Luke Jenkinson - Thinking like a startup will limit the damage of the Covid-19 crisis

I share some insight here in unprecedented times. These are from past experiences in my 20-plus years in sports business, and sponsorships across sports and entertainment, events, music and culture from Australia to the Nordics and countries in between.

I experienced the global financial crisis in 2008 and as a small agency owner, I was able to start up and develop several verticals as I was able to adapt, innovate and change to rebuild. It took time, and it took a mentality of focus, determination and working differently - when the world serves you lemons, make lemonade.

All around, especially in the sports, events and tourism industry, I see friends’ businesses, associates, partners and competitors all having no choice but to close doors and shut up shop. It’s tragic, to say the least, it’s real, and it’s difficult to control.

I encourage those in sports business to stay locked in, set routines, keep planning, keep talking business, keep your mindset. Stay in the sports business world: be it good or bad, there is so much change happening right now and there will be much to learn and opportunities to ponder.

At the moment, my business partner and I have two rights holder clients in sponsorship strategy, one in sports and the other in corporate events. Their worlds have been turned completely upside down. I haven’t stopped servicing and will now add all of these occurrences in the market to their strategy, for after the dust settles they are going to need our consultancy more than ever. I have also reached out to advise them to consider us as an extra resource in their operations as they need to layoff staff and downsize.

I also have two major international startup projects that will now need to be drastically changed in regards to capital raising rounds, financing, the global partner network and so on. Our time applied here now is more important than ever as we scramble to not only survive, but more so change to turn this into opportunity.

This is the mindset I choose to apply now, what do you choose?

Sports businesses - contractors, freelancers, agencies

As the Covid-19 tsunami gathers momentum in some countries, wreaking havoc while leaving devastation and destruction, the tide for sponsorship has quickly withdrawn, taking everything with it. It has left uncertainty as to when the tide will return, and questions about what the next tide will bring. What will it look like? Will there be any waves we can ride, and how do we prepare?

The answer is, fortunately, the tide turns. It always has, it absolutely returns, and with it will come waves of opportunity. It’s the brave, the smart, the clever and mentally strong, determined businesses in sports who are ultimately willing to adapt that will bounce back bigger than ever.

During the 2008 global financial crisis, one quote that always struck me the most in sports business, and which I think about in times like this, was: "It is not the strongest of the species that survives, but rather, that which is most adaptable to change.”

In Norway, where the country is in complete lockdown, we already see finance brands adapting to the situation, using their advertising and marcomms understanding of their customers and clients to send messages of support and togetherness.

There are already businesses out there that have adapted and made the mental switch to change: to change their attitude, to change messages, to switch platforms... They are already innovating, staying locked in, offering new services and products in light of these dark times. 

LV are making antibac and sanitiser rather than luxury perfume lines; Nike are encouraging everyone to play inside and online against their top athletes. And there are many more examples.

Rights holders - events, teams, leagues

Fans will be longing for their sports, their passions are not lost nor tested. They are absolutely burning inside while the shock of the situation and current hysteria takes a temporary existence. They are sitting waiting impatiently for the return, locked and loaded to again swarm to stadiums to see their favourite heroes perform and entertain.

Absence makes the heart grow fonder. There will be a huge wave of fans coming back to stadiums, to festivals, to events... Everyone is longing for a sense of normality, and after isolation, for a sense of community - and we all know sport provides just this.

An escape from what’s happening in the real world and the chance to immerse themselves in the sights, sounds, smells and feelings that sport provides. Perhaps new fans will also come of this lockdown seeking new ways to find community and an escape from bad news. But don’t wait! 

Engage with your fans and supporters now. Be with them, offer them entertainment, recognise their pain and give them an escape, galvanise their support.

Brands and sponsors will be ready to return: when, we don’t know, but they will always want to engage with fans through sports and sponsorship. They will need to be where their customers and consumers are most passionate, just perhaps now in different way, be it more smarter, clever and more sensitive to society.

Rights holders must be sensitive to timings, be sensitive to changes in the market and, in particular, segments that have or have not weathered the storm during these times. For example, tourism, travel, airlines, hotel industries are not going to be in a strong position to consider investing in high-level sponsorship rights, where better targeted categories for investment in sponsorship will be aligned to food stores, online shopping brands, health insurance, technologies.

Sponsors and brands

Strong messages that will be surely heard in the wake of Covid-19 will be those of togetherness, community, stronger as one, and others... and this is what sport is built on.

Sport brings communities together, people from the same street, the same neighbourhood, the same country, and from around the world supporting the same team, the same athletes. Now those players and athletes have something in common, they have shared these same experiences as everyone else, there is connection.

We now see digital platforms and social media as a tool to consume our favourite teams, sports stars, artists and celebrities, to recognise the world is a society and not an economy, that we are all only human, people who have now begun to reach out in their community to offer some normality, to connect and engage.

If you are in a position to be creative, use these times as an opportunity to connect with your community. People are emotional, sensitive and vulnerable, and in need of positive messages.