Brand Sponsorship. Broncos.
Tom Dougherty, CEO – Stealing Share
8 August 2016
Should anyone sponsor the Denver Broncos?
When Sports Authority closed its doors due to bankruptcy, that left the defending Super Bowl champion Denver Broncos in a dilemma. What should they re-name Sports Authority Field at Mile High Stadium?
The Denver Broncos were left without a field sponsor and, now that Sports Authority has gone out of business, the team is igniting talks with potential suitors.
Tops on the list, according to some reports, is Papa Johns, the national pizza chain that has tied its wagon to both the NFL and founder John Schnatter. Considering its overall strategy, it would make some sense.
Or would it?
What would a brand get out of sponsoring the Denver Broncos?
As a brand strategist, I’ve always been wary of stadium naming rights. It can be expensive, for one thing. Costs usually run from $11 million (Levi Stadium near San Francisco) to $20 million (Citi Field in NYC) per year.
In the large scheme of things, especially when you consider how much brands waste on advertising, it’s not that expensive. But what do brands get out of it?
To me, the reason to be the name sponsor of a sports arena is strictly for awareness. There’s no other reason. I can’t fathom how a brand can create preference based on that sponsorship.
Of course, that kind of sponsorship doesn’t exist in a vacuum. It should be part of an entire marketing strategy. And, often, sports sponsorship comes from a local company with nationwide reach. (Such as Sports Authority, which was headquartered in Englewood, Colorado.) Brands consider it part of their community outreach.
What would Papa Johns truly get out of it? It doesn’t have an awareness problem and it already has an official alliance with the NFL. From a brand perspective, sure, it could be the name sponsor for the Denver Broncos without impugning on its brand. But it already has high awareness and reach so there’s no compelling reason for it.
Think about this. What did the sponsorship do for Sports Authority? It probably has less awareness than Papa Johns, but the sponsorship did nothing to create preference for its brand.
Five years into its 10-year deal with the Denver Broncos, Sports Authority closed up shop.
My advice to Papa Johns or any of the other brands considering the sponsorship: Don’t do it. The NFL teams are rich enough to sponsor their own stadiums.
LOTR coming to Amazon Tom Dougherty, CEO - Stealing Share 21 November 2017 Amazon brings LOTR to the small screen - and I love it Amazon taking on LOTR (The Lord of the Rings) is being greeted with boos. Why mess with a good thing? But I love Amazon all the more for...
Fox News ratings Tom Dougherty, CEO - Stealing Share 20 November 2017 Fox News ratings dip, others rise. A lasting trend? The other cable news networks envy the Fox News ratings but a tide might be turning. Ratings for the cable news network leader are dropping 12% in...
UCLA basketball thieves Tom Dougherty, CEO - Stealing Share 16 November 2017 UCLA basketball brand as it stands now The UCLA basketball brand suffers a major wound. It has been many years since NCAA basketball fans talked about the BRAND of UCLA basketball. The heyday...