Field of Jeans: Are Sports Sponsorships Always a Good Fit?

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Think about what you could purchase for $200 million.  I can contemplate my approach, only to realize how challenging it would be to wrap my head around this sum of money.  Thing is, when your name is Barclays and you’re engaged in the business of financial services with an extensive international presence, $200 million is hardly an overwhelming figure.  It is for this reason, among many others, that Barclays uses the medium of sport to enhance its affiliation and direct associations with specific entities in a manner that will capitalize on the benefits related to the affiliation.  In a way, it explains Barclays’ motivation to come to an agreement with Brooklyn Nets’ ownership and spend $200 million over a period of 20 years on the naming rights for the Barclays Center in Brooklyn, New York.  Surprisingly, “Barclays Bank originally agreed to pay a record $400 million for the 20-year naming rights deal.  But two years later, with the economy slumping, the deal was renegotiated with arena developer Forest City Ratner, and the price was sliced in half to $200 million.”  I can only imagine how thrilled Nets ownership must’ve been when they heard the deal that was originally going to cover 62.8% of arena construction costs would be slashed to a measly 31.4%.  This is under the assumption that the Barclays Center cost of construction was only $637 million, even though there is speculation that final costs tallied well over $1 billion.  Either way, this just comes to show that Sports Sponsorship isn’t just big business, it’s massive!

The problem with sports sponsorship, regardless of initial intent, is that not all deals pan out to be good deals.  Consider the multitude of incidents when naming rights agreements caused issues for the sport entities that sold the rights because the sponsor that purchased the naming rights fell into financial disarray.  Just two years ago, January of 2011, the Sacramento Kings ended their 25-year deal with ARCO in order to make room for Power Balance.  No more than a year and a half later, Power Balance realized they tried to bite off more than they could chew and would join the ranks of companies such as Enron, PSINet and TWA; all of which at one time held arena naming rights prior to filing bankruptcy.  Despite all of the mistakes made by the aforementioned companies in the 1990s, errors in judgment continued to be made all over again.  One of my personal favorites took place shortly after the financial meltdown in 2008 when our government provided bailouts to a number of financial institutions.  How in the world could CitiBank afford a $20 million annual naming rights agreement with the New York Mets, despite requiring a government bailout just to stay afloat and continue with their day-to-day operations?  It’s good to know Congress was just as confused as the rest of us.

As a result of these mistakes, sports franchises now include clauses designed to ensure they’ll be able to re-sell the naming rights to their stadium or arena, for free, should the company holding rights to their current agreement become insolvent.  In addition to protecting their brand, franchises would want the prospective sponsor proposing naming rights to also align with the brand in a manner that will mutually benefit both parties when these deals are executed.  Regardless of the mistakes that have been made, it’s intriguing when you take in to account the number of franchises that do not have stadium naming rights in their sponsorship inventory.  In fact, of the thirty Major League Baseball franchises, seven do not have naming rights in place for their stadiums.  That is a significant number when you consider how lucrative naming rights deals can be.  While I know these franchises would at least listen to sponsorship proposals, it is telling when you consider four of these seven teams are ranked in Forbes Top 10 of MLB Team Values.  Despite the rankings, there are occasions when a franchise may make decisions that seem out of character and raise a few eyebrows.  Especially when you learn the San Francisco 49ers, ranked 9th on the Forbes list of NFL Team Values, agreed to terms with Levi’s to name their newly constructed Santa Clara Facility “Levi’s Stadium” in one of the biggest sports marketing deals to date.  I understand Levi Strauss first opened a dry goods store in San Francisco back in 1853.  With Santa Clara being nestled in the heart of Silicon Valley, you would think one of the tech companies might take offense to this.  NFL writer Chris Wesseling did raise a good point when he said, “We just hope the 49ers don’t decide to emulate Boise State’s blue turf.”  Either way, the jokes are already in full-effect following Niners’ owner Jed York calling it the “Field of Jeans.”

Enough of the peanuts and Cracker Jacks already!

ImageDo you ever hear people talk about preferring to stay home and watch the game because they get to relax in the comfort of their own home while getting a better view of the game anyway?  I hear it; a lot.  Everyone has their reasons for avoiding sporting events, some of which include: avoiding the $20 parking fees, trying to reach their seats as though they were salmon in a migration pattern, and crappy food offerings.  On a side note, Bleacher Report is apparently incompetent when it comes to rating the “Best Stadium Food in America”.  Do they honestly believe I’m going to buy in to a shitty hotdog from Chavez Ravine or pulled pork from Bank of America Stadium as being some of the best food stadium food in the country?  They’re out of their f’ing minds.  I’m also amazed that in a city that prides itself on having some of the best food in the country, garlic fries from AT&T Park is really the best we’re going to get.

I know I’m not that far off the mark when I say good food should be available at a ballpark.  Shoot, there’re pretty much always a handful of solid restaurants and bars around the corner from most of the city centre-type stadiums: Petco Park, Wrigley, Fenway, and Yankee Stadium (you get my point).  So why is it that we don’t see a reflection of the local fare in our favorite ballparks?  Part of it is the politics that go on behind the scenes as far as determining food costs and royalties, among other things.  I believe that it also comes down to fan demand – people just don’t know what’s good for them.  There is no doubt hotdogs, peanuts and watered-down light beer will always be available, but that doesn’t mean those with more sophisticated tastes should be shunned or alienated.

Yankee Stadium was recently criticized for offering what they considered craft beer: Blue Moon and Leinenkugel.  Once again, this made me shake my head.  If you sell a product that is nationally promoted with commercials up the wazoo, you are not a craft beer.  Seriously, if you claim you’re selling “craft beer” that is in fact owned by Anheuser Busch or MillerCoors, you have just offended a heck of a lot of beer drinkers and me.  That said, it is good to know cities like Detroit and Seattle aren’t willing to settle.  In fact, your only hope of finding some of the beers sold at Comerica Park and Safeco Field will be either going to a ball game or visiting your local BevMo! or Total Wine.

While I know it will take time and patience, it’s good to know that there is at least hope.  I also can’t say whether or not subtle changes like these will really make a difference in the grand scheme of things.  However, my hope is that for the sake of sports-loving-foodies out there, these changes might actually encourage them to re-consider their choice to stay home and watch the ballgame.

Here! There! Everywhere!

ImageIs it subliminal messaging?  No, not really.  Is it targeted messaging?  It can be if you want it to be.  Is it the next step in a state-of-the-art delivery system to showcase digital content within stadiums and arenas?  Yeah, that sounds more like it.

With corporate partnerships across sports looking to create new and innovative ways to increase inventory while simultaneously providing a more engaging medium, these venues are seeing a significant increase in very customizable digital messaging.  No, this won’t be the final frontier in stadium and arena digital technology.  Like all technology, it’s a work in progress.  What it does do though is create sponsor messages that can be simultaneously showcased in high-traffic areas around an entire arena.

In Honda Center’s case, their partnership with CISCO has allowed them to create a delivery system called StadiumVision.  It is designed to create a more subtle, yet brilliantly vivid, form of message delivery to Ducks fans (and other Honda Center events) through “a fully integrated marketing solution that displays video and digital content throughout the facility in an easy-to customize format.”  While this technology is currently being used in high profile stadiums in MLB, NFL, and NHL/NBA arenas, Honda Center is actually the first arena on the West Coast to utilize the technology and only the 2nd in the NHL.  One of the greatest benefits specific to the Ducks is that it creates opportunities for as many Corporate Partners as they choose to offer this new form of inventory to.  Although, I have a hunch that they wouldn’t want these slots to get out of control because the fewer number of “openings” that they provide, the more value their corporate partners will see in it, which should hopefully translate to more money being spent.

I feel that it’s a tremendous asset to have because of the ease in which commercial slots and static artwork can be switched in and out; a feature that will absolutely allow each specific partner to showcase their message for as long as they choose to do so.  Corporate partners want to focus on maximizing customer engagement and this technology really allows them to create the innovative and dynamic visuals to do just that.  Going hand-in-hand with the ease in which messages can be interchanged, this also allows them to create entirely new slots for digital marketing based on in-arena events and campaigns.  Having more than 550 HD screens located around the arena, the Honda Center should easily be able to reach over 1.5 million guests on an annual basis.  If you’re looking for opportunities that will allow your brand to dominate while generating strong awareness and lasting impressions, look no further than the Honda Center!

Fish Stories: Marlins woes continue…

 

 

 

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Professional sports can be a very weird world sometimes.  There are teams such as the Lakers and Yankees that have a total of 43 championships between the two of them.  That’s as many wins as the Cleveland Browns have earned (…or at least finished with) over the past 8 seasons.  Thing is, the Browns weren’t always terrible.  In fact, they’ve even won 8 championships as an organization; all of which were won prior to Barry Bonds and José Canseco even being born (I’m sorry, I know the rest of the world was hoping we would never speak of those names ever again); which is probably why no one remembers.  The point is, some teams are terrible now, but have at one point or another shown flashes of brilliance.  With that, I was trying to think of what organization is as guilty as any for accomplishing such a fall from grace and flat on their face.  I had to double check and make sure they were still playing at the big league level because I had assumed they would have been dropped to high rookie ball by now, but yes ladies and gentleman, the Florida…I mean Miami Marlins…are still a professional ball club.

 

Once upon a time, the Marlins had won not one; but TWO World Series.  To be fair though, the 2003 World Series was probably a greater win than the 1997 World Series because Wayne Huizenga didn’t buy that championship.  Since then, the Fish have been little more than a flop.  Personally, I don’t think it’s fair that an art dealer that grew up cheering for the Yankees had to be the one to go out and purchase the Marlins.  He’s responsible for changing the name of the ball club, strapping nearly $2.4 billion in debt to Miami-Dade County, and worst of all, changing the Marlins logo to one of the most hideous logos in professional sports.  Do you really think it’s a coincidence that José Reyes only spent one season playing in Miami?  Of course these guys aren’t going to take as much pride in winning, I would be embarrassed to play in those jerseys day in and day out too.  Back to my point though, it must be difficult and at times unfair to call yourself a fan of this club when year in and year out they build up talent and then hold a fire sale.  You look around the league and see names like Josh Beckett, Hanley Ramirez, Aníbal Sánchez, Josh Johnson, and Dan Uggla (Juan Pierre came back while Luis Castillo and Carlos Delgado had to retire on me); only to be reminded what the Marlins once had in their possession.  I know you could probably make the same type of comparison to any organization in professional sports.  But the thing is, the only owner that has historically had less of an interest in winning than Marlins ownership over the past decade is that Donald Sterling guy in L.A.  In the meantime, you have your Panthers…just kidding!  But really, I meant the Dolphins (sorry, bad joke again).  Seriously, the Miami Heat are your only opportunity to watch a professional franchise in South Florida with any real success lately.  Hang in there Marlins fans, maybe one day you’ll take a page out of the Clippers 2012 playbook and be back to your winning ways.  In the meantime, one thing you get to compete for with the Tampa Bay Rays year in and year out is the lowest attendance record in Major League Baseball.  Congratulations, you have something to brag about.