It’s a new day for Michigan State athletics.
Spartan Ventures launches today as a way for the university to bring in more money for sports and student-athletes.
The nonprofit drew a $100 million investment from Greg and Dawn Williams in December. That investment was part of a larger gift of $401 million from the pair. It’s the largest donation the school has ever received.
To find out more about Spartan Ventures we spoke with WKAR Sports Reporter Al Martin to learn more.
"[Spartan Ventures] is designed to help MSU compete in an era where really college sports are becoming more and more commercial because of name, image and likeness, media rights, sponsorships, [and] revenue sharing with student-athletes, of course," Martin said.
The organization has two arms, a nonprofit side and a for-profit side.
The nonprofit side will focus on fundraising, donor support, scholarships, and enhancing NIL opportunities for student-athletes.
The for-profit side, meanwhile, will be responsible for new revenue through corporate partnerships, licensing, sponsorships, media and other commercial opportunities.
Martin says the goal is simple: create more revenue that can be reinvested into MSU athletics, while allowing the athletic department to focus on competing on the field.
The launch of Spartan Ventures comes amid a leadership shakeup and questions over stability.
When Spartan Ventures was greenlit by the Board of Trustees last October, its approval wasn’t without controversy. Some board members raised concerns about public oversight.
"This has probably been the biggest criticism surrounding Spartan Ventures," Martin said. "Now, MSU's response has been that there will still be governance and accountability built into the structure of Spartan Ventures."
Martin said the university has created a board of directors that includes university leadership and outside members, and officials have emphasized that the organization will regularly report back to the university's leadership and the board of trustees.
Still, Martin says questions over transparency will continue as Spartan Ventures begins to generate revenue.
"People will be watching closely to see how transparent it is in its practice, not just what its governance documents promise...that's going to be an ever-evolving thing." he said.
Apart from transparency in the organization, there's still some concern over how the project will proceed without the leaders who helped build it.
Just weeks before its official launch this week, President Kevin Guskiewicz announced he's leaving for Clemson University, and in June, MSU athletics director J Batt signaled he too was headed out the door.
Martin said the university has been consistent in its messaging that Spartan Ventures will move forward as planned.
"Leadership has publicly stated that this initiative isn't dependent on one individual," Martin said. "[Spartan Ventures] CEO John Palumbo has said that, regardless of who's serving as president or AD, the mission remains the same, and the launch comes during a period of leadership transition."
MSU sees Spartan Ventures as a long-term strategic investment, one that Martin says is becoming the norm for universities.
"Schools across the country are creating outside organizations or separate business entities to handle fundraising," he said. "We're talking about NIL strategy, commercial partnerships, sponsorships, NIL conference realignment, and revenue sharing with athletes."
Martin said all of this is pushing universities to operate more like professional sports organizations.
To emphasize how commonplace separate business entities are in college sports, Martin points out that Guskiewicz's future home, Clemson University, has Clemson Ventures.
Interview Transcript
Melorie Begay: It’s a new day for Michigan State athletics. Spartan Ventures launches today as a way for the university to bring in more money for sports and student athletes. The Board of Trustees approved the nonprofit’s creation last fall. It has already drawn a 100-million-dollar investment, but questions remain over oversight and stability.
WKAR sports reporter Al Martin is here to break it down. Thanks for being here Al.
Al Martin: Oh, anytime, Melorie. Good to see you.
Begay: Yeah, nice to see you too. So, what is Spartan Ventures, and how does it work?
Martin: Yeah, so Melorie, you can think of Spartan Ventures as Michigan State's new business engine for athletics. It's designed to help MSU compete in an era where really college sports are becoming more and more commercial because of name, image and likeness, media rights, sponsorships, revenue sharing with student athletes, of course. The organization, has two primary arms here, a nonprofit side that focuses on fundraising, donor support, scholarships, and enhancing NIL opportunities for student athletes.
The for-profit side, that's responsible for things such as new revenue through corporate partnerships, licensing, sponsorships, media, and other commercial opportunities. So, instead of the athletic department trying to manage all of those different business functions internally, Melorie, Spartan Ventures brings them together under one umbrella with leaders who specialize in business development.
Now the goal is simple: create more revenue that can be reinvested into MSU athletics, while allowing the athletic department to focus on competing on the field.
Begay: When Spartan Ventures was greenlit by the Board of Trustees last October, its approval wasn’t without controversy. Some board members raised concerns about oversight. Because it's a private entity the university is reportedly exempt from FOIA or Freedom of Information [Act] Requests. Has MSU said anything about how it’s going to handle transparency?
Martin: Well, again, you touched on it just then, Melorie. I mean, this has probably been the biggest criticism surrounding Spartan Ventures, and some members of the Board of Trustees expressed concern that there wouldn't be enough public oversight.
Now, MSU's response has been that there will still be governance and accountability built into the structure of Spartan Ventures. The university created a board of directors that includes university leadership and outside members, and officials have emphasized that the organization will regularly report back to the university's leadership and the board of trustees.
That said, this will likely be an ongoing conversation as Spartan Ventures begins operating. People will be watching closely to see how transparent it is in its practice, not just what its governance documents promise. So keep an eye on that. I think that's going to be an ever-evolving thing.
Begay: And you know, this project, of course, came about under the leadership of President Kevin Guskiewicz and Athletic Director J Batt, both of whom are leaving the university. Has the university said anything about how it plans to move forward?
Martin: Yeah, well, the university's message has been very consistent. Spartan Ventures is moving forward as planned, even though President Guskiewicz and Athletic Director Batt were instrumental in creating the organization, Spartan Ventures leadership has publicly stated that this initiative isn't dependent on one individual. CEO Jon Palumbo has said that, regardless of who's serving as president or AD, the mission remains the same. The launch comes during a period of leadership transition, but officials have framed Spartan Ventures, Melorie, as a long-term strategic investment rather than a project that's tied to specific leaders, so to speak. So, the expectation is that the initiative will continue under future leadership.
Begay: So, Al, looking at other universities across the country, is Spartan Ventures the norm, or becoming the norm when it comes to how colleges are handling NIL deals?
Martin: So, yes, you know, Michigan State isn't inventing this model, Melorie. I think it's really adapting to where college athletics is headed, and it is already headed.
You know, schools across the country are creating outside organizations or separate business entities to handle fundraising. We're talking about NIL strategy, commercial partnerships, sponsorships, NIL conference realignment, and revenue sharing with athletes. They have pushed universities to operate more like professional sports organizations, which is why you'll hear a lot of sports analysts out there, tongue in cheek, refer to college athletes as pro athletes nowadays, right?
And I totally see where they're coming from when they say that, but you know, I can point to LSU and the Tiger Athletic Foundation, I can point to the University of Georgia and the Athletic Association, the University of Arkansas Razorback Foundation. And the next home for President Guskiewicz, Clemson Ventures at Clemson University, coincidence Melorie, I think not.
Begay: They just didn't want another foundation, they wanted the Ventures.
Martin: Yeah, exactly, that Ventures name, it just, it's just following Kevin Guskiewicz, isn't it.
Begay: It's for the adventure, right? Okay, well, thank you so much for being here. Al Martin is a sports reporter with WKAR. Thanks for being here.
Martin: Thank you, Melorie.
