Earlier today, the ATP and Emirates Airlines announced a new
global partnership, one that will become official next Tuesday on New Year’s
Day. When the ball touches down in Times Square, Emirates will become both the Official
Airline of the ATP World Tour and the new title sponsor of the ATP Rankings.
The Dubai carrier will also become an official partner of the season-ending Barclays ATP World Tour Finals.
If you are a frequent visitor of the blog, you’ve already
noticed this is now my third article this month that centers on an airline’s
investment in sports.
To be clear, this is not a new development, but rather a
trend that has become increasingly visible over the last six months. For years,
United and American Airlines dominated the space, not only with their league
partnerships, but also with naming rights on two of the country’s most visible
arenas. Michael Jordan won 6 rings at Chicago’s United Center, while LeBron
James won his 1st last year at the Miami Heat’s American Airlines
Arena (not to be confused with the American Airlines Center, home to Mark Cuban’s
Dallas Mavericks).
For obvious reasons, airlines are most interested in sports
with an affluent following and/or participant base. United Airlines has done
well in securing the titles of Official Airline of the PGA Tour and the ING New
York City Marathon.
Airlines, like most other corporate sponsors, want to
partner with another hot brand.
Just last week, JetBlue agreed to terms to become the
Official Domestic Airline of the Barclays Center. Similarly, Turkish Airlines has
signed endorsement deals with Lionel Messi and Kobe Bryant, two athletes with enormous
brands worldwide.
While the ATP may not be the sexiest brand in today’s sports
complex, it does attract a generally well-off demographic. According to a 2012
report by Scarborough Research, U.S. Open attendees have a median household
income of $115,800; up from the average of $69,300 for all adults residing in
New York.
This also helps explain why Emirates outbid several other
airlines to become the Official Airline of the U.S. Open. Though the terms of
the ATP deal are not yet known, the
seven-year deal with the USTA cost Emirates $90 million, not including $2.5
million per year in activation dollars.
Emirates’ involvement in sports is not limited to tennis,
but extends
into other enormous global brands; Real Madrid FC, Arsenal, the Ryder Cup,
and the Rugby World Cup among them. The ATP is just the most recent
organization that has benefitted from Emirates’ seemingly bottomless sponsorship
budget, one the airline is smartly using to their advantage in order to aggressively
gain global market share.
While the recent love affair between sports and the airline
industry is nothing new, it has become increasingly competitively --- and
costly --- for any airlines seeking to make a significant gain.