Sponsorship Snacks

Week 2

“A crisis is a terrible thing to waste,”

As Stanford economist Paul Romer once stated. A.S.I thought it was a good idea to start a company. Have a look at our founding story here. TikTok seemed to listen, too:

News

• We can mark the first month of TikTok surpassing Facebook in the number of hours spent per user (per month).
• Takeaways: A new sponsorship activation King is here.
• According to Interband’s Best, Global Brands saw a 57% decline in value (vs 29% decline in 2019).
• When it comes to franchise valuation in professional sports, winning doesn’t always matter — location does.
• For the first time in more than two decades, the average NBA franchise valuation declined year-over-year — now worth $2.4 billion, a 2% decline.
• The most buzzing sponsorship on the market: Japanese tennis star Naomi Osaka has become a brand ambassador for luxury Swiss watch brand Tag Heuer. Oh, last week she signed a seven-figure’ deal with Louis Vuitton.
• A Packers-Chiefs Super Bowl Would Be the Dream Matchup… for the Insurance company State Farm sponsoring both Quarterbacks. Let’s call this an extra boost for its sponsorships :-)
• Goodbye Super League: FIFA president Gianni Infantino does not like the idea of a ‘rival’ league and threatens to ban players from World Cup and other international competitions if they compete in any European ‘super league’ (Source).
• Last week we spoke about real estate firms joining the sponsorship industry. This week its ‘fintech’ firms eying sport-sponsorships. While many industries suffer from the impact of the pandemic, fin-tech firms continue to grow. Online broker Flatex has just closed a deal with Borussia Mönchengladbach. The three-year deal costs the broker about eight million euros. More here.
• Fortnite stays hot: Starting from 23rd January, Fortnite players will be able to choose from ten different variants of new ‘Kickoff Set’ outfits designed for the 23 participating clubs, which include Juventus, Inter, AC Milan, and Manchester City. A win-win for all parties because both (Fortnite and Football cubs) gain access to new target groups.
• Face value & new sponsorship: Major League Soccer (MLS) is giving its clubs the opportunity to have sponsors for player face masks during the upcoming 2021 season. We wonder how long these contracts are for?
• Anyway, plenty of other leagues carving out new sponsorship opportunities, too, including the NBA and NHL.
• Takeaway: Some traditional sponsors are not amused. Saturation must be taken seriously. Still, sports teams try to compensate for lost revenue due to the pandemic — sponsorship is some of the last resources.

Food For Thought

LeBron James ended his longstanding partnership with Coca-Cola to sign an endorsement deal with rival soft drinks brand Pepsi.

• After 18 years endorsing Coca-Cola (think: Sprite and Powerade brands), how long until customers will realize this switch?
• How much larger will Pepsi’s initial investment need to be?
• Is unaided brand awareness still a key KPI?

Case Studies

First up: The Most Innovative Teams.

A study by Sport Innovation Lab crowns Man City, Real Madrid, Arsenal FC:

Their measurement approach:

1. Making a strong push to own first-party data about their fans. Owning an OTT or digital platform is a powerful asset.
2. Diversifying products and media by making strong commitments to women’s, esports, and youth properties.
3. Aligning with dominant global tech companies to drive scale into new products and services. Beyond press releases, we look for who has long-term partnerships with the tech giants.
4. Developing venues beyond game day so fans have more reasons to come and stay.
5. Staying close to emerging tech through VC funds and accelerator programs and giving fans novel ownership opportunities with blockchain tech.

For more expert insights into sponsorship data & analytics visit us on Advanced Sponsorship Insights.