Can the NBA teach Global Sports Giants a thing or two?!

The ever-changing landscape of sports engagement with consumers is leaving some major organizations behind, while others are thriving in the new digital era, adapting with innovative ways to connect and interact with fans.

In the realms of sports and music, sponsorships have long been vital sources of revenue for teams, organizations, and artists. Traditionally, these sponsorships focused on brand exposure through branding and apparel. However, a significant shift is occurring as consumer engagement, largely influenced by omnipresent, instant digital and media channels, gains prominence.

For instance, renowned football teams like Chelsea, Roma, and Champions League finalists Inter Milan have faced challenges in securing lucrative front-of-shirt sponsorship revenue in recent months. Meanwhile, rivals like Manchester City have landed (albeit somewhat dubious) deals, such as the ￡67.5 million-per-year sponsorship with Etihad Airways, with Liverpool (￡47.5m with Standard Chartered) and Arsenal (￡40m with Fly Emirates) following suit. This competitive pinch raises questions about the reasons behind the void and the need to adapt to the new landscape.

The digital and media revolution has transformed the way we consume sports and music, with social media, streaming platforms, and online content offering brands fresh opportunities to engage their target audience. Organizations must now understand how to interact and provide consumer-centric marketing solutions for their partners more than ever before.

Merely relying on media numbers and global viewership to justify large sponsorships is no longer enough. Brand programs and engagement need to be strategically outlined, structured, and integrated into marketing plans and commercial interactions by rights holders. This approach fosters shared values and authentic delivery options, catering to an increasingly sophisticated and demanding consumer base.

Chelsea, Inter, Roma and the sports world in general should look across the pond to the home of global basketball for inspiration. The NBA serves as a great example of an organization actively seeking pathways for development. Initiatives like the annual NBA Con (a basketball-themed version of comic con) and the recent European-style soccer summer tournament held in Las Vegas demonstrate their efforts to engage fans. Furthermore, with growing programming around the WNBA and the G League, the NBA is experiencing dynamic growth both nationally and internationally, positioning it to compete with FIFA World Cup numbers if it maintains its steady growth trajectory and ambitious plans.

Although the NFL remains the dominant revenue and media force in the United States and the "round ball" style of football holds global prominence, the NBA is positioning itself for significant progress in consumer engagement, especially with a media rights deal up for discussion in 2025. Consequently, more teams like Chelsea and Inter might find themselves in a more challenging position in the near future if they don’t learn lessons quickly, as the NBA's momentum continues to build.