI about being an officially licensed merchant, navigating the world of name, image, and likeness, how that’s helped her business and how Shopify helps business owners like herself enter what can be an intimidating landscape.

Credit: Victoria Wilson - Archetype

When Smalley started her company in 2013, one of the first steps she took was to get a standard license through Auburn and the Alabama Crimson Tide with the Collegiate Licensing Company (CLC), one of three leading companies that work with colleges.

“You cannot profit off of a brand,” Smalley explained. “All of these schools are brands. They own trademarks. They have built massive businesses, and you can't sell anything that is marketing or using their name, image, likeness, or trademarks.”

Smalley detailed a lengthy process for applying for licenses for merchandise and custom gear on her online shop.

She urges those entering the space to pay attention to royalties minimums that business owners have to pay schools, and to start with one at a time.

NIL has made these partnerships more profitable for both sides.

Previously, marketing could only focus on school logos and colors, not the players themselves.

“The Auburn fan base doesn't just want Dylan and Johni merch,” Smalley explained. “They want Auburn Dylan and Johni merch.”

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For companies like Scarlet and Gold, the ability to license players' NIL in tandem with schools changes the game.

“NIL is the new influencer gifting strategy, especially in this space,” Smalley said. “Influential partnerships are not new. We just used to not be able to use players to promote our product. We couldn't gift them anything. At a school, they are the celebrities. It’s totally changed the game. The number one way we have grown our business is influencer gifting; collaborations like co-branded lines and working with influential people are how we've grown the business. Now we can do that in the game day space with the biggest influencers on campus.”

The deals with players are on a case-by-case basis.

Smalley has had NIL partnerships with Alabama players and an Auburn gymnast. It requires networking and relationship-building to succeed in this space.

It also requires a platform to do business, and in a fluctuating space, one that works at all times.

Smalley explained that sales fluctuate depending on the success of a team, and businesses must understand how to take advantage of these high points.

With the Tigers receiving the top seed in the March Madness tournament, fans will be supporting their favorite players in a short time frame.

Without leading global commerce company Shopify — one that has never crashed in a website surge to date — Smalley wouldn’t be able to conduct her business at the necessary level.

“We’ve been on Shopify's platform the entire longevity of our business,” Smalley said. “They have been incredible partners. We use Shopify online and then also in our retail store. They have a seamless point of sale integration, and it all funnels into one backend; it's so easy to launch a product like this. If they don’t have the capabilities to do what you want to do, they have developers that they can connect you with, or they have an endless number of apps that you can install to do different things. Without a doubt, Shopify is the platform if you are selling in-store or online. It's so user-friendly, and the team has always been incredible and helpful. There's got to be some easy things in entrepreneurship, and Shopify is one of them.”

In closing, Smalley wanted to speak directly to young entrepreneurs who have a vision and want to take the leap.

“Just know that it's so rewarding,” Smalley said. “This has provided such an amazing life for my family. It's not always easy. There are so many road bumps, and know to expect that. It's not about all the bumps that you're going to hit; it's how you get over them. And just having the mindset that the door is not closed, you just need to figure out how to open it. Sometimes you have to try all these different keys, and then you find the key that works, and you have to run with it.”

 “There are going to be times that you choose wrong, or you mess up, or you swing and miss. It's happened to all of us. But it's really not failure. You just have to learn from it. What works? What didn't work? And pivot and learn from it. The more you can separate your emotions from the highs and lows, the more successful you're going to be. You got this.”

Smalley anticipates a huge bump in sales as the Tigers chase the championship and has carefully and thoughtfully set Scarlet and Gold up to thrive in a chaotic name, image, and likeness landscape.

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