|In this year’s NBA All Stars game in Toronto, there was one towering difference on the court. It had nothing to do with what the players were doing with the ball, but everything to do with what they were wearing. On their jerseys, for the first time, there was a brand logo – Kia.|
|Let’s put this in proportion: at 3.25 inches by 1.6 inches it’s barely noticeable in comparison with the logos on MLS or European sports jerseys, but it’s the barrier it crosses that’s significant. There can be no doubt that this is the NBA putting feelers out for what Commissioner Adam Silver talked about back in 2014 when he said: “We know what the value is to advertisers…to be able to show fans in-game branding.”|
The math is simple – the average MLS jersey goes for around $3–3.5m dollars a year, but for commercial departments from the leading “big four league” teams in the US, I would imagine that there have been some envious glances across the pond to Manchester United’s deal with American car company Chevrolet at $75m a year.
Whilst the NBA have been joined by the NHL (whose Commissioner described jersey sponsorship as “coming and happening”), the MLB and NFL have been certainly more lukewarm. There are obvious logistical issues around it.
First, with a league’s collective bargaining agreements there needs to be consensus and balance as to whether it’s sold centrally or as per the European sports model, team by team. And secondly, the objection of broadcasters concerned about potential conflict and lost revenue.
The real question here is not whether this will indeed happen in the USA (I believe it’s inevitable over the next few years in NBA and NHL, at the very least), but rather whether it will impact negatively for consumers. And moreover, will brands here in America learn the lessons from the decades of good, bad and ugly jersey sponsorships in the past to influence the future?
So do consumers care…and, in particular, the Millennial consumer?
At Synergy, we’ve long been frustrated by the lack of real understanding and insight on the way Millennials engage with and view sports – both now and in the future. There are countless myths that have been built across the demographic, some of which are wrong and many of which can skew the way brands and rightsholders build campaigns. At the end of 2015, we undertook a bespoke and comprehensive piece of research with our sister agency, The Intelligence Group, around both Millennial and Generation X attitudes towards sports, sponsors and the future of sports engagement, with findings featured throughout Now, New & Next 2016.
The survey (3,145 consumers in America with 66% 18–34-year-olds and 34% 35–54-year-olds) specifically examined the potential impact of jersey sponsorship among the audience.
In short – they don’t see it as an issue. The rise of European soccer, MLS and WNBA has made jersey logos a more acceptable part of the viewing experience for the Millennial sports fan. The research highlights that 27% of Millennials think jersey sponsorship is “very appropriate” (higher than Gen Xers), whilst, tellingly, more Gen Xers than Millennials think it’s better for brands to be in the ad break or break bumpers.
History also shows that team success soon overcomes fans’ commercial objections. FC Barcelona – whose motto is famously “More than a Club” – held out for decades against commercial shirt sponsorship by featuring Unicef on the front of their jersey (at no charge), before replacing the global charity with sponsorship from the Qatar Foundation for a then record $40m a year.
|Whilst there was a clear media backlash, it didn’t last long when a team with significantly increased resources went on to lift the UEFA Champions League. So if it helps your team produce a great spectacle, most fans soon overlook the logo.|
Critically, fans soon discover that a brand appearing on their shirt will not affect their “fanship.” Indeed, more than being just a benign presence, fans may even come to see a jersey sponsor as a positive force for good, with the brand actively enhancing this very fanship. Another reason why this front-and-center asset can be so powerful.
As a jersey sponsor you have a responsibility, since your logo becomes part of the history of the team. Famous jerseys down the ages of European sports are identifiable due to the brand logo on the front of them – the brand locked forever, in the very midst of that trophy-lifting moment. The same applied off the pitch, where through the replica shirt market, fans of all ages wear your brand on a daily basis.
You cannot be edited out – be that in the live moment, or the subsequent media coverage: your brand is indelibly stencilled into that moment of history (for good or bad).
This responsibility means that you must understand and tap into the players, the fans, the culture and the tone of the team.
Lessons Learned for the Future
So what lessons can brands considering jersey sponsorship here in the US learn to ensure this doesn’t become just a glorified media buy?
1 UP CLOSE AND PERSONAL
2 IN-GAME, EVERYWHERE
3 CONNECT WITH THE PLAYERS TO RESONATE RICHLY
Again, with players controlling their own IP and the restrictive contracts they can have with teams in the US on its usage, brands need to be savvy enough to work in harmony with the players. Additional agreements with them are a must, especially in relation to their social feeds. Take, for example, the starting line-up for the Cleveland Cavaliers, which has a combined Twitter and Facebook following of 58m, versus the team’s official feeds of just over 5m.
LeBron’s Twitter following alone is nearly as big as that of all the other teams in the league combined.
|4 DISRUPTIVE THINKING PAYS|
Don’t be afraid to innovate or have fun with it – when Intel signed a jersey deal with FC Barcelona they literally turned the traditional model inside out by putting their Intel branding on the inside of the jersey. Some brands have handed over the space to a charity that they back for key matches – something that usually attracts positive sentiment.
5 THINK LOCAL AND ACT GLOBAL
|Jersey sponsorship will happen here in the US, and fans will accept it. Leagues and brands, however, must look past the jersey as simply prime estate, instead seeing it as a chance to help share the very beating heart of the team.|
Respect this, enhance it and tap into the fan culture, and it’s among the most powerful assets in a sponsorship arsenal. Get it wrong and it’s an expensive – and very public – mistake.
This blog comes from Synergy’s Now, New & Next sponsorship and entertainment outlook for 2016, which can be viewed in full here.