Innovative Partnerships Group has been luxury electric car manufacturer VinFast’s Agency of Record, creating and supporting their Sponsorship Valuation & Strategy, since the beginning of 2022. In preparation for their U.S. launch, we worked alongside Vingroup to host exclusive, elite tours of Vietnam. These VIP trips included memorable experiences of Vietnam’s culture, private tours of the state-of-the-art EV plant, and test drive opportunities.
VinFast began its first foray into building partnerships in the U.S. last year when it announced that it would become the first-ever naming rights partner of the IRONMAN U.S. Series starting in 2022. Along with the naming rights, VinFast also became the title partner for the IRONMAN World Championship and the IRONMAN 70.3 World Championship. Innovative Partnerships Group has worked with VinFast behind the scenes to bring these two companies together.
VinFast has taken its next steps into the U.S. market with the groundbreaking of its first electric vehicle manufacturing facility spanning 1,800 acres in Chatham County, NC. The company chose this location after the state offered a $1.2B incentive package with the hope that the investment would create 7,500 new jobs. VinFast aims to produce 150,000 vehicles per year at the plant.
Going Public
In August VinFast made another big step in its growth into the U.S. market when it made its debut on NASDAQ. The company opened its shares at $22, but those numbers rose sharply, and at the end of the day, they closed at $37.06. VinFast CEO Madame Thủy spoke to CNBC on the company’s decision to go public: “It’s a big milestone for us to be listed in the U.S. The listing is going to open access to the capital markets for us in the future.”
As VinFast continues to grow, Innovative Partnerships Group is working closely with Madame Thuy in supporting fleet sale opportunities across the U.S. The goal for the remainder of 2023 into Q1 2024 will be to continue the positive brand recognition and grow the consumer and corporate electric vehicle sales verticals.
Times Square, one of the most iconic sites in the world, has never seen anything like TSX. A first-of-its-kind entertainment venue located in the heart of the Big Apple. TSX is creating one of the most ambitious mixed-use developments in all of New York City. In a multi-year relationship, Innovative Partnerships Group was selected as TSX’s exclusive agency of record for sponsorships and naming rights and has created a unique platform to build out some of the largest global partnerships in the entertainment industry.
TSX launched its permanent main stage on July 18, 2023 with one of the largest events ever held in Times Square. The surprise concert by superstar Post Malone was the highest attended live performance in decades. Post Malone said during the show, “This is the coolest venue in the f–king universe.” His social media followers clearly agreed, as his TSX post garnered a whopping 600,000+ likes on Instagram while the video of his performance generating billions of impressions. For more information on this epic moment, see the article on Billboard.
Anchored by the Hilton Hotel’s new flagship brand, Tempo by Hilton, which opened in August, TSX is becoming the epicenter of entertainment, staging the world's biggest pop culture moments and serving as a new and innovative way for artists and brands to reach fans around the world.
Global buzz has already begun with these pop culture-defining moments in 2023:
Innovative Partnerships Group is excited to be working with TSX to re-define the entertainment industry.
On this episode of The PlayBook Podcast, Host David Meltzer sits down with two brilliant business minds - Len Komoroski, CEO of the Cleveland Cavaliers, and Jeff Marks, CEO of Innovative Partnerships Group. They chat about the keys to building successful partnerships and give listeners insight on how to create revenue through the emotional aspects of sports.
Listen Here: The Key to Building Successful Partners
Marks and Komoroski also look forward at the future landscape of sports partnerships. They discuss how, as sports business and technology evolve, properties can adjust their approach to building sponsorships and, in turn, better create sustainable revenue streams. They then provide predictions for changes sports marketers can expect in the coming yea
This article was originally published in Charlotte Business Journal
Written by Erik Spanberg
City consultant Innovative Partnerships Group explained how corporate naming rights have expanded to sports- and entertainment-themed districts and how that could generate $60 million from a Brevard Street development.
Charlotte City Council’s economic development committee spent nearly three hours yesterday sifting through details of a $275 million proposal to renovate Spectrum Center and build a separate practice center for the NBA Charlotte Hornets.
The committee meeting was more of a full council meeting. Mayor Vi Lyles attended and, between the Government Center meeting room and virtual attendees, all but two of the 11 council members were present. Renee Johnson and Matt Newton were absent.
Tracy Dodson, an assistant city manager and head of the city’s economic development division, walked the mayor and council members through the following aspects of the proposal introduced last week:
“I felt like it was a really good conversation,” Dodson said afterwards. “I felt like we started to chip away at some of the questions that council members addressed last week and brought up. I’m hopeful that we can continue to do this while also bringing in public comment to get us to a vote next week.
”A majority of council members must vote in favor of the proposal for it to take effect. The vote is scheduled as part of council’s regular meeting June 13.
The Hornets’ current lease at the city-owned Spectrum Center ends in 2030. As part of that agreement, city government is obligated to make periodic renovations to the building that keep the venue on par with features included in at least 50% of NBA arenas. In addition, the city must keep basic components — ventilation, seating, elevators, and so on — up to date and in good working order.
Spectrum Center opened in 2005. It cost $265 million to build, or $392 million when adjusted for inflation. The construction debt will be fully retired in 2033. If the city approves the arena renovations and the new practice center, the Hornets will extend their lease at Spectrum Center through 2045, pay $32 million in rent to the city through the end of the revised agreement, and absorb any construction overruns.
Council members spent the most time yesterday asking questions about sponsorships to fund the practice center as well as the basis for redeveloping the transportation center.
Jeff Marks, CEO at Innovative Partnerships Group, made a virtual presentation as part of yesterday’s meeting, explaining how corporate naming rights have expanded from arenas and stadiums to sports- and entertainment-themed districts. Innovative Partnerships Group, as a consultant to the city, estimated naming rights sponsorships for a fledgling district near the arena along Brevard Street could, along with related agreements, generate $60 million.
Marks’ math works like this:
The consultant said variables in structuring the agreements could slightly shift the mix of rights and revenue. But, he said, the growth of Charlotte and increasing interest among companies to reach that population will sustain the projections outlined above. Dan Barrett of consulting firm CAA Icon, which represented the Hornets in the arena negotiations, was at the Government Center yesterday. Barrett told council it’s likely existing sponsors of the Hornets and arena will be interested in new sponsorship opportunities around the building.
Dodson and Marks assured council members the city would maintain control over the scope of sponsorship rights as well as which companies the city will, or will not, work with. Marks noted companies have embraced the broader range of programs and platforms, including environmental causes and product tie-ins, that a district can offer, as opposed to a stand-alone sports venue.
Ed Driggs, the committee’s vice chair, asked about the arena naming rights with Charter Communications Inc.’s (NASDAQ: CHTR) Spectrum. Dodson responded that those rights are controlled by the Hornets. She added the city intentionally steered clear of seeking any sponsorship revenue inside the arena.
The Hornets manage Spectrum Center as part of their lease with the city. That arrangement means the NBA franchise pays all operating expenses and receives all operating profits — and absorbs any losses.
Driggs and other council members asked in several ways and several times whether they would have a chance to parse the language and terms of prospective sponsorships and were told they would. Without the sponsor revenue, the city would have to find alternative funding, Dodson said.
Questions surfaced about the viability and likelihood of success for redeveloping the transportation center, the spot targeted for the Hornets’ training center.
Charlotte Area Transit System controls the 2.6-acre publicly owned property that has been home to the bus center since 1995. It is bounded by the light-rail line and East Fourth, South Brevard, and East Trade streets.
In 2019, the city granted development rights for the property to Charlotte-based White Point Partners and Dallas real estate investment firm Dart Interests. White Point and Dart secured those rights after a competitive bidding process. The catch, as Dodson reiterated several times yesterday: The site must remain a transit hub first and foremost.
Transit chief John Lewis told the committee the transportation center is antiquated and would need to be replaced with or without the companion private development and investment by White Point/Dart. Private investment, the Hornets’ practice center, and a subterranean bus station form the nexus of transit needs and economic development aspirations, he said.
The developers’ pitch was considerably strengthened because they own vacant land across the street that can be used as a temporary transit hub while the existing transportation center is rebuilt, Lewis added. Minimizing disruptions and inconvenience for riders is a big part of CATS’ considerations, city and transit leaders said.
“The CTC is a transit project first,” Dodson said.
Some on council remain skeptical of the NBA arena’s ability to foster an entertainment district and nearby private investment. Council member Braxton Winston told the committee that little to no development has occurred in the area since the arena opened in 2005. “It pretty much looks the same,” he said.
Much of the property around Spectrum Center is controlled by local or state government, meaning the lack of activity is attributable to government, not the private sector, councilman Larken Egleston said.
In addition, the EpiCentre, a nearby, privately held entertainment complex that is going to be auctioned next month, could shift interest and momentum in the area, too.
Council member Tariq Bokhari, a frequent critic of the transit agency, expressed doubt and reservations about CATS’ ability to spur redevelopment. Bokhari asked Dodson for more detail about the city’s fallback plan — building the practice center on a city-owned gravel lot behind the arena — before the vote.
Barrett, the team consultant, and the city’s arena consultants, David Abrams (Inner Circle Sports) and Steve Patterson (Pro Sports Consultants), all emphasized the need to upgrade the arena to keep pace with neighboring cities and buildings competing for the same concerts and other events that generate revenue and visitor spending. Abrams and Patterson, like Barrett, came to Charlotte to appear before council yesterday.
To cite one nearby example, Raleigh’s NHL arena is being pitched for up to $200 million in upgrades.
Malcolm Graham, the committee chair, and committee member Dimple Ajmera pronounced themselves satisfied with pledges from Charlotte Regional Visitors Authority CEO Tom Murray to bid aggressively for the CIAA Tournament when it is next available. The soonest it could return is 2026.Other concerns raised yesterday included possible impact on anticipated requests such as a major makeover of the city-owned Discovery Place Science museum on North Tryon Streetand long-term funding for arts and culture organizations.
Dodson pointed out that, in the case of Discovery Place, the museum controls adjacent property that could be sold or converted into a commercial project to generate additional revenue to help pay for renovation costs. Council member Julie Eiselt, a lead player in the city’s public-private campaign to increase grants for museums and theaters, told Dodson and others that she has yet to receive data from the city comparing the economic benefits of arts and sports.
03.24.2022
Innovative Partnerships Group has help secure another transformational naming rights partnership between Cal State University Northridge (CSUN) and Premier America Credit Union. This first ever naming rights deal to the arena now called Premier America Credit Union Arena. The partnership also includes Premier America being designated as the “Official Credit Union of CSUN,” the “exclusive” credit union partner of CSUN Athletics and the CSUN Alumni Association. Marci Francisco, Senior Vice President, Chief Experience Officer, stated our deep appreciation to Innovative Partnerships Group’s excellent work on this initiative. Your team was key in expanding the relationship, negotiating great terms, making fantastic suggestions and ensuring that we have a partnership that will be mutually beneficial for both organizations. I cannot speak highly enough of Innovative Partnerships Group and Sean Moran who led the negotiations.
NORTHRIDGE, Calif. – California State University, Northridge officials today announced a 10-year, multifaceted partnership agreement with Premier America Credit Union. The long-term commitment supports events and programs that benefit students and alumni and includes the renaming of the university’s athletics facility after the company.
In addition to renaming the Matadome — home to CSUN’s men’s and women’s basketball and volleyball teams — to the Premier America Credit Union Arena. The partnership also includes Premier America being designated the “Official Credit Union of CSUN,” the “exclusive” credit union partner of CSUN Athletics and the CSUN Alumni Association, and the official affinity credit card provider for the alumni association.
“Premier America’s emphasis on people working together toward solutions and vested interest in collective success aligns well with CSUN’s approach toward the academic success of our students and their collective impact on our region, state and nation upon graduation,” said CSUN President Erika D. Beck. “I am delighted that we will be working together to further the success of our students and, in particular, our student-athletes.”
The agreement between CSUN and Premier America was approved by the CSU Board of Trustees at their meeting today.
“Our organizations are a perfect match, and we’re honored to partner with CSUN,” said Premier America President and CEO Rudy Pereira. “CSUN’s deep commitment to building a brighter and more equitable future for its students, their families and the community is aligned with our core values. We look forward to working together as we promote financial well-being and provide opportunity and guidance to our richly diverse community.”
Founded in 1957, Premier America is one of the nation’s largest credit unions, with more than 100,000 members and more than $3.4 billion in assets. Premier America’s relationship with CSUN was secured in concert with multiple parties, including LEARFIELD (CSUN Athletics’ multimedia rightsholder), ADC Partners and Innovative Partnerships Group. LEARFIELD’s local Matador Sports Properties works closely with the athletics administration.
“There are so many positive things that occur when partnerships include naming rights and extend beyond athletics to the greater campus community,” said LEARFIELD Senior Vice President Megan Eisenhard. “This brand-new relationship will provide impactful benefits to CSUN constituents and Premier America Credit Union members now and for many years to come. We’re proud to help bring these two history-rich organizations together.”
“Rarely do you see two organizations that are so aligned in their mission,” said David Almy, principal of ADC Partners. “Honestly, it’s humbling to be able to play a role in helping craft such a wide-ranging partnership that has the potential to do so much for both groups.”
The partnership between Premier America and CSUN includes the opening of a campus credit union branch and the installation of ATM machines, hosting of financial wellness and literacy programming, and the sponsorship of various student and campus events. Premier America also will sponsor events at CSUN’s Younes and Soraya Nazarian Center for the Performing Arts (The Soraya), as well as other events in coordination with the CSUN Alumni Association.
In addition to the renaming of the athletics facility, Premier America Credit Union’s name will be displayed prominently on the court, and the credit union will sponsor games during basketball, volleyball and baseball seasons.
“CSUN is thrilled for this partnership with Premier America Credit Union,” said CSUN Director of Athletics Mike Izzi. “CSUN Athletics continues to raise the bar in all areas; on the field of play, in the classroom and in our business relationships — and this new partnership with Premier America Credit Union is another giant step forward for the Matadors. We’re proud to work with our campus partners and friends at Premier America to create a meaningful brand partnership that will benefit us all. Our main objective is supporting the welfare and achievement of our student-athletes, and this partnership will provide better opportunities for continued success in the years to come.”
About Premier America Credit Union:
Premier America is a full-service community financial institution that offers exceptional banking to more than 100,000 Member-Owners. Member-Owners benefit from personal service, great savings rates, low fees, low loan rates and a full complement of savings, lending, wealth management, and insurance services. Founded in 1957, Premier America is one of the nation’s largest credit unions, with more than $3.4 billion in assets. With 20 retail branches, access to over 30,000+ surcharge-free ATMs through the CO-OP ATM Network; and the CU Service Center Shared Branch Network, Premier America provides financial services to those who live, work, worship or attend school in the Ventura and Los Angeles counties of California, and Harris County in Texas. To learn more about Premier America, please visit www.PremierAmerica.com.
About California State University, Northridge:
One of the largest universities in the country, California State University, Northridge (CSUN) is an urban, comprehensive university that delivers award-winning undergraduate and graduate programs to more than 38,000 students annually and counts nearly 390,000 alumni who fuel the region’s economy. Since its founding in 1958, CSUN has made a significant and long-term economic impact on California, generating nearly $1.9 billion in economic impact and nearly 12,000 jobs each year. The university’s learning environment is the third-most diverse in the nation, according to The Wall Street Journal/Times Himes Higher Education College Ranking. CSUN ranks among the top 10 universities in the country for social mobility.
Sports Business Journal presents the nominees for the 15th annual Sports Business Awards, recognizing excellence over the past year. The winners will be determined by a group of more than 40 industry executives. Award recipients will be announced during our live event on Wednesday, May 18, at the New York Marriott Marquis Times Square.
Sports Business Journal has nominated Innovative Partnerships Group for agency of the year in the category: Best in Property Consulting, Sales and Client Services. This is the second nomination for Innovative Partnerships Group who was also nominated in 2020 prior to Covid.
Innovative Partnerships Group had another record-breaking year of business development and consulting for some of the industry’s most meaningful partnerships leveraging its proprietary Partnership Intelligence methodology.
For the full list of nominees, visit the Sports Business Journal.
In addition, Kraft Group Founder, Chair & CEO ROBERT KRAFT will be presented with our Lifetime Achievement Award as well that night.
For more information, please visit Innovative Partnerships Group at ipg360.com or info@ipg360.com
Originally published at Sports Business Journal
After Team USA triathletes claimed two medals at the Tokyo Games, doubling their all-time medal haul, USA Triathlon is aiming to further build upon the record year, according to SBJ's Chris Smith. Increased interest in the sport may help further diversify sources of income, as USA Triathlon CEO Rocky Harris believes the short-distance races can make for more compelling broadcast events.
“We believe the mixed relay can become one of the most attractive endurance sports to watch on television, which is important because we want to turn our sport from primarily a participatory sport to one that has viewers and spectators, too,” said Harris, who points to the recent success of Ironman, Professional Triathletes Organization and others.
Harris: “An increase in TV viewership will drive a broader interest in the sport, and we are working to position ourselves for LA 2028 where we can capitalize on mixed relay as must-watch TV to influence kids, similar to what swimming and gymnastics have been able to successfully do over the years.” He added that Team USA members who competed in Tokyo will play a role in further promoting the organization’s athlete development pipeline and opportunities at the collegiate level.
By Jabari Young
Originally published at CNBC.com
From the NBA to the NHL, top U.S. sports leagues are carving out more space on for advertisers to get visibility and help networks to recover from Covid-19 losses.
The National Basketball Association wants further to expand its sponsorships with virtual advertisements on the court. After placing ads near on-deck circles and behind the pitcher’s mound, Major League Baseball joined the patch party with logos on officials’ uniforms. And the National Hockey League inserted helmet ads to make up for pandemic losses suffered by corporate partners. The NHL jumped on the jersey patch trend adopted by other sports.
The NHL plans to add the jersey patch starting in its 2022-23 season, according to the Associated Press. By then, the sports sponsorship market could get cluttered, especially at the team level.
“It feels like we’re selling the bits and pieces now,” said Peter Laatz, global managing director at sponsorship valuation firm IEG. “Everyone is trying to fill in holes that were created last year.”
Jersey patches aren’t anything new. The NBA started to leverage uniforms with its program in 2017, and Laatz said the concept is “something that’s been done for years with European soccer clubs.”
MLB used virtual ads that appear behind home plate since the 2001 World Series. The premium real estate is only for national partners, including Fox Sports, which has the rights to the championship games. MLB works with ad tech firm Brand Brigade to create the signage and attracts eight figures for the slots, which has value because of its placement in the main shot of a game’s broadcast.
Last year, during its Orlando bubble, the NBA rolled out its version of virtual ads, or logos that are interchangeable on the court for TV audiences. League officials provided guidelines on which colors to avoid, the size of the logos and ad placement. The NBA used the ads again for its 2020-21 season and permitted regional sports networks to access the asset.
Networks are allowed two sponsors per game. To receive the national TV real estate, companies need to obtain significant media deals with the NBA and its partners. On the regional front, industry insiders suggest the ads solicit roughly $15,000 per quarter.
Laatz called the NBA virtual ads “disruptive, in a good way,” as they have the potential of catching the viewers’ attention. Jeff Marks, the CEO of Innovative Partnership Group, a sports business firm that helps negotiate agreements for teams, labeled the NBA ads as a “high-value asset” due to the on-court location. Also, brands can strike deals that include virtual ads and grant rotation on NBA sideline boards below the scorer’s table.
“It’s probably the most valuable naming rights inventory that we see for NBA teams,” said Marks of the in-game TV signage. “They’re significant assets with the amount of impressions you get.”
The NBA has made over $150 million since launching its jersey patch program, but its patch money appears stagnant. Hence, the league enhanced visibility (increased logo sizes) to raise value and created practice jersey options.
The NBA’s record-high $1.46 billion in sponsorship revenue should only reach new heights if the virtual ads establish a good media value.
The NHL is also no stranger to virtual ads, and it plans to unleash jersey patches soon. The league is taking advantage of the extra TV exposure now that ESPN and WarnerMedia are media partners.
Teams like the Detroit Red Wings and Dallas Stars already took full advantage of the helmet sponsorships. A study from research firm Morning Consult suggested consumers approve of the ads, which helped the NHL secure $676 million in sponsorship money for the 2020-21 season, according to IEG.
“But a lot of the helmet sponsorship wasn’t new money,” Laatz said. “It was make-goods inventory. So that’s maybe what you see here (with the NHL patch) – trying to find more real estate to put logos.”
The thing is, the NHL’s newest asset isn’t as shiny as the other leagues.
The speed of play in hockey doesn’t offer excellent visibility like the NBA, which allows brands to capitalize from free-throw line close-ups. And though it’s accepted in the sport, the violence associated with the NHL is risky for corporate partners.
“Buyers of the patch would be smart to raise the pace of play conversation,” Laatz said.
In addition, the NHL already has an abundance of ads that appear in its telecast. The most effective is the dasher board spots, as these ads provide consumers a “good contrast” of ads and offer “good returns for sponsors,” noted Laatz.
When discussing estimations of what the NHL could bring in from the new patch, Laatz predicted the NHL wouldn’t solicit as much at the NBA. “People don’t follow individual NHL players the way they follow NBA stars,” he said. “The star power piece is different.”
The NHL’s launch of jersey patches will lead to a crowded sponsorship space by 2023.
There are arena naming rights, sports drink rights and now an overload of jersey patches. Also, keep in mind, Major League Soccer its has patch offerings, and international soccer clubs like PSG are slowly creeping into the U.S. landscape.
“That’s a fair assessment to make,” Laatz said of a cluttered sponsorship market on the horizon. “It doesn’t necessarily devalue anything. It just makes the conversation about the stuff that already existed – is it worth more or less.”
But Laatz cautioned brands shouldn’t associate with new sports sponsorships unless it offers accurate returns once the games on TV conclude.
“Consumer sentiment is different than media exposure which is very binary,” he said. “The eyeballs were there, or they weren’t. Consumer sentiment is about [discussing the product after the ad].”
But with the NHL’s move, multi-team ownership groups could benefit.
Monumental Sports and Entertainment is taking the lead here. The group owns the NHL franchise Washington Capitals, NBA’s Wizards and WNBA’s Mystics franchises. MSE combined its jersey patches, and the group is seeking $12 million for its patch, stretching the asset across four teams, including esports and the NBA G League.
Laatz praised the creative combination, calling it a “miniature naming rights” opportunity. The Capitals could be a part of the package in the future, which only increases the MSE’s patch value.
“It’s great,” Laatz said of MSE’s move. “Brands can do one transaction, one contract, and get a jersey patch asset across multiple clubs. At times, multiple entry points across multiple contractual terms can get complex for buyers, so this is a benefit. If the rules are relativity the same, the marketing, merchandising – if I’m a buyer, I’m looking at this combination.”
By David Brighton
Originally Published in SBJ
Emerging categories helped the venue naming-rights market thrive over the past 19 months despite a lack of events and fans in attendance, as more than $1.2 billion in new or extended deals were signed at 79 stadiums and arenas in the United States and Canada, according to Sports Business Journal research.
Following a four-month pause during the pandemic, the marketplace reignited in July 2020 when UBS, a Swiss financial company, committed $350 million to put its moniker on the New York Islanders’ under-construction arena. The deal set the tone for the next year, as 38% of the big league deals signed since then came from the financial sector, the most of any market segment and nearly double the rate that occurred between 1970 and 1999.
Amazon pledged a similar amount 27 days later to tout its environmental sustainability efforts, naming Seattle’s arena Climate Pledge Arena. Both venues are scheduled to open this fall.
Amazon’s unique decision also sparked a trend. Ball Corp., for example, replaced Pepsi’s longtime arena deal in Denver, as it hopes to promote its environmentally friendly aluminum products; and during their NBA Finals run last month, the Phoenix Suns signed with plant-based engineering company Footprint to rename the team’s recently renovated arena.
Innovative Partnerships Group CEO Jeff Marks, who represented the Suns in the deal, said a relationship with a sustainability company provides multiple touchpoints that give stakeholders an opportunity to spotlight their efforts to both their fans and their business partners, something that is more difficult to do with an insurance company or automaker.
“Twenty years ago, naming rights were more of an ego deal for CEOs, and a decade ago it was a marketing decision,” Marks said. “But naming rights in 2021 is a holistic business decision. These are long-term deals that should be treated as if you are buying a business. If you are a CEO with a naming-rights deal, you should feel like the venue is your office.”
And, like Footprint, many of the new players in the naming-rights scene are small and/or unknown businesses.
“Q2 (Austin FC), FTX (Miami Heat), SoFi (Los Angeles Rams and Chargers), Footprint and Lower.com (Columbus Crew) and Paycom (Oklahoma City Thunder) all had revenue below $1 billion when their respective deals were announced,” said Drew Bolero, manager of data strategy at Navigate. “This shows that naming rights is feasible for a growing brand, given the right situation.”
Bolero said recent evolutions in technology have helped the industry develop a better understanding of the performance of such sponsorships in terms of impact and efficiency.
“As far as specific metrics, we now have access to geo-location data, which helps us understand demographics of event attendees, as well as their habits and interests based on where they go before and after events,” he said. “We also have more vendors tracking logos using AI to give us a more precise understanding of time on screen than we had in the past with manual tracking.”
The insurance segment is poised to overtake automakers as the niche’s second-biggest category, after insurers replaced three existing naming-rightspartners over the past 30 months. In March of 1996, eight months before the groundbreaking for the Milwaukee Brewers’ new ballpark, Miller Brewing announced it would put its name on the hometown stadium. That deal ended last year when American Family Insurance took over. Similarly, Canada Life last year took over rights in Winnipeg, where MTS signage had been on the arena since 2004, when the AHL Manitoba Moose were the anchor tenant (before the then-Atlanta Thrashers moved to Canada prior to the 2011-12 NHL season). Additionally, Highmark Blue Cross and Blue Shield replaced New Era’s short-lived presence atop the Buffalo Bills stadium.
Although it may be too soon to classify it as an emerging category, Verona, Wis.-based Wisconsin Brewing Co. announced earlier this summer that the under-construction ballpark that is scheduled to open next spring as home to the American Association (Independent) Lake Country DockHounds will bear the beermaker’s name, a first for a craft brewery. The first naming-rights deal structured as such came in 1970, after the F. & M. Schaefer Brewing Co. paid 25% of the construction costs of the New England Patriots’ new $6.7 million Schaefer Stadium in Foxboro, Mass.
Looking ahead, colleges and minor leagues will continue to serve as fertile ground for brands to showcase their products and services, as there really are only a handful of big league venues with naming rights in play. The San Antonio Spurs are looking to replace recently departed AT&T; MLS has availability at LAFC’s pitch, as well as the under-construction venues in Nashville and St. Louis; Heinz has said it will not renew its deal with the Pittsburgh Steelers after this season; and in Washington, Nationals Park opened in 2008 but has yet to have a corporate name.
And the processes and objectives for both sides are dramatically different in the post-COVID economy.
“Naming rights are no longer just a sponsorship,” Marks said. “If you are selling it that way, it’s DOA.”
The morning after Game 3 of the NBA Finals in Milwaukee, Bucks President Peter Feigin was in Fiserv Arena by 6 a.m. attending to the most pressing business issue at hand: retrieving a lost cellphone left in the arena by one of the team’s owners. Rest assured, Feigin has far more critical commercial efforts on his agenda as well, as the small-market Bucks spend the summer leveraging their first trip to the Finals in 47 years.
For a small-market team like the Bucks and a mid-market team like their opponent, the Phoenix Suns, the Finals represent a coveted and lucrative selling opportunity as the entire industry works to recover from the pandemic.
“You are one of two teams left playing in the NBA and it puts a focus on the team on a global level,” said Feigin, casually dressed in a cream-colored Bucks hoodie and a pair of jeans as he fielded questions from visitors in his office at the Bucks’ headquarters, located a few blocks from the arena.
At hand is an immense, and rare, revenue-generating opportunity for both teams. Milwaukee and Phoenix entered the NBA as expansion franchises in 1968, but prior to this season, the Bucks had not been to the Finals since 1974 and their only title came in 1971; the Suns have also now appeared in the Finals three times, with their previous appearances coming in 1976 and 1993.
The Finals represent a dramatic transformation both on and off the court for the Suns that just a few years ago were one of the worst teams in the NBA. For the Bucks, the Finals continue the team’s upward trajectory that began in 2014, when the team was sold to a group led by Marc Lasry and Wes Edens. Since then, Milwaukee has become one of the most aggressive and innovative teams in the league.
For Phoenix, the biggest piece of business is a new naming-rights deal for its arena that comes as the team wraps up a $230 million renovation. Last week the team announced a naming-rights deal with plant-based engineering company Footprint, which is based in Gilbert, Ariz. Terms were not disclosed, but the team reportedly was seeking a minimum 10-year deal worth $9 million annually. Innovative Partnerships Group represented the Suns in the deal, which will name the arena Footprint Center. Footprint develops and manufactures biodegradable and recyclable technologies and employs more than 1,200 people.
Heading into the Finals, the most recent NBA naming-rights deal was for the Miami Heat’s FTX Arena, which was signed in March and valued at $135 million over 19 years, for an annual average of $7.1 million. The appearance in the Finals put the Suns in a great position to drive the value of one of the most lucrative pieces of team inventory.
“This is an inflection point for our organization,” Suns President and CEO Jason Rowley said of the team’s success. “We are keenly focused on it, and having this level of attention on the Finals — and having the exposure — is valuable to any brand.”
The Suns’ sponsorship inventory also includes the highly visible spot on the floor apron, a deal that will only add to the team’s current level of 12 seven-figure annual deals out of about 120 total sponsors. In addition, Phoenix already has a 95% season-ticket renewal rate. Ticket demand is also fueled by a 1,000-seat decrease in capacity to 17,500 in the renovated arena.
Along with the on-court success and the arena renovation, the Suns already had the advantage of being one of the earliest NBA teams to allow fans to return to the building this season, a situation that further jump-started their business even before their deep playoff run. “The timing is phenomenal,” Rowley said. “We are continuing to leverage the moment, but it is about creating a philosophy of sustained success.”
The Bucks may not have a piece of inventory to sell that’s as significant as naming-rights, but they have some other major assets in the market. “Our inventory is endless,” said Feigin in describing the Bucks’ aggressive and innovative summer sales efforts.
The team has been working for months to sell a sponsorship to its Deer District plaza outside the front of Fiserv Forum. With some 35,000 fans jamming the plaza during both home and away postseason games, and with countless TV shots of those crowds shown on ABC, the Bucks are looking to cash in with an expected seven-figure, multiyear deal for the space. Feigin said the television exposure is “a commercial for activation. We’ve got several prospects and what a better show.”
Inside the arena, the Bucks are creating new inventory and plan to sell a title sponsorship for the suite level, which comprises 34 suites. The team is in the market for its Panorama Club located at the top level of Fiserv Forum. “All will be seven-figure, multiyear deals,” Feigin said of the inventory on the market.
In addition, about one-third of the Bucks’ suites and 33 loft premium products are up for renewal this summer, and the team is pushing for longer and pricier deals.
Of the team’s 100 or so sponsors, about 20 are up for renewal. The sales pitches can tout not just promises but tangible proof of on-court success that brings more value to sponsorships. “It is what we are, not what we could be,” said Matt Pazaras, chief business development and strategy officer for the Bucks.
The Bucks will test a new season-ticket sales strategy by capping full season tickets for next season at 10,000, down from the previous cap of 12,000. It’s a move Feigin said will allow the team to push variable ticket pricing as the Bucks profit from their success.
“In the past, we really needed 12,000 season tickets for that security, but with a winning team, you start to think about what that number should be,” Feigin said. “We will experiment with it. We had no capacity up until 12 weeks ago, but with success, you control your inventory. One of the challenges of being in a small market will always be acquisition and retention. It’s not that deep of a pipeline for fans. We always have to be selling.”
Originally published at https://www.sportsbusinessjournal.com/Journal/Issues/2021/07/19/Upfront/NBA-Finals.aspx?ana=mk_sbj_jo_emjo
