Sunday, June 30, 2013

EPL Kit Sponsorship is Big Business

On Friday, EPL club Swansea City unveiled Goldenway, a Chinese finance firm, as their new uniform sponsor. The team will receive over 3 million dollars from Goldenway, double the number from their previous partner, 32Red. The new deal is largely the result of the Welsh club's successful 2012-3 campaign, where they finished in 9th place and qualified for the UEFA Europa League.

Swansea's deal with Goldenway represents a couple of trends within the space. Firstly, it demonstrates the globalization of the sport. However, it is no longer just Manchester United signing deals with Asian companies. Firms like Hong Kong based Goldenway are now choosing to invest their first sports sponsorship dollars in clubs such as Swansea, based solely on the rising popularity of the game overseas.

The deal also represents teams' slight shift away from gambling companies as sponsors. While companies such as 32Red very much maintain a presence in the sponsorship world, teams appear to be distancing themselves just a bit. Just days ago, Tiger Woods turned down nearly $100 million in potential marketing dollars from an Irish gambling house.

Finally, if clubs such as Wales' Swansea City, can earn $3 million from uniform sponsorship, then one must wonder when we might see advertisements on NBA, NFL, and MLB jerseys in the near future. Based on several reports, Adam Silver the NBA may be the first to make the move. If so, it will be extremely interesting to monitor what type of deals the league's most prominent franchises can bring in.


Friday, June 28, 2013

Brand Winners from the 2013 NBA Draft

The morning after the NBA Draft, analysts always pass out their grades for each team. Who made out like bandits? Who struck out big time? Who is the next Lance Stephenson? The next Adam Morrison?

Here I will declare the big winners from last night, but not as far as their roster improvements. Instead, I will touch on the teams and players who gained the most off-the-court from a marketing perspective.

1.) Brooklyn Nets

After last night's blockbuster trade with the Boston Celtics, the Nets became must-see tv. With a starting five of Deron Williams, Joe Johnson, Paul Pierce, Kevin Garnett, and Brook Lopez, Brooklyn now boasts an entire line-up of All-Stars. The Nets should benefit in a huge way, namely via increased ticket sales for the Barclays Center and a boatload of national television games.

The move makes Brooklyn a threat to the Knicks, not only to win the Atlantic Division, but also to win the battle on Madison Avenue. As a reasonable challenger to the Miami Heat in the East, the Nets are suddenly much more appealing to corporate partners.

2.) Tim Hardaway Jr., New York Knicks

With a strong pedigree and a winning background, Tim Hardaway Jr. was very appealing to many NBA teams selecting in the bottom half of the First Round. By landing with the Knicks, Hardaway Jr. becomes an option to replace the talented, but unpredictable, JR Smith. The Michigan alumni is far more reliable and apparently wooed teams with his basketball IQ and winning personality.

The Knicks had just 2 guards under contract for 2013-4, meaning that Hardaway Jr. will have considerable opportunities to make his mark. He will also have the chance to make his mark in the marketing world. With a famous father, the spotlight has always been on Hardaway Jr. In the media capital of the world, this certainly will not change. If he can have some early success on the hardwood, Hardaway Jr's smarts and likeability should make him a strong candidate for some enticing endorsement deals.

3.) Nerlens Noel, Philadelphia 76ers

When Noel announced his intent to enter the 2013 NBA Draft, it appeared very likely that he would become a Cleveland Cavalier. Even if he was passed up, rumors suggested that the Orlando Magic were set on the Kentucky Freshman.

Instead, Noel slipped to the New Orleans Pelicans, who promptly dealt him over to the Philadelphia 76ers. In sports-crazy Philly, Noel will be far more visible than he would have been in Cleveland, Orlando, or New Orleans. Additionally, he will enter with friend Michael Carter-Williams, who will likely help Noel adjust to the NBA.

If Noel is able to rehab from his injury and succeed in his Rookie season, both he and Carter-Williams will receive their fair share of endorsement dollars. Especially on a team desperate for their first true star since Allen Iverson.

4.) Otto Porter, Washington Wizards

As the face of the 2013 Georgetown Hoyas, Otto Porter won over the hearts of DC. This makes his transition to the Washington Wizards simple, as the leap to the NBA should not be nearly as overwhelming for Porter as for some other Rookies.

Since Porter is already a recognizable face and name in DC, his agent is likely already receiving calls for endorsement deals. With fellow youngsters John Wall and Bradley Beal leading the way, Porter should be given every opportunity to succeed. If Porter can be the Wizards' missing piece, which many believe him to be, then his marketing value may skyrocket with the team's first playoffs appearance in years.

The DC sports market has been very welcoming to successful rookies in past years: Bryce Harper, Stephen Strasburg, John Wall, Alex Ovechkin, and Robert Griffin III. If Porter can replicate their success, he will reap the rewards in a big way via marketing dollars.

Thursday, June 27, 2013

Puigmania in the Big Apple

As its annual Mid-Summer Classic draws nearer, the hottest name in Major League Baseball is not Albert Pujols, Justin Verlander, or Miguel Cabrera. It isn't even Anthony Bosch.

Instead, Los Angeles Dodgers' Rookie Right Fielder Yasiel Puig has stolen the hearts of baseball fans everywhere. In less than a month, Puig has become must-see tv --- not only because of his historical numbers, but because of his electric playing style. Problem is, besides those few that subscribe to MLB Extra Innings or live in the Los Angeles Metro Area, not many baseball fans have actually seen Puig play.

Unfortunately for baseball fans everywhere, not to mention Major League Baseball itself, they also may not be able to tune in to see him play in the sport's biggest showcase outside of the World Series.

Since Puig did not make his Major League debut until early June, he was not included on any All-Star Game ballots. As a result, he faces an uphill climb to patrol the Outfield in Citi Field next month. Irregardless of his record-setting start --- 7 Home Run and 34 Hits in just 20 games --- Puig will need fans to write-in his name on their All-Star Game ballots. While his popularity is already skyhigh, this is a tough ask to say the least.

His 2nd option is to be selected by National League Manager Bruce Bochy, who has already expressed some doubt about Puig's credentials. Perhaps Bochy was persuaded by Puig's 3 hits, Home Run, and go-ahead RBI in a win over his San Francisco Giants on Monday. Nevertheless, it is a bit difficult to envision Bochy selecting a Rookie from the rival Dodgers as one of his All-Star picks.

Puig's last chance for inclusion is probably his best shot. With so much to gain from Puig's appearance, Major League Baseball will likely include him as one of their 5 National League players on their "Final Vote" ballot, which asks fans to vote via social media for the player that will fill the final roster spot on each team. The "Final Vote" not surprisingly always turns into a popularity contest, which should favor Puig over other potential candidates such as Paul Goldschmidt, Dexter Fowler, and Gerardo Parra.

Despite Bochy's skepticism, there is little doubt that Puig belongs in New York City next month. In just three weeks, Puig has proven his value as a five-tool player in the big leagues. His bat, legs, and arm have put fear into pitchers, catchers, and baserunners respectively. If Bryce Harper was deserving last year, then Puig's inclusion should be a can of corn this year.

All debate aside, Puig's Mid-Summer Classic appearance would be huge for baseball. For a league so desperate to build-up its All-Star Game that they put World Series Home-Field advantage on the line, Puig's inclusion would draw significant interest from fans, and even more attention from media. And in the world's media capital of the world, no less.

Major League Baseball has its stars in Cabrera, King Felix, and Tulo. It has its stories in Mariano's farewell, Matt Harvey's entry onto the scene, and Chris Davis' power explosion. And yet, just as he has done to the Dodgers' lineup this past month, Yasiel Puig's inclusion in one of its biggest weekends would add another dimension to the MLB's marketing campaign.

I mean, come on, who would dare change the channel when one of the game's most exciting, unpredictable, and talented young players was due up in the 9th against Mariano?

To be clear, Major League Baseball does not just want Yasiel Puig in NYC next month, it needs him there. In a city where Linsanity dominated the headlines for a couple months, Puigmania may prove more than a passing fad.









Wednesday, June 19, 2013

Kia in Rio

The FIFA Confederations Cup, held the year prior to each World Cup in the host country, serves as the perfect rehearsal for the nation’s operational and logistical plans. Transportation, security, and hospitality efforts are all closely examined to determine any flaws. Though the competition is off to a successful beginning, the host committee will have a full calendar year to identify resolutions to any minor issues that may arise.

This year’s competition, which hosts winners of major FIFA tournaments over the prior two years, is being contested in Brazil as a prelude to World Cup 2014. Thanks in large part to ESPN’s live broadcast of every game, as well as the United States’ success in the 2009 tournament, the Confederations Cup has gained quite a bit of popularity worldwide. While the Americans did not qualify for this year’s competition, television ratings are booming as a result of several exciting games, including a memorable bout between Italy and Mexico.

The tournament provides valuable preparation not only for the host committee, the teams, and the broadcast partners; it also enables FIFA sponsors to test their marketing campaigns.

One sponsor that is taking advantage of their presence at the 2013 Confederations Cup is Hyundai-Kia, which serves as the official automotive partner of FIFA. Hyundai-Kia launched their activation in Rio through the Official Vehicle Handover Ceremony, which marked the event’s beginning. At the Ceremony, the brand formally handed over the keys to more than 500 vehicles, which will be used for both ceremonial and operational purposes. These vehicles include the HB20, the Azera, and the Santa Fe, all of which will help FIFA manage all logistics required in hosting a large-scale international event.

Hyundai-Kia believes their FIFA sponsorship aligns well with the values of the company, which ranks Number One globally in Customer Loyalty. Hyundai has activated around collegiate football in the United States as a means to send this same message. Since soccer fans and college football fans represent two of the most passionate fan communities in the world, this makes all too much sense for the brand.

Tuesday, June 18, 2013

Understanding Ones Assets

Fox Sports 1 may be launching on August 17th, but its most important day might not come until February 2014.

Fox executives are smartly utilizing Super Bowl XLVIII as a carrot in enticing brands to advertise with the new sports cable network. According to several reports, the network is promising Fox Sports 1 advertisers the most valuable ad sports within the big game.  By doing so, they are instantly sweetening the new channel’s sales packages.
Though Fox Sports 1 will broadcast several of the country’s most rapidly growing sports, including soccer and UFC, it will not host an event near the magnitude of the Super Bowl. While many brands may have little interest in the network’s broadcasts of collegiate basketball and football, they may forfeit the extra cash in order to maximize exposure on February 2nd, 2014. Making these packages even more appealing is the location of the game; sources report that the asking price for ad space during Super Bowl XLVIII may exceed last year’s estimated $3.75 million due to the game being played in the New York metro area, which represents the world’s largest media market.

To be clear, this strategy is not a new one by any means. It has been used over the past couple years by both NBC and CBS, each of which recently launched their own sports cable networks.
By including Fox Sports 1 in many of their Super Bowl XLVIII sales packages, the network is definitely confirming that its launch is a priority. However, in doing so, they are absolutely taking a risk. The move will undoubtedly generate a bit of hesitation amongst traditional ad buyers. Whether this drives down the price or significantly delays the sales process, it will likely cause a bit of angst among Fox execs.

Another interesting point to watch will be how Fox integrates their new channel into coverage of the event. CBS Sports Network and NBC Sports Network provided relatively little analysis of the games. With their deep roster of analysts, one would expect Fox Sports 1 to be integrated more seamlessly into the pre-game coverage than viewers have previously seen.

Tuesday, June 11, 2013

Faster than a Speeding Bullet

Summer has always been a popular time for blockbuster film releases.

And studio executives have never spared expenses to promote those premieres. A relatively new trend, however, is their propensity to spend big money on sports sponsorship as a promotional vehicle.

The NBA and NHL playoff coverage has seen quite a bit of movie promotion over the past couple years, much of which has been rather inorganic (the dramatic Channing Tatum-narrated “White House Down” trailers during the Heat-Spurs series are not exactly the bestfit.)

However, Warner Brothers has arrived at a much more successful sports partnership with NASCAR’s legendary Hendrick Motorsports. For the second straight year, Dale Earnhardt Jr.’s No. 88 car will be branded with a paint scheme tied to an upcoming superhero movie.

In 2012, Dale Earnhardt Jr. won the Quicken Loans 400, his first Sprint Cup Series victory since 2008, in his “Dark Knight” Chevrolet, which was painted Batman-black. In his 2013 return to Michigan International Speedway, Earnhardt will again race in a car inspired by a Christopher Nolan-directed superhero film. This time, the car will promote that weekend’s release of “Man of Steel,” and will include the Superman “S” on the hood.

The deal, which was fashioned through a tie-in with Earnhardt Jr.’s primary car sponsor, the National Guard, makes a ton of sense for both parties. In a NASCAR world full of superstitious drivers, why wouldn’t Earnhardt Jr. attempt to repeat last year’s Dark Knight success?

From Warner Brothers perspective, the Superman tie-in is quite rational. For one, NASCAR racing is tremendous brand alignment for a superhero that is so often described as all-powerful, and more specifically “Faster than a Speeding Bullet.” Plus, anytime a brand can partner with the world’s most popular driver, it cannot hurt at the box office.


Monday, June 10, 2013

Capitalizing on Naming Rights

In an exciting activation at their newly titled stadium in Carson, California, StubHub is bringing to life their famed Ticket Oak.

The Ticket Oak, which has appeared in the brand’s television advertisements and out-of-home campaigns, is the focal point of a new 1,600 square-foot outdoor space at the stadium. The area includes artificial grass, picket fencing, and lawn chairs, giving the feel of an authentic back yard. The main feature of the space, and the digital Ticket Oak, is the large video wall, which consists of nine flat-screen televisions. Gabby Duno, StubHub’s Senior Manager of Partnerships and Activation, also reports that the video wall will have a social media element, which will enable fans to interact in real-time.

According to the Sports Business Journal, the video and audio content on the digital Ticket Oak is entirely customizable based on the particular event that is taking place. While the screens are the centerpiece of the area, StubHub will also employ real life brand ambassadors to promote the company’s rewards program via iPad minis. There will also be ticket booths set-up in the stadium’s North End Zone.
This activation by StubHub is very exciting because it prevents the brand from making two of the more common mistakes in sports marketing. First, many companies fail to make a direct connection between their advertising campaigns and their marketing tactics that touch consumers. With this activation, StubHub is utilizing their recognizable Ticket Oak as an effective, tangible touchpoint with Stubhub Center attendees.

Secondly, many brands pursue naming rights, without any plan on how to activate against them. The investment on title sponsorship of a stadium should only be one step to connect with consumers. In order to touch attendees, the company needs to customize an experiential campaign that will break through the clutter of other branding opportunities throughout the stadium. By creating this area that is unique, and authentic to StubHub’s brand, the company instantly becomes part of the stadium experience.