How An NIL Mock Negotiation Helped A Louisiana Credit Union

Working closely with local universities is nothing new for EFCU Financial ($1.1B, Baton Rouge, LA). The Greater Baton Rouge area cooperative has built a longstanding relationship with Louisiana State University and in 2024 was the Centennial Partner of LSU’s Tiger Stadium. Given its history, the credit union’s participation in a mock negotiation to prepare student-athletes for potential Name, Image, and Likeness (NIL) opportunities was a clear fit.

“We have a great relationship with university athletics,” says Tom Kuslikis, CEO of EFCU Financial. “They naturally thought of us.”

A Role That Hits Close to Home

LSU Sports Properties — the exclusive marketing and multimedia rights holder of LSU Athletics — designed the panel and facilitated the NIL negotiation on a Wednesday evening in November.

In a room located at the northwest corner of Tiger Stadium, two credit union representatives discussed the details of a fictitious NIL deal with a baseball player. Adam Brice, chief lending officer at EFCU Financial, and Garrett Ganucheau, vice president of business development, played the role of potential partners. It was not a stretch for the two sports fans.

As 25 student-athletes and other attendees watched, panelists representing the sponsor and the athlete discussed what they’d expect from a $20,000 budget — from photo shoots and in-person appearances, to billboard exposure, social media interactions, and more.

“NIL is still so new, it’s incredibly valuable to give these student-athletes an idea of how NIL deals come together and what types of commitments sponsors might ask them to make,” Kuslikis says. “Participating was also valuable for our credit union as we thought through our future options.”

Indeed, everyone in attendance learned more about the inner workings of NIL partnerships, and Brice and Ganucheau fielded more than a few questions from the athletes, including:

• Do we have to pay taxes on money received through NIL? Yes, and LSU responded it would withhold taxes for athletes.
• Can athletes wear licensed university apparel for photoshoots? LSU must grant permission or the vendor must be under contract with LSU for student-athletes to wear gameday apparel.

Mock Negotiations. Real-Life Lessons.

Since participating in the NIL mock negotiation, EFCU Financial has officially partnered with two athletes from LSU baseball and will be kicking off a social media campaign in the spring of 2025. Although these real-life partnerships have a different structure from the fictional scenario presented last winter, the credit union learned a lot about the process through the mock negotiation.

“LSU does a good job putting guardrails in place, but we also did our own due diligence,” Kuslikis says.

For EFCU Financial’s NIL deals, the credit union worked with LSU Sports Properties, which serves as an intermediary in the NIL process. EFCU Financial researched players without current NIL deals and gave the names to LSU Sports Properties. The credit union selected several of the highest-performing baseball players on the team and met with its top picks to get a better feel for their character.

“We wanted to vet as much as possible to ensure the athletes we selected are the right fit and are less likely to pose reputational risk,” Kuslikis says. “However, risk is going to be there. These are still primarily 18- and 19-year-old kids, after all.”

LSU Sports Properties plays a role here, too. In its role supporting and guiding student-athletes, it ensures NIL agreements are mutually beneficial. It also ensures agreements protect and strengthen the LSU athletics brand.

EFCU Financial singled out LSU baseball because the team is regularly ranked second or third in the nation and commands a huge local following. The two athletes it sponsors will interact primarily with the credit union’s social media during baseball season; however, both have promising career prospects after they leave LSU. One is even expected to be a first round draft pick for Major League Baseball.

LSU Sports Properties coordinated the mock negotiation for student-athletes interested in learning more about NIL. Representatives from EFCU Financial played the role of sponsor, reviewing details such as what they expected from their fictional athlete and answering questions from the audience.

Audience members, including 25 student-athletes, learned about taking control of their personal brand and parlaying that into future success.

The Larger Strategy

Like many credit unions, EFCU Financial has an older membership base. It views NIL as one way to target a younger audience and connect with community members that have an affinity for local sports.

In addition to its relationship with LSU, the credit union also is an active supporter of Southern University and A&M College, the largest HBCU in the state and an institution with which the credit union would like to expand its partnership.

“Investing in athletes there can help us build relationships with students, staff, and the larger community,” Kuslikis says.

The cooperative’s overall strategic goals include increasing the diversity of its current membership and decreasing its average age. It expects these university partnerships to help bring in students at the beginning of their financial journey and result in lifelong banking relationships. However, Kuslikis says NIL partnerships are just one component of the credit union’s larger strategy to reach the next generation of members.

Light Lift. Long-Term Potential.

NIL is in its infancy, but EFCU Financial sees a lot of potential for enduring success.

As a major fan of LSU baseball himself, chief lending officer Brice has taken on managing the relationships with the athletes. Meanwhile, CEO Kuslikis reviews the contracts, and the marketing team manages the day-to-day tasks, such as coordinating photo shoots and creating social media posts. These are the pieces of a long-term strategy at EFCU Financial.

“Supporting students and building on the brand makes sense,” Kuslikis says. “And hopefully, by partnering with athletes before they go pro, we can build long-term relationships that continue to progress.”

For other credit unions considering NIL, Kuslikis advises starting small.

“You don’t have to go after the quarterback of the college football team,” he says. “There are a lot of great players out there that have brand recognition in the communities you’re serving.”

But remember, it’s a partnership, not a fan club. It might be easy to succumb to star power but be judicious in selections. Let their talent inspire, not distract.

“Be careful about who you partner with and do your due diligence to understand their character,” the CEO says. “Even then, you should still be mentally prepared for young athletes to make mistakes.”