Tag: sports


Will brands click play on creating an e-athlete megastar in 2016? 23rd February, 2016

E-Sports are fast becoming more popular as both a competitor and spectator sport in the West, with Wembley Arena playing host to large events such as League of Legends and a dedicated e-gaming space currently being developed in Fulham.

Despite numerous stalwarts’ draconian views and attempts to undermine the credibility of the platform, veteran e-sports journalist Rod Breslau commented in a VICE interview that it continues to surpass expectations in revenue and attention. A once tight knit community now draws in hundreds of thousands of attendees to events (surpassing many traditional sporting contests), eager to see their team take home cash prizes to $18million (The International 2015).

Already USA and Korea have ‘appointed’ superstar players (Faker, NadeShot), with the success of KSI (he would be the first to point out he is not a ‘gamer’) in the UK when will mainstream brands see the e-sports as a credible, substantial marketing platform? Red Bull were the first major brand to act signing Dave ‘Walshy’ Walsh in 2006 however relatively few brands have followed. Venturing outside traditional endorsements to capitalise on the expanse of the platform, Red Bull developed training labs focusing on nurturing and developing the e-sports athletes of the future, cementing their position and long term commitment in the sport.

E-sports is growing in size year on year with significant growth expected in 2016. The platform is already producing talent, major events and games which are capable of building and capturing a loyal fan base of elusive millennials. These can be reached through numerous, non-traditional channels including online streams and development YouTube channels, to note Matt ‘NadeShot’ Haag has over one million YouTube subscribers who follow his daily gaming sessions.

Yet Europe has yet to find their e-sports star on the same pedestal as their Asian counterparts such as Sang-Hyeok Lee, who is constantly in discussions with native Chinese companies interested in partnering.

There are a number of parallels with the growth of sports marketing in the 1970’s and the e-gaming platform of today with brands viewing the platform with trepidation as opposed to optimism. Brands should look towards e-sports as an exciting platform to engage with their market using all of the crucial buzz words of content and media coverage of the industry today (in 2014 over 70 million hours of content was captured from League of Legends online, with the BBC streaming the 2015 contest live on their IPlayer and Sport platforms).

2016 is set to be a monumental year for the growth of the e-sports industry, with tournament prize pools reaching up to $20 million and huge strides pending in the Western market.  With new launches of multiplayer sensations (such as Overwatch, Battleborn) sponsors will have the ability to engage in real-time with the audience something which is rarely achieved through traditional sporting means.

For those brands who position themselves as ground-breakers E-sports offers the perfect challenge. The only question is, who will click play?


To Buy or Not To Buy – Michael Jordan & the Cost of Two Coupons 30th October, 2015

Money is almost always a closely guarded secret, whether between friends, business relations or colleagues.

Nowhere is this more prevalent than the world of sports business with undisclosed fees for player transfers and the value of sponsorship deals rarely disclosed, so not to alert others to an inflated bank balance or be extorted for a fee. However, what happens when a company uses rights it has no possession of?

This was the focus of an unusual dispute between Michael Jordan, Safeway and Jordan’s long-term sponsors Nike.

Following Safeway’s unsolicited use of the Michael Jordan name without permission the two recently visited court to settle a proposed $10 million payment from a 2009 infringement.

In 2009 a subsidiary of Safeway’s placed in an advert and coupon incorporating Jordan’s name and Chicago Bulls number within a commemorative Sports Illustrated issue (of which only two were ever redeemed). However Jordan’s lawyers and endorsement history advise that he would not have accepted such a deal. Safeway believed this should be in the region of $126,900, more widely reported as closer to $500,000 from a licencing agreement which MJ held at one point over the last decade.

The argument posed by the athlete is that Jordan name is such a force in the marketing world that this requires a substantial rights fee, something he is keen to reinforce following a statement reporting an income of over $536 million in sponsorship alone from 2000 to 2012.

This is where Nike and other sponsors take interest.

As MJ and his legal team seek to prove how much an organisation typically purchases these rights leading to Judge John Blakely to rule that Nike and other sponsors must divulge their contracts to the court – something that they neither asked for, nor were keen to divulge to their competitors.

Despite being desperate to retain the fiscal anonymity within Michael Jordan’s contract, (a document so closely guarded reportedly only three member of staff have access and it is held in a separate area to all other contractual agreements at the Nike headquarters) the judge ruled this must be shown to the court.
The case is now settled with Safeway ordered to pay $8.6m in rights fees to Jordan, despite Michael expressing “it was never about the money”.

In the world of sponsorship it is always better to acquire those rights than use without permission – who knows it might just save you $8.1m in the long run.


How Sports Sponsorship is helping to bring Communities together 16th May, 2013

Last Thursday I attended the Innovation in Sports Business Summit, which was focused upon the theme of last weekend’s Euroleague Final Four. It brought together sports experts from various fields such as media, gaming, digital content, marketing, sponsorship and social responsibility. In times where marketing and CSR budgets increasingly overlap, the second panel, “The Power of Sport. How can Sport create a legacy?” was especially poignant . Headed by former Chelsea FC legend Graeme Le Saux and Simon Cooper, Head of Sport at Mayor’s London Office, the panellists discussed the influence and more importantly, responsibility that sport has on communities.

The European Sponsorship Association’s market trends survey revealed that CSR is increasingly becoming an integral part of sponsorship campaigns. Whereas in the past businesses and brands tended to spend their CSR budget on supporting arts or environmental based causes,  they are beginning to acknowledge the power that sport has in terms of reaching and engaging with people on an  emotional level.

There are many examples of how sports rights owners and brands are beginning to collaborate as a means to make a difference in people’s lives rather than just purely about the sponsorship – which in turn, is creating true value within the campaign. Here are three of my favourite sports sponsorship & CSR partnerships.

1. One Team – Euroleague Basketball & Turkish Airlines

The One Team CSR Marketing Programme was, of course, a focal point of the second panel at the Innovation in Sports Business Summit. Launched in 2012 in collaboration with Euroleague’s main sponsor, Turkish Airlines (their Founding Patron), the programme is additionally supported by eight Founding Partner Clubs and seven further Euroleague basketball clubs (by 2014 this will be extended 24 clubs in total).

The aim of One Team is to use the power of basketball to change lives. All 15 clubs involved in the initiative tailor and invest their community outreach with the aim to challenge key social issues faced by their communities. The clubs use an innovative methodology of assessment, outreach and results oriented analysis to create the maximum impact and results.

When discussing the success of the programme, panellist and architect of this European-wide development programme, David Butler, pointed to the importance of having the right measurement: “When asked ‘how is it going’, organizations tend to talk about increasing numbers, more children, more projects, more people, more scale, more geography. But that does not answer question properly. The question should be asked: ‘how much impact are you having? And how much positive change is happening?'”

Each one of the clubs works with disadvantaged individuals from their communities, with basketball as the integrating tool. An overview of all the different projects can be found here.

Temel Kotil, CEO of Turkish Airlines, expressed the importance of initiatives such as these stating “At Turkish Airlines we believe that sport is a unique language that can inspire and One Team uses that language to talk to those who most need to hear its message of positive values.”

2. NBA Cares – NBA & Kia

One of Euroleague’s benchmarks was the NBA Cares programme. Similar to Euroleague’s One Team programme, NBA Cares is a community outreach initiative that addresses important social issues such as education, youth and family development as well as health and wellness. Since 2005, the league has partnered with NBA teams in order to support a range of programs, partners and initiatives that strive to support children and families on a global scale. So far, more than $210 million have been raised for charity and more than 2.3 million hours of hands-on service has been provided by the National Basketball Association and its clubs. Through TV-Spots (such as this one featuring Miami Heat’s Dwyane Wade) at every NBA game, the league uses this content as a marketing tool to raise awareness about the issues surrounding many communities. Click here to see how the different teams and players are currently supporting NBA Cares.

Due to this success, the NBA has created a new sponsorship platform within the NBA Cares programme: the Kia Community Assist Awards that honour the NBA player who best reflects the passion that the league and its players have for giving back to their communities. This sponsorship deal is one step ahead of Euroleague’s partnership with Turkish Airlines as it engages with fans on a far bigger scale using Social Media channels such as Facebook.

3. Hamburger SV – “Hamburger Weg”

Football is probably the sport which has naturally the strongestbond to local communities. Hamburger SV is a very traditional football club in Germany and was one of the first clubs in the world who integrated sponsors into its CSR plans. The “Hamburger Weg” is a partnership between the football club Hamburger SV and local companies. The programme combines classical sponsorship with CSR, through donations. The club donates 1/11 of its sponsorship revenue to local organisations and charities to help them find the right footing in life. Hamburg’s sponsors are specifically branded with white logos on a blue perimeter advertising background which adds an additional affiliation between brand, charity and club.

Michael Jordan: The Original Brand Ambassador! 25th February, 2013

On February 17th 2013 Michael Jordan, one of sport’s great personalities, turned 50. Not only is ‘Mike’ a sports legend but also the face of arguably the most successful brand endorsement deal of all time. Due to the recent headlines involving sports stars such as Oscar Pistorius and Lance Armstrong the value of brand ambassadors is being questioned more than ever (see Mark Mylam’s blog). Michael Jordan’s sponsorship deal with Nike however, proves what kind of positive impact such an agreement can have for both the brand and the celebrity. Let’s recap this incomparable success story:

“The 1984 Olympics was Michael Jordan’s coming out party” describes his agent David Falk. Up until this point Michael Jordan had not even played a single game in the NBA and yet at the time top three major basketball shoe brands Adidas, Converse and Nike were after him. Before his NBA career even started Jordan already knew who he wanted to partner with – Adidas. The German sports brand and Converse were the leading shoe suppliers for the NBA stars in the mid and late 80’s. Michael Jordan himself had never worn any Nike basketball shoes before and was convinced by the quality of Adidas’ products but the first brand that Michael Jordan met with was Converse. During this pitch Jordan mentioned his worries about the endorsement deals that Converse already had in place with superstars like Magic Johnson or Larry Bird and asked: “With all these stars, where do I fit into the conversation?” John O’Neil, the president of Converse, took that question and replied: “We’ll treat you like all our other superstars.” This is obviously not the answer that the upcoming star wanted to hear and the $100,000 per year that Converse offered him could not change his mind either.

The next invitation that Michael Jordan received was from Nike, however he was not interested in what they had to tell him and declined this invitation at first. In the end it was Jordan’s mother who convinced him to at least listen to what Nike had to offer so he took the plane and the rest, as they say, is history. Nike  decided to spend all of its marketing budget on Jordan and offered him a five-year deal worth $500,000 annually plus royalties; five times as much as any other NBA superstar was receiving at the time. It wasn’t only the sound of the money that made Nike suddenly attractive to Jordan: Nike offered Jordan his own signature shoe line. This is the kind of special treatment that Converse didn’t offer Michael and as a result they were out of the running.

However Adidas was still in the race – Jordan’s “favourite shoe”. If Adidas could have matched what Nike put on the table then Michael would have teamed up with the German brand. However Adidas missed out on this opportunity and this mistake became known as one of the worst business decisions in the last 50 years. “They didn’t feel it was worth it,” said Jordan. “Which in hindsight is perfect for me, because it made my decision much easier. And I ended up with Nike, and it became a great relationship.”

The Jordan brand was born (with the jumpman logo appearing in 1987). Since 1984 Nike’s subsidiary coproduced 27 basketball shoes with Michael Jordan. Last year, the U.S. Jordan Brand sneaker business alone had $1.25 billion in wholesale revenue. Although Michael Jordan himself isn’t playing anymore there are still active NBA players (Carmelo Anthony, Blake Griffin, Chris Paul etc.) acting as Air Jordan ambassadors and supporting the brand’s huge success within the basketball industry. Whereas in the mid and late 80’s Converse and adidas were dominating the U.S. basketball shoe market, 30 years later it is the Jordan brand that is controlling 58% of it, followed by its parent company Nike (34%), adidas (5.5%), Reebok (1.6%) and Under Armour (0.6%).

Michael Jordan himself is still earning more than $80 million per year through corporate sponsorship deals and the majority of this income is related to his partnership with Nike. The current details of this deal are a well kept secret but royalties now generate more than $60 million annually for MJ, according to a Forbes article.

You can buy yourself a lot of nice Birthday presents with that amount of money – Congratulations Michael! But also, congratulations Nike!

The Blurring of Sports & Entertainment Marketing 12th July, 2012

We recently saw the launch of Manchester City and Umbro’s kit for the 2012-13 season with a little help from City’s most famous supporter, Noel Gallagher. This is yet another example of crossover between the two key industries for sponsorship spend which prompts the question: what does this blurring of sports and entertainment really mean for sponsors?

Sport has always been a form of entertainment however the two concepts were once treated as two separate entities. Sport was solely about the display of athleticism whilst entertainment strictly referred to music, film and other performance-based art forms.

Sports stars are now entertainment personas, using their sporting foundations to build brands that extend way beyond their reason for being famous in the first place. Whether this means becoming a commentator, designing their own fashion labels or trying their hand at acting (Michael Jordan in Space Jam has to be worth a mention), sporting personalities along with their sponsors are exploiting markets that lie increasingly further away from sport, thus introducing the industry to new territories whilst continuing to pull the two worlds of sport and entertainment even closer together.

What does this mean for sponsors?

Sponsors are in turn benefiting from athletes promoting their brand in front of a range of audiences, making endorsement deals more valuable than ever. The activity of athletes off the field, court, track or any other sporting arena has also heightened considerably, giving brands a more continual relationship with the personality they are associating with. Social media platforms, especially Twitter, are providing athletes with a voice away from the field of play, resulting in a 24/7 dialogue with fans. Brand association and messaging are therefore becoming significantly more impactful with athletes personally posting images, videos and comments relating to the products they use.

Sport as a whole has also seen a transition as leagues and tournaments have been opened up to new markets; going on tour just as a musician would. With the success of such worldwide exhibitions as the Harlem Globetrotters, the NFL is now staging a season game at Wembley and drawing a sell-out crowd every year. Proposals for the Premier League to go global have also been brought to attention in recent years and with an increasing ratio of international to English players and managers, it would appear inevitable that we can expect to see games from the world’s greatest domestic football league being played in international cities from New York to Hong Kong. This will in turn attract brands with no previous ties to the sport, opening up the game to a whole host of additional markets around the globe.

What to expect for the future

Traditional sports are now experiencing a transition into a genre more similar to that of bull fighting and wrestling with athletes thriving off the opportunity to engage with the crowd. This is in turn broadening the commercial awareness of sporting professionals, making them more susceptible to working with sponsors in order to design, brand and market their products.

Moving forward, we can expect to see a vast change in the existing sports marketing landscape. Athletes and brands will continue to increase their online presence whilst promoting their sponsorships on a truly global stage with (what were) domestic competitions taking place from all corners of the world.

Sports sponsorship is still very much focused around the ideology of winning, success and excellence along with reaching global markets, however, with athletes becoming more of a lifestyle interest, we can expect to see some unusual brands popping up in this arena in years to come. This year we have already seen Rovio, the creator of the addictive Angry Birds app, sponsoring Caterham F1’s Heikki Kovalainen in Monaco as well as The Dark Knight Rises, the latest Batman film, joining forces with Lotus at Silverstone – two true testaments to the convergence of sports and entertainment.

Big Brands Do Small Sponsorship 11th June, 2012

Brands become involved with sponsorship for a variety of reasons – to create awareness, to raise credibility, or to improve people’s perceptions of the brand as a whole.  The most notable sponsorship deals grace the front covers of our national papers providing the appearance that global brands only sponsor large properties such as the Olympics, UEFA, and Premier League Football.  However, this is not always the case.

Brands such as Adidas and Orange supplement their larger sponsorship properties with community partnerships helping them solidify their positioning and also strengthening the potential for advocacy through closer engagement.

Adidas Women’s 5K Challenge

The Adidas Women’s 5K challenge although still a relatively large event with 20,000 participants is a great example of a smaller partnership intended to raise perceptions of the brand through focusing on the female consumer. Although unisex, Adidas as a sports brand is more readily associated with a male audience particularly because of its association with male-orientated events highly publicised in the news such as UEFA.

For this reason, Adidas’s sponsorship of the Women’s 5K Challenge was a successful sponsorship strategy for the brand for a number of reasons:

  • The focus on a solely female audience helped position the importance of women as consumers
  • It created an emotion tie-in, touching on the heart strings of the female audience through the event’s charity support of Breakthrough Breast Cancer
  • Exclusive naming rights ensured that Adidas stood out from its competitors

Orange Sponsors Swanswell’s Football Kit

Swanswell is a charity that works to help people overcome drug and alcohol addiction. Quite different from sponsoring one of the days a week – Orange Wednesdays – Orange supported the Swanswell five-a-side tournament by sponsoring their football kit for the season.

Trevor Bedford operations manager for Swanswell in Birmingham said:

We’re delighted that Orange has been able to sponsor our new kit, giving people an added incentive to do well and feel well.

Orange’s support for a charity such as Swanswell is beneficial to the brand for various reasons:

  • Small gesture, but creates association with Orange as a brand that cares about the individual as well as community
  • Larger issues that are important and relevant to society as a whole through affiliation with the national charity Swanswell
  • Orange becomes a more approachable brand from a consumer’s perspective –  not just focused on targeting a mass audience
  • Brand differentiation and a change from their typical film sponsorship

Orange and Adidas are a few of many examples of big brands doing small sponsorship well.  We hope to see more of it!

Slingshot Sponsorship team up with Oslo-based agency BITE for the Red Bull Cliff Diving Series 2012 20th March, 2012

Slingshot Sponsorship, the London based sponsorship agency, will work closely with their Scandinavian colleagues BITE to manage the sponsorship for the Red Bull Cliff Diving Series in Grimstad, Norway.  The sponsorship and brand management specialists have combined to create commercialopportunities around the event – one of only 6 World Series Competitions worldwide – that add real value for both brands and the spectators.

The Red Bull Cliff Diving World Series 2012 returns to Norway on 6-7th July – two years after Kragero hosted the country’s first Red Bull Cliff Diving competition.  The World Series is high diving at its most death-defying – an acrobatic descent into water from heights of up to 28m. Once in the air, the divers have approximately three seconds to coordinate their movements before they break the surface of the water at around 100kph (60mph).

Julian Gursky, Head of Events & Sports at Red Bull Norway commented:

We are excited to try a new combination of an international sponsor management approach for our cliff diving world championship stop in Grimstad, Norway by assigning the allied agencies BITE Agency and Slingshot Sponsorship to this challenge

Prospective sponsors will be fully integrated with the two-day event, in Grimstad, as well as during the 21-day day pre-tour, incorporating six cities across Norway, offering ample opportunities for activation, sampling, branding and online promotions.  They will also have rights to footage shot over the two days, giving access to some truly unique content.

Jackie Fast, Managing Director of Slingshot Sponsorship commented:

The Red Bull Cliff Diving sponsorship platform is a great example of how brand platforms can be monetised.  The Slingshot and BITE expertise of sponsorship and branding creates the perfect combination of services to really leverage these types of brand partnerships effectively. We are looking forward to launching this service with Red Bull!

Managing Director of BITE Robert Leinders-Krog also commented:

Approaching this local platform from an international perspective will both increase opportunities and give us a global brand activation arena – executed locally. Exciting times.

For more information on the Red Bull Cliff Diving World Series please click here.