Still value in the right regional partnerships - 60 Second Sponsorship
60 Second Sponsorship - Insight into the week's major sports sponsorship news, readable in a minute - by Zonal Sports
Still value in the right regional partnerships
This week Arsenal expanded its partnership with BNN Technology, its official lottery partner in China who it first signed in September 2015 under its previous alias DJI Holdings. The key additional element of the new deal is BNN’s right to build a grassroots programme in China - where Arsenal says it has five million followers across local social media platforms - where local coaches will be trained by their Arsenal-qualified peers.
Such a CSR initiative - which works in a similar way to co-branded soccer schools/football camps for kids - is both an effective activation tool for a brand, and attractive in a rights-holder’s international aspirations, engaging with a young demographic in a key market for growth. Many have predicted the end of the regional partner model, but it can certainly still bring great rewards to both parties if done in the right way.
Cash is no longer King
Manchester City followed in Everton’s footsteps this week by signing a strategic partnership with The Open, the annual UK golf major taking place this year at Royal Birkdale in Southport, a town in the north-west of England. The partnership will see both The Open and City produce exclusive crossover content for their digital platforms, the Claret Jug tour stop by Manchester City’s stadium and a merchandise promotion where City fans receive a free blue Open-branded cap when purchasing tickets for the event.
Football clubs in particular are incredibly sales, rights-fee, bottom-line orientated - but deals like this show there is value in more strategic partnerships that aren’t driven by guarantees and up-front money. Cash is no longer king and rights-holders, often in combination if they are non-competitive, can add value to each other and increase their reach to satisfy any number of long-term objectives. Long may it continue.
Brands know form’s only temporary
SA Rugby, the governing body for rugby union in South Africa, signed FlySafair as its official domestic airline partner this week. The deal brings a welcome financial boost to SA Rugby who, according to SportsPro, reported a loss of just under $2 million for the last financial year caused, in part, by former lead sponsor ABSA deciding not to renew its deal at short notice.
You don’t need to be a rugby fan to know they’re going through a challenging phase on the pitch but the South African rugby team is the biggest sports property in the country, with a host of young talent coming through and nearly every major rival international team coming to South Africa in the next few years. All major sports teams go through bad patches but brands like FlySafair who come in now and have a long-term partnership in mind know form is only temporary. Expect more to follow.
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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.