Startup Waco seeks $300K from city for Baylor name, image, likeness program

Startup Waco CEO Jon Passavant presented a $300,000 request Tuesday to the city's Budget & Audit Committee to fund the nonprofit's program to help Baylor University athletes profit under NCAA name, image and likeness rules passed in 2021.

Odds are good they got paid for their endorsements, as they represent Startup Waco, an entity that has partnered with Baylor to give athletes a shot at making money from their name, image or likeness. Startup Waco wants the city of Waco to get involved at the rate of $100,000 per year.

The duo appeared on a video related to an NCAA rule effective July 1, 2021, that allows big-name athletes and even fourth-stringers to profit from their celebrity. Maybe their likeness appears on a billboard or they sign autographs at a ribbon-cutting ceremony. They now can receive payment without jeopardizing their amateur status or their school’s reputation.

Some have labeled NIL the ruination of college sports, others describe it as a godsend, providing spending money to athletes who spend countless hours practicing, playing or studying. Getting a job to pay bills or eat pizza with friends becomes nearly impossible due to time constraints. Many athletes come from poor families. Making the pros represents a long shot. The NCAA ruled college athletes merit a chance to get paid for being themselves.

Baylor University joined the fun by partnering with Startup Waco, a collaboration involving chambers of commerce, the city of Waco, Baylor and other stakeholders. It provides office space, mentoring and networking opportunities at 605 Austin Ave. Startup Waco and Baylor formed GXG, green times gold, to function as their NIL umbrella.

Startup Waco Executive Director Jon Passavant on Tuesday said GXG is rolling right along. He told the Waco City Council Budget & Audit Committee GXG has negotiated 258 deals for 206 athletes. Those deals average $7,000 to $8,000 in value, said Passavant, whose presentation was witnessed by council members Andrea Barefield, Josh Borderud and Jim Holmes, along with Mayor Dillon Meek, City Manager Bradley Ford and other officials.

But Passavant had more than statistics on his mind. He asked that Waco consider funding a new initiative, one involving visits to wealthy individuals in Texas’ major metropolitan areas. They may serve as high-ranking executives and may enjoy ties to Baylor, but they know little, if anything, about the school’s NIL-related initiatives or their potential involvement.

Passavant asked the city to consider allocating $100,000 a year for three years to the cause, the money primarily going for staffing. No city money would go to compensate athletes, only to improve chances of exposure.

Meek said the efforts could become a boon to economic development and business recruitment, putting the city on more radar screens.

“We could say, for example, ‘Have you ever thought about opening a location in Waco?’” Meek said, describing a potential meet-and-greet with a decision-maker in Houston or Dallas who might warm to such a proposal.

Meek said if the conversations result in 50 jobs locating downtown and paying six-figure salaries, he believes the effort and expense would prove worthwhile.

Barefield said it is important to establish standards by which the program can be measured for effectiveness. She said those making presentations “should make sure Waco is mentioned upfront, not just an afterthought.”

A Jan. 9 post on the GXG website says Baylor has formed a six-member NIL advisory council that “will be involved in making NIL decisions and leading initiatives for the institution.” The group also will work with Passavant and former Baylor quarterback Cody Carlson to manage funds directed to GXG. Carlson, now part of Passavant’s GXG team, attended the city Budget & Audit Committee meeting Tuesday.

Mark McCollum will chair the NIL advisory council, and other members are Kevin Cherry, Jeremy Fudge, Cary Gray, Larry Heard and Dan Hord, who “are business leaders and Baylor graduates,” the post says.

“The long-term goal is to strike team-wide NIL deals with each program at Baylor,” the post says. “The GXG page also accepts donations, which are tax-deductible because of Start Up Waco’s 501(c)(3) status. All cash raised will go to athletes or future NIL projects.”

How College Athletes' Name, Image And Likeness Changed The Game: College athletes now have the rights to earn sponsorship money and have more power over their own brands. Its reshaping the economy of college sports and beyond and providing new opportunities for the growth of women's sports.