National Business Awards Q&A: Jackie Fast, Slingshot Sponsorship 20th August, 2014

Jackie Fast is the Managing Director of UK-based strategic sponsorship agency Slingshot Sponsorship. Her organisation has been chosen as a finalist in the BlackBerry Business Enabler of the Year category at the 2014 National Business Awards; as part of Outsource‘s partnership with the NBAs, we got together with the finalists for this award to ask them a few questions about their activities and the changing nature of partnership and collaboration in a rapidly evolving business environment…

Outsource: In the words of the organisers, “The winner of this award will be the organisation that has best helped client or partner businesses to increase profitability by improving efficiency, develop talent or implement innovation.” How do you think your organisation has managed to do any one of these things to the extent that it has been shortlisted?

Jackie Fast: Our entire business model centres on how successful we are at identifying, uncovering and generating additional income through commercial gaps and sponsorship; therefore, this award could not be more suitable as every single aspect of our business is built on this.

When we launched only four years ago, we anticipated that this model would only suit smaller organisations who either didn’t have the resource to properly commercialise their opportunities or didn’t have the skill set. However, over the years, this applies to almost every business and can take an objective specialist view to really identify the opportunities that are being missed. Since inception, our clients have ranged dramatically from charities such as the British Heart Foundation and the Mayor’s Fund for London, to music festivals such as Outlook and Dimensions, to big B2B events such as the What Car? Awards. Ironically, regardless of the business or industry, the framework put in place is the same.

O: When a buy-side organisation engages with a supplier, how far do you think it transfers responsibility for innovation?

JF: This is a topic much debated at the moment as historically the brand was always responsible for the activation. However, it is in both parties’ interests to actively engage and ensure that the programme, event, or campaign is successful for the audience. Therefore, I would strongly argue that the onus is placed on the rights holder side to ensure that activation falls in line with the overall business strategy to help align objectives.

O: Do you think the very definition of partnership, in a business sense, is evolving and if so how?

JF: The output of partnership is still the same; however, the input of partnerships is radically changing, which is why there are discrepancies around definitions of what sponsorship or partnership is. Sponsorship makes marketing work harder and always has; however, who is involved in that partnership is different now through the advance of digital technology. This will inevitably change our industry.

O: What’s your definition of the perfect client?

JF: A client who understands their business and their reason for bringing on partnerships beyond the financial. A client who isn’t about just selling the logo.

Partnerships can deliver far beyond the investment of rights. When clients understand this implication and its potential, we then have the ability to create sponsorships that deliver value well beyond expectations.


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!