Sports Pundit Weekly Newsletter - 9/6

Blackout Tuesday 

Historically, corporate entities - and the athletes they sponsored, have refrained from sharing their thoughts on social and political issues. Michael Jordan once joked about his own reservations to comment on politics, “Republicans buy sneakers, too.” However, in today’s world of social media, the ‘apolitical’ approach no longer fits. Michael Jordan, for instance, just pledged $100m in the fight for racial inequality. 

 In this media-age, companies can no longer fly under the radar. There is no space for vague messaging either. A new survey conducted by the data company Morning Consult found messages expressing support on social media were the least likely to satisfy respondents. Most people want companies to commit resources to help communities recover from unrest and make their own workplaces less racist. 

Companies failing to create a meaningful connection between their words (or black squares on Instagram) and action have been, rightfully, called out – from L’Oreal to the NFL. The Guardian’s Barry Glendenning has called on FIFA and UEFA’s response to the solidarity shown by players with George Floyd to be “more than platitudes”. 

 As the FT states, “Those who go the furthest risk a backlash, but might also profit.” Echoing the thoughts of Liverpool and England full back, Trent Alexander-Arnold, "I hope we are living right now in a moment in history that is massive. I hope this is the moment we see real change, and permanent change. I hope this is the moment we see equality for every race, every gender, everything." 

Just Do It... at home

Over the past few months there has been a surge in downloads of health and fitness apps – up 47% in Q2 from the previous year. Gym closures due to the lockdown have forced people to turn to mobile apps and online tutorials to remain physically and emotionally fit at home. 

 This trend has provided a unique opportunity for brands to create direct connections with their consumers. Nike, for example, has invested heavily in its apps (e.g. Nike Training Club) in recent months to increase engagement among customers. It’s also doubled down on digital content and used its high-profile athlete partnerships. 

The strategy has been particularly effective among women, who have performed two workouts for every one performed by a man – across the Nike apps. Interestingly, this engagement has also driven consumption within the demographic. Nike reported 50% of the women who purchased products in March were first time buyers (and sales were up 40%!). 

At-home workouts are of course not new to apparel brands. Under Armour successfully acquired MyFitnessPal back in 2017. More recently Lululemon invested a reported $34million into the fitness start-up, Mirror. The investment has the potential to assist the athletic-wear brand in creating its own branded fitness app as well in creating digital content. 

The recent statistics delivered from Nike illustrate how profitable this shift could be for the likes of Lululemon. The pandemic has largely accelerated brands efforts to move to D2C. Therefore, it could be expected that other brands will follow soon… Potentially Gymshark? 

LoL's commercial clout is no laughing matter...

Riot Games recently revealed a new in-game digital signage system for League of Legends (LoL) Esports. The organisation has approved advertising space for up to 50 brands to be granted visibility during professional matches on the game.

The move illustrates how esports can learn from traditional sports when improving their commercial offering. The Arena Banners put partners' brands directly onto the field of play - echoing the experience found in major sports stadiums. 

 The in-game ads will promote Riot Games current portfolio of sponsors, including Mastercard and StateFarm. However, the brands won't be visible to the players. Riot has constructed this new feature to be visible only for spectators. This gives the game a fresh way to deliver brand exposure to sponsors while keeping the integrity of the game for its players. 

 Esports have leaned on traditional sports when growing their commercial offering previously. Even in an online world, physical logos are blazed across the front of gamers’ kit. Largely, such moves have been peace-making offerings for corporate boards – who wish to see something tangible. However, the in-game branding is different. Nielsen say it will instantly become one of Riot’s most valuable deliverable assets. 

There is a huge opportunity here for game publishers as well as sponsors that move early. Interest in esports continues to rise. Brands and traditional sports have struggled to reach the Gen-Z audience. But it might just be a play from the traditional sports model that elevates Esports to the next (commercial) level. 

Check out what Pizza Hut did last year 

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Thanks,

Andy