Sponsorship Essentials Part 5: Q&A w/ Jason Smith, VP of Corporate Sponsorships & Events at Mountain America Credit Union

By: Claire Lingley 

Jason Smith is the VP of Corporate Sponsorships & Events at Mountain America Credit Union, a Utah-based credit union that is making big waves in the sponsorship industry.  In this week’s edition of “Sponsorship Essentials” he speaks towards his experiences on both the property and corporate sides, the assets that a company should fight for to have a successful sponsorship, and the skills that have gotten him to where he is today.

Q:  You made the transition from the property side, being with BYU and IMG and the like, to the corporate side with Mountain America Credit Union.  Did you find it was an easy transition? 

A:  The transition has been interesting, and it’s been a matter of trying to understand the products and services.  That was especially true right when I came on board, but now I’ve been doing this for a while so I can speak to it very well. 

Overall, it’s been really fun to see both sides of the fence: the property vs. the corporate side. Both sides are focused on helping the company achieve certain marketing goals, but the overall business models are different.  On the property side you’re focusing on new companies to bring onto the property through sales efforts, etc. On the corporate side, working for a credit union for example, you have to understand different products and services, like checking and savings accounts, loans, and you have to understand how you can be successful with your sponsorship assets with the company as it relates to the sponsorship.  On the corporate side, you’re really focused on how you build the business through the sponsorship, rather than on the property side, you’re thinking, how can we add more revenue to the property through sponsorships?

My mindset has changed a little bit with the transition, but ultimately the goal of both sides should be to make sure the sponsorship is successful for the company.

Q: Can you give me one thing you’ve learned sitting on the corporate side, and one thing you’ve learned on the property side?

“That universe that we live in is small, and everyone talks.  It’s important to do what you say you’re going to do. ”

A:  On the corporate side, you’ve got an overall marketing strategy, however what may be the right marketing mix or asset mix in one area or region or state, may not be the same mix in another.  You have to be flexible in your sponsorships.  That being said, you do have to be consistent and have the right brand, and focus on the overall marketing strategy, but whereas you maybe focused on more branding in one market, you may be more focused on more activation in another market. The corporate side taught me that flexibility is key.

On the property side, there are two main things I have learned:

The first is relationships. The most effective way to be successful on the property side is to ensure you’re building the best relationships that you can, because they are the bloodline of your success.

The second is fulfillment.  I don’t think that gets talked about too much in sponsorship.  Properties that just focus on signing an agreement to hit the numbers, and who don’t really worry about the assets that were promised to be fulfilled, those are the properties and the individuals that wont be very successful.  There’s an element of integrity that must be given to make sure the assets are effective for a company.  When you show that integrity, you’re able to retain clients, maybe even increase their spending.

The sponsorship world is a very niche world, as we know; that universe that we live in is small, and everyone talks.  It’s important to do what you say you’re going to do.  If you’ve built a great relationship with someone, and you’re doing an amazing job on the fulfilment of what you’ve promised, then you’re going to be very successful on the property side.

Q:  In terms of credit unions as a whole, why do you think there’s been such large-scale growth in business over the last decade? And where do you see credit unions headed in the future?

“The future is bright for credit unions. ”

A:  People love the personal and community feel of credit unions.  We are doing a lot of good in the communities, and I think people are starting to recognize that. One thing we focus on at Mountain America is helping members achieve their financial dreams.  That’s our vision.  When a whole company garners that vision and has the same goal, you see a lot of really amazing things happen.   We’re not for profit, and we are created to serve and help people save money.  By helping the members save money, our members are able to put that money back into the community.  That’s why you’ve seen that growth because of what and how a credit union can influence the community.  We are able to help our members, enable them to save money, and help them truly achieve their financial dreams. 

As far as where they are headed, credit unions really have to maintain growth.  That growth is needed to provide the best rates, the best technology, the best products and services, and ultimately the best member experience that we can.  The overall credit union philosophy is people helping people.  We talk about that a lot here at Mountain America. We are the number one credit union in the western region, and number two nationally for business share accounts. We provide a vital role in helping the economy grow through what we do for our members.  The future is bright for credit unions. 

Q:  What would you say are the three most fundamental sponsorship assets that you look for when procuring sponsorship?

A:  #1 would be Media. Traditional media helps support a lot of the sponsorship assets, so making sure (if it’s available), that we have radio, TV, and some of those traditional media outlets is necessary because those are the elements that really help drive traffic.

#2 would be Assets with Repetitive Exposure.  In the world of sponsorships you have to separate yourself from the rest of the noise, and in some cases, there’s a lot of noise.  You have to make the decision, is there so much noise that maybe we shouldn’t even be there? But in order to stand out, it’s important to have consistent repetition of the brand.  You need to tie your name to something that repeats throughout the event that has a positive connotation to it, something that people can latch onto.

And really, the #3 most fundamental asset I look for is some sort of Community Outreach Program.  If you link a sponsorship with a cause, that makes it that much more powerful.  For example, with our Utah Jazz Sponsorship, we sponsor all the three-pointers: For every three-pointer that the Utah Jazz makes, we donate $50 to the Huntsmen Cancer Foundation.  With that you have a repetitive feature that’s tied in with a cause.  The fans see your brand consistently, and they have a positive association with it because you’re giving back to cancer research.  It helps tie your brand in with the community and really shines a positive light onto what you’re doing as a sponsor.

Q:  What is a sponsorship asset that would be a deal-breaker if you couldn’t include it within a sponsorship deal you were negotiating?

 A:  It would have to be ownership or an element with exclusivity. This goes back to what I was talking about before, with the increase in property numbers to hit.  There’s more and more sponsors, and the clutter can get higher and higher, and you have to be able to carve out at least some elements of exclusivity to separate yourself. Even if it’s not a full exclusivity, you definitely want to create some sort of type of ownership with your assets that you don’t have to necessarily share with someone else.  Make sure you have that separation.

That being said, some of the properties are going to want to split things up.  For example, if there’s 4 quarters of basketball and there’s replay sponsors, a lot of properties will separate it and say, “Okay, 4 separate replay sponsors”.  The more you can say, “No, I want to be the replay for the whole time, “ the better.

You have to really try and find those types of elements where you can carve out your exclusivity and own it.

Q:  Obviously, one of the reasons you’ve gotten to where you are today is because of your skills in negotiating.   What is the one piece of advice you would offer someone who is stepping foot into that boardroom?
 

A:  You have to do all your homework beforehand so you can be educated going into the discussion.  If you haven’t done your homework on what’s being discussed, then you’re really at a huge disadvantage.

“You don’t have to create things, you don’t have to make things up, you just have to use the truth. ”

The most important principle in negotiation is using the facts.  Being educated with the facts is, as I like to call it, your sword and your shield in negotiation.  Your sword, because you can use the facts to justify additional assets, and your shield, because you can explain and defend a fair and reasonable investment.

You don’t have to create things, you don’t have to make things up, you just have to use the truth.  The facts will always help you in negotiation.  It’s always been that way for me.  It takes a little bit more time and effort beforehand going into a negotiation to really get all your facts straight, but if you understand all the facts of the situation you will be so empowered to be able to negotiate effectively.

Q:  What is the greatest piece of advice you’ve ever received?

A:  I had a church leader tell me once that if you are kind to others, then any negative efforts towards you will be disarmed.  Treating people with respect and having integrity is probably the most important quality you can have in any business.  That’s really the greatest piece of advice that I’ve ever received from someone.

Q:  A lot of people have room to take that to heart, I imagine.  Lastly, what skills have been the most valuable in getting you where you are today?

A:  That is a good question.  The successes that I’ve been able to have are because I have been able to build strong relationships with people.  People like to do business with people they like, and being able to connect with others has always been a strength of mine.  It takes work and it takes effort.  You have to reach out and ask questions to people. You have to try and find out about who people are and also care about who they are.  It can’t be fake, you have to be real and genuine about it.  That’s the most valuable skill that I’ve been able to develop, just being able to connect with people.

There was a time where I wasn’t as outgoing as I am today.  It just takes having uncomfortable conversations and stretching yourself a little bit and then it becomes easier and easier.  Now, building those relationships is what matters most to me, and it is the thing I look forward to the most.

5 Quick Q’s

Favourite sport to watch?

College Football

Favourite sport to play?

Basketball

What was the last book you read?

The Greatest Salesman in the World

How do you take your coffee?

I don’t drink coffee.

What 2 things would you want if you were stranded on a tropical island?

That is a tough one, I would want to be able to watch sports, and I want to make sure… well… I should probably flip flop those around!

I want to have my family with me, and I want to be able to watch sports!

Sponsorship Essentials: Q&A w/ Thomas Wills, CEO of BWA

By: Claire Lingley 

Thomas Wills is the President and CEO of Bonham/Wills & Associates.  By 30, he was heading up one of the bigger players in the sponsorship, valuation, and negotiating world.  Today, in part one in our series, "Sponsorship Essentials", he sits down with us and lends us valuable insight into the sponsorship and naming rights industry, (all done in 10 minutes or less).  

Q:  How did you get into this business?

A:  Out of university I had the unique opportunity to work with an industry professional, that being Dean Bonham, who has been a titan in the naming rights world for the last 30 years.   He brought me on to work on 2 projects, one of which being a project in Ottawa and the other with the University of Pittsburgh.  And really, it just grew organically from there.  Although my background was medical sciences, I was able to use a lot of the process information that I learnt during my studies in our valuation and analysis system.

Q:  Any advice for someone trying to enter the business?

A:  Know your market, and understand that it is a business and that it is not just sports.  A lot of people enter the sports industry with the idea they are going to be working in player personnel.  At the end of the day, that is not the case.  This is marketing, this is sales, this is a business.

Q:  BWA specializes in negotiations, any tips for when you’re entering the room?

A:  Listen.

Q:  Anything else?

A:  Keep listening!  Also, it is key to understand from the onset of any negotiation that the most successful negotiation is one in which both parties leave satisfied.  You will not have continued success in this industry if you try to have one over on the opposing party.  Finding the best, fair, and most creative solution is always the goal. 

Q:  Where do you see naming rights going in the next 5 years?

A:  In 2013, we predicted that naming rights were going to spike in 2018 through 2022.  We still believe this.  And now we have a prediction that naming rights are going to continue to move out of the traditional sports and entertainment venues, and into more cultural and municipal properties. Furthermore, collegiate naming rights are going to increase, with brands expanding their reach with full-bodied packages that interact with students, fans, alumni, etc., enhancing fan experience and further assisting corporations in growing their revenue.  The days of just throwing a corporation's name on the side of the building will soon be behind us.  

Q:  Any inside scoops on untapped markets?  You mentioned cultural and municipal properties, what’s one type of property that you think would be great for naming rights and hasn’t been discovered yet?

A:  I think transit systems are going to peak.  People use these systems every day, and there is a lot of room and potential for naming rights within that industry to grow and expand.  I think corporations are going to integrate their technology and enhance the experience of users on a day-to-day basis, which will in turn drive sales and revenue for that corporation.

Q:  What’s the best piece of advice you’ve ever received?

A:  There’s a saying out there, and I’m not sure how it goes, but I’m a true believer that success is 90% about luck.  The more I work, and the harder I work, the more luck I seem to have. 

Q:  Last question, statement tie or statement socks?

A:  Statement socks.

Corporate Sponsorship and School Districts

For years, all across North America, we have seen school district funding fluctuate with the economy.  Loss of programs, overcrowded class rooms and outdated facilities have been just a few of the issues many districts have been facing.  In the early 2000’s, we really stared to see a trend taking off.  The success found for both corporations and school districts through sponsorship has continued to propel like-minded groups to follow suit.  

In the past many have looked at these types of partnerships with skepticism, most worrying about oversaturating our schools with corporate initiatives. As these relationships have become more popular, we have seen a drastic shift in perspective and with this shift has come a rapid increase in benefits for both parties involved and their surrounding communities. 

One of the trendsetting districts to increase revenue through corporate partnerships was a school district in Indiana. “The nonprofit Penn-Harris-Madison Education Foundation has signed deals that will bring the school district, which includes 11 public high schools in Northern Indiana, more than $600,000 in added revenue in the coming years. The district sold off the naming rights to football stadiums, baseball fields and even a music room”. (Chicago Tribune)

There is an undisputable increase in visibility for corporations within this industry and in turn a massive increased local customer base. The ability to tailor involvement and specifically target demographics, corporations are creating new exposure elements implementing more activation, and in turn maximizing brand awareness of products and services. Additionally, the corporation also gets real chance to make a difference by committing much needed funding to help enhance the community in which they serve. 

Back in 2004 Judith Thomas, marketing director for the National Federation of State High School Associations stated: “Corporate involvement at the high school level is about to explode nationwide. It is an unlimited, untapped market and it is in places companies often can’t easily reach (” Pennington”).

 In 2005 When Safeway donated $50,000 to a San Francisco School District after around 200 teachers were laid off, their Public Affairs manager Teena Massingill stated: “Giving back to the community is a pleasure and a responsibility,” (McCollum”).

A lot of times, when partnering with a school district the exposure will extend throughout the high school campus parks and facilities increasing the ability to reach every resident within the district. This creates a real win-win opportunity for quick return on investment.  Beyond the benefits listed above, corporate partners truly get a chance to make a difference by benefiting not only the community but also the students through the creation of scholarships, mentoring programs and increased fundraising efforts/opportunities.  Residence of the community (consumers) will take all of these elements into account when forming opinions about corporate sponsors.

For example, Sweetwater Union High School District, in the San Diego area, has made sponsorship contracts with nearly 300 national and local businesses. This money has gone directly into their sports programs, specifically creating freshman teams and allowed for intramural teams to develop at the middle school level, (“McCollum”).

Moving forward we hope to see this industry trend continue to grow alongside the communities they reside in.

When Sponsors Go Rogue

In our last post, we examined a few instances of brands dealing with the fallout emerging from their sponsored properties falling on the wrong side of law and/or public opinion. This time, let’s take a look at the other side and see what properties do when the brand that’s sponsoring them meets the same fate. 

Northern Rock was the jersey sponsor for Newcastle United from 2003 to 2012. In 2007 the bank had to be bailed out by the UK government after the sub-prime mortgage crisis, the aftermath of which led many to question the ethics of such financial institutions spending public money on sponsorships. The outcry was heightened further when the bank spent £10 million to renew the deal in 2010. The backlash did hurt some of the PR surrounding the club, which at the time was not finding great amounts of success on the pitch. When the bank finally decided to end the deal, the club was left looking for sponsors within a very short time frame considering that jerseys for the new season had to go into manufacturing.

The case with Manchester United was not very different when they had to wear the AIG logo on shirt for an entire season, despite the bank’s reputation suffering massive blows due to the multiple bailouts it was handed by the US government.

Closer to home, NASCAR had to state that they needed more oversight into sponsor selection when the NRA was announced as the naming rights partner for the Sprint Cup event. While the political aspect of this deal is something that we as a sports marketing firm cannot comment on, the fact that the deal was announced mere days after the Sandy Hook massacre was a definite blunder for all parties.

While these incidents demonstrate that sponsor selection can sometimes lead to unhappy fans, sports properties and teams also need to make sure they are financially viable, which thus requires them to often handle situations such as these delicately. The best way to navigate such proverbial minefields is to know and build relationships with their consumers, or in this case, fans. Keeping an active dialogue with the fan community and conducting research are two ways that will help keep fans updated and will give the property enough time to craft their justification for controversial sponsorship decisions.

Surviving a Sports Scandal: Brand Lessons from Past Incidents

Ryan Lochte being dropped by four of his major sponsors makes him the latest in a string of high profile athletes and bodies that have seen premature ends to their sponsorship agreements. Today’s post analyzes some of the incidents from the recent past and looks at some strategies that brands can employ in order to mitigate the damage arising from transgressions from their endorsers.

Starting with the latest story, we at BWA are of the opinion that Speedo’s reaction to the Ryan Lochte controversy was a mastercalss in damage control. Not only did they swiftly drop the swimmer off their roster, they also donated $50,000 of his fee towards the welfare of young children in Brazil. Their quick action helped insulate the brand from any bad PR that might have reached them through the athlete’s off-field antics.

The same can be said about Nike terminating their relationship with Manny Pacquiao for his homophobic comments or for Adidas and Nestle ending their support for the IAAF in response to the doping controversy. By doing this quickly, both brands were able to ensure that consumers all over the world understood what they stood for and how their values do not condone such wrongdoings.

That being said, there have been cases in the past where brands weren’t as trigger happy in breaking up with the endorser in question and in a lot of cases that has had a lot to do with the extent of the offence that was committed. For example, Nike re-signed Michael Vick in 2011 after dropping him when the animal cruelty charges came up. Similarly, Nike has currently suspended, and not ended, its relationship with Maria Sharapova thanks to her suspension with regards to taking performance-enhancing drugs. This demonstrates that the brand does believe that while the tennis player’s actions were unlawful, it also believes in the athlete’s honesty in her statement that her taking the drug was indeed a mistake. Furthermore, brands such as Adidas and Visa put out strong statements with regards to news about the financial irregularities at FIFA. 

When one dives deeper into the reasons by which brands seem to evaluate their damage control strategies, patterns do seem to emerge. For example, Nike dropped Lance Armstrong when he confessed to taking performance-enhancing drugs, however, both Tiger Woods and Wayne Rooney got off easier (with the former experiencing his fee getting halved) when details of their infidelity emerged. This goes to show that the level of offences and whether they are committed on or off the field matters to most brands. 

Another criteria for evaluating a brand’s position in the face of controversy can be looked at by observing the brand’s values. This would explain why Kellog’s did not renew their relationship with Michael Phelps when a picture of him smoking Marijuana emerged back in 2009. However, during that period, Speedo decided to continue their association with Phelps, going to show that a relatively harmless, one time lapse isn’t considered as bad as a one time lapse that almost causes an international incident and tarnishes a country’s reputation.

Perhaps the most the most interesting example comes from Adidas who sponsor FC Barcelona striker Luis Suarez. In last year’s ‘There Will Be Haters’ campaign they referenced the biting incidents that Suarez has had over the years and said that people will always have a dislike for players of his caliber and there will always be some level of name-calling involved. In stark contrast to Adidas’ reaction, one of Suarez’s other sponsors ended his endorsement deal right after his 2014 world cup episode. 

With that, here are some strategies that brands can employ to make sure that they can emerge somewhat unscathed from the situations caused by their endorsers -  

•    Check for brand fit – This means that brands should conduct a thorough examination of the endorser in question, including any past behaviours that might cause backlash with consumers
•    Act Fast – Today’s world is one that requires instant gratification, news travels fast and consumers will look for the brand’s statement as soon as an occurrence is reported. Brands always need to have a say on the matter, even if it means telling consumers “We’re looking into it”.
•    Have an ironclad contract – A contract should be one that includes a moral dilemmas clause, a suspension clause and should not contain front loaded payments. On the other hand, they should have payouts over years and have financial liquidation measures in case the endorser defaults on any commitments.  

Value of Big Data Analytics

The first companies to experiment with Big Data are household names within the e-com world. Initially small scale projects were developed by the likes of Google, LinkedIn and E-Bay to improve analytic models on a trial basis. They used these trials to identify how and if they could make improvements based on introducing new data sources. Since the beginning, there has been backlash questioning ethics, but over the last decade this type of data collecting has become increasingly popular and gained mainstream acceptance among all sorts of companies and organisations worldwide. 

Data collection, whether it be during a sporting event at a venue, at a train station, a local Wifi spot, coffee shop, convention, airport, museum… ( the list can truly go on) there are markets that can benefit from this data. Anywhere a consumer is using a Wifi system, there is an underlying opportunity. Because of the massive growth within this industry we have followed the success of Big Data companies such as Hadoop.  This is an extension of Apache Software, it was launched only 4 years ago but is a clear front runner within the Big Data world.  Hadoop splits files into large blocks and distributes them across nodes in a cluster. To process data, Hadoop transfers package code for nodes to process in parallel based on the data that needs to be processed. Packages are then processed efficiently and the appropriate data distributed to their customers. Cost reduction is a large benefit across the board for companies that choose to align with this type of large software and data distribution. Some examples of popular companies who have partnered with the Hadoop are Wells Fargo and Citi Bank, to name a few.

Another benefit these companies have seen through Hadoop, is that decision making has become more accurate and efficient. Tom Davenport the llA Director of Research, Harvard professor and Senior Adviser to Deloitte Analytics has conducted many studies in the field. Case study below.
“Caesars, a leading gaming company that has long embraced analytics, is now embracing big data analytics for faster decisions. The company has data about its customers from its Total Rewards loyalty program, web click-streams, and real-time play in slot machines. It has traditionally used all those data sources to understand customers, but it has been difficult to integrate and act on them in real time, while the customer is still playing at a slot machine or in the resort.
Caesars has found that if a new customer to its loyalty program has a run of bad luck at the slots, it’s likely that customer will never come back. But if it can present, say, a free meal coupon to that customer while he’s still at the slot machine, he is much more likely to return to the casino later. The key, however, is to do the necessary analysis in real time and present the offer before the customer turns away in disgust with his luck and the machines at which he’s been playing.
In pursuit of this objective, Caesars has acquired Hadoop clusters and commercial analytics software. It has also added some data scientists to its analytics group.” – Tom Davenport Study
This type of data use and results can vary according to the type of organisation, business model and general needs of the company collecting the data.

Another proven benefit of Big Data collecting is that it helps organisations come up with new products and services for consumers.  Companies like Horizon communications who provide high end Wifi systems for stadiums and large venues around the world, now additionally provide customers with a new offering called Captivate. This system offers a way to utilise mobile device data at any location it is installed. To partner with a company like this at a venue you gain multiple levels of data. Even advertisement through the Wifi/Captivate system provides a huge opportunity to corporations and venues alike. 

Companies all around the world have now been utilising this Big Data opportunity to their advantage and this movement continues to build momentum.  As we adjust our focus to this wave of new information, there is no doubt that the potential will only continue to rise. This will continue to effect business on a multitude of levels and speed up the pace in which many have been trying to keep up with for years. We look forward to the continued rise and evolution of Big Data and the innovative ways we can all grow with this trend.

The Olympic Advertising Platform #BeTheFastest

Marketers have been using sporting events to advertise as long as a television has been in living rooms around the world.  There are more and more events going on every year, providing a great platform for this continued practice.  One of the most coveted events on a global scale is of coarse one of the oldest and only takes place every 4 years, thus creating even more anticipation and excitement leading up with a big count down.  The 2016 Olympic Games.

Marketers worldwide have a chance to use this global build up to their advantage when it comes to advertising.  With 207 countries participating this year and 306 events to take place imagine the multiplications included when it comes to calculating global reach for brands that will be advertising during and leading up the event.  

Emotional connection when creating an advertisement has become increasingly important. As the public consumption has reached an all-time high,  the subconscious has adapted to blocking out many forms of advertising to the point where brand recognition is comparable to breathing for our younger generations.  How often do we really remember the advertisements that we see? What captivates us? Innovation and emotion are the 2 main factors we recognise in Virgin Media's, Usain Bolt add #BeTheFastest below. 

This advertisement uses emotions, excitement, pop culture and pure heart to capture the audience. This is a tastefully done advertisement because as you can see, it is impossible to decipher what brand it is actually for until the very last frame. The audience is captivated by each 9.58 second interval, they do not want to look away, it is so eloquently put together that most would not even realise that it is indeed an advertisement at all.  We recognise and commend Virgin Media on this successful campaign #BeTheFastest. Comment below and let us know your thoughts!

Corporate Sponsorship of Municipal Properties

Over the years, municipal and public facilities such as parks, beaches and sporting facilities have witnessed a decline in government funding which as a result has led to difficulties in conducting maintenance and upkeep.

In order to combat this, properties have historically looked towards donors and more recently, corporate sponsors. This brings up an interesting debate about over-corporatization, with commentators on both sides of the fence making their opinions heard, including prominent personalities like Bill Maher in this video. 

Now, while we won’t comment on the political aspect of this debate (we’re a marketing firm!) what we can comment on is public perception on this issue and how facilities can pursue corporate sponsorship whilst shielding citizens from overt and intrusive branding. On the other side, we think that corporations can benefit immensely from this practice and can increase their presence amongst consumers without being invasive. If done correctly, it can be a win-win for both sides and will keep the general public happy.

To begin with, let us begin be examining how public attitudes towards sponsorship of park facilities has changed. In 2014, IEG published results from a research study conducted by Virginia’s Fairfax county park authority. The key takeaways from the study included perceptions on the kid of facilities that should pursue sponsorship and the overall levels of support/opposition to facilities pursing sponsorship. They are listed as under – 

• Support for sponsorship is high and has increased over the years
• That being said, there are still concerns over commercialization
•  Pursuing sponsorship and Naming Rights deals is considered acceptable depending upon the type of venue/facility 
• Coupons and special offers for park users and logos on publications are appropriate forms of sponsorship activities
•  Of course, the industry categories that are considered appropriate also differ with regards to the type of property. In the case of parks, sporting goods and home and garden categories were considered most appropriate
•  People are for sponsorships if it is eased into and is done tastefully

Although, this study was done on a small scale, the results do show promising signs for corporations. Although tasteful and understated execution of activities may not provide corporations with the same high profile that they receive from sponsoring, lets say a major stadium, what it does provide is a boost in local presence and an unobstructed share of mind, which can prove to be valuable.

As far as the park authorities are concerned, it will help inject much needed funds in a system that, as analysts predict, currently needs $12 billion dollars (in the USA alone) worth of repairs across the board. It doesn’t help that the US Congress set an annual budget of only $2.85 billion this year. While facilities may not be able to raise such high levels of cash from sponsors, it will be a start. They also need to make sure that activation is done right. For example, by putting up North Face branded trail markers in some parks, Virginia is showing how it can be done.

So what is our verdict? We feel that the hyperbole around inappropriate sponsors is a little unjustified and parks and municipal facilities can pursue sponsorship in a successful, yet tasteful way.

BWA has worked with and continues to work with numerous municipal properties in order to help them achieve their sponsorship goals.

Technology Game Changers

We have seen many new industry trends based on rapid technological advances over the last few years. One of the trends the team at BWA has been following through 2015 has been wearable technologies and real- time alalytics.  Over the last few years, leagues have really committed to being a part of the growing trend.   

NBA has partnered with Sport VU.  SVU is a high tech camera system, most commonly hung from above the court, that collects data.  The unique twist to this cutting edge camera system is that it collects data at a rate of 25 times per second, simultaneously following the ball and every player on the court. Sport VU has been installing their system in all NBA arenas since 2013. 

A front runner within the wearable side of technologies is Catapult.  It has been a breakthrough company with major investors like Mark Cuban, and multinational brands Adidas, Reebok and Nike. This micro-sensor (essentially) is currently utilised by over 300 teams around the globe and it provides a more analytical perspective in “real-time”.  When partnered with the visual assistance such as Sport VU. This allows sports scientists access to a full breakdown of the game,  player performance, coordination and a series of algorithms quantifying player interactions generated by the raw data. 

Another company to watch for is Cityzen., who develop smart sportswear such as the sensor-embedded “D-Shirt”.  This phenomenal “Smart Sensing Technology” has been utilised during practice, and has proven to be one of the pioneering garments within this new wave of technology.  This shirt contains textile embedded sensors measuring activity, heart rate respiration posture and more, truly living up to its reputation of being the “textile of the future”.

In 2016 we have a keen eye on whether this rapid data collecting and wearable's  will translate smoothly from training purposes and move toward other subsidiaries of the industry that may benefit from this type of “real time” data.  

Looking heavily at the stats for TV/sports coverage as well as more accurate data for the betting fans, it will surely be a matter of time before the correct deals and agreements are in place allowing extended outlets to capitalise on this new trend.  The benefit from having these stats on hand every second of the game would surely foster more accurate predictions for betters and sports casters alike. Alternative media as well as sponsors may also make a bid for selective data collection that will enhance exposure and fan experience.

Usually, we watch new technologies utilised by a team or league to enhance productivity and conduct sports science studies first. Commonly after this phase, the trend will trickle down to sub categories within the industry. We are looking forward to watching the direction the sports and entertainment world will embrace this cutting edge technology readily available today.

Meeting in the Middle

In sponsorship, no great partnership comes full circle without a very important contract. How do corporations and properties come to the terms of agreement?  

Negotiation

The Negotiation phase is one of the most critical stages when forming a successful partnership.  When you think of the meaning behind Negotiation, some may tend to lean towards the idea of a “win/loose” outcome.  This idea may indeed be relevant in the real estate market, automotive sales or company buyouts/takeovers. But when it comes to creating a long term partnership within the sponsorship realm, no matter what side of the table you are sitting on, it is imperative that the “negotiation process” is a discussion utilized to build the strong foundation needed to support the relationship for years to come.  Unlike buying a car, once the deal is made, in order for both parties to benefit, everyone needs to be moving in the same direction.  Each party is trying to gain and add value symbiotically and simultaneously.

What is so appealing about creating these long standing partnerships, especially within the Sports and Entertainment world, is that the negotiation process can become very creative.  BWA, alongside our partners and clients alike, are consistently pushing the boundaries through innovative offerings strategically specified to the brand/property/deal at hand. We know what is going to benefit not only our clients but the potential partnership as a whole.

Before entering into negotiations you must identify the needs assets and benefits of each individual party.  Contracts can be very long and complicated but the negotiation process should be fairly painless if the partnership is a good fit. Both groups should enter with realistic goals for pricing, planning and lead times. It is also imperative to have a strong understanding of contra vs. cash and what benefits, rewards or downfalls each method/offering may present itself to the corporation or property.

As a sponsor, don’t see the property or opportunity as an original offer or nothing at all.  Seek out opportunities or even create your own, utilizing the information you have. Target markets always come first! What type of impressions are relevant to your target markets?  Are there any additions would you like to make to the offerings that will align with your marketing goals? Do you see any unidentified assets that will add value for your brand?

As a sponsor seeker, It is in best practice to have all assets valued before entering into sales and especially negotiations. Only offer what is relevant to your potential sponsor.  Impressions/assets on properties or during events, if not executed smartly, can cross the line of over kill exposure, the last thing you or your sponsor wants to do is to put off fans/attendees and potential consumers with a bombardment of advertising.  Essentially this type of overexposure at a venue can devaluing both the property and brand.  Get to know your potential partner, identify those specific assets that will apply to their business model/directives and start from there.

The way we see it, is that if you can provide an offering that will help your potential partner achieve a goal, and there is no expense/downfall to you, than in good faith provide every opportunity you can, and expect the same in return. This negotiation and should also leave room for updates and allow the partnership to evolve and grow through the length of the term. Moving and shaking with the rapidly changing industry and environment is essential for long term success. If you develop the right relationship with your partner through the initial negotiation phase, your groups should have no problem moving forward successfully in this ever advancing industry, creating increased brand awareness through sponsorship. 

Naming Rights, A Trip Down Memory Lane.....

Though the origin of naming rights may be debated, certainly a watershed moment in their development was the 1972-73 naming rights agreement between Rich Products, a Buffalo food manufacturer, and Erie County which enabled the former to put its name on a new football stadium in Orchard Park, New York, the home of the National Football League’s Buffalo Bills. The agreement called for Rich Foods to pay $1.5 million over 25 years in exchange for signage at the stadium and a commercial association with the franchise.

The naming rights phenomenon continued in northern New York when Carrier Corporation, a maker of heating, ventilation, and air-conditioning equipment and refrigeration systems, concluded an agreement with Syracuse University in 1979 to name the school’s new athletic facility. Then, in 1986, Pilot Air Freight purchased the naming rights from the City of Buffalo for the new stadium that housed the Buffalo Bisons, a minor league baseball team.

About this same time, California-based Arco Oil bought the naming rights to the new arena in Sacramento that would be home (Arco Arena) for the Sacramento Kings of the National Basketball Association. In 1988, Great Western Bank became the first company to re-name a facility, theForum in Los Angeles, which was then the home court of the Los Angeles Lakers.

Interest in naming rights really began to gain steam in the 1990's when a slew of professional facilities, starting with the Target Center in Minneapolis (home of the NBA Minnesota Timberwolves), hastened to adopt corporate monikers. Not surprisingly, the fees associated with these sponsorship's also increased—in some cases dramatically.

In the last 15 years, the corporate interest in naming rights has shown no signs of letting up. Based on the latest public information, there are now 113 naming rights agreements currently in place for major league facilities in North America alone, and more than half of them have been done in the last decade. In addition, there are scores of naming rights deals for minor league and collegiate facilities, convention centers, amphitheaters, theaters, even high school stadiums. 

Sponsor Logos on NBA Jerseys: What Do We Think?

The NBA recently approved a three-year pilot program that will allow for a 2.5-inch by 2.5-inch advertising space on team jerseys to be sold to sponsors who can then put their logo. The NBA have already experimented with this in the 2016 All-Star game which featured team jerseys with the Kia logo on a the front left opposite the jersey manufacturer’s logo.

Teams will have to sell this space on their own and will have to put half of the revenue generated in the league’s revenue sharing pool. According to industry estimates, this initiative will generate $150 million in additional annual revenue. Obviously, teams with a more global presence and probable playoff appearances will end up selling the space for higher rates, but that being said, this will help do wonders for some smaller, less successful teams.

Financially speaking, this is a welcome addition to the league; however, one also has to analyze what fans are thinking and social media sentiment around this issue is rather divisive. We gather that the the outrage is gathered around two main issues, namely – 

Sponsor logos will be intrusive and will make affect the aesthetics of the jerseys, making them look more like motorsport overalls.
While soccer teams have had sponsor branding on their jerseys for a long time, it makes sense for them considering they have only commercial break during half time. On the other hand, NBA games have more breaks, including timeouts.

While these concerns are legitimate, here are our thoughts on the matter – 

When speaking about aesthetics, one thing that fans have to remember is that this will be a rather small patch and will not be intrusive. Soccer jerseys naturally allowed for significant sponsor branding simply because club logos have traditionally been in the form of small crests placed on the top left of the jersey. Because NBA jerseys have never accounted for significant branding before, it would mean that the team’s branding would have to be reduced. And that is not something that any team is going to stand for, simply because teams have been present for a long time during which, they have built up a significant amount of brand value. Any major change to jersey designs would result in a drop in that value and that’s not what any team wants. So fans can rest easy that the addition of a small patch will be done tastefully and will definitely not result in the jersey looking like motorsport overalls. 

Secondly, ask any person who is a fan of both soccer and basketball (and we have a few within BWA), basketball is definitely a much easier sport to watch either live, or on the television, simply because the commercial breaks allow for more opportunities to get up from one’s seat and not miss out on the in-game action. The risk of leaving one’s couch to fetch a cold one from the fridge is definitely a lot higher in soccer.

Lastly, if fans are still worried about having their team jerseys with logos stitched on, they have to remember that the NBA’s merchandise division will still be selling the jerseys without the patches. The jerseys with the sponsor branding will only be available through the teams’ official store.

The final word: Change such as this has always been inevitable and in time, the fans will get used to it and will grow to accept it. And to this, we’d like to give the example of FC Barcelona. The Catalan soccer team has some of the most loyal and devoted fans amongst all sports teams in the world and had always snubbed jersey sponsorship till 2006 when they signed a deal with UNICEF. As part of the deal, the club also donated €1.5 million to fund, which seemed to appease the purists who were extremely opposed to the deal. After this deal expired, the club signed a deal with Qatar Sports Investment worth €150 million. This decision was met with surprisingly little opposition from the club’s fans. Thus, in time, this phenomenon will also gain acceptance from the league’s fans.

The Meteoric Rise of eSports

Why would anyone want to watch someone else play a computer game? That’s the questions that a lot of sport marketers may have asked themselves when first witnessing the advent of professional gaming tournaments, or as the industry calls it, eSports. The answer may lie in the ‘professional’ part. 

For example, if you are a lover of soccer and play it in your spare time. Would you still follow the games of your favorite professional team on the TV? Would you try to watch them if they were playing in your town? If your answer is yes, then you understand the sentiment behind why so many millennials flock to arenas or tune in to watch their favorite professional gamers practice their craft. Gaming at the highest levels requires an average of 200-300 mechanical actions per minute coupled with critical thinking, quick decision-making and seamless team communication and strategizing. 

Now that we’ve gone behind some of the psychology behind this, let’s look at how popular eSports actually are.  In October 2013, Over 32 million unique viewers tuned into the finals of League of Legends World Championships. This figure also includes a sold out crowd at the Staples Center. To put this into perspective, this total viewership figure is more than the combined viewership of the 2014 World Series and NBA Finals. With figures like this, it is safe to say that gaming tournaments are no longer confined to a group of friends having a Counter-Strike LAN party hunching into their monitors whilst consuming unhealthy amounts of Cheetos and Mountain Dew.

A testament to this is the rise in the number of universities in the USA that offer gaming based scholarships. Furthermore, the number of students participating in inter-university gaming events dwarf the number of participants in men’s division 1 basketball, soccer and hockey.

With such impressive stats and major sports networks starting to broadcast professional gaming tournaments, it was only about time that sponsors would start getting in on the action. Brands such as Red Bull, Monster, Coke Zero, Intel, Nissan, and American Express have been sponsoring major eSports events. In fact, even the Obama administration utilized the help of professional gamers to promote the launch of healthcare.gov. 

That being said, there is still a lot of space in the market for other brands to come in. of course, they have to be mindful of the fact that there is still some stigma attached to playing games. Pre-conceived notions about gamer's still exist amongst a large amount people, including parents and peers. But to that we counter and say that we’re in 2016, and nerdy is the new sexy.