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Devyn Gonsalves

Prof Hendricks
Sport Marketing
11 December 2016
Promotional Licensing Bibliography

Promotional Licensing is an umbrella term that encompasses sponsorship, but


sponsorship, and in many cases corporate partnership has become the accepted term throughout
the world. Sponsorships a referred to as the acquisition of rights to affiliate or directly associate
with a product, person, organization, team, league, or event for the purpose of deriving benefits
related to that affiliation or association. Back in the 19th century tobacco companies would put
baseball cards in their packaging in order increase brand awareness and increase sales. The same
is seen in todays society just in different ways such as the following articles.
Back in April of 2016 the NBA announced that they will be introducing advertisements to
players jerseys. Come the 2017-2018 season, jerseys will feature a corporate logo on the front of
the jersey. The ad space will be sold as part of a three-year pilot program and will take the form
of 2.5-inch square patches that are tailored to a sponsor's logo. The patches will appear on the
left shoulder of players' uniforms -- where the NBA logo used to be. The league's logo was
moved to the back of players' jerseys two years ago. (Garcia, 2016) This makes the NBA the
first US sports league to introduce advertisements to jerseys. To get a little more in depth with
this deal, half of the money received from the sponsorships is given to the teams that feature that
sponsors logo and the other half will go into the NBAs revenue sharing pool. One fact that I
found interesting about this deal is general retailers cant sell the sponsored version of the jersey,
only the team stores can. According to NBA commissioner Adam Silver Jersey sponsorships
provide deeper engagement with partners looking to build a unique association with our teams
and the additional investment will help grow the game in exciting new ways, We're always
thinking about innovative ways the NBA can remain competitive in a global marketplace, and we
are excited to see the results of this three-year trial." (Garcia, 2016) Personally Ive always been
against sponsorships on jerseys but I think this is a great step for the NBA in terms of increasing
revenue for the league especially allowing non-team retailers to sell jerseys without sponsors on
them.
According to BBC News, Barcelonas Futbol club signs a 4 year deal with Rakuten a
Japanese e-commerce firm. This deal is worth $58 million a year making one of the biggest
shirt/jersey deals ever seen in the Futbol industry. This deal could potentially make Barcelona
wealthier than Real Madrid. The deal will begin at the start of the 2017-2018 season and has a
chance to earn the club at least $200 million and if the club wins the Spanish championship or
the Champions League they have a chance to make even more money from this sponsor. For the
longest time the goal for Barcelona was to be the Forefront of the club sponsorships which now
they have officially completed. This deal took about a year to complete, negotiations started in
2015 and was finally inked in 2016.
Scott sports one of the leading bike manufacturer overseas has now became the co-title
sponsor of Australia international cycling team. Both teams men and women will be rebranded
as Orica-Scott come the next three seasons. This isn't the first time Scott has been associated
with Orica before. For the past 5 years Scott has been a bike supplier to the Australian team. The
owner of Orica-Scott, Gerry Ryan, had High Hopes a couple years ago that one day they would
be at this position. They have seen the value and we are now a genuine general classification
team, Five years ago when we started out, we knew that one day we would have the talent
required to become a general classification contender and now weve got three genuine chances.
(Dudley, 2016) Even though the deal has been made no financial information has been released
yet but in previous sponsorships in cycling deals are usually work anywhere from $5.5 million to
$11.1 million. Gerry Ryan feels that Orica-Scott is a head of their initial planning and he ranks
them in the middle of the world cycling budgetary ranks.
NASCAR inked a new sponsorship deal on December 1, 2016 with Monster Energy. This
is a multi-year deal but the length and amount of the deal has not been released yet. The most
amazing thing about this deal though is its only the 3rd entitlement sponsorship in NASCAR
premier series history. Monster Energy has had sponsorships in numerous athletic events, for
players and for teams prior to signing with NASCAR but this signing has to be the greatest
accomplishment for Monster Energy. The great thing about this signing is what both sides bring
to the table and its almost identical. Monster Energy is a brand built on excitement and
enthusiasm, qualities that align with NASCAR," said Brian France, NASCAR Chairman and
CEO. Monster has built its brand on racing and motorsports, and NASCAR is the pinnacle of
motorsports in America," said Mitch Covington, vice president of sports marketing at Monster
Beverage Company. "It's American racing; we're an American brand that's a global company, and
NASCAR is, too. When the opportunity came along to further associate yourself with a sport like
NASCAR, it was the perfect fit for us. NASCAR is just a hard-hitting, close-racing, fun
property to be associated with." (NASCAR, MONSTER ENERGY PARTNERSHIP, 2016)
Monster as I stated before has been a sponsor to athletes for years but now NASCAR is allowing
Monster to sponsor the All-Star Race and has officially became the official drink of NASCAR. I
see this sponsorship bringing in a lot of revenue for both companies because of how well the
companies go hand in hand and the history of success of the 2 companies.
On December 5, 2016 sources claim that Dunkin Donuts and the NHL have announced a
multi-year agreement that makes Dunkin Donuts the official U.S. coffee, donut and breakfast
sandwich of the NHL. This marks Dunkin Donuts first national sports league
sponsorship/partnership that will officially be seen on January 2, 2017 for the 2017 NHL Winter
Classic. In depth details shows Dunkin Donuts will not only be at the Winter Classic but other
major NHL event such as NHL All-Star Event, NHL Stadium Series, and the Centennial
Celebration. Tom Manchester VP of Dunkin Donuts states "As the NHL celebrates its
Centennial year, we are thrilled to be partnering with such an iconic league, giving our fans
many more opportunities to engage with their favorite hockey teams. (NHL forms partnership
with Dunkin Donuts, 2016) As a part of this new deal Dunkin Donuts plans on offering NHL
team logo donuts for a limited time during the season. Previously before this deal Tim Horton
was the breakfast sponsor of the NHL but the new deal with Dunkin Donuts has potential to be
one of the biggest sponsorship/partnerships in the sports industry.
Earlier in September, the NCAA and Pizza Hut agreed to a mulit-year agreement in order
to bring back the mini March Madness basketballs that debuted back in 1987. "In the first year of
the promotion, Pizza Hut sold all of the 2 million basketball it ordered in 10 days. It paid
Rawlings, an NCAA licensee, $2.19 for each of the basketballs, Host Recalled. The next year,
Pizza Hut ordered 4 million balls and sold them out. (Smith, 2016) At first Jim Host was scared
that they werent going to sell all of the balls but instead they ran out in less than 2 weeks. Pizza
hut is still working out the contract with the NCAA so now information on how long exactly or
how much money this deal entails. The NCAA made another smart move by signing Pizza Hut
because this makes their 18th corporate partner and it checks off another dining quota other than
Buffalo Wild Wings which is official sit down restaurant for the NCAA. The only other dining
quota they need is a fast food company which may happen sooner than we think.
Los Angeles Rams managed to fill their 9 and 10 spot for sponsors by signing with
Hyundai and AT&T for the team's first season back in Los Angeles. This isn't the first time
Hyundai is seen a deal with the NFL as a matter of fact they are the official car of the NFL and
also sponsor five other NFL teams. It just so happens to that its US headquarters are 30 miles
away from LA also. All 10 deals are for 3 years only which is the estimated length of time for the
Rams new stadium to be built. Not just because these companies have a sponsorship right now
doesn't mean they will when the new stadium is built. "February 2017 is the earliest the Rams
could start selling deals for the new stadium, but it could be well beyond that." (Lefton, 2016)
The Rams are going to have a hard time selling this new stadium because over the past decade
the team only averaged five wins and has gone without a playoff appearance since 2004.
WWEs signature sponsor, Snickers, has renewed their deal for the WWEs biggest event,
WrestleMania. Apart of this renewal Snickers has a commitment to create a couple of ads using
WWE stars for its Youre not you when Youre hungry campaign. These ads should appear
come February all over every WWE network. Last years WrestleMania even reeled in 1.5
Billion impressions throughout multiple media platforms. These impressions allowed Snickers to
properly place themselves in positions they wouldnt be with this sponsorship. Before the
Snickers sponsorship the WWE hadnt had a sponsorship for WrestleMania since 2010. John
Brody who is the WWE executive vice president of global sales and partnerships claims We
delivered results for a top brand at our biggest event and you have to believe our retail
integration delivered sales or there is no renewal. (Lefton, Snickers, Satisfied with WWE,
renews its WrestleMania deal, 2016) Brody also stated that the 2016 WrestleMania Event was
the highest grossing, most attended, and most watched ever in WrestleMania history. That event
also managed to set the bar for merchandise revenue with $4.5 Million in sales.
On November 29, 2016 the Atlanta Journal-Constitution wrote an article stating that the
Atlanta Falcons sold $900 million in stadium sponsorships. This manages to put the Atlanta
Falcons within $100 million of their contracted sponsorship revenue agreement. Its no surprise
that the Atlanta Falcons recorded $900 million in sponsorship when the corporations that sponsor
the Mercedes-Benz Stadium are major corporations such as: Coca-Cola, SunTrust Banks, IBM,
Equifax, Home Depot, American Family Insurance, Novelis and NCR. Not including the contract
with Mercedes-Benz that last 27 years. Mercedes-Benz will be the only sponsor with permanent
signage in the stadium bowl, which makes the success of AMB Groups overall sponsorships
sales even more impressive. (Lefton, Falcons' new home nears sponsorship record, 2016) The
parent company for the Atlanta Falcons, AMB, claims they are confident in breaking and setting
the record in sponsorship sales for a Stadium in the U.S. but it will only last until the LA Rams
open their new stadium.
On October 11, 2016 one of the biggest German car manufactures extended its
sponsorship with French Rugby Federation (FFR). This deal consists of a 4 year deal extending
into 2020 but no money was announced. As part of the deal, BMW has created the BMW
Oscars Amateurs initiative, which seeks to reward and promote local clubs. The companys
branding will also appear on the jerseys of Frances national teams at youth level. (BMW
Drives On With French Rugby Federation, 2016) Also included from this deal was the signing of
the French national team captain Guilhem Guirado as a BMW Brand Ambassador. Lastly, BMW
managed to become a partner for 2 rounds of the World Rugby Sevens series.
Chelsea Futbol club has inked a new lengthy deal with Nike one of the largest sportswear
brands on the globe. This deal is claimed to be the biggest commercial contract in the English
Premier League Futbol club history. The terms of this deal were not disclosed however there is
an estimated worth at around $77 Million per year. Prior to the Nike deal, Chelsea was sponsored
by Adidas whose contract will now be cancelled after the 2016-2017 season, and the Nike deal
will at the beginning of the 2017-2018 season. Chelsea director Marina Granovskaia said: This
is an incredibly exciting and important deal for the club. Like Chelsea, Nike is known around the
world for its excellence and innovation and we look forward to working together in what is sure
to be a successful partnership. We believe Nike will be able to support our growth into new
markets as well as helping us maintain our place among the worlds elite football clubs.
(Chelsea Swaps Adidas For Nike In Record Kit Deal, 2016) For the longest German
Corporations such as Adidas and Puma have dominated the Futbol market with their products.
Just recently has Nike elevated their status overseas in the Futbol industry by signing big name
players such as Cristiano Ronaldo, and Neymar Jr. but this deal with Chelsea may give Nike the
slight advantage they need in order to become dominate in that industry.
Manchester United Futbol club from the English Premier League has announced its
renewal with Chilean wine producer Concha y Toro. Manchester United inked a 3 season
extension that goes from 2016-2019 in order to keep Concha y Toro as the clubs official wine
sponsor/partner. Long-standing relationships are very important to us and Casillero del Diablo
is at the heart of our family of global partners, and a natural part of our fabric too, Richard
Arnold, Uniteds group managing director, said. As it has become a familiar part of the Old
Trafford and Manchester United experience; its success and growth has helped people around the
world see its true quality and helped put Chilean wine on the map. (Manchester United Pours
Extension With Wine Partner, 2016) Manchester United said they aim to boost further growth
and success with this extension. Its clear that this partnership has been successful before this
new deal due to the fact that there was a limited-edition Manchester United Legendary Wine
Collection that has sold 300,000 bottles since 2014. As it stands theres nothing but up for the 2
organizations from here on out.
Liverpool FC, a Futbol club in the English Premier League has signed a deal with
Malaysia Airlines. The deal is a 3 year agreement that last from 2016-2019 and makes Malaysia
Airline the official global airline for Liverpool FC. Prior to Malaysia Airlines, Garuda Airlines
held a deal with Liverpool FC. Peter Bellew who is the Chief Executive of Malaysia Airlines
states Both brands have a long and illustrious history with similar cultures rooted around a
sense of family. Liverpool FC is one of the most followed clubs in the world, including around
100 million followers in Southeast Asia and 40 million in China, our key markets. (Liverpool
Takes Flight With Malaysia Airlines, 2016) This deal is pretty self-explanatory, the reason why
the deal was inked was for Liverpool to receive revenue from the sponsorship/partnership and for
Malaysia Airlines to expand and strengthen their brand in a different market other than the Asian
market.
College Football is about to have a new sponsor for the Pac-12 conference showpiece
championship game and that sponsor is 76 brand gas. The details of this agreement consist of a
mutil-year deal that incorporated 76s logo on the 50 yard line of the field come game day. 76
gas will also receive in stadium signage, pre/in-game promotions, and more. Fans wont be left
out at this event because both organizations are working on fan promotions. 76 is an iconic
brand in the West making it an ideal match for the Pac-12, Pac-12 Networks' executive vice-
president of sales, Neil Davis, said. The Pac-12 Football Championship Game is one of our
biggest events of the year and we are thrilled to partner with such a fan-friendly brand like 76.
(Pac-12 Signs First-Ever Presenting Sponsor For Football Showpiece, 2016)
In almost all of the articles above they all feature similar characteristics. These
characteristics consist of the right to use a logo, name, trademark, and graphic representation
signifying the purchasers/supporters connection with the sport property. The right to an
exclusive association within a product or service category. The right of entitlement to an event,
venue, or facility. The right to use various designations or phrases in connection with the sport or
entertainment property. The right of service or the right to use the sponsors product or service in
conjunction with the performance, event, or facility. The right to use certain promotional
activities. Lastly, the right to the media assets of the sport property. Even company, corporation,
or organization that was mentioned in any of the articles previously all have one goal in mind,
increase revenue. In order for any of these companies, corporations, or organizations to have full
success with promotional licensing they need to be able to look at the bigger picture. Effective
sponsorship campaigns understand the role they play in a brands wider marketing strategy. And
most successful sponsorship brands activate their strategy across one of four approaches: they
become synonymous across a sports vertical; they use clear messaging in all their campaigns;
they showcase a brand capability; or they promote a concept. (Treadaway, 2016) Simple,
cookie-cutter sponsorship ideas wont help with an organizations major goal. In order to unlock
the full potential of a sponsorship campaign you need to think about more than whats just in
front of you.
Bibliography
BMW Drives On With French Rugby Federation. (2016, October 11). Retrieved from
Sports Business Research Network: http://sbrnet.com/Article-Detail.aspx?
id=246433
Chelsea Swaps Adidas For Nike In Record Kit Deal. (2016, October 13). Retrieved
from Sports Business Research Network: http://sbrnet.com/Article-
Detail.aspx?id=246507
Dudley, G. (2016, December 12). Scott announces Orica title sponsorship. Retrieved
from SportsPro:
http://www.sportspromedia.com/news/scott_announces_orica_title_sponsorshi
p
Garcia, A. (2016, April 15). NBA becomes first major US sports league to allow ads
on jersey. Retrieved from CNN Money:
http://money.cnn.com/2016/04/15/news/nba-jerseys-corporate-sponsors/
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Pac-12 Signs First-Ever Presenting Sponsor For Football Showpiece. (2016, October
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http://sbrnet.com/Article-Detail.aspx?id=246306
Smith, M. (2016). Mini Ball Mania: Pizza Hut returns to NCAA. Sports Business
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Tucker, T. (2016, November 29). Falcons sell $900M in stadium sponsorships, report
says. Retrieved from Atlanta Journal-Constitution:
http://www.ajc.com/sports/football/leadoff-falcons-sell-900m-stadium-
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