Have you ever imagined watching a sports game through the eyes of the player, or better yet, a team’s mascot?
That futuristic idea is becoming a reality in sporting events as the Sacramento Kings lead the way in integrating technology into sports. Piggy backing on last week’s eSports post, the Kings are also personifying the seismic shift in the way that sports and live events will be seen and promoted for the future. The NFL, MLB, and NBA are all looking towards the future both with consumer wearables and tech innovations. Improving the fan experience and consumer insights is at the forefront of this growing trend of tech-driven sports. It also means a new medium through which teams, players and sports can increase brand awareness and create value.
So how is the Kings’ owner Vivek Ranadive changing the King’s global brand and influence through wearables and his NBA 3.0 philosophy? What does this initiative mean for professional sports and brands?
Over a decade ago, the Kings franchise was the hot ticket in the western conference, but soon fans lost interest. Despite a period of dwindling fans, the franchise has been at the forefront of sports technology beginning in 2007 as the first NBA team on Twitter and having a YouTube channel with more than 18 million views since 2006. This was just the start to their tech boom when Ranadive acquired the Kings Franchise in 2013 and made groundbreaking changes to the future of the Franchise’s culture and direction. It certainly doesn’t hurt that Ranadive is the founder of the real-time data processing software maker TIBCO! Since his leadership, the Kings have partnered with Bitcoin, Uber, Google Glass and TIBCO’s data analysis software, among others. With each of these adoptions, the Kings move closer to putting their fan’s interests first and increasing their reach.
This forward thinking approach is increasing the Kings’ audience and fan experience, but also changing the way we will view sports in the future and how data can improve athlete’s performance. The King’s innovative use of Google Glass for example could change the way sponsors approach athletes with advanced analysis and through a real-life view. This different perspective offers immense opportunity to be added for sponsorships globally, especially with the growing player-spectator relationship. The fan experience is also expanding globally with the King’s app that includes mobile ticketing functions, high speed messaging, and location based offers. With further data analysis, the Kings will be able to quantify their understanding and insight of fans in order to make better decisions for the future of the team, the game, and their brand in the NBA.
With a projected market of 285 million wearables by 2017, sports and technology are moving to the future together. Teams like the Sacramento Kings have left the “old school” of sports and are leading the way in how we view professional sports both on and off the screen. By maximizing social networking, implementing virtual currency, adopting tech innovations, and increasing the fan experience and medium of interaction, sports can create a global brand and reach through technology like never before.
Have you ever imagined watching a sports game through the eyes of the player, or better yet, a team’s mascot?
Tomorrow looks to be one of the biggest days of the year in sports history with both the Kentucky Derby and Mayweather vs. Pacquiao welterweight championship fight happening within hours of each other. It may be one of the last fights of Mayweather and Pacquiao’s careers and the richest boxing match of all time. It also is horse racing’s biggest day of the year.
It also happens to be one of the biggest days of the year for Uncle Sam.
Starlight Racing’s “Itsaknockout” exclusive sponsorship deal with Mayweather-Pacquiao promotion is all about the money, money, money. The aggressive campaign has an estimated $200 million dollar draw, bringing sponsorship to a whole new level for the sporting world, or the world in general for that matter. Mayweather is expected to receive 60% of the total, no matter if he wins or loses. If you break this down by minute, assuming the fight goes the distance, that means Mayweather will make $5 million for every minute of ring action Saturday night. Break it down further and he is making $83,333 per second. Whoever wins the Derby will make a mere $2 million. Still a decent salary for one day!
Ticket sales are also at a record breaking high for any sporting event with prices ranging from $87,000 to $150,000 per ticket. One thing is certain, a lot of people are going to make money off of this fight.
What does this mean for the direction of sponsorships? Is the sports industry changing? Will sponsorships of the future include multi-million dollar deals for athletes? Is it all about the money first, and then the actual sports?
We will find out on May 2.
The hot topic this week centers on Indiana, but not just the NCAA Final Four that kicks off tomorrow. The controversial Indiana “Religious Freedom” law will allow businesses to turn away gay and lesbian customers and the NCAA, among other sports properties including NASCAR, are taking a stand against Indiana’s religious ruling.
In our 2014 IEG presentation we discussed corporate responsibility to social issues and how important it is to take a stand. People may not like what a brand sponsors, how a brand sponsors, or who sponsors and this negative reaction for decisions made can affect brand equity, rankings, and participation. Brands that say something, right away, fare better than brands that ignore the situation. We found that 44% of those surveyed felt sponsors should say something and be engaged in social issues.
We talked about these issues last year regarding both the Sochi Games and the LA Clippers – negative sentiment can be generated in an instant and tarnish a brand faster than it can be promoted. Controversies and reactions to those controversies continue to play a role in a sponsor’s brand health and sustainability.
By opposing Indiana’s ruling and speaking out publicly of their support for LGBT inclusion, NCAA has set the bar for sponsors to react. With the Final Four in full swing, and such strong opposition for this law, sponsors of the NCAA would fare best to issue a statement and quickly. If they can engage in this social issue to increase public sentiment and decrease the risk for negative associations, they may get more out of the Final Four than they imagined.
As the Final Four unfolds, we will be watching sponsors to see if they follow the NCAA’s lead or wait for the storm to pass.
photo credit: <a href=”http://www.flickr.com/photos/31355653@N07/8257073694″>Mason Plumlee | Duke Blue Devils vs. Temple Owls – Dec. 8th, 12</a> via <a href=”http://photopin.com”>photopin</a> <a href=”https://creativecommons.org/licenses/by/2.0/”>(license)</a>
While attending IEG2015, the sponsorship industry’s annual trek to mecca, amidst the plethora of inspiring presentations from such thought leaders and trend-setters such Target, adidas, and Heineken, I came across one young college athlete that personified the seismic shift in the way we need to be thinking about the sports and live events of the future.
His name is Blake Soberania (email@example.com / twitter: @lots_of_bs) and he is part of Robert Morris University’s e-sports Eagles, and one of the five recipients of the world’s first academic scholarships for e-sports. Take a moment to think about that.
That’s right. E-sports, what we Boomers and Gen-Y & X’ers used to call, (typically in a condescending tone) video games. Universities across the country have e-sports teams that compete in regional and national leagues, host championships, follow official rule-books, and have announcers, sponsors, coaches, fans, and team jerseys… just like their school basketball and soccer teams. Now, add to that list, scholarships and recruiting.
The RMU Eagles are undefeated in the North American Collegiate Championships (24-0). The game of choice is “League of Legends” and the team is under the authority of the university’s athletic director. They have been featured in NY-Times, The Chicago Tribune, and NPR. But what sets them apart from the school’s other student athletes is the popularity of their sport. E-sports / Gaming is a world-wide phenomenon that most of us simply overlook. Not anymore. While speaking with Blake, he learned he and his teammates were about to be interviewed for a feature in Time Magazine. When was the last time you recall a typical college student athlete receiving call from Time Magazine?
According to Newzoo, there are an estimated 2.2 billion traditional sports fans (combined) worldwide while the gaming community reels in 1.7 billion fans annually with an estimated increase to 2.1 billion by 2017. That means gaming has nearly as many fans worldwide as all traditional sports, combined.
Traditional sports typically generate 57 percent of revenue from sponsorships and media selling rights and e-sports is anticipated to match that in just a few short years thanks to the growing interest in sponsorship.
Big name brands like Coca-Cola, Intel, Nissan, and Red Bull are the pioneer sponsors of this global gaming epidemic. By providing multimillion dollar sponsorships to the world’s top players, Coca-Cola is attracting a large, passionate online following. Coke Zero also recently partnered with Riot Games to create a series for amateur League of Legend gamers. “We have worked very closely and collaboratively with Riot Games to create a league that delivers true value to the fans and players of the sport, and that begins to build an infrastructure for e-sports that mirrors that of the more traditional sports,” said Matt Wolf, Coca-Cola’s global head of gaming.
And for some perspective, the 2013 League of Legends Challenge World Championships had over 32 million broadcast viewers, and sold out the 18,000 seat Staples Center in minutes. For 2014, held last fall in South Korea, met or exceeded those figures with even deeper engagement among fans.
Not to be missed, the top 10 You-Tube channels are all centered on gaming. to wit, the number one You-Tube celebrity isn’t Beyonce’, Beckham , or Swift it is an unassuming young man named Pewdiepie (https://www.youtube.com/user/PewDiePie) who talks, laughs and comments while playing the latest game releases – with over 35 million subscribers and over 8 billion (yes billion) video views! http://socialblade.com/youtube/user/pewdiepie
With monumental audiences, professional leagues, increased organizational support, multimillion dollar sponsorships, and now university scholarships and recruiting, one question remains – how long before the NCAA needs to step in?
Bill & Jed joined other partnership decision-makers and thought-leaders at the 2015 IEG Conference in Chicago. On Tuesday their ‘The Future is Now’ presentation highlighted the latest developments in events and measurement, including a demonstration of our newest technology, EVsdrop.
See the full presentation here: bit.ly/1H1JXso.
Just three months ago, President Obama’s announcement that the US and Cuba plan to restore diplomatic relations has created a unique opportunity for US businesses, in particular event and sports sponsorship. Major brands like AMEX, Nike, and Coca-Cola are waiting anxiously on the side lines to take advantage of opportunities as soon as the US trade embargo is lifted. This will not happen immediately or promise to be an easy transition, but offers prospects to change Cuba’s sporting industry.
All professional sports in Cuba were banned in 1962 and with the US trade embargo in place, US Companies have been forbidden from capitalizing on sponsoring all sporting events, Cuban athletes and facilities. Instead of advertising billboards surrounding the ballparks, portraits and slogans of Castro dominate the fields. No sodas or alcohol have been available at sporting events, and local food options have been scarce. Equipment is outdated and falling apart. Athletes keep a meager 20% of their salaries with the government pocketing 80%. Admission to games is free or for a nominal fee – Cubans come to simply enjoy the game.
“Sport is the victim of limitations of the embargo,” said Tomás Herrera Martínez, the director of international relations for Cuba’s sports ministry and a bronze medalist in basketball at the 1972 Munich Olympics. “Sport is one of the main rights of the people, but sometimes there have not been enough resources.”
For a country where sponsorship has been non-existent for the past 50 years, huge benefits exist for all those looking to get involved in Cuba’s sports and events market. Infrastructure improvements and resource availability for hosting events will become possible. For example, if a financial service like AMEX sponsored the Cuban national baseball team, they could have the opportunity to bring banking basics to a large portion of the country through an in-person experiential form of marketing. IT companies could provide sponsorship and provide access to internet services, a foreign concept to most Cubans as less than 5% of the population has internet access. Sporting events will help stimulate the economy and provide more jobs for Cubans. This could start as early as 2016 with a few Major League Baseball teams interested in an exhibition game during spring training.
Companies in the food and beverage industry will look to provide sponsorship and make their brands available at all sporting events too. Huge opportunities exist for sports merchandise as well as concessions at the stadiums. Coca-Cola, for example, is anxious to enter one of its last untouched markets. Like Cuba, Coke was banned in Myanmar for many years, and recently obtained its license to operate by creating value for the overall Myanmar economy. It’s likely that Cuba’s new investors will look to Coca-Cola for guidance on entering a new market with due diligence and responsible business conduct.
Sponsorships could also provide important resources for the athletes, such as updated equipment, proper nutrition, and fair compensation. Just recently it was announced that Cuba’s Athletics Federation is now allowing athletes’ autonomy over sponsorships. The federation’s choice of brand for all athletes, regardless of their preference, has been German owned adidas until 2 years ago when track athletes started wearing Nike. This change has opened a door for US companies to sponsor Cuban athletes and increase their brand awareness in this emerging market. Nike is on the forefront of this change but Under Armor is looking for the next window of opportunity as these sponsorships spread to Cuba’s other most popular sports, baseball and boxing.
Despite doubts and obvious challenges with the Cuban government, economy, and infrastructure, this will be the new journey in sports and event sponsorship for US businesses. Prospects will just have to be patient.