Same old brands, same old offering? - Your 60 Second Sponsorship insight
60 Second Sponsorship - Insight into the week's major sports sponsorship news, readable in a minute - by Zonal Sports
Same old brands, same old offering?
As pointed out by Tim Crow this week, there’s an unprecedented amount of unsold top-tier sports inventory on the UK market at present. Is it Brexit, a sign rights-holders aren’t matching the requirements of brands in a rapidly-transforming sponsorship sector, or is it just an anomaly? The Twitter world, as you’d expect, offered many questions but few answers.
There’s no doubt the measurable objectives of major brands have become more robust, and at a faster pace than rights-holders - particularly football clubs - have been able to offer satisfactory marketing channels, meaning that though the Premier League has huge viewing figures and massive engagement, the sponsorship sell is harder than ever. Owners of clubs and their CEOs need to focus on - and invest in - the right talent, research, data and sales materials to cast the net wider to get results, rather than approach the same old brands with the same old offering.
Established brands carry more than money
“The sportswear space is in a state of flux,” wrote SMG Insight late last year. Nike and adidas, the world’s leading sportswear providers, “are looking over their shoulders” at Under Armour and New Balance and their aggressive growth strategies that involve “wallet-breaking” deals with leading sports teams and athletes. The latest was signed this week as New Balance became the kit supplier of the England cricket team.
Top-tier sports teams are currently in a strong position when tendering their kit supplier rights, as increased competition always means more money, particularly when challenger brands are looking for top partners to showcase their gear. However, many teams have gone - and will continue to go - for a lower rights-fee and partner with a Nike or an adidas purely because their ‘established’ logos have a stronger brand perception and curry more favour with fans, and therefore help sell more replica merchandise.
Uber - it’s not for everyone
New-age taxi company Uber furthered its sports sponsorship portfolio by becoming the ‘official rideshare and transportation partner’ of 27 AEG assets in Europe and the United States, including several sports venues (such as The O2 in London, the Staples Center in Los Angeles and Carson’s StubHub Center) and the LA Kings and LA Galaxy franchises. As part of the deal, designated pick-up and drop-off ‘Uber Zones’ will be created at participating locations.
Though it did sign a partnership with Manchester United earlier this year, Uber is the taxi company - predominantly - of the middle-classes, and therefore not a natural fit for many football clubs in the UK. As such, many clubs - particularly in London - have shied away from Uber as a significant proportion of their fanbase is made up of black cab drivers or their family, while they also work closely with local authorities to promote transport links, meaning they’re keen not to sign deals that create tension in a critical relationship.
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About Us
Zonal Sports is an independent, London-based sports marketing agency with over 10 years’ experience creating, negotiating and activating partnerships for a number of top rights-holders and blue-chip brands.
We pride ourselves on providing clients with a professional and consultative service, building successful, results-driven commercial partnerships using cutting-edge industry knowledge, data, insight and creativity.