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.

Denver Broncos

The Denver Broncos can sponsor its own stadium.

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.

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